PACT Standard V3 is Here: A Breakdown of the Major Updates

Accurately calculating Scope 3 emissions remains one of the toughest challenges to incorporate decarbonization. This is primarily due to limited access to access high-quality data and the complexity of existing methodologies, which can lead to vastly different results across seemingly identical products. In some cases, for example, in the food sector, the carbon footprint of the same product can vary by 5000%, depending on the methodology and data sources used. Differences in how recycling is treated or low-use changes are modelled further to lower comparability. This lack of consistency for product carbon footprints (PCFs) makes it difficult for businesses to benchmark emissions, comply with reporting requirements, or communicate climate impacts with consumers.

To help close this gap, the Partnership for Carbon Transparency (PACT), a global initiative hosted by the World Business Council for Sustainable Development (WBCSD), launched Version 3 of the PACT Standard on April 30, 2025. This updated standard supersedes Version 2, helping companies calculate and exchange product-level carbon footprint (PCF) data in a consistent, standardized, and comparable way.

A Foundation for Supplier-Specific Product Carbon Footprints

The PACT Standard offers clear guidance for the calculation, verification, and exchange of supplier-specific PCFs data from cradle-to-gate. It builds on existing standards, addressing gaps and ambiguities to enhance consistency and comparability of carbon emissions data shared across value chains. 

The PACT Standard includes two core components:

1. The PACT Methodology for calculating product     carbon footprint (PCF)

2. Technical Specifications to support the digital exchange of this PCF data (technical language in line with the methodology or APIs for software developers). 

Developed through a two-year consultation process involving businesses, industry leaders, and technical experts, Version 3 of the Standard directly addresses core feedback and needs from the market.

What’s new in Version 3?

Harmonization: promoting alignment across methodologies

PACT Version 3 (V3) builds on established standards and frameworks—such as ISO standards, the Greenhouse Gas Protocol, and industry initiatives like Together for Sustainability, Catena-X, and the Global Battery Alliance.

Key areas of harmonization include:

• Allocation rules: Version 3 updates the principles for allocating environmental impacts among co-products. It clarifies how to distinguish co-products from waste and includes a new decision tree to guide the allocation process.‍
• Data quality ratings: Data quality  Data‑quality assessment remains a key part of PCF calculation. Version 3 improves definitions and evaluation criteria for each data quality indicator (DQI), reducing ambiguity. It also introduces a five-level rating scale to replace the previous three-level system, enhancing alignment with existing data quality matrices.
• Electricity and contractual agreements: The Standard offers high-level guidance on accounting for electricity use and related contractual instruments, including Renewable Energy Certificates (RECs) and Guarantees of Origin (GOs).

These updates bring greater consistency and clarity to PCF calculations, supporting comparability across companies and sectors.

Accuracy: strengthening the methodology

PACT Standard v3 strengthens the methodological foundation for calculating product carbon footprints, ensuring more complete and reliable results. it was

Key developments include:

• ‍Biogenic and land-sector emissions: Version 3 significantly strengthens the approach to biogenic and land-sector emissions, aligning closely with the forthcoming GHG Protocol Land Sector and Removals Guidance. In nine different data points, PACT V3 captures:
  
  • Emissions from changes in carbon stocks on land
  • Emissions resulting from land management practices
  • Biogenic emissions associated with products

This expanded approach enables a more complete representation of land-based climate impacts within carbon footprint calculations

• Inclusion of Service Carbon Footprints: While PACT has always defined products to include both goods and services, in alignment with the GHG Protocol, previous versions of the Standard primarily focused on physical goods. Version 3 broadens its scope to include specific guidance on services, with an initial emphasis on desk-based and information technology services.

Feasibility: improving practical application

To make PCF calculation more accessible and scalable, PACT Version 3 includes important updates that reduce resource burden on companies, making it more practical and accessible for broad implementation across sectors and geographies.

Key updates include:

1. ‍Verification of PCFs: While third-party verification is seen as crucial to ensure quality, PACT users have expressed concerns about the scalability of verifying individual PCFs. As such, PACT V3 introduces a new short-term (until 2030) verification possibility: the PCF Calculation Model verification. This approach focuses on verifying the calculation methodology or algorithm—rather than each individual PCF—against established standards. It offers a pragmatic solution that upholds data integrity while recognizing the enabling role of technology. From 2030 onward, the requirement will shift toward verification of PCF Program i.e., the system governing how a company generates and manages PCFs, ensuring long-term alignment with evolving best practices.‍
2. Simplified exchange mechanism: Version 3 of the technical specifications offers simplified search and filter capabilities, modelled on relevant use cases. This filter mechanism also works for requesting new PCFs to be created. Simultaneously, it's straightforward to implement by solution providers.

Innovation: Supporting emerging climate solutions

The PACT Standard V3 acknowledges the critical role emerging technologies and innovative approaches and provides guidance on how these solutions can be incorporated consistently and credibly.

1. ‍Technological CO2 capture, storage and use: Version 3 introduces dedicated calculation guidance for Carbon Capture and Storage (CCS) and Carbon Capture and Utilization (CCU), recognizing the growing importance of these technologies in industrial decarbonization. By integrating these approaches into the calculation methodology, PACT v3 ensures that their impact on product-level emissions is accurately represented.
2. ‍ Natural climate solutions: PACT V3 also supports the integration of nature-based interventions such as soil carbon sequestration, reforestation, and afforestation. These practices contribute to carbon removals, and Version 3 allows companies to report these negative emissions transparently and consistently.

A collaborative step forward

The development of PACT Standard V3 represents a major milestone in collaborative climate action. Developed through a global consultation process, it reflects the collective insights of businesses, technical experts, and stakeholders across industries.

As climate expectations continue to grow, PACT V3 offers a practical, credible foundation to support carbon transparency across supply chains. Whether you are calculating emissions, exchanging data, or scaling decarbonization technologies, this standard is designed to help you take the next step with confidence.

Explore the PACT Standard V3:

PACT Methodology &  PACT Technical Specifications