1. PRODUCT CARBON FOOTPRINTING PAS 2050 - Lessons Learned Maureen Nowak Policy Lead – Assessment & Tools Sustainable Production & Consumption Programme 17 February 2010

2. Content The development in the UK of PAS 2050 as a specification for measuring greenhouse gas (GHG) emissions across the life cycle of a product PAS 2050 in use Lessons learned PAS 2050 Review

3. Most environmental impacts can be attributed to goods and services (products) ……

4. …….. and impacts occur throughout the life cycle of a product End of life Consumer use Distribution and retail Production The traditional flow of materials and products...... from cradle to grave Raw materials

5. Businesses wanted to Understand their product supply chains Measure their products impacts Manage and reduce their GHG emissions; improve resource efficiency and reduce risks Share information about their work internally, with their supply chains, and with customers

6. ... and were therefore looking for a tool to provide a methodology for measuring GHGs that could be applied across a wide range of products, services and their supply chains allow a consistent and comparable approach to supply chain measurement of GHGs across different markets

7. PAS project underway in 2007 Objective : To develop a standard and consistent method for measuring the life cycle GHG emissions of products (i.e. goods and services) PAS = Publicly Available Specification

8. PAS Development Process: Managed by British Standards Institution (BSI), Defra and Carbon Trust, co-sponsors Independent Steering Group (academics, NGOs, Government & industry representatives) Technical expert working groups and pilot studies Consultation with 1000 +stakeholders Significant engagement with international stakeholders

9. PAS 2050 Development Process – contd. More than 3000 comments received Tested across a wide range of product types and sectors, including Goods and services Manufacturers, retailers and traders Business to Business (B2B) and business to consumer (B2C) UK and international supply chains

10. PAS 2050 published October 2008 Available at www.bsigroup.com/PAS20 50 (20,000+ downloads to date) www.bsigroup.com/PAS20 50 supplemented by a Guide http://www.bsigroup.com/en/B SIGroup/sectorsandservices/ Forms/PAS-2050-Form-page/ http://www.bsigroup.com/en/B SIGroup/sectorsandservices/ Forms/PAS-2050-Form-page/ and online feedback facility www.bsigroup.com/PAS2050 www.bsigroup.com/PAS2050

11. PAS 2050 – Key Elements Builds on existing international LCA standard (ISO 14044) Covers all GHGs specified by the IPCC Covers whole life cycle of product (raw materials to end of life or cradle to grave) Designed to be used on any product, by any company, in any geographic location

12. PAS 2050 – Meeting identified needs For suppliers of goods and services: Provides clarity – focus on GHG emissions prescriptive in defining how to assess emissions = easier to achieve consistency in calculations Allows a full internal assessment of the GHG emissions and identification of emissions hot spots

13. PAS 2050 – Meeting identified needs Facilitates evaluation of options e.g. on purchasing and sourcing decisions, to help reduce GHG emissions Provides benchmark for ongoing pro- grammes for product emissions reductions Enables comparability Supports corporate reporting and communications with consumers

14. PAS 2050 – Meeting identified needs For customers of goods and services: Offers a common basis for communicating and comparing results Improves consumer understanding of life cycle GHG emissions and their impact the role of their purchasing decisions and their impact

15. Comparability Within an organisation, PAS 2050 is suitable for comparing the impact of changing materials, processes, distribution, use profiles, end of life opportunities changes over time – assessing reduction levels. different formulations of similar products but PAS 2050 does not provide the level of detail necessary for product comparison

16. User experience Carbon Trust - many projects completed worldwide certified footprints of over 5,500 individual product lines with total carbon footprint of 8 million tonnes CO2e products with retail sales value of £2.5Bn use the Carbon Reduction Label at the point of purchase, with a total footprint of 2M tCO2e

17. User Experience Tesco – using PAS 2050 to footprint hundreds of its own-brand products across many different product categories ] around 100 product lines carry a carbon label on the pack Other leading retailers – many have used PAS 2050 for supply chain analyses (eg milk, strawberries) but no appetite for labels.

