The Product
CarbonFootprint
Guideline for
the Chemical
Industry

Specification for
product Carbon Footprint
and Corporate Scope
3.1 Emission Accounting
and Reporting

Version 2.0 - November 2022

The full PCF Guideline has
been launched by TfS
The first version of the PCF Guideline was published in
September 2022, focusing exclusively on chapter 5 of the
Guideline, prescribing in detail the specifications for supplierproduct carbon footprint (PCF) calculations within thechemical industry. The November 2022 release1 launches
the full open-source PCF Guideline for calculating PCFs andCorporate Scope 3 Category 1 (Scope 3.1) greenhouse gas(GHG) emissions. Four additional chapters complete the PCF
Guideline, providing further insights about the guidance,
reporting principles, and the major addition of guidance for
Scope 3.1 calculation at corporate level.
Across the chemical industry, there is an urgent need todecarbonize – especially in the upstream value chain, beyonda corporation’s own operations. Currently, a major share of theindustry’s greenhouse gas (GHG) emissions arises from the
upstream value chain (scope 3). Increasing data transparency andaccuracy on the product-level is a key element to drive emission
reductions along the value chain and is a strategic cornerstone ofmany corporate climate mitigation strategies.
The new TfS PCF Guideline is unique in that it draws on the wealthof expertise and knowledge within the TfS member network to set
a standard for the chemical industry, while remaining fully compliant
with existing standards including ISO and the Greenhouse Gas
Protocol. The PCF Guideline will create benefits for TfS members,
their suppliers, as well as other industries initiatives as a drop-in
solution for the chemical sector.
By applying the PCF Guideline, TfS members and their suppliers
can holistically approach the integration of PCFs of chemical
products within their corporate GHG inventories, with a focus on
Scope 3 Category 1 (purchased goods and services) emissions.
The comprehensive guideline instructs companies on how to
calculate their own corporate inventories on the basis of supplierspecific data, while at the same time providing guidance on how
to calculate the PCFs of their own chemical products, with the aim
to create transparency and decarbonize the entire value chain.
The PCF calculated based on the guideline will support downstream
users for their calculations as well.

(1) In addition to the publication of Chapters 1-4, the following sections in Chapter 5 have been amended in this version: 5.2.9 – Multi-output processes,
5.2.10.4 – Carbon capture and storage & Carbon capture and utilization, 5.2.11.2 – Data quality rating, and 5.3.2 – Information to be reported with PCF.
No further amendments will be made to the PCF Guideline until the release of a new issue in accordance with the governance process outlined in Chapter 2.2.

01

Introduction

02

6

About the Guidance

8

2.1 Background and context........................................ 9
2.2	Governance process for periodic reviewof the present guideline......................................... 9
2.3 Problem statement.................................................. 9
2.4 Objective of the guideline. . .................................... 9
2.4.1 Design of a consistent process for Scope 3.1
data collection ................................................................ 9
2.4.2 Embedding supplier PCF data in downstream
PCF calculations calculation........................................... 10

2.5 Importance of content considered................... 10
2.6	Methodology and reference to existing
standards and guiding documents................... 11
2.7 Terminology: shall, should, and may................ 11

03

Reporting Principles

412

Introduction
About the Guidance

05

14

4.1	Definition of Scope 3.1 purchased
goods and services................................................ 15

Specifications for
Suppliers’ Product
Carbon Footprint
Calculation

36

5.1 Goal and Scope ..................................................... 38

4.3 Activity data............................................................. 17

5.1.1 General......................................................................... 38
5.1.2 System boundaries........................................................ 39
5.1.3 Declared Unit (DU) of PCF.............................................. 40

4.4 Emissions factors................................................. 22
4.5 Target baseline and recalculation................... 28
4.6	Additional accounting andreporting guidance .............................................. 28

88

5.2.1 Steps of PCF calculation................................................. 41
5.2.2 Temporal Scope............................................................. 41
5.2.3 Criteria to exclude certain activities (Cut-off). . .................. 42
5.2.4 Standards used.............................................................. 42
5.2.5 Data types and sources................................................. 43
5.2.6 Emission factor requirements and sources.. .................... 44
5.2.7 Life Cycle Impact Assessment (LCIA).. ............................ 45
5.2.8 Activity data requirements.............................................. 47
5.2.9 Multi-output processes. . ................................................ 63
5.2.10 Additional rules and requirements.. ................................. 70
5.2.11 Data quality and share of primary data............................. 79

5.3 Verification and reporting.. ................................. 84
5.3.1	Verification of PCF calculations / Quality assurance........ 84
5.3.2 Information to be reported with PCF............................... 85

References

94

Appendix97

References

Glossary

5.2 Calculation rules.................................................... 41

Glossary

4.6.1 Contract manufacturing including tolling. . ........................ 28
4.6.2 Trading of materials/Merchandise.................................. 30
4.6.3 Swaps........................................................................... 30
4.6.4 Joint ventures/Joint arrangements.................................. 32
4.6.5 Recycling/ recycled content (what to report where:
category 3.1 vs. category 3.12)........................................ 32
4.6.6 Biogenic emissions and removals .................................. 33
4.6.7 Mass-balance chain-of-custody .................................... 34
4.6.8 Offsets, Carbon Capture and Storage (CCS)& Carbon Capture and Utilization (CCU) specifics.. .......... 34

Specifications

4.2 Foundations of the 3.1 accounting process ..... 15
4.3.1 Activity data collection and processing. . .......................... 17
4.3.2 Clustering and prioritization of activity data.. .................... 19
4.3.3 Activity data updates & improvement. . ............................. 21

Guidance on Scope 3.1

Guidance on
Scope 3.1 Calculation
on Corporate Level

Reporting Principles

04

Appendix

5

INTRODUCTION

01

Introduction

Anthropogenic
greenhouse gas(GHG) emissions
drive climatechange. The
impacts linked toclimate change
are growing
significantly
and are a major
challenge for thewhole world.
To counter this development, theparties of the Paris Agreementagreed on the 1.5°C limit toreduce the effects of climatechange and thus avoid irreversible
environmental damage anddrastic effects for all societies.
This requires a high degree ofurgency to reduce GHG emissions
to a minimum level Committing
to net zero emissions by 2050,
latest, is one of the key enablersof this process.

6

Introduction

The chemical industry contributes 8%1 to global industrial
greenhouse gas emissions and thereby must play animportant role in reducing GHG emissions. On average,
less than one-third of a chemical company’s emissions
come from the manufacturing of its products, the so-called
Scope 1 and 2 emissions. Therefore, for credible corporatecarbon accounting and climate target planning andtracking, emissions from the upstream and downstream
value chain, or so-called Scope 3 emissions according to
the Greenhouse Gas Protocol (GHG P), must be accounted
for accurately. Scope 3 emissions are an important part of
GHG reduction strategies of all chemical companies and arenecessary to understand in order to prepare for potential
future regulations. Particular attention should be paid to the
Scope 3 category 1 (3.1) “Purchased goods and services”
emissions (Figure 1.1), which often make up the biggest
share of a chemical company’s scope 3, and are thus a key
element in their Net Zero strategy.

Collecting and embedding supplier-specific PCFs isbeneficial for both 3.1 and PCF accounting (Figure 1.2).
Annual corporate-level 3.1 emissions can be improved
by applying PCFs of high quality provided by suppliers forpurchased goods, allowing companies to track progressover time towards climate goals. Additionally, by integrating
supplier-specific PCFs within corporate 3.1 inventories,
GHG emissions associated with the specific raw materials
can be linked to production processes of chemicalcompanies, improving the accuracy of their PCFs.
In many cases, a chemical company is both a supplierand a manufacturer; therefore, from a chemical industry
perspective, it is extremely important to calculate PCFs ofhigh quality and high level of comparability. Furthermore,
supplier PCFs can also be used to identify reduction
potentials within the company’s purchasing departmentin the form of product portfolio adjustments andcollaborations with suppliers to decarbonize.

However, there are many challenges in the reduction of
Scope 3 GHG emissions, even for the most committed
chemical companies. One challenge is the lack oftransparency in value chains, which makes GHG emissions
particularly difficult to quantify and reduce. Furthermore, thecomplexity of the global chemical sector value chain canmake it difficult to harmonize calculation approaches andto compare results. Generic standards are a basis for thesecalculations but are not sufficient due to the lack of specificity
for key aspects in the chemical industry. Developing specificguidance on how to address these challenges offers animportant opportunity to realize the potential to significantly
accelerate the reduction of GHG emissions in the chemicalindustry (Figure 1.1).

Therefore, a basic condition for the implementation of PCF
to 3.1 accounting is a harmonized approach that shows how
PCF should be calculated considering all specific aspectsof chemical production processes. The methodologicalapproach has an important impact on the results and their
quality, which makes it important for companies to collectaccurate and comparable data as well. Likewise, there is aneed for a consistent solution or standard on how to share
PCF data.

Figure 1.1 TfS PCF Guideline benefits for corporates.
Purchased goods and services (Scope 3 category1)
represent a major share of many chemical company’s
greenhouse gas emissions. The TfS PCF Guideline
enables corporations to account for Scope 3
category 1 GHG emissions in a systematic andmeaningful way.

Figure 1.2 Benefits for chemical suppliers by applying
the TfS PCF Guideline. Chemical suppliers can provide
accurate and consistent PCFs to corporate customers
to support them in accurately reporting and reducing
their scope 3 category 1 emissions.

Better understand the GHG emissions
associated with your products –so you can improve sustainability
performance and reporting andreach emissions-reduction targets.

Improve efficiency, streamline resources
and reduce the amount of time you
spend using generic guidelines.

DATA AND EFFICIENCY
Learn exactly what chemical
PCF data to collect to accurately
evaluate scope 3 emissions.
Receive comparable datafrom suppliers for efficientsustainability reporting.

SUSTAINABILITYSTRATEGY
Better understandGHG-reduction opportunities
in your supply chain andcreate a roadmap to meetsustainability targets.

SUPPLIER SELECTION

SUPPLY CHAIN IMPACT

Work with suppliers to quantify
PCFs in a consistent mannerand reduce the footprints of
their chemical products.

Create a more sustainablesupply chain by supportingyour suppliers in using the
PCF Guideline – as they
supply others too.

(1) https://www.weforum.org/agenda/2020/01/how-to-build-a-more-climate-friendlychemical-industry/

Report PCFs to the level of specificity
many customers are requesting – so you
can increase customer satisfaction
and generate new sales.

This guideline aims to provide instructions for the calculationand implementation to the subsequent reporting of 3.1
emissions, with the goal of creating transparency within the
supply chain and comparability across the chemical sector.
The underlying calculation of PCFs as the basis for the 3.1
reporting is provided and recommendations are made on
how to share the PCFs including additional information(data attributes).
This Guideline is the first-of-its-kind, industry-specificguidance on calculating PCFs for chemical products
empowering companies to produce high quality PCF
data. It is compliant with ISO 14067 and GHG Protocol
accounting standards.
7

INTRODUCTION

02

About theGuidance

8

The global chemical sector initiative, Together for
Sustainability (TfS), launches with this document the
new global open-source sector specific guideline for the
calculation of PCF and Scope 3.1 reporting. It can beapplied in the chemical industry and beyond. It treats
several challenges as follows:• Scope 3 emissions of purchased goods have historically
been challenging to measure due to the complexity ofchemical production – the new Guideline aims to solve this.
• The Guideline can be used by both corporations
and suppliers to identify, track, and reduce Scope 3
upstream emissions.
• The Guideline will be applicable across industries;
it will be open source and useful for other industries
using chemical materials.
• It harmonizes PCF calculation approaches across theindustry and is applicable to most chemical products.
In the future, this will allow consumers and the wider
market to directly compare and assess the climate
impact of products.
The TfS initiative developed this guidance to take a leadingrole in a more sustainable chemical industry by providing
guidance in calculating PCFs and Scope 3 emissions.
The development was done by a group of experts fromTfS member companies, supported by external experts,
reviewed by more than 55 companies within the chemical
sector and audited by TÜV Rheinland. Existing standards
and guidelines were considered and used as a basis forcreating sector specific text for the chemical industry.
[WBCSD (2013), ICCA & WBCSD (2013)].
In the past, the calculation and reporting of Scope 3
GHG emissions have differed between companies in thechemical sector due to the range of possible choices when
following the internationally recognized GHG standards.
This document has been developed to introduce a
consistent guideline which companies from the chemical
sector can follow when calculating Product Carbon
Footprints (PCF) or emissions resulting from purchased
goods and services (Scope 3.1). [WBCSD (2013),
ICCA & WBCSD (2013), WBCSD (2014)]
Following this guideline will allow the TfS member
companies and their suppliers to align in their
GHG-accounting and -reporting. By introducing aconsistent reporting standard, the comparability between
chemical companies can be improved, which benefits
the company, clients, investors, and other external
stakeholders during performance assessments.
If multiple chemical companies transparently disclose theiremissions and sustainability measures following the same
standards, internal business decisions at each company
can be improved and the overall role of chemical products
in reducing GHG-emissions can be communicatedmore effectively to internal and external stakeholders
or business partners. Furthermore, TfS aims to inspireother industries facing similar problems to improve theirrespective reporting standards. [WBCSD (2013)]

2.2 Governance process for

About the Guidance

2.1 Background and context

periodic review of the present
guideline

This document is to be understood as a first version that TfS
has created to support chemical companies in improving
their calculation and reporting of product carbon footprints
and emissions resulting from purchased goods andservices (Scope 3.1). TfS is aware that the current versionof this guidance can and should be further developed in the
future as standards and other underlying documents mightchange. Participating companies and other stakeholders
can continuously report back about possible additions
and adjustments which will then be considered during theguideline updates. Furthermore, TfS plans to periodicallyharmonize the guidelines with new developments ininternationally recognized standards, such as ISOs, or otherrelated guidance documents.

2.3 Problem statement
General problems described in chapter 2.1 are to be dealt
with and described in more detail here. Relevance analysis
of gaps in standards. Which of the missing elements are
significantly relevant for the chemical industry and Scope 3.1?
Do we need to go deeper at certain points? If yes, where?
Addressing issues and requirements, e.g.:• The boundary of a cradle-to-gate life cycle inventory
shall not include product use or end-of-life processes.
• The scope of the guideline covers cradle-to-gatecalculations for chemicals. The gate is defined as thegate of TfS members.
• Guidance on how to categorize, evaluate and use data
sources, be it from primary or secondary data sources.
Calculation rules for specific products including thetreatment of biomass, biomass balanced materials,
recycled materials, system expansion, allocation schemes,
cut off rules, system boundaries are important aspects andmethodological elements that will be considered.

2.4 Objective of the guideline
Design of a consistent process for
Scope 3.1 data collection

2.4.1• Describe boundaries and principles for Scope 3.1
data collection for material product categories.
• Develop a uniform process for data collection andemission calculation.
• Establish a robust/audit proof guideline which
can be applied by all TfS member companies.
• Harmonized and sector specific guideline for
Product Carbon Footprint (PCF) calculation.

92.4.2 Embedding supplier PCF data in

downstream PCF calculations calculation

The application of chemicals is an additional topic andis covered in some specific GHG Protocol categories.
PCF figures of high quality are needed to calculate
meaningful cradle-to-grave applications. The guideline
supports indirectly the reporting in these categories but
is not in focus here. However, using recycling materials
or bio-based materials from downstream applications as
raw materials for chemicals are considered here as well,
but are special topics where future guidance for an accurate
reporting is needed. Probably the exiting categories must
be adopted accordingly. TfS will work on these topics infuture as well.

2.5 Importance of content

consideredharmonization in the sector. This guidance aims to set
standards for a more consistent accounting of Scope  3.1(purchased goods and services) emissions and theassessment of product carbon footprints (PCFs) in thechemical sector. It is intended to be used by companies in
the chemical industry that want to improve on these aspectsof their carbon footprint reporting.
In 2013, the World Business Council for Sustainable
Development (WBCSD) published a “Guidance for
Accounting & Reporting Corporate GHG Emissions in theChemical Sector Value Chain”, in which they identified
Scope  3.1 emissions to be the most relevant Scope 3
category for chemical companies, due to both the large
size of expected emissions and the amount of influencecompanies have on the category (see Figure 2.3). For thisreason, TfS decided to put the first focus of this guidance on
creating consistent guidelines for the accounting of Scope  3.1emissions in chemical companies. [WBCSD (2013), GHG
Protocol Corporate Value Chain Standard ] (Figure 2.1).]

Many organizations have now started to develop guidelines
and supporting materials to enable companies to reporttheir GHG emissions in a harmonized and accepted
environment. In this guideline, chemical sector specificguidance is given to increase transparency and increase

Figure 2.1 Relevant categories of Scope 3 emissions for chemical companies.
(Guidance for Accounting & Reporting Corporate GHG Emissions in the Chemical Sector Value Chain,
WBCSD chemicals, 2013)

Large

Small

Expected size of emissions (relative to company total)

Business travel

7. Employee commuting

14. Franchises
15. (Financial, debt,
bonds, pension funds& other) Investments

Small

Medium

2. Capital goods

8. Upstream leased assets

3. F uel- and energyrelated activities

15. (Material equity)
investments

4. U
 pstream andpurchasedtransportation &distribution

1. P
 urchased goods& services

12. E nd-of-life treatmentof sold products

5. Waste generated
in operations

10. Processing of soldproducts

9. Downstream
transportation& distribution

11. D irect emissions
from use of soldproducts

Large

Influence on emissions in the category10

13. Downstream
leased assets

11. I ndirect emissions
from use of soldproducts

Both the standardized methods for Scope 3.1 inventory
and for PCF calculations will help chemical companies andtheir customers to credibly communicate potential impactsof their emissions and strategies to reduce the associatedrisks along the value chain. Moreover, with demand forenvironmentally conscious products and services growing,
credible information on PCFs and Scope 3.1 emissions will
become substantial for internal decision processes about
future product and market strategies [WBCSD (2014)].

