Product footprints: a fundamental tool for business
In an era where environmental sustainability is no longer a choice but a necessity, understanding and managing the environmental impact of products has become key for businesses. Life Cycle Assessments (LCA) are a comprehensive tool which enables a holistic view of a product’s environmental impact, giving business the power to improve environmental performance, meet supply chain demands and comply with emerging regulations.
What are product footprints?
An LCA is a systematic process used to evaluate the environmental impacts associated with all stages of a product's life, from raw material extraction through to production, use, and disposal. LCAs consider multiple environmental indicators, including carbon emissions, water usage, resource depletion and human toxicity. Another tool commonly used to measure the environmental impact of products is a Product Carbon Footprint (PCF). PCFs, sometimes seen as a sub-set of LCAs, focus specifically on the greenhouse gas emissions associated with the product throughout its life cycle. PCFs quantify the total amount of CO2 and other greenhouse gases emitted, measured in CO2-equivalents (CO2e), providing a clear metric of a product’s contribution to climate change.
Importance of collecting product data?
1. Compliance with incoming regulations
Governments and regulatory bodies worldwide are increasingly implementing stringent regulations to combat climate change and drive business change. Emerging policies such as the EU & UK Carbon Border Adjustment Mechanism (CBAM), Corporate Sustainability Reporting Directive (CSRD) and EU Digital Product Passports (DPP) require companies to disclose their environmental impacts comprehensively. Completing LCAs and PCFs will support businesses to comply with such regulations, empowering with data accessibility, helping to avoid penalties and gain a competitive edge in regulated markets.
2. Addressing supply chain pressure and risk
Supply chains are becoming more integrated and transparent, with stakeholders at every level demanding better environmental performance. Large corporations often require their suppliers to provide detailed environmental data to ensure the sustainability of their products and improve accuracy of internal carbon management calculations. For example, some large retailers have introduced carbon data requirements as part of the supplier tender process. By conducting product footprint projects, businesses can meet these demands, maintaining their position in the supply chain and fostering stronger relationships with key partners.
Similarly environmental risks, such as resource scarcity, regulatory changes and climate-related disruptions pose significant threat to business operations. LCAs can help identify and mitigate these risks by highlighting vulnerable areas in product life cycle. Proactively addressing these risks ensures business resilience and long-term viability.
3. Enhanced decision making and management of internal sustainability goals
Many companies have set ambitious sustainability targets, such as achieving net-zero carbon emissions or reducing their overall environmental footprint. Product or service LCAs are essential tools for tracking progress toward these goals. They provide actionable insights into the most significant sources of environmental impact, enabling targeted interventions regarding product design, material selection, manufacturing processes and end-of-life management. This data-driven approach can support continuous improvement and helps companies monitor and achieve their sustainability commitments.
4. Improved market position
Consumers are increasingly prioritizing sustainability in their purchasing decisions. Products with lower carbon footprints and demonstrated environmental stewardship appeal more to eco-conscious consumers. By transparently sharing LCA and PCF data, companies can differentiate their products in the market, enhancing brand reputation and loyalty.
As businesses continue to face pressure from regulatory bodies, stakeholders and customers, the importance of collecting and analysing detailed product data through product footprints cannot be overstated. These tools can not only ensure compliance and improved market position but also guide a more sustainable and resilient future.
If you are interested in finding out more about Beyondly’s Product Footprint service (LCA and PCFs) or receiving a quote, visit our website page or contact our team!