Product carbon Footprint accounting: A quick guide

As the EU withdraws its sustainability reporting requirements, the Clean Industrial Deal (CID), published by the European Commission in February, emphasises the importance of product carbon footprint accounting and life cycle assessment in the green industrial transition. Other EU initiatives include the Ecodesign for Sustainable Products Regulation (ESPR) and the Digital Product Passport (DPP), which promote the calculation, reporting, and transparent sharing of products’ greenhouse gas emission data among actors in the value chain.

Over the past few years, China has also developed a Product Carbon Footprint Labelling Certification scheme, where a product's carbon footprint is presented in kg CO₂e, with more detailed information accessible via a QR cod

An increasing number of companies are calculating their products’ carbon footprint to communicate their climate impact to customers and other stakeholders, or to participate in tenders where carbon footprint is one of the evaluation criteria.

The climate impact of a product can be assessed using several different methods. To support understanding and comparison, we have summarised the main ones below: product carbon footprint calculation, life cycle assessment (LCA), environmental product declaration (EPD) and product environmental footprint calculation (PEF).

Product Carbon Footprint Calculation (CFP)

The carbon footprint of a product describes the amount of greenhouse gas emissions generated throughout its life cycle. The calculation can be carried out in accordance with ISO 14067, which defines a product as either a good or a service.

Carbon footprint accounting covers all stages of the life cycle from cradle to grave, whereas a partial carbon footprint is limited to the stages from cradle to gate. This partial calculation takes into account the production and transportation of raw materials as well as the manufacturing of the product itself. In B2B contexts, information on the partial carbon footprint is often specifically requested so that customers can incorporate it into their own emissions calculations.

The carbon footprint is expressed in carbon dioxide equivalents (typically kg CO₂e), which account for the different global warming impacts of various greenhouse gases—such as methane (CH₄) and nitrous oxide (N₂O)—through the use of Global Warming Potential (GWP) factors.

The calculation of the carbon footprint follows the methodology of life cycle assessment (LCA)

Life Cycle Assessment (LCA)

Life Cycle Assessment is used to identify the potential environmental impacts of a product throughout its life cycle. The assessment is carried out in accordance with the ISO 14040 and ISO 14044 standards. In addition to climate change, LCA also considers other environmental impacts, such as ozone depletion and acidification.

An LCA study consists of four phases:

1. Goal and scope definition – defining the purpose of the assessment, setting system boundaries, and determining the required level of detail
2. Life cycle inventory analysis (LCI, Life Cycle Inventory) – collecting data on material flows, energy use, and emissions
3. Life cycle impact assessment (LCIA, Life Cycle Impact Assessment) – assessing environmental impacts based on the inventory data
4. Interpretation – drawing conclusions based on the results of the LCI and LCIA phases

Each phase builds on the previous one and contributes to forming a comprehensive understanding of a product’s environmental impacts to support decision-making.

Environmental Product Declaration (EPD)

Based on a product’s Life Cycle Assessment (LCA), an Environmental Product Declaration can be prepared. An EPD provides verified information on the environmental impacts of a product and enables customers to objectively compare products intended for similar functions.

An EPD covers the product's entire life cycle—from raw material supply to end-of-life treatment. It is prepared in accordance with ISO 14025 and SFS-EN 15804 standards, and the applicable Product Category Rules (PCRs). ISO 14025 defines the general principles and procedures for developing Type III environmental declarations, while SFS-EN 15804 specifies the core rules for environmental declarations of construction products.

SFS-EN 15804 standard divides the product life cycle into stages. The product stage (A1-A3) includes the following modules:

• A1 - Raw material supply
• A2 - Transport to the manufacturer
• A3 - Manufacturing of the product

These upstream stages are often of particular interest to companies, as they directly relate to procurement decisions.

One of the environmental impact categories reported in an EPD is Global Warming Potential (GWP), which quantifies the product’s greenhouse gas emissions in kilograms of CO₂ equivalent (kg CO₂e). According to SFS-EN 15804, climate change impacts are reported using the following core indicators:

• Climate change – total (GWP-total)
• Climate change – fossil (GWP-fossil)
• Climate change – biogenic (GWP-biogenic)
• Climate change - land use and land use change (GWP-luluc)

EPDs are published through environmental declaration programmes, and approved programme operators, such as EPD International, ensure the quality, comparability, and transparency of the declarations.

Product Environmental Footprint (PEF) calculation

The European Commission has developed a harmonised methodology for calculating the Product Environmental Footprint (PEF) of products sold in the European Union. The methodology is based on life cycle assessment and covers 16 environmental impact categories, including climate change. Its goal is to improve the reliability, accuracy, and comparability of environmental impact assessments across products.

PEF follows the same international standards and calculation steps as the product carbon footprint calculation but widens the scope. The Product Environmental Footprint Category Rules (PEFCRs) provide sector-specific guidance to ensure consistency within product groups.

Once the environmental footprint of a product has been calculated using the PEF method, the carbon footprint of the product as a component of the results. PEF provides companies with a standardised and transparent method for measuring and communicating the environmental performance of their products – without the risk of greenwashing.

OpenCO2net provides standards-based tools, consulting and training services for product carbon footprint accounting. We also produce customised calculators that reflect our customers' value chains, enabling cost-effective carbon footprint accounting for a wide product portfolio. In addition, we offer professional services in LCA, EPD, and PEF implementation.