Hear industry experts discuss the opportunities and benefits of creating carbon footprint data transparency, how PCFs can inform decision-making processes in product development, sourcing, and marketing, and what will be the next industry focus with decarbonisation.
Featuring:
- Max Sonnen, Founder and Managing Director | Ecomatters
- Dominik Auer, Senior Sustainability Manager | Wacker
- Carola Duncan, Global Marketing Director and Sustainability Focal Point, Coatings & Construction | IMCD
Click above to watch our recent panel or keep scrolling to read the questions and answer summary.
Today, the chemical industry accounts for 8% of global CO2 emissions. Reports show that 77% of this contribution is being accounted for in scope 3, so there is a clear need in our industry to align on how to measure and share decarbonisation information effectively.
Read on to uncover what each industry expert had to add to the following questions.
What opportunities are there to better facilitate data transparency?
Max Sonnen, Founder and Managing Director | Ecomatters
It's really important to realize that when making a carbon footprint, it's all about trust in the data and completeness. This means that carbon footprints are prepared according to standards and methodologies, such as ISO 14067 or 1440/44, and the Together for Sustainability methodology that's being developed.
Also, be aware that you need to take care of the reporting, and different data fields need to be collected. The carbon footprint is more than just a number in an email, it is something you still see often. If you only have one number and no background reports, you can share the data, but there’s no transparency and very limited information. The same questions will just come back to you from your suppliers if you share them in that incomplete form.
Dominik Auer, Senior Sustainability Manager | Wacker
The biggest challenge in the first place is to get reliable data. Carbon footprint calculation relies heavily on the methodology. We are a member of Together for Sustainability, and we strive to develop a standard that is clearer and more descriptive than the ISO standards to ensure precision.
We are also working on sharing the data through a technical solution provided by Together for Sustainability and with our customers. As Max already pointed out, one of the biggest challenges is that you’re not just sharing a single value. You need to share background information to provide a clear and transparent picture, allowing others to understand the quality of the data. Without this context, single carbon footprint values are not comparable because so many external factors influence them.
Carola Duncan, Global Marketing Director and Sustainability Focal Point, Coatings & Construction | IMCD
We are working in a distribution company, so we are positioned in the middle of the value chain. Besides the aspects already mentioned, the challenges my colleagues highlighted are amplified for us. We have a multitude of customers and products, and combining this with data that needs to be kept up to date, stored, and shared creates significant data management challenges. These challenges can be even greater than for a producer. However, if we could implement a solution that allows the sharing of product carbon footprints along with the context of how they are measured, collected, and validated, it could significantly accelerate our industry’s progress. The distribution sector could become a major factor in accelerating decarbonization efforts.
How can PCFs inform decision-making processes in product development, sourcing, and marketing?
Dominik Auer, Senior Sustainability Manager | Wacker
It's becoming increasingly important to understand what's happening at the product level. This is why we decided to embark on automating our product's carbon footprint calculations. We started this project three years ago and are close to finishing it by the end of this year. With the tool we’ve developed together with an external partner, we can now calculate the individual impact of processes and process improvements. This allows us to analyze our product portfolio from the bottom up. For new product development, we can evaluate the current solution's individual contributors and identify areas for improvement. We can also steer our processes to reduce direct emissions from production activities. This flexibility is essential for improving our contribution to the value chain before passing materials downstream to our customers.
Carola Duncan, Global Marketing Director and Sustainability Focal Point, Coatings & Construction | IMCD
The area of marketing is broad, but product marketing will likely make the most use of product carbon footprints (PCFs). By understanding and managing the product lifecycle, we can identify opportunities for improvement that support long-term growth and sustainability. Analyzing the range of materials and identifying high-impact ones allows us to initiate targeted product development projects, as Dominic mentioned, to reduce the carbon footprint. Achieving this is critical, and strategic marketing will also play a role. Some industries, like the building sector, are driving the use of PCFs, especially in northern Europe, where there’s a push to calculate the carbon footprint of entire buildings and their materials. To remain competitive in these markets, incorporating PCFs into sales tools and data sheets will be necessary. Whether integrated into product documents or shared under specific conditions, this will influence marketing and sales strategies moving forward.
Max Sonnen, Founder and Managing Director | Ecomatters
For formulators, 80% to 90% of the carbon footprint of their products is typically driven by the raw materials they use. Access to high-quality data on these materials allows for significant improvements by selecting lower-carbon alternatives. Formulators, who have deep knowledge of their products, can explore replacements from different suppliers, chemical groups, or bio-based alternatives to reduce the carbon footprint. Reliable information is crucial to developing low-carbon products and expanding the range of sustainable options available to customers. This insight helps us deliver better solutions while enhancing product development efforts. With more data becoming available, the use of product carbon footprints will inevitably become an industry standard. The integration of PCFs into processes, tools, and decision-making will be key to driving meaningful change across industries.
How will the industry discussions evolve around product carbon footprints and what will be the next focus?
Carola Duncan, Global Marketing Director and Sustainability Focal Point, Coatings & Construction | IMCD
I think for SMEs, small to medium-sized industry companies, this is very much increasing. I think their strong focus will be on what Max just mentioned: improving their portfolio of products. This includes not only calculating their scope three emissions and understanding the overall impact but also taking decisions to improve product formulations and reduce their impact. I think this will be a huge drive, especially with the pressures applied by external forces that we discussed earlier. However, we should also not forget about other aspects, such as health and safety, environmental safety, and chemical safety. All these aspects will continue alongside our drive for net zero and circularity.
Product carbon footprints are the stepping stone to enable us to discuss the next targets or developments that the industry needs, both internally and with all members of the value chain.
Max Sonnen, Founder and Managing Director | Ecomatters
It's important to realize that data is just the first step. No improvements will be made if we have great carbon footprints calculated but don’t make actual changes. There are different tasks for various players in the value chain. For example, the chemical industry needs to ensure they produce products using green electricity, adopt different and more efficient feedstocks, or create chemically optimized products with better efficiencies. Even more important is ensuring the uptake of these lower-carbon-footprint products by formulators and end-users so that these products are available in the market and there is demand for them over traditional, higher-carbon-footprint options.
Collaboration is crucial in the value chain, particularly between the chemical industry and formulators, to ensure value is shared. This way, if a formulator creates value, they can share some of it with the chemical industry. In turn, the chemical industry can make the significant investments needed to reduce the carbon footprint.
Dominik Auer, Senior Sustainability Manager | Wacker
We have to go through several steps here. The first step for a chemical producer is to shift data quality from secondary databases to primary data from suppliers. Once that’s established, discussions with suppliers and customers can begin on how to improve the carbon footprint of products and raw materials. When talking to customers, it’s important to include the cost of transformation into lower-carbon-footprint products, calculate those costs, and find solutions to pass them along the value chain.
There are many discussions about how the chemical industry can improve. The key is undergoing a major transformation in production, moving from a fossil-based age to a renewable or electrical age. From my perspective, this is the biggest challenge we’re facing.
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