18. User Experience Other activity: some major suppliers have footprinted all lines within a product category others have footprinted all product lines in anticipation of requests from major customers such as Tesco and others. User trials - evaluation project : commissioned by Defra - 2 products and 1 service

19. Lessons Learned - General Welcomed by business - filled market gap Guidance document very useful. Companies want a practical method that will let them assess the carbon footprint of their products and ensure that others are measuring in the same way Lack of good quality secondary data in many areas –identified as a barrier to take-up.

20. Lessons learned - general Some products inherently more difficult that others: complex/variable /long,or removed supply chains multiple actors single ingredient vs multiple ingredients agriculture chemicals

21. Lessons learned - general The method itself presents some challenges Uncertainty – how to handle Communication issues Comparability – consider PCRs Values can change – need good data management Further develop the method – same process and rigour as original PAS

22. Lessons learned – User Trials Project (1) IBM - IT service (2) AkzoNobel - paint (3) Johnson & Johnson (J&J) - baby wipes Objectives : To use the PAS 2050 method and guidance… To record experiences…(good and bad) To document lessons learned…

23. Lessons Learned – User Trials Project Summary of comments: Step-by-step process is straightforward Guide -clear and user-friendly, good overview BUT support needed in a number of areas. Suggested amendments to Guide. Materiality and prioritisation step as currently described in the Guide is not intuitive - more practical approach needed.

24. Lessons learned – User Trials Project Primary data requirement of the PAS can be time consuming, BUT greater insights from supply chain achieved where primary data were collected Data collection process easier where good relationships with supply chain Difficulties encountered in collecting secondary data;

25. Recommendations from User Trials Project Simplify data prioritisation and materiality assessments - A need for sector/category-specific rules and/or guidance Amendments/additions to PAS 2050 Guide Other support tools need to be identified library of similar studies, process mapping tools

26. Recommendations from User Trials Project Secondary data – need for a recognised source of full life cycle emission factors for common flows such as energy, transportation and waste management. Secondary data sources to be accessible, as well as available. Wider publicly available databases to be more accessible - sources very difficult to interpret for a non-LCA practitioner

27. PAS 2050 Review Will consider technical aspects highlighted for further review in PAS 2050 document Will reflect feedback provided by PAS 2050 users and carbon footprint practitioners Will take account of developing international initiatives - ISO 14067, GHG Protocol Product Standard, plus EU work on PCF harmonisation and policy development.

28. Related International Developments ISO 14067 International standard for product carbon footprinting - publication in late 2011 WRI/WBCSD GHG Protocol Product Standard an international methodology for product footprinting outside the formal standardisation arena - publication expected late 2010

29. Related International Developments The Commission is currently working towards a proposal for a harmonised PCF methodology by end 2010, a Commission communication - (PCF Policy option paper) in 2011 and further development of the ELCD and ILCD.

30. Other International initiatives/schemes(1) France - Grenelle de lenvironnement; Germany - Extension of Blue Angel label; PCF pilot Switzerland - Migros labelling scheme Sweden – criteria-based labelling scheme, joint initiative EU-wide - ILCD, ELCD

31. Other international initiatives/schems (2) US - Carbon Trust pilots; Wal-Mart use of CDP China - Carbon Trust pilots Japan - carbon label programme, national guidelines Korea - carbon label programme New Zealand - sector-based GHG footprinting strategy

32. PAS 2050 Review Process Almost identical to the original PAS 2050 development process : wide stakeholder consultation, high level of technical expert input + extensive evidence-gathering to support changes. Expected to take about 9 months and be completed by late 2010.

33. Future Policy Assess effectiveness and where it can be improved to increase uptake by businesses. Address practical aspects e.g. availability and accessibility of reliable and relevant data – EU development of ILCD ? PAS 2050 to be underpinned by harmonised sector/category specific guidance/rules?

34. Thank you for listening. Questions?