2.6 Methodology andreference to existing standards
and guiding documents

The guidelines in this document aim to be consistent withinternationally accepted standards and requirements.
The following standards were considered:
•
•
•
•
•
•

ISO 14064 -1: 2019
ISO 14064 -2: 2019
ISO 14064 -3: 2019
ISO 14067: 2019
ISO 14040: 2006
ISO 14044: 2006

The guidance follows these standards:• GHG Protocol Corporate Value Chain (Scope 3).
• GHG Protocol Scope 3 Calculation Guidance.
• GHG Protocol Product Standard.
Additionally, various other documents have been reviewed
to harmonize the structure and logic of the approach of thisdocument. These documents are listed in the reference list
accordingly. The guideline can be used as drop-in solution
for other sectors and sector-specific guidelines that areusing chemicals in their products. As such, some chaptersand text might be useful to be integrated in other sectorspecific guidelines as well.
The main part of this guidance is divided into three parts.
Chapter 3 introduces the five principles of GHG
accounting, which help to guide the implementation of the
GHG Protocol Standards.

In Chapter 5, specifications for suppliers’ productcarbon footprint calculations are given. After introducing
the general goal and Scope of a PCF (Chapter 5.1), thecalculation rules (Chapter 5.2) are introduced. Chapter
5.3 finishes with information about the verification of
PCF calculations and notes about the reporting of PCFs.
[WBCSD (2021), European Commission (2021)].

About the Guidance

The second part of this guidance focuses on specifications
for embedding supplier PCF data into downstream
customer’s PCF calculations. As chemical products often are
subjected to further processing, PCFs are vital to assess thecontribution of the chemical industry on the environmental
impact of other products (downstream: Scope 3.1).

2.7 Terminology: shall, should,

and mayThis standard uses precise language to indicate which
provisions of the standard are requirements, which arerecommendations, and which are permissible or allowable
options that companies may choose to follow. The term“shall” is used throughout this standard to indicate what isrequired in order for a GHG inventory to be in conformancewith the GHG Protocol Scope 3 Standard. The term“should” is used to indicate a recommendation, but nota requirement. The term “may” is used to indicate an
option that is permissible or allowable. The term “required”
is used in the guidance to refer to requirements in thestandard. “Needs,” “can,” and “cannot” may be used
to provide guidance on implementing a requirement or toindicate when an action is or is not possible [GHG Protocol
Corporate Value Chain (Scope 3) Standard].
This standard uses precise language to differentiate
between the levels of obligation a company faces when
following the proposed guidelines. As defined by ISO
International Standard:••••“Shall” indicates a requirement.
“Should” indicates a recommendation.
“May” is used to indicate that something is permitted.
“Can” is used to indicate that something is possible,
for example, that an organization or individual is able
to do something.

In the ISO/IEC Directives, Part 2, 2021, 3.3.3, arequirement is defined as an “expression, in thecontent of a document, that conveys objectively
verifiable criteria to be fulfilled and from which no
deviation is permitted if conformance with the document
is to be claimed.”
In the ISO/IEC Directives, Part 2, 2021, 3.3.4, arecommendation is defined as an “expression, inthe content of a document, that conveys a suggested
possible choice or course of action deemed to beparticularly suitable without necessarily mentioning
or excluding others.”1

Chapter 4 addresses the assessment of Scope 3.1
emissions. It provides input about the processing of Activity
Data (Chapter 4.3), the selection and evaluation of Emission
Factors (Chapter 4.4), Input Data Processing (Chapter 4.4),
the Target Baseline recalculation (Chapter 4.5), and Additional
accounting and reporting guidelines (Chapter 4.6).

(1) https://www.iso.org/foreword-supplementary-information.html

11

INTRODUCTION

03

ReportingPrinciples

GHG accounting
and reporting ofa Scope 3 or a
product inventory
shall be basedon the following
principles:
Relevance, Completeness,
Consistency, Transparency,
and Accuracy.
[World Resources Instituteand WBSCD (2004)].

12

The primary function of these five principles is to guide theimplementation of the GHG Protocol Standards and theassurance of the inventories, particularly when application of
the standards in specific situations is ambiguous. The same
principles are also used to access the uncertainty within
reported data.

Each principle is briefly described below, with more
information provided in chapter 4.

Relevance
A relevant Scope 3.1 report contains the information thatusers – both internal and external to the company – needfor their decision making. Companies should use theprinciple of relevance when determining whether to exclude
any activities from the inventory boundary, selecting data
sources, and collecting data.

CompletenessCompanies should ensure that the inventory appropriatelyreflects the Scope 3.1 GHG emissions of the company.
In some situations, companies may be unable to accurately
estimate emissions due to a lack of data or other limiting
factors. However, companies should not exclude any
emissions sources that would compromise the relevanceof the reported inventory. Any exclusions should betransparently documented and justified; assurance
providers can determine the potential impact and relevanceof the exclusion on the overall report.

The consistent application of accounting approaches,
inventory boundary, and calculation methodologies isessential to producing comparable GHG emissions dataover time. If there are changes to the inventory boundary(e.g., inclusion of previously excluded activities), methods,
data, or other factors affecting emission estimates, theyneed to be transparently documented and justified, andmay warrant recalculation of base year emissions.

Reporting Principles

In practice, companies may encounter trade-offs between
principles. For instance, a company may find that achieving
the most complete inventory relies on less precise data,compromising overall accuracy. Conversely, achieving themost accurate inventory may require excluding activities
with low accuracy, compromising overall completeness.
Companies should balance trade-offs between principles
depending on their individual business goals. Over time, as
the accuracy and completeness of Scope 3 and PCF GHG
data increases, the trade-off between these accounting
principles will likely decrease.

Consistency

Transparency
Transparency relates to the degree to which information on
the processes, procedures, assumptions and limitations of
the GHG inventory are disclosed in a clear, factual, neutral,and understandable manner based on clear documentation.
A transparent report will provide a clear understanding of therelevant issues and a meaningful assessment of emissions
performance of the company’s Scope 3 emissions.
Information should be recorded, compiled, and analyzed ina way that enables internal reviewers and external assurance
providers to attest to its credibility and to derive the same
results if provided with the underlying data sources.

Accuracy
Data should be sufficiently accurate to enable intended
users to make decisions with reasonable confidence thatthe reported information is credible. GHG measurements,
estimates, or calculations should neither be systemicallyover nor under the actual emissions value, as far as canbe judged. Companies should reduce uncertainties in thequantification process as far as practicable and ensure
the data are sufficiently accurate to serve decision-making
needs. Reporting on measures taken to ensure accuracy
and improve accuracy over time can help promotecredibility and enhance transparency.

13

INTRODUCTION

04

Guidance on
Scope 3.1
Calculation on
Corporate Level

The productsystem of thecradle-to-gate
PCF is the sum of
GHG emissions,expressed as
CO2 equivalents
related to a
product, fromthe extractionof the resources
to the gate of
the reporting
company includingtransportation.
The PCF calculation may
include the transportation to thecustomer, but the respective
GHG emissions must be stated asadditional information separatelyfrom the cradle-to-gate PCF.

14

The PCF of chemicals shall include all product related
GHG emissions. How to calculate PCF for chemicals is
described in detail in chapter 5 of this document.
In the context of corporate reporting, PCFs are used
to calculate Scope 3.1 emissions. GHG emissions of areporting company are divided into three scopes as definedby the Greenhouse Gas Protocol (GHG Protocol):Scope 1 direct CO2-eq emissions result from theproduction processes that are owned or controlled by thereporting company. For example, direct emissions fromchemical reactions, incineration, or waste treatment at thereporting company’s plant or emissions from the productionof on-site energy.
Scope 2 CO2-eq emissions result from the generation ofpurchased energy, such as electricity and steam used to
power the reporting company’s plants.

For chemical companies, the most emissions-intensepurchased goods are often raw materials used andtransformed to products. For annual corporate reporting,the PCF of each purchased good are aggregated to one
value and are reported in the category Scope 3.1. Based on
the PCF information for those purchased goods, companies
calculate the PCF for their end products to achieve a cradleto-gate result. This resulting PCF is the basis for the next
producer in the supply chain.

4.1 Definition of Scope 3.1

purchased goods and services

According to the Greenhouse Gas Protocol [GHG Protocol
Corporate Value Chain (Scope 3) Standard] this category
includes all upstream (i.e., cradle-to-gate) emissions of
products purchased or acquired by the reporting company
in the reporting year. Products include both goods (tangible
products) and services (intangible products). This category
includes emissions from all purchased goods and services
not otherwise included in the other categories of upstream
Scope 3 emissions (i.e., category 2 through category 8).
Cradle-to-gate emissions include all emissions that occur
in the life cycle of purchased products, up to the point ofreceipt by the reporting company (excluding emissions
from sources that are owned or controlled by the reporting
company). Cradle-to-gate emissions may include:••••

Extraction of raw materials.
Agricultural activities.
Manufacturing, production, and processing.
Generation of electricity consumed by upstream activities.

Chapter 5 describes how cradle-to-gate PCF shall becalculated. For the chemical industry Scope 3.1. materials
are very important, because relatively high contributions
to the overall PCF are caused in the early steps of raw
material generation. Companies using PCF information fromtheir suppliers to implement them in Scope 3.1 upstream
reporting should check if:• The data provided by the supplier should be as close as
possible to the time interval of the reporting company.
• The declared unit fits exactly to the form the company isusing the product.
• The quality and the concentration fit to the used product.
• The data quality is sufficient to be used in the reporting.
• The variation between several suppliers is plausible.
• The attributes delivered with the PCF of the product.
should be complete and representative for the productthe purchased number and amounts of materials areavailable to calculate a correct mass balanced figure.

Guidance on Scope 3.1

Scope 3 CO2-eq emissions occur from sources owned orcontrolled by other entities in the value chain. Within Scope 3,
there are 15 sub-categories [GHG Protocol Corporate Value
Chain (Scope 3) Standard] that cover the annual emissions
from the upstream and downstream value chain. This guideline
focuses on Scope 3.1, purchased goods and services, with a
primary focus on purchased goods. Other Scope 3 categories
are not considered herein unless there are interactions withcategory 3.1 that may result in inadequate calculation of total
emissions if related aspects are not considered.

• Disposal/treatment of waste generated by
upstream activities.
• Land use and land-use change.
• Transportation within the upstream supply chain andto the reporting company, when not paid for by thereporting company.
• Any other activities prior to acquisition by thereporting company.

4.2 Foundations of the 3.1

accounting processThis section covers the best practices for building a
GHG inventory and GHG emissions calculation techniques.
A GHG inventory accounts for all GHGs emitted to or
removed from the atmosphere by the reporting company.
The GHG inventory will list, by source or GHG Scopes,
the amount of GHG emissions emitted to the atmosphere
during a given time period (mostly within the time of acompany’s reporting cycle). Particular attention needs
to be paid to the selection of the inventory boundary.
The boundary needs to balance completeness andconsistency with the relevance of Scope 3.1 emissions.
Chapter 3 of The Greenhouse Gas Protocol provides
detailed instructions on best practices for setting inventory
boundaries. [WBCSD chemicals, (2013)]
To build a Scope 3.1 GHG inventory, inventory boundaries,
data basis, and methodologies need to be consistent to allow
meaningful conclusions and performance tracking over time.
Hence, the inventory boundaries and the data sources for
activity data, as well as emission factors, need to be carefully
selected. That said, continuous improvement in data quality
should be strived for to enable emissions to be characterized
in the most accurate way. Any changes from previous years
may affect a company’s Scope 3 GHG inventory and should
therefore be undertaken only with careful considerationof the significance of the activity and the expected benefit
from the increased data quality. However, to ensurecomparability over time, a change in the calculation practices
should be transparently reported and could necessitate
the recalculation of the base year. In chapter 4.4 various
approaches to reduce effort and complexity without overly
compromising quality are provided.

15

The emissions inside a GHG inventory are quantified using
either direct measurement or calculation methods. As direct
measurement data for Scope 3 emissions are difficult toobtain for the reporting company, usually such information
is estimated using calculation methods, making use ofactivity data and emission factors. According to the GHG
Protocol, “activity data” is a quantitative measure of a levelof activity that results in GHG emissions (for example,
kilograms of purchased material or dollars spend on an
activity). An “emission factor” is a factor that converts
activity data into GHG emissions (for example, kg CO2
emitted per kilogram or dollar spent). Figure 4.1 gives an
overview of the elements of Scope 3.1 GHG inventory data,
and activity data generation (chapter 4.4) and emission
factor collection (chapter 4.5) are described in detail in thefollowing sections.

The GHG Protocol differentiates GHG calculations into
four basic methods: Spend, Average, Hybrid and Suppliermethod [GHG Protocol Scope 3 Calculation Guidance(2013)]. The methods can differ significantly in the way
data are collected and processed resulting in significant
differences in effort and accuracy. Although it might
be partially unpractical or can create additional effort,
methodologies can be used in combination.
The decision for or against a specific method can depend
on a company’s business goals, the significance of goods
and services emissions within 3.1, and the availability andquantity of data, if data quality allows, supplier specificvalues are always preferred.

Figure 4.1 General calculation approach of preparing an GHG inventory

Activity Data

Emission Factor

External data source e.g.
supplier consumption
data system:- Kg CO2e / kgof material- Electricity consumption in kg- Kg CO2e / USD spend- Kg CO2e / kg product- GHG emissions in m3- Primary energy use in t
- Spend in Euro

Scope 3.1 GHG Inventory=

X

Kg CO2eMaterial and year

Internal data source e.g.
procurement system:- Weight in kg- Kg CO2e / MWhelectricity- Volume in m3- Kg CO2e / kg waste- Piece in pc- Spend in Euro16

- Kg CO2e / liter of fuel4.3 Activity data

Note that capital goods are reported in Scope 3 category 2(Capital Goods).

Activity data used for calculating Scope 3.1 emissions are
typically the quantities of procured raw materials and/or
monetary spend on services or technical goods purchasedin the reporting year.

4.3.1

Activity data collection and processing

Production-related procurement (often called direct
procurement) consists of purchased goods that are
directly related to the production of a company’s products.
Production-related procurement may include:• Raw materials and intermediate goods (e.g., materials,
components, and parts) that the company purchases toprocess, transform, or include in another product.
• Final goods purchased for resale (for retail anddistribution companies only).
• Technical and capital goods (e.g., plant, property,
and equipment) that the company uses to manufacture
a product, provide a service, or sell, store, and deliver
merchandise or that need to be purchased as wellto enable the chemicals and accurate application of
the products by the customer. Examples of technicaland capital goods within the chemicals industry include
packaging, water cleaning chemicals, or chemicals usedin cooling towers, etc.

The processes of activity data generation, preparation andhandling are summarized in Figure 4.2 and described indetail below.
Data availability check1.1) A ctivity data may be obtained through meter readings,
purchase records, direct monitoring, mass balance,
stoichiometry, or other methods for obtaining data from
specific activities in the company’s value chain. Activity
data could be taken from internal procurement and/or
ERP systems or requested from the supplier directly.

Guidance on Scope 3.1

Activity data is a key input for the calculation of GHG
emissions and refers to the data associated with an activity
that generates GHG emissions, such as tons of a raw
material purchased. This activity data is collected in physicalunits (tons) or money spent and then combined with anemissions factor and the relevant greenhouse gas GWP
value to calculate CO2e. The collection of activity data is
the primary responsibility of the reporting company and willoften be the most significant challenge when developing a
GHG inventory. Therefore, establishing robust activity datacollection procedures is essential. Companies may find it
useful to differentiate between purchases of productionrelated and non-production-related products. Doing so
may be aligned with existing procurement practices andtherefore may be a useful way to organize and collect data
more efficiently.

Non-production-related procurement (often called indirect
procurement) consists of purchased goods and services
that are not integral to the company’s products but are
instead used to enable operations. Non-production-related
procurement may include furniture, office equipment, andcomputers or all kinds of services such as consulting,
maintenance work, or contracted labor.
[GHG Protocol Corporate Value Chain (Scope 3) Standard]

Data on spend and mass, volume, quantities of
products shall be internally requested. In addition,
an understanding of the internal systems their update
frequencies, units, formats, availability of forecastingvalues, potential changes should be generated andimplications on the intended accounting system
anticipated. The availability of the data within the annual
accounting cycle should also be considered to ensurethat data are available at the right time and in the rightquality for further calculations.
1.2) Besides the actual activity data numbers, the attributesof the purchased goods are needed. Primary attributes
refer to the material directly (e.g., material name,number, CAS, chemical structure, chemical group),
while secondary attributes further specify indirect
characteristics (e.g. year, vendor country, suppliername, supplier number). These attributes allow for the
mapping of activity data to emission factors and theanalysis and interpretation of the data.

Figure 4.2 Key process steps of Scope 3.1 activity data generation, preparation, and handling

1

2

3

4

5

6

Data availability
check

Data
preparation

Extraction/collection ofactivity data

Unit
conversion

Data analysis
and categorization

Prioritization& Data strategy

1.1 Check availability
consistency,
completeness andrepresentativenessof activity data

2.1 Identify and close
data gaps

3.1 Define data
request from internal
departments or
supplier

4.1 Convert unit to
standard unit ofapplied EF source

1.2 Understandavailability of data
attributes

2.3 Convert trade
names to materialnames

2.2 Define identifier
for data mapping

3.2 Documentationof internal data
requests

5.1 Understand andquantity data gaps
5.2 Identificationof key contributing
elements

6.1 Define operativeand strategic
additional activity
data demand
6.2 Engage with the
supplier, identify
short, mid and longterm reduction
potentials

1.3 Check scope ofthe data

171.3) In a last verification step, the data extracted from theinternal system should be checked to ensure that it isaccurate and consistent.
Preparing for data collection
2.1) While spend data might be of good completeness due
to requirements from financial accounting, physicaldata on the amount, volume, or mass of purchased
goods might be often incomplete and/ or inconsistent.
Because usually dozens or even hundreds of persons are
involved in the companies purchasing process, a change
in the process of the data collection might have larger
implications on the processes and systems. Having acomplete set of physical input data might be a long-term
challenge for many, it is recommended to start the datapreparation step as soon as possible.

