Calculate a PCF following the PACT Methodology

Prioritize which product(s) to focus on based on its potential impact considering the following 3 dimensions:
‍

• Stakeholders: Focusing on products that meet the reporting needs of key stakeholders, e.g., customers, regulators or investors

  ‍
• Capabilities: Focusing on products for which the greatest capabilities already exist, e.g., due to past LCA or in depth understanding of product
  ‍
• Strategy: Focusing on products which are strategically the most important, e.g., from a financial, decarbonization, climate related risk or branding perspective

Your chosen calculation standard will determine how you approach the calculation – it should fulfill three criteria

‍

• Granular: Your chosen calculation standard needs to be on the appropriate level of granularity for a PCF, i.e. the product-level

  ‍
• Specific: Your chosen calculation standard ideally is specific to your particular product – this will give you more guidance when conducting the calculation

  ‍
• Aligned: Your chosen calculation standard should be aligned with the PACT Methodology, industry expectations and regulatory requirements

The PACT Methodology focuses on the 3 first stages of a product's life-cycle, resulting in cradle-to-gate product carbon footprint. Companies will need to understand which activities, components, and processes are associated to each of these stages:

‍

• Material acquisition and pre-processing: All processes related to procurement of inputs and processing of inputs before they enter production
  

• Production: All activities directly related to transforming the raw inputs into final product (at that step of the supply -chain)

  ‍
• Distribution and storage: All processes related to storage and shipping processes, including transportation and storage within and between these life cycle stages. Outbound transportation and storage should be calculated and reported separately up to the point where another company takes over responsibility for the product (i.e. own or pay for outbound logistics)

Gathering data is a central process of any PCF calculation. The process involves three steps:

‍

1. Create a full list of attributable processes and data points linked to them
2. Add data sources and data owners to each data point
3. Make a data collection plan with clear responsibilities and timelines

‍

Follow these steps while considering the following components:

‍

Process Maps:

• Understand all attributable processes that need to be included in the calculation
• Understand all underlying data linked to the processes and break down each process into the most strategic granular data point


‍

Calculation Standard:

• Understand all specific requirements around which processes need to be included and how
• Understand which data sources are permissible under the guidance (e.g. primary vs. secondary)

Once all data has been gathered, the PCF calculation involves three steps:

‍

1. ‍Multiplying each activity with the relevant emission factor

   Activity A x Emission Factor A = Emissions A (CO₂e)
   Activity B x Emission Factor B = Emissions B (CO₂e)

   Activity C x Emission Factor C = Emissions C (CO₂e)
   ‍
2. Summing emissions from all processes attributable to the product


   Emissions A(CO₂e) + Emissions B(CO₂e) + Emissions C(CO₂e) = PCF(CO₂e)

   ‍
3. Allocating emissions which are split between products

   Allocation should be avoided whenever possible - if it cannot be avoided, the PACT Methodology proposes a clear hierarchy of allocation approaches.
   
   Software solutions can help make the PCF calculation process more efficient, reliable, and robust. Explore PACT Conformant Solutions to learn more.

Assessing data reliability is a central component of the PACT Methodology. Consistency in monitoring and reporting data reliability is central to allow for full transparency and a gradual journey towards high quality data. The PACT Methodology introduces 2 reliability metrics:

‍

• Primary Data Share (PDS)
  Percentage of PCF emissions that were calculated using primary activity data and emissions data --> Can be used to gradually increase use of primary data
  ‍

• Data Quality Ratings (DQRs)
  Quantitative score for three data quality indicators based on data quality assessment matrix --> Can be used to monitor and understand data quality hot spots

‍

Companies are required to calculate and report PDS. Companies are encouraged to calculate and report DQRs now, but are only required to do so starting 31.12.2027.

Verification ensures data integrity and trust through the external validation of PCF results. This process includes 3 steps:

‍

1. Understanding requirements: Checking roadmap and understanding verification requirements across all dimensions
   

2. Gathering evidence: Using the verification requirements laid out in PACT Methodology, gather required evidence to be used in verification process
   ‍
3. Conducting verification: Engaging third-party verification provider to undergo verification process per the identified requirements

‍

After calculating and verifying your PCF, it is ready to be exchanged over the PACT Network, using a PACT Conformant Solution. This ensures your PCF is received directly by your intended recipient, using a secure and standardized protocol.

‍

To exchange your PCF through the PACT Network, you must:

1. Use a PACT Conformant Solution (see https://www.carbon-transparency.org/network )

2. Your solution will generate the PCF, or you may be prompted to enter the PCF; either way, the PCF data must follow the PACT data model.

3. Use your solution to exchange the PCF with any other PACT Conformant Solution on the Network.

‍

Who needs to be involved?

Sustainability team, IT team, optionally Solution Provider team

‍

How long does it take (roughly)?

Highly variable, dependent on stage of solution implementation

‍