2.2) The potentially large amount of data that need to behandled, the heterogeneity and even unavailability ofmaterial numbers as well as the use of various internaland external data sources can make it necessary toestablish a proper data management system that goesbeyond widely used Excel-based systems. In bothcases the use of an identifier is essential to guarantee
traceability and uniqueness of data base entries.
A list of identifiers already used in the chemical sector
is provided in table 4.2, in which the Chemical Abstract
Service (CAS) is the most widely accepted and usedsystem at chemical companies but also at providersof emission factor data. Companies may develop theirown identifiers for purchased goods or services outside
the chemical classification systems, e.g. packaging,labor services, or IT products.

Table 4.1 Examples of classification systems that could be used as identifier in the mapping processof activity data and emission factors

Abbreviation
Chemical Abstracts Service
Registry (CAS) Number

A CAS Registry Number is a unique and unambiguous identifier for a specificsubstance that allows clear communication and, with the help of CAS
scientists, links together all available data and research about that substance1.

Simplified Molecular Input Line
Entry System (SMILES)

The simplified molecular-input line-entry system is a specification in the formof a line notation for describing the structure of chemical species using short
ASCII strings2.

ECLASSECLASS is a worldwide ISO/IEC-compliant data standard for goods
and services 3.

United Nations Standard
Products and Services Code(UNSPSC)The United Nations Standard Products and Services Code is a globalclassification system of products and services. These codes are used to classify
products and services: in the case of suppliers, to classify the products andservices of their company, and in the case of UN staff members, to classify the
products and services when publishing procurement opportunities4.

PRODCOMPRODCOM is an annual survey for the collection and dissemination of
statistics on the production of industrial (mainly manufactured) goods,
both in value and quantity terms, in the European Union (EU) 5.

European Customs Inventory ofChemical Substances (ECICS)

The European Customs Inventory of Chemical Substances is an information
tool managed by the European Commission’s Directorate General (DG) for
Taxation and Customs Union which allows users to:- Clearly and easily identify chemicals;- Classify them correctly and easily in the Combined Nomenclature;- Name them in all EU languages for regulation purposes 6.

Harmonized Commodity
Description and Coding
Systems (HS)The Harmonized System is an international nomenclature for the classificationof products. It allows participating countries to classify traded goods on acommon basis for customs purposes. At the international level, the Harmonized
System (HS) for classifying goods is a six-digit code system7.

(1) https://www.cas.org/cas-data/cas-registry(2) https://www.chemeurope.com/en/encyclopedia/Simplified_molecular_input_line_entry_specification.html(3) https://www.eclass.eu/en/index.html(4) https://www.unspsc.org/(5) https://ec.europa.eu/eurostat/statistics-explained/index.php?title=Glossary:PRODCOM(6) https://ec.europa.eu/taxation_customs/online-services/online-services-and-databases-customs/ecics-european-customs-inventory-chemical_en(7) https://unstats.un.org/unsd/tradekb/Knowledgebase/50018/Harmonized-Commodity-Description-and-Coding-Systems-HS

182.3) For further processing and mapping procedures it
might be helpful to convert the trade names as definedby the supplier to standardized material names.
If such effort is needed depends on the quality ofthe procurement databases but also on the applied
strategy to map activity data with emission factors.
For example, an automated mapping based on CAS
numbers doesn’t need uniquely defined material
names. A mapping strategy that manually maps
emission factors and activity data based on material
names would require a clean and unique material name.
Extraction/collection of activity data
3.1) The extraction of activity data from internal systems
or the collection from the supplier should start withthe distinct definition of the data request. Beside thematerial specific definitions (compare typical data
attributes) it should have general information on
available data and file formats.

3.2) The processing of external and internal data requests
makes it necessary to extract data from the reporting
companies’ procurement or ERP systems. Database
extractions (e.g., queries) should be documented and saved
to guarantee comparability and consistency over time but
also to provide confidence in the verification process of theassurance company.
Unit conversion
4.1) C learly defined activity data might also be delivered withdifferent units, or units that do not correspond to theunits applied in the emission factor datasets. While aunit conversion from different measuring units (metric/
imperial) or monetary units might be easy to handle withstandardized factors, a conversion between different
physical units (volume – mass or piece – mass) needs
product- or material-specific factors. Average factors on
density, for example, might help in most of the cases,
however the applicability to specific products should be
carefully checked. The same holds true for conversions
from piece-based units to mass-based units.
Data analysis and categorization
5.1) The analysis step should help the reporting company
to make decisions with respect to further processing
and improving of the data, based on data completenessand quality. In a first step, the reporting company should
understand which activity data points are available forthe different types of data (physical, spend based). In asecond step, the extent of existing data gaps needs tobe estimated to support the definition of a data strategy.

Prioritization and data strategy
6.1) Based on the data analysis, high priority areas per
supplier, goods, and service category as well as
further data demand might be identified. The operativeand strategic data demand should be defined in adata strategy as well as approaches, processes, andsystems to close those gaps.
6.2) It is unlikely that all suppliers of a reporting company will
be able to provide PCF data. In such cases, companies
should encourage suppliers to develop GHG inventories.
If greenhouse gas emission data from suppliers is notavailable, emission factors from other sources should be
used (please see chapter 4.4 emission factors).
Guidance on Scope 3.1• Date of data extract.
• Data system used & version.
• Relevant data points (PCF/Inventory data mass,
volumes, energy, etc.).
• Timeframe (e.g., reference period).
• Geographical boundary (country).
• Technological boundary (e.g., material or production
specifications (concentration)).
• Company Scope (e.g., operational boundaries).
• Unit.
• Further data attributes (Pro Taxonomy, suppliername, Dun & Bradstreet (DUNS) number).

5.2) A hot spot analysis based on physical or spend data
might help to identify key suppliers as well as goods
and services that contribute the most to the inventory.
A categorization of goods and services with similar
properties might than help to close the data gaps
identified in 5.1.

4.3.2 Clustering and prioritization ofactivity data

The prioritization of purchased goods and services is an
important step in 3.1 activity data assessment. It can bedone by following a two-step approach.
Step 1: Clustering
For a chemical company with thousands of purchased
goods and services, clustering the company’s own
purchases into product groups can facilitate calculation[Global Compact Network Germany (2019)]. For purchased
goods, is recommended to cluster purchases according
to their profile (e.g., CAS number), considering the levelof aggregation of available emission factors. For a betteroverview and data processing, clustering can be usefulat e.g., procurement category, sub-category or materialgroup level. This facilitates the selection of emission factors
e.g., from LCA databases and allows, if applicable, an
extrapolation of GHG emissions to account for 100% of the
raw materials purchased within a category of (chemically)
related substances (please see 4.4 extrapolation).
This approach can improve the accuracy of such an
extrapolation step.
For non-raw material related purchased goods & services,
spend data can be used to cluster goods. Classifying byinternational accepted sector groups (e.g., NACE codes)
may be useful, using the coverage and rationale used forclustering sectors and regions within environmentallyextended input (EEIO) output data1 tables and models as a
guide, such as Exiobase or the 2014 guidelines to Defra /DECC’s GHG Conversion Factors for Company Reporting(Table  13 - Indirect emissions from the supply chain).
This publicly available document provides spend-based
emission factors for over 100 product groups or sectors
according to the standard industrial classification.

(1) Environmentally-extended input output (EEIO) models estimate energy use and/or GHG emissions resulting from the production and upstream supply chain activities of different sectors and products within an
economy. The resulting EEIO emissions factors can be used to estimate GHG emissions for a given industry or product category. EEIO data are particularly useful in screening emission sources when prioritizing
data collection efforts. EEIO models are derived by allocating national GHG emissions to groups of finished products based on economic flows between industry sectors. EEIO models vary in the number of sectors
and products included and how often they are updated. EEIO data are often comprehensive, but the level of granularity is relatively low compared to other sources of data.

19

Companies should also assess whether any GHG- orenergy-intensive materials or activities appear in the value
chain of purchased goods, e.g. precious metals basedmaterials such as catalysts.
[GHG Protocol Corporate Value Chain (Scope) Standard].

Step 2: Prioritization
Prioritizing activities based on the magnitudeof GHG emissions
The most rigorous approach to identifying priority activities
is to use initial GHG estimation (or screening) methods
to determine which Scope 3.1 good or services are
expected to be most significant in size based on factors likepurchased weight or spend. A quantitative approach gives
the most accurate understanding of the relative magnitudes
of various Scope 3.1 activities. To prioritize activities basedon their expected GHG emissions, companies should:

Companies may find it useful to differentiate between
purchases of production-related products (e.g., materials,
components, and parts) and non-production-related
products (e.g., office furniture, office supplies, andIT support). This distinction may be aligned with procurement
practices and therefore may be a useful way to organize andcollect data more efficiently and showing the contributions to
the overall emissions of Scope 3.1 (Figure 4.3).

• Use initial GHG estimation (or screening) methods toestimate the emissions from each Scope 3.1 activity(e.g., by using industry-average data, EEIO data,
proxy data, or rough estimates);• Rank all Scope 3.1 goods or services from largest to
smallest according to their estimated GHG emissions
to determine which Scope 3.1 activities have the mostsignificant impact; and• Apply the guidance in Chapters 5.2.6 until 5.2.8 ofthis document.

Figure 4.3 Overview of impacts to Scope 3.1 reporting of different raw materials according
to their share of contribution

Category 1: purchased goods & services% of spend
Raw materials / Services

0%

10%

20%

Raw material 1

30%

40%

35%

Raw material 2

12%Machining & processing services

11%

Raw material 3

11%

Other raw materials

9%

Raw material 4

6%

Raw material 5

5%

Raw material 6

4%

Packaging4%

Raw material 7

2%

Raw material 8

1%

Raw material 9

0.6%

Raw material 10

0.5%

Production equipment

0.4%

ICT

0.1%

Electrical & instrumentation

0.1%

Industrial cleaning

0.1%

Personnel related0%

Office supplies

0%

Safety, health/PPE

0%Laboratory goods

0%Professional services

0%

Energy & Utilities

0%

Selected activities

20

Table 4.2 Prioritization of goods and services based on CO2 vs spend. Following the 80/20 rule,using top 80% of CO2 emissions prioritizes only raw materials, whereas using 80% of spend prioritizes
both raw materials and services.

Purchased good or service% of estimated CO2% of spend

Raw material 1

35%

20%

Raw material 2

20%

15%

Raw material 3

10%

10%

Raw material 4

15%

5%

Raw material 55%5%Information technology

3%

5%

Financial services

5%

5%

Labor services

5%

15%

Consulting services

2%

20%

Prioritizing activities based on financial spendor revenue
If a ranking of Scope 3.1 activities based on their estimatedgreenhouse gas emissions is not possible, companies
may choose to prioritize Scope 3.1 activities based on
their relative financial significance. Companies may use
a financial spend analysis to rank upstream types ofpurchased products by their contribution to the company’s
total spend or expenditure (for an example, see a company
case study below).
Companies should use caution in prioritizing activities
based on financial contribution, because spend andrevenue may not correlate well with emissions. For example,
some activities, like financial services, have a high market
value, but have relatively low emissions. Conversely, some
activities have a low market value, but have relatively
high emissions, such as some raw materials. As a result,companies should also prioritize activities that do notcontribute significantly to financial spend or revenue but are
expected to have a significant GHG impact.
It should be noted that the emission factors were only
maintained up to 2011 and are related to British Pounds
2011 (incl. VAT). These emission factors must be adjusted tothe currency inflation rate in the current reporting year, therelevant exchange rate and VAT, before applying them.

Guidance on Scope 3.1

The spend-based method is the least accurate method, as spend relies on financial impacts,
such as inflation, taxes & currency effects.

4.3.3 Activity data updates & improvement

Each year, the reporting company shall update the amountsof goods and services purchased. The company shall also
account for any new categories and types of purchases.
Any material errors identified that which would impact
previous year calculations are to be corrected for current
year and prior year calculations, as described in moredetail in the GHG Protocol [GHG Protocol Corporate Value
Chain (Scope 3) Standard]. Over time, more accurate data
sources may be identified. These are also to be applied tocurrent year and previous year calculations, except for suchcase where the new data source is found not relevant for aprevious year.
The applied data collection methodology shall bemaintained each year to appropriately make comparisonsand track progress. However, a company may find overtime that purchases need to be in a different category thanoriginally assumed. While this is not a material change
in Scope 3 emissions for the company, it does reflect anopportunity to improve data accounting accuracy. This typeof change could trigger a recalculation of the baseline,
in order to maintain consistent comparisons.

Example from GHG Protocol: Prioritizing Scope 3
emissions from purchased goods and services
A specialty chemical company applied an emissions andspend-based analysis to prioritize its purchased goods
and services before collecting data for category 1.
The company set out to identify the purchased goods
and services that collectively accounted for at least 80%
of emissions as well as 80% of the total spend. The tableillustrates how the prioritization results vary if consider
GHGs vs spend; most notably, the inclusion of highspend purchased services when spend is considered.

21

4.4 Emissions factors

2) Data extraction

As previously discussed, emissions can be quantified using
direct measurements or calculations, though Scope 3
emissions most commonly employ a calculation approach
using activity data and emission factors.

A company internal prioritization is needed on which data
shall be used to track the emissions from the supplier base(Figure 4.3). This internal priority ranking of emission factors
should help the company to set up a consistent inventory
and consider the company’s ambition to reduce and steer
their Scope 3 target (1.2). Guidance for such an emission
factor prioritization is provided with the decision tree
provided in figure 4.5. The selection of certain data sources
should consider the availability of data for the internal
accounting and target tracking system. Comprehensive
information about developing and implementing a DataManagement Plan is found in [GHG Protocol Corporate
Value Chain (Scope 3) Standard]. A reporting company
shall always apply the most specific and accurate available
emission factors to ensure the highest quality of thereported Scope 3 category 1 emissions inventory. To thisend, it is recommended to implement a Data Management
Plan which can be helpful in the continuous data
improvement process but depending on the amount of data
it might also help to prioritize efforts (1.3). For consistency
reasons secondary emission factors should always betaken from the same database, if possible. Furthermore, thereliability of the available data should always be evaluated.
An overview is shown in Table 4.2.

Calculating Scope  3 based on emission factors can leadto large variations and uncertainties, thus, the availabilityof suitable emission factors is a key factor for the quality of
the Scope 3.1 GHG inventory. The following steps provide
guidance on best practices to finding and using emissions
factors (Figure 4.4).
1) Data availability check and emissions factor strategy
Emissions factor data can be taken from various sources,
in different qualities and different scopes. An overview
of different data types is given in table 4.3. When taking
emission factors from databases, these shall be always
sourced from varified databases. Examples of emission
factors sources are as follows:• V erified data from associations such as ISOPA, Plastics
Europe, Fertilizer Europe, World Steel association, etc.
• LCA databases such as GaBi (Sphera), Ecoinvent,
Carbon Minds, Agribalyse, ELCD (PEF) database.
• Official national emission factor databases such as
US EPA, IEA, Defra (e.g., DECC for spend-based data),
GREET, etc.
• Supplier data.
Companies should the check validity of the PCF byconsulting the attribution list within chapter 5.3.

Figure 4.4 Key process steps of Scope 3.1 emission factor generation, preparation, and handling

1

2

3

4

5

Data availability
check & EF strategy

Dataextraction

Data
mapping

EF updating
an upgrading

Supplier
engagement

1.1 Check availability ofemission factor data
1.2 Define emission
factor priority ranking(hierarchization)
1.3 Define emission
factor mapping strategy

2.1 Extract EF data
including key attributes

3.1 Automized, semiautomized or manualexpert based mapping ofemission factor data toactivity data

4.1 Define update
intervalls
4.2 Check availability of
new data contents fromdatabases and integrate
into data tables
4.3 Request PCF datafrom your supplier
4.4 Depending on theimpact of your EF upgrade
recalculate your baseline

22

5.1 Convince relevant
supplier to deliver more
specific data
5.2 Define operativeand strategic additional
activity data demandTable 4.3 Overview of data sources available for an accounting of emissions from Scope 3.1

Definition

EEIO

Description

Sector/country/global
emissionfactors
mappedagainstpurchasing
volumes

Pre-condition

Understandingof corporate
spend,
currencies, andinflation rates

Industry
average
LCA

Specific
PCF

Supplier
PCF

Product
industry
average datafrom LCA
databases

Modelled
dataset that ismore granular
for technology
or geography
than industry
average

Physical data
available

Detailed
knowledge on
supply chainincl. physicaldata

Consistentbase of LCA
data

Application

Base inventory
Hotspot
analysis(country,material groupcontribution)

OCF*

PCF data
per productcollected fromthe specificsupplier

Supplier
specific
allocated OCF
for Scope 1&2
and supplier
activity data
and average
EF data for
suppliers’
Scope 3.

Supplier
specific OCF
for Scopes 1,
2, 3 (per EURor physicalunits or as abs
CO2 emissions)

Willingness ofthe supplier toshare data per
product also
for baseline

Willingness ofthe supplier
to shareinventory data
per product(materialamounts)

Availabilityof OCF andpurchasing
volume data orphysical data

Captureemission
reductions
through
generic
reductions

Measurementof supplierperformance

Generalsupplier
performance

Generalsupplier
performance

PCF data on
product level

Broad productportfolio

Tracking
progress toclimate goals

SourceActivity Data

Purchasing
records(+ priceadjustment)

Reportingcompany’s
ERP system
BoM

Reportingcompanies
ERP system,
BoM

Reportingcompanies
ERP system,
BoM

Supplier data

Reportingcompany’s
procurement
or ERP system

SourceEmission
Factors

Environmentally extended
Input Output
model

LCA database

Reportingcompany orconsultancy
sector/productspecific modeland average
LCA data

Supplier PCF
based onprimary datacollection

OCF data forTier 1 supplierand average
LCA/PCF datafor upstream ofTier 1 supplier

Sustainability
reportPros

Complete andconsistent
inventory for all
products

Relatively
detailed
product
differentiation

Detailed
product
differentiation

Exact productdifferentiation

Supplier
specific
performance

Supplier
specific
performance

Good regional
coverage

Annualdifferentiation

Annual update
possible

Annual update
possible

Compromisewith respect toeffort and data
accuracy

Easy and fast
to calculate

Literatureor data on
demandEasy to accessAnnualdifferentiation

Guidance on Scope 3.1

Access to an
input/output
model

HybridCDP report23Definition

EEIO

Cons

Only coarse
product
differentiation
Time lag ofstatistical datawith the riskof outdated
data whenused closely
before the next
update(Inaccuracies
due to priceand currency
effects)
No
standardizationof EEIO
modelsNo supplierspecificinformation

Conclusion

Very basic
approach.
Limitations
with regard
to accuracy& supplierperformancemeasurement

Industry
average
LCA
Physical
activity data
often notcomplete
EF data notavailable for all
products andcountries
Limitedcomparability
with baseyear emission
due tomethodological
updatesSpecific
PCF

Supplier
PCF

Availabilityof physicalactivity data
Uncertainty incalculation
No exact
supplierspecificinformation

HybridOCF*

Physical
activity data
often notcomplete

Large effort fordata collection

Big effort
for data
generation,
validation andcollection, if
manually done

Challenging tovalidate

Inaccuracies
and low
comparability
due tomethodologicaldifferences(Scope 3) andallocation

Limitedprecision

In case ofmonetary
units sensitive
to price andcurrency
effects

No annual
update, if
manually done
Limitedavailability

Temporal
representativeness

Low
traceability if
no detailed
documentation
is available

Cost of LCA
databases
No exact
supplierspecificinformation
Basicapproachbut the more
specific the
product
portfolio theless data are
available

Data only
available forlimited productcategories

Highestaccuracy withbig effort incl.
dependency
from supplier
However, theeffort can be
reduced byautomating
andimplementing
IT tools forcalculating andsharing PCF
and PCF data

Mediumeffort incl.
dependency
from supplierBasicapproach.
Only
applicablein case ofhomogenous
product
portfolio of the
supplier* OCF = Organizational Carbon Footprint

Besides using emission factor data of lower data
accuracy (e.g., spend or average data method), thereporting company can use sampling and extrapolation
methodologies. Using proxy methodologies instead ofmoving to different data types increases comparability ofdata within the inventory and thereby improves consistency.
Companies should calculate emissions from at least
80% (by volume, weight, or spend – see chapter 4.2 for aprioritization approach) of purchased goods and services,
after which results should be extrapolated to estimate 100%of emissions. [WBCSD (2013)].

24

The GHG Protocol identifies extrapolation and proxytechniques as completely legitimate procedures in assessing
Scope 3.1 GHG emissions. To estimate the total sum of
Scope 3.1 emissions, many companies extrapolate theemissions calculated for a particular part of their purchases
to further purchased goods and services with comparable
emissions intensity. In the following key approaches for
estimation of data are briefly described with their potential
application and typical examples. An overview of data
sources is shown in Table 4.4.

Table 4.4 Overview of data sources available for an accounting of emissions from Scope 3.1

Estimation approaches

Application

ExamplesApplying more accurate
data/calculations for large
contributors

If possible, apply a 80:20 approach

Collect primary data from your supplierfor 20% of your purchased productsthat contribute 80% to the reporting
companies Scope 3.1 footprint

Applying less accurate
data/calculations for small
contributors•	Apply industry average PCF datasetof the same product instead of using a
supplier specific PCF•	Use a “DE: Sodium Hydroxide” dataset
from a LCA database to estimate theimpacts from your specific sodiumhydroxide supplier located in Germany•	Apply industry average dataset that
doesn‘t have full coverage with respect
to technology, geography or time
instead of an industry average that has
full coverage (proxy)
Grouping or combining
similar activity data
(e.g., goods and services)

Build a group of chemicals based on• SIC or NAICS grouping• Similar chemical structure

Apply the PCF of methanol to all
chemicals that belong to SIC Code 2869 –industrial Organic Chemicals,
not Elsewhere classified.
Guidance on Scope 3.1•	Same or similar production technology/
process•	Use a e.g. GLO or EU average“Sodium Hydroxide” dataset in case ofunavailability of a supplier or country
specific industry average

Apply PCF of a product that represents
the specific group regarding technology,
geography and time
Obtaining data from
representative samples
and extrapolating the results
to the whole

Build a sample making use of simple
random, systematic or stratified sampling
as described by the GHG Protocol Scope
3 Calculation Guidance, Appendix A

A company purchases 100 products ina specific chemical product category
and wants to determine the average
PCF, it may choose to collect data from20 randomly selected products as arepresentative sample

Using proxy techniques

Extrapolating, scaling up, or customizing
to be more representative of the given
activity•	A supplier that makes up 80% of thepurchased mass of a product can beextrapolated to represent 100 percentof the activity•	The emissions of a supplier for sodiumhydroxide from Canada is approximatedwith an emission factor for sodiumhydroxide from US

If data of sufficient quality are not available to cover forthe minimum 80%, companies may use proxy data to fill
data gaps. Proxy data is data from a similar activity thatis used as a stand-in for the given activity. Proxy data canbe extrapolated, scaled up, or customized to be more
representative of the given activity (e.g., partial data foran activity that is extrapolated or scaled up to represent100  percent of the activity).
[GHG Protocol Corporate Value Chain (Scope 3) Standard]
3) Data mapping
Data extraction of emission factor data depends on thesource the data are taken from. While EEIO data might betaken from public sources or consultancies, PCF data
(if not supplier specific) are usually taken from LCA
databases. Supplier specific data are currently mostoften handed over manually (e.g., excel tables) but will behanded over via predefined tools and interfaces in the future(See TFS initiative WS 5.2). CDP is also a good source of

supplier data, e.g., PCFs and revenue intensity factors.
OCF data could be taken from publicly available reports ofthe suppliers or collected via e.g., CDP or Ecovadis oncea year if production amounts and product segmentation isavailable too. Attributes that describe the emission factors(e.g., geographical, temporal and technological Scope)
might help to map factors against activity data. Consistentsets of attributes are available with the International Life
Cycle Data (ILCD) format available via LCA databases, aformat which provides granularity that supplier usuallycannot provide, and which is not available for OCF or EEIO
data. Attributes relevant for an exchange of PCF data withincompanies is provided in the appendix of this document.
A decision tree supporting the decision process is shownin Figure 4.5.

25

Figure 4.5 Decision tree to select emission factor data (Note: In accordance with chapter 5.2.2of this guideline, PCFs have a validity period of up to five years and shall be updated before the end of thevalidity period has been reached.)

Do you havephysical activity
data available?

Yes

No

No

Can the material
be clearly
defined(e.g. CAS)?

EEIO(incl. average
inflation)

Is the PCF
calculated acc.
to accepted
standards andverified?

Yes

No

No

Do you have pricedevelopment data
available?

No

Yes

Is a supplierspecific PCF
available?

No

Are supplier specific
OCF data on physicaldata basis available / incl
upstream activity data or
Scope 3 data?

Yes

EEIO (incl.
spec priceadjustment)

No

Yes

Is the PCF
data regularly
updated?

No

Is there a suitableaverage or specific EF
from a high quality database or model available?

Yes

Yes

OCF/Hybrid(physicallyallocated)

LCA data base /phys. input data

Yes

Specific PCF
data / phys.
input dataor

OCF/Hybrid(economicallyallocated)

4) Emissions factor updating and upgrading
If manually done, the attribution of emission factor datato activity data can be a time-consuming process step.
A predefined set of attributes, rules and quality criteria canhelp to automate (or semi-automate) the mapping process.
A final review of a product segment and or emission
factor expert might still be necessary depending on thecomplexity of the companies purchased material portfolio.
5) Supplier engagement
Reporting intervals require the regular update of emission
factors. Due to GHG reduction targets, many companies
might strive for yearly updates of their emission inventory(4.1). Updates in activity data and emission factors can

26

be actual changes over time, corrections for identified
errors, other improvements in data quality, or changes incalculation methodology. Companies shall understandhow data are changing and the reason for any changes.
It is understood that data quality may be low in initial
years of data collection, but companies should strive toimprove data quality as quickly and as much as possible
in line with their company goals. For the chemical industry,transitioning towards supplier-specific data is one of themost impactful ways to improve data quality. This pursuit
could be prioritized for higher use rate inputs and inputs
with relatively higher GHG emissions. Suppliers can work
intensively on the reduction of the PCF of their products,
reducing their own emissions but as well contributing to the
reduction of Scope 3.1 emissions of their customers.

Data from LCA databases are subject to a yearly update,
while supplier data might be updated less frequently.
A process formalization and/or automatization of emission
factor update routines can stabilize the process and reduce
efforts. The request of PCF data from suppliers might need
early planning and exchange with the respective supplier 4.3).
An emission factor update can also include the upgrade ofcertain emission factors e.g., the shift from one emission factor
source to another. For example, moving from an industry
average dataset from an LCA or EEIO database to a supplierspecific dataset in the reporting year could make it necessary(depending on the significance and the company’s recalculation
policy) to also align the baseline year and any other previous
year’s calculations with the new emission factor (compare
chapter 4.5 on baseline recalculation). To move from using aspend-based method to the more supplier specific methods,
a company would need to:

For example, Company A spends a total of $5 million USD
each year on purchased goods and services. $100,000of this spend is for 300 kg of Input Y. While Company A
has been using the spend-based method to calculate
their Scope 3 emissions, the Supplier for Input Y is now
able to provide a PCF for Input Y. The PCF for Input Y is
10 kg CO2e/kg Input Y. To make this change, Company
A follows the below:

Decarbonization will not be linear. It will take place at
different rates, depending on sector, geography, policy,
and market forces. In other words, some companies andproducts will become low-carbon faster than others.
Due to these dynamics, regional and global emissions
factors may over or under-estimate the actual emissionsof a purchased good. The resulting uncertainty is fast
becoming a pressing concern for companies seeking to
track progress towards scope 3 climate goals.
Supplier data is one meaningful solution here, collected
via programs like CDP, industry groups, or directlyfrom the supplier. Supplier data can be substituted foremissions factors, multiplied out based on the reporting
company‘s activity data like purchased quantities orspend – for example:• Supplier PCFs (kg CO2e per kg of product)
for relevant purchased goods• Revenue carbon intensity factors (kg CO2e per € or
Us$ revenue) for relevant goods and services

Guidance on Scope 3.1• Eliminate or reduce the spend-based data specific to thepurchased good or service of interest from the Scope 3 total.
• Use the supplier-specific PCF data if available, or otherwise
specific or industry average PCF data instead of this spendbased data in a new Scope 3 calculation.
• Apply this new accounting method to the baseline year andany previous year calculations.
• This would result in a combination of the calculation methods.

The Importance of Supplier Data

When applying supplier emissions factors, care should
be taken to validate that factors were calculated
correctly, and that they are applied to the correctpurchased good or service.

$5,000,000-$100,000 = $4,900,000 still using thespend-based method
300 kg of Input Y purchased x 10 kg CO2e/kg Input Y
purchased = 3,000 kg CO2e for Input Y
Total for Scope 3 Category 1 Purchased Goods andServices =GHG results from spend-based approach for$4,900,000 spend + 3,000 kg CO2e for Input Y
Companies should encourage their suppliers to develop andreport GHG data (5.1). A close engagement with the suppliers
can help to build a common understanding of emissions-related
information and the opportunities and benefits of achieving
GHG reductions. An active engagement can help both parties
to understand emissions driver of upstream but also productuse and disposal better, it can also help to reduce concerns
regarding the exchange of PCF data. Finally, an operative andstrategic emission factor demand should be defined in thedata management plan aligned with the reporting companies
GHG reduction ambitions (5.2).

27

4.5 Target baseline and

4.6 Additional accounting andWhen companies choose to track performance or set a
reduction target, companies shall:In the chemical industry specific cases needs to be addressed
because they cannot be covered by the commonly applied
approach of accounting. In this sense, the following topics arecovered, and the procedures described. The challenges of
avoiding double counting as much as possible, the accurate data
handling and the accounting in specific situations are described.

recalculation• Choose a scope 3 base year and specify their reasons forchoosing that particular year;• Develop a base year emissions recalculation policy that
articulates the basis for any recalculations; and• Recalculate base year emissions when significant changes in
the company structure or inventory methodology occur.
Recalculating base year emissions
To consistently track Scope 3 emissions over time, companies
shall recalculate base year emissions when significant changes
in company structure or inventory methodology occur. In suchcases, recalculating base year emissions is necessary tomaintain consistency and enable meaningful comparisons of theinventory over time. Companies are required to recalculate baseyear emissions when the following changes occur and have asignificant impact on the inventory:

reporting guidance

4.6.1

Contract manufacturing including tolling

Principles of emissions reporting for contract manufacturing
activities:• Outsourcing of production steps shall not lead to outsourcingof product-related emissions while ensuring that doublecounting is minimized at the same time.
• The information needed to calculate emissions should beobtainable with a reasonable effort.
Description of terms:• Structural changes in the reporting organization,such as mergers, acquisitions, divestments, outsourcing,and insourcing.
• Changes in calculation methodologies, improvements in data
accuracy, or discovery of significant errors.
• Changes in the categories or activities included in the
Scope  3 inventory.

A contract manufacturer is a manufacturing company ofa product on behalf of another company (client) for which it
produces the contract manufacturing goods using own assets.
The raw materials, energies, utilities needed to produce thecontract manufactured product are either completely purchasedby the contract manufacturer or partially purchased, or fully
provided by the client.

In such cases, recalculating base year emissions is necessary
to ensure the consistency and relevance of the reported
GHG emissions data. Companies shall recalculate base year
emissions for both GHG emissions increases and decreases.
Significant changes result not only from single large changes,
but also from several small changes that are cumulatively
significant. As part of the base year emissions recalculation
policy, companies shall establish and disclose a significancethreshold that is aligned the company’s greenhouse gas
ambitions. Companies shall apply the recalculation policy ina consistent manner.

A toll manufacturer is a contract manufacturer as defined
above but who produces on behalf and under consideration of
the intellectual property of another company (client).

The guiding principles for establishing recalculation policies
and some additional topics for the chemical industry will
be developed by TfS in a further independent document,a so-called white paper with proposals for the re-organizationof reporting topics.
[GHG Protocol Corporate Value Chain (Scope 3) Standard]

The client is the company that has outsourced the production
to the contract manufacturer.

4.6.1.1 Contract manufacturing with raw materials,
energy and utilities etc. procured exclusively by thecontract manufacturer

From a GHG accounting perspective, contract manufactured
products (CMP) for which raw materials, energies and utilities
are exclusively purchased by the contract manufacturer shall betreated like trading goods or any other purchased raw materials:
EmissionsScope3.1 = MassCMP * PCFCMP
The contract manufacturer should calculate the PCF of the
manufactured product (see Chapter 5 for guidance to calculatePCF) and provide the PCF to the client, the reporting company,
but in case no manufacturer-specific PCF is available a
database PCF value or proxy can be used (please see 5.2.5:
data types & sources).

28

4.6.1.2 Contract manufacturing with raw materials,
energy and utilities etc. partially purchased by thecontract manufacturer or fully provided by the client

In contract manufacturing, in which raw materials, energy
and utilities are only partially purchased by the contract
manufacturer or fully provided by the client, the calculationof Scope 3.1 emissions differs depending on the levelof detail of emissions data provided by the contract
manufacturing company as well as on the extent of raw
materials and/or energy provided by the client to theprocesses of the contract manufacturer.
The emissions and resulting PCF should be calculated
based on activity data, collected by the contract
manufacturer using primary or secondary emissions dataand on information about the emissions of the raw materials
and energy provided by the client. Generally, activity data
should not be requested by the client if there might be any
antitrust implications.

Based on the exchange of aggregated PCFs, no extractionof activity data is possible. However, in case PCF valuesof pre-cursors are sent by the client to the Contract
Manufacturer, GHG emissions associated with the
manufacturing process, e.g. from energy use, shall be
added to the PCF by the Contract Manufacturer in a new
PCF calculation. The Contract Manufacturer should thenprovide a new PCF to the client to reflect the manufacturing
process. It should be avoided, that business critical information
can be extracted from the calculation. This guideline is notmeant to violate any applicable law or anti-trust thus werecommend every company when exchanging partial PCFs tocheck with their legal advisor on compliance.
Double counting of emissions from the contract
manufactured product ordered and received by the clientand from the raw materials purchased and provided by
the client should be avoided but is generally acceptable.
However, if more precise information is available, this shallbe used to reduce the degree of double counting.
Depending on the provided information the following
approaches shall be applied, whereby the provision ofprimary data regarding the contract manufactured productis always to be preferred:1)	If a PCF calculated by the contract manufacturer for thecontract manufactured product based on activity dataand primary or secondary emissions data cannot beprovided by the contract manufacturer, a carbon footprintof a database, a proxy or an estimated PCF shall be used
to calculate the emissions from contract manufacturing.
This generic PCF shall not be adjusted according to
the client’s known volume of energy and/or materials
provided by the client to produce the product.

2a) The emissions of the contract manufactured productare calculated using the cradle-to-gate PCF provided
by the contract manufacturer whereby the emissions
caused by energy and/or raw materials provided by
the client are subtracted from the respective Scope
3.1 emissions by the client reporting the emissions.
In case raw materials produced by the client areprovided to the contract manufacturer the PCF ofthe contract manufactured product can be reducedby the emissions per kg of the provided products
considering the share of the raw material produced
and provided by the client necessary to produce thecontract manufactured product.
2b) The Scope 3.1 emissions linked to contract
manufacturing are calculated using the cradle-to-gate
PCF provided by the contract manufacturer whereby
the emissions caused by energy and/or raw materials
provided by the client are double-counted.

Guidance on Scope 3.1

Concerning raw materials, energies etc. provided by theclient – the assumption and precondition for the following
suggested calculation rules are that the emissions for these
raw materials and energies are already considered in thegreenhouse gas inventory of the client, e.g., in Scope 3.1
or Scope 1 or 2 emissions.

2)	If the contract manufacturer can provide a full cradle‑togate PCF, the reporting company which is the client
shall calculate the emissions according to one of thefollowing options:3)	If possible, the contract manufacturer should provide
a cradle-to-gate PCF already reduced by the energy/materials provided by the client helping to avoid doublecounting. In this case the emissions caused by energy
and/or raw materials provided by the client must not be
subtracted by the client when calculating and reporting
the emissions.
In case that1)	At least a share of 90% of the mass of the raw materials(always including catalysts and other high CO2e-intense raw
materials), energies und utilities are provided by the client.
2)	And it is assured that the contract manufacturer does not
deploy any GHG-intensive raw materials, e.g. catalysts.
The following additional option to calculate the emissions
can be followed:
The contract manufacturer should provide the client withinformation on direct emissions as well as emissions caused
by waste and wastewater treatment in [kgCO2e/kg] during
the production of the contract manufactured product. In thiscase the client shall only take these additional emissions
mentioned in the sentence before into account in Cat. 3.1.
If the contract manufacturing process is well known, theclient itself should calculate the direct emissions as well as
the emissions caused by waste and wastewater treatment
based on fuel consumption and stoichiometry and subtractthe emissions from the Cat. 3.1. emissions.

29Special Case “Outsourcing of 1 Minor Process Step”:
One minor production step is outsourced to anothercompany (contract manufacturer) e.g., simple mechanical,
thermal processes, or chemical reactions. The raw
material or intermediate product is delivered to the contract
manufacturer for processing and purchased or taken backby the client after the conversion. Both, raw material orintermediate product and processed product are recordedin the internal booking system (e.g. ERP system).

• Supplier-specific information is difficult or impossible
to obtain because a long-term supply relationshipnormally does not exist and hence, the supply chain is
not traceable.
• The frequent change of “owner” of the material andsubsequent reporting of each owner would lead to ahigh level of double counting in Scope 3 emissions.
• The effort of data collection is s not justified for the purposeof this trade which is solely to achieve financial benefit.
[WBCSD (2013)]

The following accounting methods can be applied:1)	The emissions are calculated using the cradle-to-gate PCFof the contract manufactured good after the outsourced
process step. The emissions or the purchased volumes of
the raw material / intermediate product which was the initialmaterial are subtracted from the Scope 3.1 emissions.
2)	The emissions are calculated using the PCF of the raw
material / intermediate product as well as the partial PCFof the outsourced process step. If the partial PCF of theoutsourced process is not known it shall be estimatedfor the essential (e.g., by spend, by mass or by energy
intensity) process steps to be identified via a hotspot
analysis (80:20 approach). The thus determined, mass/spend/energy weighted PCF should be used to estimate
the not yet considered emissions from non-essential
process steps. If the product is additionally tracked in the
ERP system after the processing step, its emissions should
be subtracted from the Scope 3.1 emissions to avoid
double counting because listed in different systems.
3)	If (partial) PCFs that cover only parts of the whole life
cycle, e.g. cradle-to-gate. as defined in ISO 14067 are notavailable for products from the outsourced process and/or the raw materials before the outsourced step, double
counting is accepted and should be disclosed as such.
The purchased as well as the processed material shall beconsidered in the final extrapolation step to account for
100% of the sourced materials (see chapter 4.4).
In case the contract manufacturer is the reporting company,
all emissions which are caused by the production including theemissions for the upstream (as Scope 1, Scope 2 and Scope
3.1 emissions, respectively) shall be reported except for raw
materials/energies etc. that were not purchased but provided
by the client free of charge.
4.6.2 Trading of materials/Merchandise

In case a chemical company acts additionally as atrader of materials, it shall report the related emissions
under Scope  3, notably categories 1 (Purchased goods
and services), 4 and 9 (Upstream and downstream
transportation and distribution), 11 (Use of sold products –if applicable) and category 12 (end-of-life treatment ofsold products).
If the trading activity is a “trade on paper” (i.e., purchaseand sale are carried out shortly one after the other) andnot connected to any physical delivery or distribution of amaterial, the trading company may exclude the respective
GHG emissions from its Scope 3 inventory. The reasoning
behind this is that in these cases:

30

4.6.3

Swaps

Swaps are goods transactions, in which products aremutually delivered or exchanged, respectively, between
two business partners (third parties). Usually, identical,
or equivalent products are swapped in equal quantities.
These mutual delivery transactions are generally carried out
as they are beneficial for the swap partners, e.g., due to:• Optimization of logistics (e.g., savings in freight, tank,and customs costs) or• Compensation for temporary product bottlenecks or
surpluses.
An example for a swapping agreement related to a chemical
product is given as follows.
Company A located in Europe produces Product X andCompany B located in Asia produces Product Y.
Both companies enter into a swapping agreement andCompany B sells Product X (manufactured by Company A)
to their customers in Europe and Company A sells Product Y(manufactured by company B) to their customers in Asia.
Different cases of swapping agreements are to be
distinguished, i.e., whether equal and comparable quantities,
respectively, or different quantities of a chemical productare exchanged over the period of one year (i.e. in the annual
balance sheet).
For all swap arrangements, each of the companies shallaccount for their own Scope 1, 2 and Scope 3 emissions
linked to their product, i.e., Company A accounts for andreports the Scope 1, 2, and 3 upstream emissions related
to the production of Product X and, respectively, Company
B to produce Product Y. This means that both companies
involved in the swapping agreement consider in Category
3.1. the GHG emissions linked to their own raw materialpurchase, and not the raw material purchase related to the
product that is physically delivered to the customer becauseof the swapping agreement. Only the GHG emissions fromtransportation from the swapping partner to the customer
shall be reported by the selling company (in Scope 3).
Example 2 is shown in Figure 4.6.

Figure 4.6 Same product with about the same quantities are swapped, example 1
Company A

Product X

100 t
Scope 3 upstream

Scope 1 & 2Company B

Customer ofCompany B

Cyclohexane

Product Y

100 t
Scope 3 upstream

Scope 1 & 2

Customer ofCompany A

Cyclohexane

1.	The Scope 1, Scope 2 and upstream Scope 3 emissions
related to the production of the 100 tons of cyclohexane(Product X).
2.	The Scope 3 emissions related to the transport of 100
tons of cyclohexane (Product Y) from the swapping
partner (Company B) to its customer.
For company B it is the same vice versa.

The PCF communicated to the customer is the PCF forthe same product of the selling company. This means thate.g., the customer of company B receives the PCF of thecyclohexane produced by company B and not the PCF forthe delivered product from Company A.

Guidance on Scope 3.1

Company A accounts and reports:

This ensures that a company communicates to its
customers only a PCF, whose calculation, and data basis
it is responsible for. In addition, customer communication
remains consistent, even when the swapping partnerchanges. It also offers no incentive to swap products withhigh carbon footprint. Example 2 is shown in Figure 4.7.

Figure 4.7 Different quantities of the same product are swapped, example 2
Company A
Product X
100 t
Scope 3 upstream

Scope 1 & 2

Customer ofCompany B

Cyclohexane

Company B
Product Y
50 t
Scope 3 upstream

Scope 1 & 2

Cyclohexane

Customer ofCompany A

Company A accounts and reports:

Company B accounts and reports:

1.	The Scope 1, Scope 2 and upstream Scope 3 emissions
related to the production of the 100 tons of cyclohexane(Product X).

1.	The Scope 1, Scope 2 and upstream Scope 3 emissions
related to the production of the 50 tons of cyclohexane(Product Y).

2.	The Scope 3 emissions related to the transport of 50 tonsof cyclohexane (Product Y) from the swapping partner(Company B) to its customer.

2.	The Scope 3 emissions related to the transport of100  tons of cyclohexane (Product X) from the swapping
partner (Company A) to its customer.
3.	The cradle-to-gate GHG emissions linked to the differing
amount of 50 tons from Company A as purchased raw
material in category 3.1.

31

To compensate for the difference in the quantities in therespective company balance sheets, Company B, whichhas produced only 50 t in real terms but has sold 100  tonsof cyclohexane to its customer, must account for the cradleto-gate GHG emissions linked to the “missing” 50  tons aspurchased raw material in category 3.1.

ways. Chapter 5.2.8.4 gives guidance on how PCF data forrecycled materials should be calculated. If companies buy
and use materials derived from recycling, the share of therecycled content shall be reported including the PCF.
The emissions of recycling or recycling contents can be
accounted in different categories:

The PCF communication to the customer follows the same
rules as in case 1.

4.6.4

A)	If a company purchases a product or material that
contains recycled content (up to 100%), the upstream
emissions of the recycling processes are built into thecradle-to-gate emission factor for that product andwould therefore be reflected in category 1 (Purchased
goods and services). If a company purchases a recycledmaterial that has lower upstream emissions than theequivalent virgin material, then this would register as
lower emissions in category 1. Under circumstancedescribed in bullet B), a company may recycle some of its“operational waste”.

Joint ventures/Joint arrangements

This section intends to clarify how to account for GHG
emissions for products made from joint operations,joint ventures, or other structures where there is a joint
responsibility between two or more companies. It describes
how impacts of production processes for this type ofcompany relationship shall be considered for purchased
goods and services.

B)	On the other hand, products with recyclable content
eventually become waste, which could be recycled.
Emissions generated in this process are reported as
category 12 (End-of-life treatment of sold products).

The approach to be taken differs depending on theaccounting approach chosen by the company in line withthe approaches specified in the Greenhouse Gas Protocol
Corporate Standard. Companies are encouraged to aligntheir GHG accounting with their financial reporting as
recommended by the Guidance for Accounting & Reporting
Corporate GHG Emissions in the Chemical Sector Value
Chain (WBCSD, 2013). This approach ensures internalconsistency of GHG information with reported revenue(Table 4.5).

To allocate the emissions to different companies andcategories correctly and consistently, and to avoid doublecounting, a standardized method which sets consistentboundaries is needed.
Adhering to the hierarchy of waste for Scope 3 accounting
and reporting, the recycled content method (describedin detail on p. 77 -79 in the Technical Guidance for
Calculating S3 Emissions provided by the Greenhouse Gas
Protocol Protocol [WBCSD (2013)]) shall also be applied bycompanies. According to this method, recycling processes
shall be included in S3.1 (purchased goods and services) of
the company purchasing and using the recycled product.

Recycling/ recycled content (what toreport where: category 3.1 vs. category 3.12)

4.6.5

The guiding principles for establishing recycled products
and products with recycled content in the accounting forthe chemical industry will be developed by TfS in a further
independent document. In this document, the Chapters
5.2.8.4 gives guideline for calculating the PCF for massbalance calculations.

The implications for category 3.12 (end-of-life treatment ofsold products) are the following:• Companies shall only account for emissions fromthe first lifecycle of the product, not for any emissions
following the recycling of the product.
• The emission factor for recycled products and the allocatedshare of energy recovery will be reported as zero.

A waste is any residue of a production operation,transformation or use, any substance, material, product thatits holder intends for disposal. Waste for final disposal has
no economic value. The term secondary material is used fortypes of waste that can be used, recycled, re-used again
before final disposal. The efforts needed and the subsequent
GHG emissions to recycle those materials can be linked tothe input and the generated secondary materials in different

The recycled content method is generally consistent withsecondary emission factors available for recycled material
inputs and therefore easy to apply.

Table 4.5 Overview of equity share and control approaches

Equity share approach

Equity share included as part of company’s Scope 1 and Scope
2 GHG accounting

Control approach

Included in company’s Scope 1 + 2 GHG accounting if joint
venture is under company’s operational control, OR

Operational control
approach

Included in company’s Scope 3 (category 15) if joint venture is
not under company’s operational control
Financial control approach

32

Equity share included as part of company’s Scope 1 + 2 GHG
accounting accounting if joint venture is under company’s
financial control, OR Included in company’s Scope 3 (category15) if joint venture is not under company’s financial control

4.6.6

Biogenic emissions and removals

The guiding principles for establishing biomass and massbalance products in the accounting for the chemicalindustry will be developed by TfS in a further independent
document. In this document, the Chapters 5.2.10.1 until
5.2.10.2 and 5.2.10.5 give guideline for calculating the PCF
for biogenic removals and carbon.

4.6.6.1

In Cradle-to-Grave Product LCAs

According to ISO 14067 [ISO 14067: 2018], biogenic
removals from CO2 uptake during biomass growth shallbe included in the PCF calculation. Removals of CO2 into
biomass shall be characterized in the PCF calculation as−1 kg CO2/kg CO2 when entering the product system, whilebiogenic CO2 emissions shall be characterized as+1 kg CO2e/kg CO2 of biogenic carbon [ISO 14067: 2018].
For more details see chapter 5.2.10.1.
For short term uses of materials with incineration, both
approaches are identical in cradle-to-grave considerations.
For long term applications, significant differences will becalculated, depending on the final disposal. The effectof the timing of CO2 emissions and removals shall beassessed. For other technologies that remove CO2 from theatmosphere, in general these rules apply as well and thespecific benefit to the GHG reduction shall be addressed.

Emissions from biomass sources are typically compensatedfor by CO2 absorbed during photosynthesis. Therefore, many
companies report zero emissions related to the combustionof biomass. Inconsistencies or confusion may arise if different
companies apply different methods or formats to reportemissions from biogenic origin [WBCSD (2013)].
According to the GHG Protocol Corporate Standard,biogenic CO2 emissions (e.g., CO2 from the combustion of
biomass) that occur in the reporting company’s value chain
are required to be included in the public report, but reported
separately from Scope 3.
The requirement to report biogenic CO2 emissions
separately refers to CO2 emissions from combustion or
biodegradation of biomass only, not to emissions of any
other GHGs (e.g., CH4 and N2O), or to any GHG emissions
that occur in the life cycle of biomass other than fromcombustion or biodegradation (e.g., GHG emissions fromprocessing or transporting biomass).
Guidance on Scope 3.1

According to the European Commission ProductEnvironmental Footprint (PEF 2021) system and the[GHG Protocol Product Standard], biogenic CO2 emissions
and biogenic CO2 removals are considered as neutral,
independently from end-of-life treatment. The Carbon
uptake is balanced with the Carbon emissions in the EoL.
ISO allows the calculation of the removal of biogenic Carbon
and requests a separate emissions calculation dependingon the application, the time frame of using the carbon etc.
Long term uses or other ureses in the end-of-life scenario
can be considered specifically.

4.6.6.2 Biogenic emissions in Corporate Accounting

Scope 1, Scope 2, and Scope 3 inventories include only
emissions, not removals. Any removals (e.g., biological GHG
sequestration) may be reported separately from the Scopes[WBCSD (2013)].
In the corporate report the following information might
be reported:• Total Scope 3 emissions excluding any biogenic CO2
emissions or removals (mandatory).
• Separately: Any biogenic CO2 removals (e.g. biological
GHG sequestration) emissions (mandatory).
• Separately: Any biogenic CO2 removals e.g. biologicalCO2 sequestration (mandatory).

Where CO2 emissions (and upfront removals) arising fromembedded carbon of the product in question during the usephase and/or at the end-of-life occur over a longer period oftime that still needs to be defined (if not otherwise specified
in the relevant PCR) after the product has been brought into
use, these emissions can be neglected or can be treatedas carbon sinks for longer time periods. The timeframe ofthese CO2 emissions relative to the year of production of
the product shall be specified in the life cycle inventory.
The effect of timing of the CO2 emissions and removals fromthe product system, if calculated, shall be documented
separately in the inventory [ISO 14067: 2018].

33

4.6.7Mass-balance chain-of-custody

The guiding principles for establishing biomass and massbalance products in the accounting for the chemicalindustry will be developed by TfS in a further independent
document. In this document, the Chapters 5.2.10.5
gives guideline for calculating the PCF for mass balancecalculations.
Chain of custody is an administrative process by which
information about materials is transferred, monitored, andcontrolled as those materials move through supply chains[ISO 22095:2020]. The mass balance approach is a chainof custody model in which materials with a set of specificcharacteristics (such as recycled content, bio-content orother sustainable origin) may be mixed according to defined
criteria with materials without that set of characteristics(such as virgin fossil materials). In the chemical industry,
mass balance chain of custody helps enable fossil raw
materials to be replaced by more sustainable alternative
materials to reduce the consumption of fossil resources andto transition to a more circular economy.
Under a mass balance chain of custody system,
the quantity of certified alternative raw materials can be
attributed to a specific quantity of individual products(after adjusting for conversion factors and process yield
losses). In contrast to a segregated use of alternative raw
materials, mass balance enables to use existing production
networks with minimized or no investments into new process
technologies and production facilities. However, the content
of the alternative raw material in the product is only attributed
and, in most cases, cannot be traced by analytical methods
e.g. C14-method for bio-based content.
Note: The term “mass balance” in these guidelines refers
to the chain of custody system, which is different than theconcept of physical conservation of mass.
For a meaningful application, a reliable book-keeping
system must be installed to avoid double counting and thesales of a greater amount of alternative attributed products
than possible by the amount of purchased alternative raw
materials. In addition, a mass balance approach can also
be applied for recycled materials input as feedstocks to thechemicals industry.
Calculation of mass-balanced products
Mass balance is used in multiple industries in which
it is not practical to maintain physical segregation ofsustainable and conventional materials during processing.
The mass balance approach ensures that the quantity ofsustainable production in a supply chain is balanced with(does not exceed) the input of sustainable material and isappropriately adjusted for yields and conversion factors.

34

Co-processing of sustainable and conventional raw
materials results in the production of materials of mixed
origin (such as fossil-based, bio-based, recycled
waste-based) which are not distinguishable in terms ofcomposition or technical properties. Mass balance allows
sustainable content to be attributed to individual outputs tocreate value from the use of sustainable inputs.
The PCF for mass balanced products is calculated byreplacing the impact of the fossil raw material in the amountthat is exchanged by the alternative raw material. Doublecounting of the alternative raw material must be avoided.
If the alternative raw material is allocated to dedicated massbalance products, all other products shall be calculatedwith the fossil raw material impact. Furthermore, it shallbe technically or chemically possible to produce the massbalanced product from the alternative feedstock.

Offsets, Carbon Capture and Storage(CCS) & Carbon Capture and Utilization (CCU)
specifics

4.6.8

The guiding principles for products where offsets, CCU,
CCS is applied in the accounting for the chemical industry
will be developed by TfS in a further independent document.
In this document, the Chapters 5.2.10.4 give guidelines forcalculating the PCF for CCU and CCS.
Specific rules are applied for offsets, CCS, CCU. There is adirect or indirect removal included as one process step,
very often out of the boundaries of the reporting company.
The guiding principles for products where offsets, CCU,
CCS is applied in the accounting for the chemical industry
will be developed by TfS in a further independent document.
In this document, the Chapters 5.2.10.4 give guidelines forcalculating the PCF for CCU and CCS.
In general, the following aspects shall be considered:• The reporting company shall report all offsets separatelyfrom their Scope 1, 2 and 3 emissions. This includes
both offsets with certificates and without.
• Any regulatory reporting requirements must be met.
• Following the guidance in the GHG Protocol Corporate
Standard, companies shall report their emissions
separately from offsets used to meet any GHG reduction
targets that are established, rather than providing a
net figure.
• Companies shall transparently mention the origin ofreported offsets.
• Unbundled certificates shall be reported as separate
offsets (i.e. do not adjust emission factors).
• Certificates that are purchased by the supplier ofelectricity (i.e. the supplier purchases certificates on yourbehalf) shall be reported as separate offsets.

• Emissions from purchased energy bundled to a
Renewable Energy Certificate (REC) shall be reported
based on the emission factor given in the REC.
[GHG Protocol Scope 2 Guidance]• If a company sells certificates it received for emission
reductions realized within its reporting boundaries,
it shall report an “offset” with a positive impact.
[ISO 14064:2019, WBCSD (2013)]
The organization may report optional information separatelyfrom the required information and the recommended
information. Each type of optional information described
below should be reported separately from the others.
The organization may report the results of contractual
instruments for GHG attributes (market-based approach),
expressed in GHG emissions (tCO2e) as well as in the unit oftransfer (e.g. kWh). The organization may report the amountpurchased compared to the amount consumed.

Guidance on Scope 3.1

The organization may report offsets or other types of carbon
credits. If so, the organization:• Shall disclose the GHG scheme under which they weregenerated;• May add offsets or other types of carbon credits
together if they originate from the same GHG scheme
and are of appropriate vintage;• Shall not add or subtract offsets or other types of carbon
credits from the organization’s inventory of its direct orindirect emissions.
The organization may report GHGs stored in GHG
reservoirs.

35

05

Specifications for
Suppliers’ Product
Carbon Footprint
Calculation

Product-level CO2transparency along
the value chain is
crucial to identify,
track, and reducegreenhouse gas(GHG) emissions
in cooperation
with supply chain
members.
This transparency is increasingly
demanded by customers from allindustrial sectors who are strongly
and increasingly targeting the
reduction of GHG emissions.

36

The sharing of Product Carbon Footprints (PCF) information
between supply chain members enables companies totrack their scope 3 GHG emissions and facilitate reduction
efforts [GHG Protocol Scope 3 Standard (2011)].
The following requirements apply to the calculation of
product-related cradle-to-gate GHG inventories andserve as a global standard/guideline for calculating PCFs
in the chemical industry. Adhering to these requirements
enables comparability in PCF calculations and hence alevel playing field. To create greater transparency andenable comparability, information on the exact methods or
standards applied shall be shared downstream as part ofthe elements for data exchange.
The guideline is applicable to all chemical products,
independent of their final use.
PCFs are modelled according to comparative guidelines/
standards, providing consistency in how the results havebeen modelled. The PCF-result between two comparable
materials may differ because of differences in technologies,
data used from suppliers, geographical aspects, etc.

The calculation is only auditable if the reporting is done by
the supplier accurately. Therefore, an attributes list andspecific requirements were added to this document toenable data exchanges via specific platforms and to ensurethat the recipient gets clear, high quality and meaningful
information.

The purpose of the PCF study report is to describe the
PCF study, including the PCF or the partial PCF, and todemonstrate that the provisions of this document havebeen met. The PCF results generated by the companies
can be used in different ways. The first instance is a B2B
exchange of the data with an internal review recommended.
Furthermore, the companies can publish PCF resultsin different ways, where an external review is requested[ISO 14026:2017]. The results and conclusions of the PCF
study shall be documented in the PCF study report withoutbias. The results, data, methods, assumptions, and thelife cycle interpretation shall be transparent and presented
in sufficient detail to allow the reader to comprehend thecomplexities and trade-offs inherent in the PCF study[ISO 14067: 2018].
This guideline focusses on all relevant GHGs as defined by
the Intergovernmental Panel on Climate Change (IPCC).
The relevant GHG emissions and their emission factors aredescribed in detail in 5.2.6.
However, the general principles can be used and applied forchemicals as well, if other environmental impacts beyond
GHGs (e.g., air quality, water use, biodiversity) need to beaddressed. These questions are becoming a more andmore common ask from customers of the chemical industry
and a leverage of the same method across impacts can be
possible. Further specifications are needed in this context
and can be seen as a possible future task resulting in an
extension of the guideline.

Specifications

However, the basis for the modeling should be welldescribed and related to guidelines such as this one
to avoid differences that come from using different
assessment approaches. The calculation of results should
be linked to a meaningful and harmonized reporting that
explains in which way the calculations were executed andon which basis the results were generated, specifically incases of the application of a variety of different methods.
Furthermore, the calculation basis, specifically in cases of
the application of a variety of different approaches shallfollow this guideline. The practitioner or the persons incharge of the creation of the PCF are responsible for the
preparation, calculation, quality, and the reporting of
the PCF to a third party.

PCF information from suppliers in accordance to a sectorspecific guideline will contribute to the transparency alongsupply chains. A good reporting addressing all relevant
information e.g., scope, standards used, PCR applied, data
sources used, allocation methods applied, etc. will allow abetter understanding of PCF results for chemicals.

In Figure 5.1 an overview is given for easier navigation in
the guideline document and to more easily find the most
relevant chapters and skip others. Figure 5.1 should also
give support for beginners in this topic to start relatively
quick with the first calculations and follow-up with specificquestions later if relevant.

The guideline was prepared by experts of the “Together
for Sustainability (TfS)” organization together with testing
companies and third-party organizations. It reflects thestatus quo of the main recognized standards in the world.
It was specified by requirements, procedures, assessment
approaches for chemicals. The guideline will be updated
if significant changes or adaptations are needed due tochanges of other generic standards, new aspects that havenot been considered so far or new requirements from themarket. It will be published after indicating the revision on
the TfS webpage with the changes that have been madecompared to the previous version. The outdated versions
will be stored in an accessible archive of TfS.

Currently, TÜV Rheinland Energy GmbH is providing
the following services to TfS, which are expected to becompleted in Q3/Q4 2022:

TfS recognizes that it is often difficult to compare PCF dataof similar products because of the different underlying
methodological decisions made in the calculation,
uncertainties of data used, different levels of quality of
data, differences in regions, technologies etc. However,
the application of this guideline aims to reduce the issues
to compare PCF of chemicals. In the future, PCFs will be
important information sources to support companies in their
GHG reduction strategies.

It can been confirmed that the approaches used
and the calculation methodology are reasonable,transparent and appropriate for the purpose of theguideline. The presented approach as well as thecalculation examples are coherent, transparent andcomprehensible.

• Assess the guideline against all relevant standards
applied (e.g. SBTi, WBCSD, GHG Protocol etc.).
• Check if reporting requirements for applicants are
sufficiently defined in the guideline.
• Test the level of usability and giving hints for
optimization.
• Loops of discussions and potential improvements
during testing stage (WP 1-4 of TfS) and finalization
stage (WP 1-5 of TfS).

37

Figure 5.1 Overview of the main chapters of the guideline

5.1.1

Is your product, all precursors andthe inputs clearly defined?

Yes

Read chapters 5.2.5 until
5.2.7 data requirements

Yes

No

Read chapters 5.2.8.1
until
5.2.8.3 data requirements

Create a list of all required
inputs and datasets
including energy uses

Yes

Is wastetreatment
and/orrecyclingpart of yourprocesses?

Is a “Carbon
Capture andStorage”
or “Carbon
Capture andUse” process
involved?

Is a multioutput
process
involved?

Is abiobasedmaterial
involved?

Yes

Yes

Yes

Yes

Read
chapter
5.2.8.4

Readchapter
5.2.10.4

Readchapter 5.2.9

Read chapter
5.2.10.1 until
5.2.10.2; forbiomassbalance
5.2.10.5

Data quality assessment in 5.2.11
Verification and reporting 5.3

38

The guideline enables calculating the cradle-to-gate PCF
based on standards and guidelines that were developed
from different organizations.
General topics follow the standards mentioned in 5.2.4.
It is stated, where the guideline defined specific rules forchemicals that are not reflected in detail in the current
standards. The guideline is fully compliant with ISO and
GHG Protocol. It is a challenge to be fully compliant withall other standards or guidelines that might be relevant.
TÜV Rheinland checked and validated the compliance.
A Cradle-to-Gate PCF as used throughout this document,is the sum of GHG emissions and removals of one or more
selected process(es) in a product system, expressed as
CO2 equivalents (CO2e) and based on the selected stages
or processes within the life cycle. The selected stages inthis guideline cover all activities within the defined systemboundaries as defined in detail in Chapter 5.1.2.
It must be noted that a product assessment limited toonly GHGs has the benefit of simplifying the analysis andproducing results that can be clearly communicated to
stakeholders. The limitation of a GHG-only inventory is that
potential trade-offs or co-benefits between environmental
impacts can be missed. Therefore, the results of a
GHG-only inventory should not be used to communicate
the overall environmental performance of a product[GHG Protocol Product Standard (2011)].

Read chapters 5.2.1 until 5.2.3

PCF calculation

GeneralThe scope of this guideline covers the so-called “cradle-togate”- approach to calculate a PCF and refers to a“declared unit” (see 5.1.3).

No

Are all precursors and theiramounts used in the process
known?

5.1 Goal and Scope

Figure 5.2 System boundary definition

Scope 3 upstream

Scope 2

Scope 1

Scope 3 downstream
Use phase

Extraction

Raw materials

Energy purchase

Cradle-to-gate

System boundaries

Customer

ConsumerEnd of Life

Cradle-to-grave

The following activities shall be included in a cradle-togate PCF calculation: all product related direct (Scope 1)
and indirect (Scope 2) GHG emissions of the production
process, including fossil or biogenic removals, energy
consumption (Scope 2: electricity, external heat andsteam; Scope 1: fuel consumption like natural gas,
biogas), utilities, manufacturing, inbound transportation,site-to-site transportation, treatment of process waste
and wastewater treatment and all “Scope 3” related GHG
emissions of raw material consumption including catalysts
that are consumed in the reaction [BASF SE 2021]. Further
information on included activities is provided in Table 5.1.

The system boundary shall be the basis used to determine
which unit processes are included within the PCF study.
Where PCF Product category rules (PCR) are used, theirrequirements on the processes to be included supersede
those indicated above (see 5.2.4). According to
ISO 14067 [ISO 14067: 2018], a PCR is a “...set of specificrules, requirements and guidelines for carbon footprintof a product or partial carbon footprint of a productquantification and communication for one or more productcategories”. The criteria, e.g., cut-off criteria (5.2.3), usedin establishing the system boundary shall be identified anddocumented internally in the PCF calculation report.

As the guidance is product-related, the following activities
are shall not be included within the boundaries ofa cradle-to-gate PCF: manufacturing of production
equipment, buildings, infrastructure and other capital
goods, business travel by personnel, travel to and from workby personnel, and research and development activities.
[Pathfinder Framework (PACT powered by WBCSD)],
Table 5.1. Please also see Chapter 5.2.3 on requirements
to cut off activities.

Decisions shall be made regarding which unit processes toinclude in the PCF study and to which level of detail theseunit processes shall be analyzed. The exclusion of life cycle
stages, processes, inputs, or outputs is only permitted ifthey do not significantly change the overall conclusions of
the PCF calculation. In a “cradle to gate” approach, the use
and disposal phases are not always of minor relevance but
are not in the scope of the analysis and are excluded. In
Chapter 5.1.3 the cut-off approach is described in detail.

The following activities might be included or excluded in thesystem boundary depending on cut-off criteria or customer
requirements: Outbound transportation of the product is in
general excluded (see Figure 5.2). If outbound transportationneeds to be considered by customers’ requests, it may
be calculated and reported separately. Packaging of the
product in question might be included or excluded. For
many chemicals, the contribution of packaging may be
negligible within the context of a PCF in terms of mass andenvironmental significance. This is for example the casefor bulk chemicals which are delivered by a supplier tocustomer manufacturing sites. For other chemicals, such as
specialty chemicals or construction chemicals, packaging

The following table describes generically the activities thatshall be included or excluded from the system boundaries
as well as the ones that are optional.

Specifications

The boundary of the guideline is a cradle-to-gate
PCF, comprising all processes of extraction,
manufacturing, and transportation, until the productleaves the factory gate. Downstream emissions fromproduct use and end-of-life are in general excluded froma cradle-to-gate PCF (Figure 5.2).

can play a more significant role in the PCF, namely for
products sold in smaller units (e.g., in pails, cartridges,
or wrapped rolls). In accordance with the cut-off criteria
defined in section 5.2.3 of this guidance, packaging may be
excluded or included in the PCF calculation, depending on
its mass contribution and environmental significance.
If packaging is included, it should be visible in thedescription of the declared unit (see 5.1.3).

5.1.2

39

Table 5.1 Activities to be included and excluded in the system boundaries and optional activities

Included

Excluded

Optional

Production related raw materials(including catalysts and ancillarymaterials that are consumed)1

Services such as engineering or
infrastructure services,
R&D activities

Packaging depending on the specificproduct and fulfilment of cutoff
requirements

Utilities consumed

Business travel or employee
commuting

Outbound transportation (if included
in system boundary, it shall be statedseparately)

Energy consumption

Production of investment goods

In-bound transportation if not relevant

Direct emissions from manufacturing
and related on site utilities
production/generation

Activities falling under the cut-off
requirements (as provided in
Chapter 5.2.3)

Transportation of raw materials
and site-to-site transportation
Treatment or disposal of processwastes and wastewater treatment(1) Non-production-related procurement (often called indirect procurement) consists of purchased goods and services that are not integral to the company’s products but are instead used to enable
operations. Non-production-related procurement may include capital goods, such as furniture, office equipment, and computers. Source: GHG Protocol Corporate Value Chain Standard.

5.1.3

Declared Unit (DU) of PCF

The declared Unit (DU) describes the quantity of a productthat is used as the reference unit in the quantification of
the Cradle-to-Gate PCF. In case of chemical products, thedeclared unit is often defined as 1 kg of product.
This TfS guideline deals exclusively with the use of a
Declared Unit as it only guides in calculating Cradle-to-Gate
PCFs and thus does not include the full product life cycle.
The PCF, expressed in kg CO2 equivalents per Declared
Unit, reflects the cumulated climate change impact of air
emissions of greenhouse gases (GHGs). Every supplier ofthe same product shall calculate its emissions using thesame Declared Unit [BASF SE 2021].
Standard unit should be kg CO2 equivalents per kg productpreferably. For some specific products like gases (e.g.,
Hydrogen, LPG) the PCF might be expressed per unit norm
cubic meter of product. Furthermore, some products are
sold based on a volume unit (like liter), and in that case the
PCF might be expressed per volume unit. In these cases,
conversion factors (densities with associated conditions)shall be provided by the supplier for conversion to kg which is
required in the attributes list in chapter 5.3. Any other unit ofmeasurement like pieces or Euro shall not be used.

40

The results of a PCF linked to the Declared Unit should
be reported as kg CO2 equivalents per Declared Unit with
one decimal. More decimals are not meaningful due to thevariability of the figures. Results with a second decimal
should be rounded: In the case of a high value of a PCF,
a decimal can be omitted, in case of very low PCF moredecimals than one decimal can be meaningful.
1.25 kg are rounded to 1.3 kg CO2 equivalents; 1.24 kg arerounded to 1.2 kg CO2 equivalents.
A PCF study shall clearly specify the Declared Unit of
the system under study. The Declared Unit shall beconsistent with the goal and scope of the PCF study[ISO 14067: 2018]. The primary purpose of a Declared Unit
is to provide a reference to which the inputs and outputs
are related. Therefore, the Declared Unit shall be clearly
defined and measurable. An example of a Declared
Unit is typically referring to the physical quantity of a
product, for example “1 kg of liquid laundry detergent with
30 percent water content”.
The Declared Unit for which the PCF of a product system
is calculated is 1 kg of unpackaged product at factorygate, regardless of its state (solid, liquid, gas), as its specificdensity is considered [BASF SE 2021]. If packaging is
included (see 5.1.2), the Declared Unit is 1 kg of packaged
product at factory gate.

For processes, the PCF may be expressed as kg CO2eequivalents per ton of distilled product, per ton of treatedwastewater or per ton of product in a crystallization process.

TfS will consider specific guidance for the inclusion of
packaging in the next revision of the guideline.

Some sectors may use pieces or other units in the Declared
Unit. Regardless of what is used, a sufficient physicaltransfer shall be communicated to be able to convert theseunits into kg.

In all cases, a clear definition of the Declared Unit as basis
for the PCF shall be disclosed. The calculations shall refer tothe Declared Unit and shall be integrated in the deliverables
when PCF data are exchanged between companies.

5.2 Calculation rules
5.2.1

Steps of PCF calculation

This chapter comprises the key calculation criteria to befollowed while developing PCFs.
A PCF study in accordance with this document generally
goes through the four phases of life cycle assessment,
resulting in the following general steps:(i) Goal and scope definition: The declared unit shallbe defined and all relevant activities and processes
within the system boundaries identified. The systemboundaries are outlined in chapter 5.1.2 andcomprise all service, material and energy flows that
become, make, and carry the product from raw
material extraction to the factory gate.

b. In general, data collection should be as granular as
possible, ideally from the specific processes involvedin the production of the product under study. When
process level data is not available, the data must becollected at plant or even site level, preferring plantlevel data to site level data. In these cases, emission
factors from energy use or direct GHG emissions
from a whole facility or site need to be attributed
to the specific processes of the facility or site. This
shall be done using a mass-, time-, or other physicalattribution approach. For this a break-down factor(BDF) is needed to attribute the GHG emissions froma facility or a site to the individual process. The BDF
is calculated as described above for example as aratio of the production volume of the facility or entire
site (in tons). Subsequently, the GHG emissions of
the plant or site are multiplied by this BDF to result inprocess-level GHG emissions.
(v) Documentation and reporting.

(ii) C reating the Life cycle inventory by collecting activity
data: Activity data shall be collected for processes
within the system boundaries (e.g. material input,
energy inputs such as electricity, cooling andheating, purchased products and direct emissions).
The applicable data requirements for the different
types of activity data are described in chapter 5.2.8.
See chapter 5.2.3 for details on which activities canbe excluded from the collected data.
(iii) L ife cycle impact assessment:b. Additional steps can be required such as splitting
emissions from multi-output processes or allocatingthem to different outputs. For guidance on such
subjects see chapter 5.2.9.
c. To allow for flexibility in applying accounting standards,
calculations should be completed such that different
allocation methods could be applied if needed.
This ensures that different standard guidelines can beadhered to if required [Pathfinder Framework(PACT powered by WBCSD)], [BASF SE 2021].
(iv) PCF consolidation: The PCF shall then be calculated
summing up all GHG emissions.
a. If the company produces the product in several
different sites, bottom-up calculations for eachproduction site using site-specific data, and if
applicable, country-specific secondary data forprocesses not under the control of the reporting
company, shall be performed. For communication
purposes, the company may aggregate the sitespecific data into a weighted average based on the
production volumes of the respective productions.
If site-specific PCF data is averaged, this must betransparently stated. In addition, it will be reflected ina lower data quality score.

The time boundary of a PCF refers to the time period forwhich the PCF value is considered to be representative[ISO 14067: 2018]. The following time boundaries apply forthe different types of data:• Primary data used in the calculation of PCFs shall be as
recent as practicable and not older than five years. The
most recent full year (reporting- or calendar year) shallbe applied as the time boundary for PCF calculations, if
representative of an average year of production.
For production years that are not continuous or irregular,
production data may be averaged for a longer time period
to reduce variability due to revisions, turnaround, or otheratypical production conditions. When applying average
production data in a PCF calculation, no more than thelast three years of production (reporting- or calendar year)
shall be averaged and used in a PCF calculation[BASF SE 2021], [Pathfinder Framework (PACT powered
by WBCSD)].
• Secondary data used for all inputs and outputs shouldreflect the most recent activity data and/or the latest
LCIs available. LCI data (e.g., from databases) used in
the calculation of PCFs shall be as recent as practicableand not older than ten years [BASF SE 2021]. If older,appropriate, later proxies should be used instead. The
data quality rating will be influenced by the choice of data.
• PCFs should be calculated on a regular basis to track
improvements over time. However, this may pose achallenge for companies that rely on manual PCF
calculations for products and who do not have an
automated calculation approach. PCFs shall therefore
have a maximum validity period of up to five years
from the reference year of data collection if there havenot been major changes to the production process(>20% impact from original PCF). Companies may
update their PCF calculations on a more regular basis(e.g., annually). TfS decided that after five years or if
the production process has changed significantly, PCF
values are no longer considered representative and must
be re-calculated. According to EN 15804 [EN 15804 - 2:2019], an EPD is valid for 5 years as well, after which it
must be re-verified and typically revised. If no changes
are detected after 5 years, the PCF value can be
renewed by a statement as well. Once a PCF has beenrevised, the revised version will take over the original
PCF and be valid for 5 years. However, we recommend
initiating a review process for a PCF after 3 years.

Specifications

a. Calculating emissions: GHG emissions arising froma process shall then be calculated by multiplying therelevant activity data with its respective emission
factor (CO2e per declared unit). The term activity data
describes e.g. the input of materials, a process, achemical reaction, a work up or purification step.
Data types and emission factor sources aredescribed in chapters 5.2.5 and 5.2.6.

5.2.2 Temporal Scope

41• The time boundary of the PCF calculation is thereference year. The PCF’s reference year and dateof calculation/publication shall always be disclosed
alongside the PCF value.
5.2.3 Criteria to exclude certain activities(Cut-off)

In general, all processes, flows and activities, thatare attributable to the product system shall be included
in a PCF (see 5.1.2 on generally excluded and included
activities) [BASF SE 2021] [ISO 14067: 2018]. The LCI datacollection process shall aim for completeness. Where
quantitative data are available, they shall be included.
However, no undue effort should be spent on developing
data of negligible significance concerning GHG emissions.
If individual material or energy flows are found to be
insignificant for the carbon footprint of a particular unit
process, these may be excluded for practical reasonsand shall be reported as data exclusions.
Cut-off criteria specify the amount of material or energy flowor the level of significance of GHG emissions associated withunit processes or the product system that may be excluded
from a PCF study [BASF SE 2021]. Furthermore, cut-offs
may become necessary in cases where no data are
available, where elementary flows are very small (below
quantification limit), or where the level of effort required
to close data gaps and to achieve an acceptable result
becomes prohibitive.
If no data are available, but elementary flows are significant,data gaps should be closed in accordance with chapters
5.2.6 and 5.2.8.
Several cut-off criteria are used in LCA practice to decide
which inputs are to be included in the assessment,such as mass, energy, and environmental significance[BASF SE 2021]. Making the initial identification of inputs
based on mass contribution alone may result in important
inputs being omitted from the study. Accordingly, energy
and environmental significance should also be used as
cut-off criteria in this process.

4.	Input material flows that have a considerable upstream
environmental footprint (e.g., precious metal like platinumgroup containing catalysts) should be considered in the
PCF calculation, regardless of their relative contribution
to the total mass of material flows, even if their mass input
is < = 1% of the total mass. The PCF calculation should
at minimum consider the loss of material (e.g., the lossof catalyst) and assign a PCF equal to the virgin material.
If known, the efforts of recycling should be consideredin addition. Otherwise known efforts, derived from otherprocesses, can be used as a proxy.
5.2.4 Standards used

This sectorial TfS guideline for chemicals follows theinternational standards ISO 14040:2006/AMD 1:2020 and
ISO 14044:2006/AMD 2:2020 for Life cycle assessment.
Derived from these generic standards, the guideline follows
ISO 14067: 2018 for Product Carbon footprints (PCF).
According to ISO 14067 [ISO 14067: 2018], the carbon
footprint of a product is the “...sum of GHG emissions and
GHG removals in a product system, expressed as CO2
equivalents and based on a life cycle assessment using
the single impact category of climate change.” According
to ISO 14067 [ISO 14067: 2018], a PCR is a “set of specificrules, requirements, and guidelines for carbon footprintof a product or partial carbon footprint of a productquantification and communication for one or more productcategories.” It also draws from other guidelines such as
the GHG Protocol developed in recent years. The workof the Partnership for Carbon Transparency’s Pathfinder
Framework (hosted by WBCSD) and WBCSD Life Cycle
Assessments guideline were considered as well. Generally,
the guideline follows these standards and provides
clarification and examples for the chemical industry.
To increase the consistency of PCF calculations along thevalue chain the following aligned prioritization hierarchy ofguidelines shall be followed for PCF calculations:
1. PCR which was developed based on TfS Guideline.
2.	Product or sector specific guidelines based on ISO 14000
series (such as PCRs or Plastics Europe).

Requirements for PCF cut-off criteria
1.	All material inputs that have a cumulative total of at least
95% of the total mass inputs to the unit process shall be
included. But we recommend covering 98% or more to
remove potential uncertainties and increase the level ofcompleteness [BASF SE 2021].
2.	All energy inputs that have a cumulative total of at least
95% of total energy inputs to the unit process shallbe included. To generate a PCF with higher quality by
improving the completeness of the calculation, 98% of
total energy inputs or more should be included.
3.	In cases where the input and influence on the PCF is
unclear, an overall calculation should be made withgeneric figures to decide if a cut-off can be applied or not(iterative approach) [BASF SE 2021].

42

3.	TfS Guideline if you do not have a PCR yet, the guideline
can be used to calculate the PCF.
4. ISO 14067 standard [ISO 14067: 2018].
5.	Pathfinder Framework (PACT powered by WBCSD);
GHG Protocol Product Standard [GHG Protocol ProductStandard].
6.	Product Environmental Footprint Category rule (PEFCR)
developed under the European Product Environmental
Footprint initiative [EU PEF].
If different officially declared PCRs for the same productfrom different organizations exist, TfS will review them withan expert team and declare the “TfS accepted PCR”.
As a basis for the decision the correct application of the
TfS guideline is first checked . TfS publishes and updates
in every year a list of the “TfS accepted PCRs”. In the caseof sector-specific rules which are not officially declared as
PCRs or PEFCRs, application shall also be justified andverified by TfS.

Table 5.2 TfS accepted PCR (list can be adopted after review of PCR by TfS experts)

Product system

Standard/Rationale followed

Steam crackers[Plastics Europe - Steam Cracker Allocation [2017]]

C12-14 Fatty alcohols (oleo), methyl esters, refined oils,
and crude oils from oil palm, refined- and crude oils
from Coconut[ERASM 2014]

Toluene diisocyanate (TDI), Methylene diphenyl
diisocyanate (MDI)[ISOPA 2012]

Chlorine (chlor-alkali process)[EUROCHLOR 2022]

5.2.5 Data types and sources

Data can have different levels of quality. Every PCF
calculation should be of the highest level of quality to
be meaningful and applicable. High quality data arefor example emissions data that are verified under agovernmental scheme such as the EU-ETS. In a chemical
reaction, several inputs are needed. Information about the
inputs can be derived from different sources. The input fromall sources shall be assessed with a quality rating systemand data with the highest quality rates shall be used in thecalculation of the PCF. For share of primary data and data
quality rating, please refer to chapter 5.2.11.
Sources can be defined as:• Company-specific data – refers to directly measured orcollected data from one or more processes (processspecific data), from one or more facilities (facility- or
plant-specific data) or from one or more sites (site -specificdata) that are representative of the activities of thecompany (company is used as synonym of organization).
To determine the level of representativeness a sampling
procedure may be applied1.
• Primary data are defined as data from specificprocesses in the studied product’s life cycle. They
are collected for all processes under the ownershipor control of the reporting company. Direct emissions
data, emission factors and process activity data can beclassified as primary data if they meet the definition.
• In general, primary, company -specific data should becollected and calculated as far as possible, i.e., at thehighest level of granularity. This means that processspecific data is preferred over facility-specific data which
is preferred over site-specific data.
• If only facility-specific or site-specific data of a company
are available, they shall be collected or calculated
and shall be representative of the facility or site forwhich they are collected.
• Facility or site-specific data shall then be broken down
to the product level based on mass or other meaningful
relations.
• Site-specific data should also be used for thoseunit processes that are commonly used for several
processes, e.g. incineration or waste treatment. The
overall consumption data should be calculated perservice unit, e.g. kg CO2e per ton of waste incinerated.
In addition, available information on specific emissions

Several standards prioritize the use of primary data, which is
supported by this standard as well, if the data quality is high(see 5.2.11).
Secondary data:• Secondary data – Defined as data that are not directlycollected, measured, or calculated based on specificproduction data available for the company.
Secondary data can include supplier and technological
specific data derived from detailed data at plant/site
level from market reports or patents, industry averagedata, or literature studies and can be an important andmeaningful source for data included in PCF calculations.
• Secondary data includes industry averages, estimates
based on literature studies, associations, publishedproduction data, government statistics, literature studies,engineering studies and patents and may also be basedon financial data. It can contain proxy data generated
by external expert judgement and other generic data.
In addition, it can be sourced from a third party LCI
database, open sources, PCF calculations, etc.
• It can be independently reviewed which increases
the reliability and Data Quality Rating (DQR) score.
Secondary data shall only be used for inputs andoutputs where the collection of primary data is notpracticable, or for processes of minor importance or
where secondary for various reasons have a higher
quality or fit better than primary data (e.g. association
data for specific products).
• Secondary data can have the same level of quality as
primary data, depending on the process of generationof the data, of meaningful fit to the data used, the level ofaggregation etc.

Specifications

Primary data:in specific processes shall be considered (e.g. SF6
emissions from an incineration process of plasma that isused in the semiconductor industry).

In case of data gaps
Data gaps exist when there is no primary or secondary datathat is sufficiently representative of the given process in the
product’s life cycle. For most processes where data are
missing, it should be possible to obtain sufficient information
to provide a reasonable estimate. Therefore, there should
be few, if any, data gaps. The data quality rating will indicatethat there are data gaps existing which were filled by proxydata. The following sections give additional guidance on
filling data gaps with proxy data and estimated data.

(1) Please see Appendix A of the GHG Protocol Corporate Standard for more information on sampling and sampling techniques.

43

Table 5.3 Data hierarchy for energy and material inputs regarding primary, secondary andproxy data [Pathfinder Framework (PACT powered by WBCSD)]

Approach

Activity data source
Energy1

Best caseMaterial

In-house/primary

Emission factor source
EnergyMaterial

For on-site production: In-house/primary

Supplier-specific(e.g. via Pathfinder
Network)

For purchased electricity:
Supplier-specific/ Renewable
Electricity Certificates andGuarantees of Origin
For other purchased energy:
Supplier-specificBase case 2

In-house/primary

Secondary databases

Worst case 3

In-house/secondary3
Proxy data

Proxy data and EEIO databases(1) Electricity, heating/cooling, steam.
(2) Prevalent approach in practice.
(3) Financial data.

Proxy data
Proxy data are data from similar processes that are used
as a stand-in for a specific process. Proxy data can beextrapolated, scaled up, or customized to represent thegiven process. Companies may customize proxy data toresemble the conditions of the studied process more closelyin the product’s life cycle if enough information exists to doso. Data can be customized to better match geographical,
technological, or other metrics of the process. Identifying
the critical inputs, outputs, and other metrics should
be based on other relevant product inventories or otherconsiderations (e.g., discussions with a stakeholder
consultant) when product inventories do not exist.
Examples of proxy data include:• Using data on polyethylene plastic processes when dataon the specific plastic input (e.g., HDPE) is unknown.
Depending on the specific assessment, the processes
under study and the contribution to the overall PCF,
using polyethylene data as a proxy for polypropylene
might be sufficient as well.
• Adapting an electricity grid emission factor for one
region to another region with a different generation mix.
• Customizing a process of another product to matchthe studied process, e.g. by changing the amount ofmaterial consumed to match a similar process inthe studied product.
Estimated data
When a company cannot collect primary data or integratemeaningful secondary data or proxy data to fill a data gap,
companies shall estimate the missing data to determine thesignificance of its contribution to the PCF result. If processes
are determined to be insignificant based on estimated data,
the process may be excluded from the inventory results(cut-off criteria). Criteria for determining insignificance are
outlined in chapter 5.2.3 [GHG Protocol Product Standard].
If the data gap is significant and cannot be closed by theother types of data defined in this chapter, an estimation of44

the data shall be introduced. This should be done carefully
under consideration of all knowledge of the data gap witha subsequent generation of estimated data. The estimateddata shall be replaced by primary or secondary data assoon as possible in the update of the PCF. To assist with thedata quality assessment, any assumptions made in filling
data gaps, along with the anticipated effect on the productinventory results, should be documented [ISO 14067: 2018].

5.2.6

Emission factor requirements and sources

Emission factors are the GHG emissions per unit of activity
data, and they are multiplied by activity data to calculate
GHG emissions. Emission factors may cover one type of
GHG (for example, CH4/liter of fuel) or they may include
many gases in units of CO2 equivalents. Emission factors can
include a single process in a product’s life cycle, or they can
include multiple processes aggregated together. Life cycle
emission factors that include emissions from all attributable
upstream processes of a product are often called cradle-togate emission factors. Companies should understand which
processes are included in the inventory’s emission factors
to ensure that all processes in the product’s life cycle areaccounted for in the data collection process.
Emission factors come from different sources anda distinction is made between primary and secondary
emission factors:
Primary emission factors are emission factors calculated
based on primary activity data for a process under acompany’s control or provided by a supplier for a process
under their control.
Secondary emissions factors are derived from sources
such as LCA databases, published product inventory
reports, government agencies or industry associations.
Secondary or default emission factors are based on
secondary activity data. The source of secondary data mustbe specified in the report.

Emission factors shall always include all GHGs andbe cradle-to-gate emission factors that include emissions
from all attributable upstream processes of a product.
The following hierarchy shall be applied when selecting
emission factors:
1.	Where primary emission factors are available directly fromraw material and energy suppliers, or internal processes,
these shall be used. The quality of the supplier- or companyspecific emission factor is to be evaluated and checked forappropriateness (see below: data requirements on primarydata or reference to appropriate chapter).
2.	When using emission factors from utility companies, e.g.,
for electricity or steam (so-called market-based factors),
it must be ensured that these are cradle-to-gate emission
factors, including both, the emissions from combustion
as well as the emissions from the provision of primaryenergy carriers. If the utility company cannot provide alife cycle emission factor, additional information such as
the primary energy carriers used, and their respective
shares needs to be disclosed. Based on this information,
the upstream emissions from the provision of the energy
carriers shall be calculated to complement the CO2 emission
factor from combustion to obtain a life cycle emission
factor as described under 5.2.8 Activity data requirements.
Additionally, the emission factors provided should include
all GHGs but at least cover CO2, which is by far the largest
contributor (>95%) to GHG emissions from combustion ofprimary fuels.

4.	If primary emissions factors are not available, use
secondary emission factors that are most suitableaccording to chapter 5.2.6. Among available data, use
PCF values that are most representative and specific to
the geography and technology used to produce the raw
materials, utilities, and fuels. Only data from high quality
and verified databases as listed below should be used assource of secondary data.
Additional requirements for the selection of secondary
data for raw material apply as shown below. The following
selection hierarchy shall be followed [BASF SE [2021]]:
1.	If the production origin (region or country) and production
technology of the supplied raw material is known, choosea regional or country/technology specific emission factor.
A region can be the whole world, a group of several
countries (e.g Europe) or a smaller area (e.g a group ofstates in the USA, a province in Canada) E.g Hydrogenliquid chlor-alkali electrolysis, membrane cell productionin Europe.
2.	If the production origin (region or country) of the supplied
raw material is known, but the technology is not known,choose a regional or country-specific production mix,e.g Hydrogen liquid production in Europe.
3.	If the production origin is not known, choose a regional orcountry-specific consumption mix based on the location ofyour direct supplier, e.g Hydrogen liquid market in Europe.

5.	If the specific raw material is not available choose anappropriate proxy e.g., a chemical substance from thesame chemical group.
Data quality of inbound and inter-site transports is based on
primary data from a database for transport activities including
emission factors of transport modes with a high quality.
In general, life cycle emission factors shall be sourced fromand calculated based on data from verified sources such as
listed below (non-exhaustive list):• Verified data from associations such as ISOPA,
Plastics Europe, Fertilizer Europe, World Steelassociation etc.
• LCA databases such as GaBi (Sphera), Ecoinvent, Carbon
Minds, Agribalyse, ELCD (PEF), IDEA database, etc.
• Official national emission factor databases such as
US EPA, IEA, Defra, GREET etc.
• GLEC Framework [GLEC Framework] or DIN EN ISO
16258 for transportation.
If secondary emission factors are not available within thereferences listed above, other sources or proxy data may be
used to fill in the missing emission factors. In any case, thesource of secondary data or the employment of proxy data
sources shall be reported. The extent to which secondary
data is used shall be specified in relation to all GHG
emissions by CO2 equivalents.

Specifications

3. The utility providers should use either the efficiency orenergy allocation approach when calculating emissions
from Combined Heat and Power (CHP) installations
plants, following the recommendations of the WBCSD
accounting document which includes efficiency values bydefaults to be used if needed [WBCSD Chemicals [2013]].

4.	If there is no regional or country-specific dataset available
choose the same raw material from another country or
region which is the most appropriate in terms of GHG
emissions. E.g Hydrogen liquid chlor-alkali electrolysis,
membrane cell in Europe for a supplier located in Brazil
rather than using a global average value based on a highshare of countries where the energy is mainly based on coal.

The sources of secondary data shall be specified in thereport. The attributes list requirements in Chapter 5.3.
describe in detail, which attributes shall be reported forprimary and secondary data as well as for the use of
databases of secondary data.

5.2.7

Life Cycle Impact Assessment (LCIA)

A PCF represents the potential life cycle impact of a producton the environmental impact category of climate change.
This impact category considers that different GHGs
have different impact on climate change, expressed as
their global warming potential (GWP) with the unit kg CO2
equivalents (CO2e).
The basic equation to calculate GHG emissions (CO2e) foran activity data is:
Kg CO2e =Activitydata
Amountof activity

X

Emissionfactor(kg GHG/
activity)X

GWP(kg CO2e/kg
GHG)

Formula 1
For example, if the activity is the purchase of 5000 kgof methanol as a raw material and the supplier-specificemission factor is 0.80 kg CO2e/kg, then the GHG emissions
for the activity 5000 * 0.80 = 4000 kg CO2e.

45

The basic equation to calculate CO2e for a direct emission is:
Kg CO2e =Direct emission Data

* GWP

(unit)(unit) (kg GHG)

(kg CO2e/kg GHG)

Formula 2
The types of emission factors needed depend on the typesof activity data collected.

Figure 5.3 Types of data for PCF calculation on the example of production of 1 kWh of electricity

ACTIVITY DATA

Purchaseof oilTransportof oil via truck

Combustion of oil
in generator

List of activities
within systemboundary to
produce theproduct

CALCULATIONOF EMISSIONINVENTORYWITH ACTIVITYDATADEVELOPINGEMISSIONSINVENTORYPER ACTIVITY

Dataset fromsupplier (TfS)
cradle-to-gate PCF:
PCF / kg oil

X

Dataset from LCA
databasecradle-to-gate LCI:
GHG LCI / kg*km

X

Calculation of
GHG emission
based onstoichiometry:
GHG LCI / kg oil

X

Differentsources foremissionfactor data are
available

0.5 kg oil

0.5 kg oilfor 120 km

0.5 kg oil

Per declared
unit 1 kWh

In Figure 5.4, an example is described for the Chlor-alkali
electrolysis gate-to-gate process data. The chlorine
production weighted average of selected material andenergy inputs and outputs are shown per kg chlorine.
The values in the figure do not represent allocated but
total in- and outputs of the average electrolysis process
divided by the chlorine amount produced and just show

46

LIFE CYCLEINVENTORY(LCI) DATA

LIFE CYCLE IMPACTASSESSMENT WITH
GLOBAL WARMING
POTENTIAL(GWP)-FACTORS

CO2

CO2

0.2 kg CO2e / kWh

0.2 kg CO2e / kWh

GHG EMISSION FACTORS/ PCF DATA

CO2
0.2 kg CO2e / kWh

CO2 CH
4

CO2 CH4CO2

CO2

0.2 kg CO2
0.01 kg CH4 / kWh

1 kg CO2e / kg CO2+ 30 kg CO2e / kg CH4

0.5 kg CO2e / kWh

2.7 kg CO2e /
kWh

CO2

CO2

CO2

2 kg CO2 / kWh

2 kg CO2 / kWh

2 kg CO2e/ kWhInventoryof GHGemissions
per declaredunit

GWP-factors
translate individual
GHG into thecommon unit CO2e

Aggregated GHG emissions in CO2e
per declared unit

only some inputs. The allocation follows the generationof this GHG information. It is shown, how activity dataand emission factors shall be introduced to generate a
guideline compliant data set prior to allocation Euro Chlor[EUROCHLOR 2022]. Proxy secondary data for the PCF of
input materials were extracted from Winnipeg [Winnipeg
CO2 Emission Factors].

Figure 5.4 Chlor-alkali electrolysis gate-to-gate process data of data for PCF calculationand transfer into a basic PCF prior to allocation

ACTIVITY DATA

Using gridelectricity

Purchaseof salt

Purchase ofsulphuric acid

List of activities
within systemboundary to
produce theproduct

CALCULATIONOF EMISSIONINVENTORYWITH ACTIVITYDATADEVELOPINGEMISSIONSINVENTORY PERACTIVITY

Calculation of
GHG emission
based on datafrom grid:
GHG LCI / kWh

X

Dataset fromsupplier (TfS)
cradle-to-gate PCF:
PCF / kg oil

X

Dataset from LCA
databasecradle-to-gate LCI:
GHG LCI / kg

X

Differentsources foremissionfactor data are
available

2.36 kWh2.15 kg salt

0.01 kg
sulphuric acid

Per declared
unit 1 kg
Chlorine

The GHGs that shall be accounted for are identified within
the GHG Protocol titled “Required Greenhouse Gases inInventories: Accounting and Reporting Standard Amendment”.
The list includes Carbon dioxide (CO2), Methane (CH4), Nitrous
oxide (N2O), Hydrofluorocarbons (HFCs), Perfluorinatedcompounds, Sulphur hexafluoride (SF6), Nitrogen triflouride(NF3), Perfluorocarbons (PFCs), Fluorinated ethers (HFEs),
Perfluoropolyethers (e.g. PFPEs), Chlorofluorocarbon (CFCs)
and Hydrochlorofluorocarbon (HCFCs). The GHG emissions
shall be aggregated as CO2-equivalents and should not bereported separately for individual gases.
The 100-year GWP characterization factors (GWP100y)according to the Intergovernmental Panel on Climate Change(IPCC) shall be used in the PCF calculations, based on the
IPCC’s Sixth Assessment Report (AR6). These factors include
Climate carbon response for non-CO2 gases. If in future there
will be updates, TfS will update the guideline accordingly tofollow the latest version.

LIFE CYCLE IMPACTASSESSMENT WITH
GLOBAL WARMING
POTENTIAL(GWP)-FACTORS

CO2

CO2

0.395 kg
CO2 / kWh

1 kg CO2e / kg CO2

CO2

CO2

0.2 kgCO2 / kg

1 kg CO2e / kg CO2

CO2

CO2

0.14 kg
CO2 / kg

1 kg CO2e / kg CO2

Inventoryof GHGemissions
per declaredunit

GWP-factors
translate individual
GHG into thecommon unit CO2e

GHG EMISSION FACTORS/ PCF DATA

CO20.93 kg CO2e / kg

CO2

CO2

0.43 kg CO2e / kg

1.4 kg CO2e / kg

CO20.001 kg CO2e / kg

Aggregated GHG emissions in CO2e
per declared unit

Specifications

The PCF calculation consists of the sum of each GHG released
and removed from the product system and application of
allocation rules when necessary (see chapters 5.2.9 and 5.2.10).

LIFE CYCLEINVENTORY(LCI) DATA

The AR 6 GWP-100 characterization factors for the substancesthat are not listed in the Table 7.15 shall be extracted from
Table 7.SM.7 in the Chapter 7 Supplementary Materials of the
AR6 Climate Change 2021 Physical Science Basis [IPCC 2021The Supplementary Material].
The 100-year GWP characterization factors according to the
IPCC’s Fifth Assessment Report (AR5), Appendix 8.A (Lifetimes,
Radiative Efficiencies and Metric Values) may be used in 2022
during the transition period [IPCC 2013- The Physical Science].
The PCF report shall disclose which IPCC Assessment Reportbasis is used.
5.2.8 Activity data requirements

Activity data describe specific applications and uses ofmaterials, energies, services etc. In an LCA the description ofactivities within a system boundary is needed to generate massflows of materials uses, energy uses, etc. The amounts of theactivities are later linked with life cycle inventories to calculate
the contribution of this activity to the PCF of the whole product.

The AR 6 GWP-100 characterization factors shall be extracted
in priority from Table 7.15 of Chapter 7 of the IPCC AR6Climate Change 2021 Physical Science Basis. This table
includes the chemical effects of CH4 and N2O [IPCC 2021The Physical Science].

47

5.2.8.1 Electricity and thermal energy

Purchased thermal energy

This chapter provides guidance on how to account for theemissions associated with the use of electricity and thermalenergy such as steam, heat and cooling.

If the reporting company purchases thermal energy,
GHG emission factors from a supplier-specific energy
product shall be used (market-based approach).

The GHG emissions associated with the use of energy
should include

A market-based method reflects emissions from electricity
that companies have purposefully chosen (or their lackof choice). It derives emission factors from contractual
instruments, which include any type of contract between
two parties for the sale and purchase of energy bundledwith attributes about the energy generation, or for
unbundled attribute claims.

• Upstream emissions from the energy supply system(e.g. the mining and transport of fuel to the energy
generator or the growing and processing of biomass foruse as a fuel).
• GHG emissions during generation of electricity or
thermal energy, including losses during transmission
and distribution.
• Downstream emissions (e.g. the treatment of waste
as ashes arising from the operation of coal fired power
plants).
For sources of emission factors see chapter 5.2.6. If
sources such as IEA or EPA are used, it shall be ensured
that emissions associated with upstream activities arealso included.
A company may purchase primary energy carriers such as
natural gas, oil or coal either as a raw material for further
material processing or as fuel to generate energy. The
upstream emissions from activity to provide these primaryenergy carriers shall be estimated as described in chapter
5.2.8.2. Raw materials.
Thermal energy: Steam, heat and cooling systems
Companies shall report emissions from the purchase anduse of these energy products the same as for electricity:
according to a location-based and market-based method if
the contractual instruments used meet the Scope 2 Quality
Criteria as appropriate for gas transactions. These may be
the same total where direct line transfers of energy are used
[GHG Protocol Scope 2 Standard].
Self-generated thermal energy
If the energy is internally generated (e.g. on site) andconsumed for the production of the studied product, theprimary data of the energy generation system shall be used
to calculate the PCF of the product. Primary data for both,activity data and direct emissions shall be collected via abottom-up approach.
Thermal energy may also be generated as a co-product of achemical processes (e.g. excess steam). See chapter 5.2.9
for further guidance on how to account for emissions fromenergy and other co-products.

48

If the utility provider is not able to provide a life cycle based
GHG emission factor for the energy product but only theCO2e emission factor from direct emissions (e.g. combustion),
the upstream emissions for the fuels that go into the energy
production need to be added. In this case, the energy provider
needs to provide information on the primary energy carriers
used and their share. The GHG emission factors shall be rated
with a DQR assessment following this standard.
Electricity
For the use in the PCF calculation organizations should
generally calculate the emissions of electricity following themarket-based approach (as described in the GHG Protocol
Scope 2 Guidance). The electricity accounting approach
used should be addressed in the PCF reporting. Please
follow the decision tree in Figure 5.5 to determine youroptions on GHG emissions of procured electricity. As statedabove the total GHG emission factor should include
GHG emissions during generation of the electricity(gate-to-gate) and upstream emissions from the primaryenergy supply system. For convenience it is possible to add
both factors to result a total GHG factor if both refer to thesame energy unit. The decision tree is divided into the threestages (which are additionally explained below in more detail):• Stage 1: Electricity via a dedicated transmission line
(market-based).
• Stage 2: Electricity from the grid (location-based) or
specific contract with supplier on energy mix(market-based).
• Stage 3: Residual Mix (no specific contract with supplieron energy mix or no specific data available).
Start in the top left corner of stage 1. Exception: If yourcompany has sold energy attribute certificates for received
electricity via a contractual instrument to a third party, startin stage 3 (see Figure 5.5).
Gate-to-gate emission factors consider emissions within thecompany boundary excluding all upstream emissions.

Figure 5.5 Decision-Tree on selection of proper emission factors for externally sourced electricity

Sourcing

Gate-to-Gate EF
Stage 1

Electricity via
dedicatedtransmission linefrom generation
facility?

Yes

Calculate EF basedon your direct
GHG emissions

Internallyproduced

Internallyproducedor via third
party?

Upstream-EF+

EF from DB value(see chapter 5.2.6) 2/
EF from fuelsupplier

Third Party
EF from supplier 1+

NoStage 2
No

Specific contract
with supplieron EF of suppliedenergy?

Yes

Purchase ofadditional
renewableenergycertificates?

Yes

Purchasedcertificatescompensate
100%
of fossil
emissions?

No

Calculate weighted
Gate-to-Gate-EF basedon proportional shares 3+

Calculate weighted
Upstream-EF basedon proportional shares 3

Yes

EF = 0+EF = 0, as negligible
proportion 4

NoStage 3Yes

EF = Residual Mix incl. upstream(sources: AIB, GaBi, other DBs (see chapter 5.2.6)) 2

No

EF = National Grid Mix incl. upstream (sources: GaBi,
other DBs (see chapter 5.2.6)) 2,5

Residual Mix available in your region?

Specifications(1) If the Emission Factor (EF) from supplier is not available, directly move to stage 3.
(2) If no access to Upstream-EF data, please apply 20% of the IEA value instead and add it to the Gate-to-Gate-EF.
(3) A fter receiving the individual energy mix from your supplier, multiply the EFs corresponding to their energy source with their proportional share of the energy mix while also taking the partly
compensated fossil emissions by purchased certificates into account (e.g.: energy mix: 20% renewable energy (RE), 80% fossil energy (FE); purchased certificates: an amount to compensate 50% of
fossil emissions= EF Weighted= 0.2 × EFRE+ 0.8 × 0.5 × EFFE+ 0.8 × 0.5 × 0).
(4) If impact lies within the cut-off range (s. chapter 5.2.3), apply EF = 0. Otherwise, please use DB value (GaBi or other DBs (see chapter 5.2.6)).
(5) A lternatively, IEA-Data can be implemented if additional Upstream-EFs from DBs (GaBi or other DBs (see chapter 5.2.6)) are added.

Stage 1: Check if electricity is via a
dedicated transmission line fromthe generation facility
Determining the gate-to-gate emission factor
If there is a dedicated transmission line between theorganization and the electricity generation plant and no
certificates (also known as contractual instruments) for that
consumed electricity have been sold to a third party,
GHG emission factors from the supplier-specific electricity
shall be used.
• If the electricity is internally generated (e.g. on-site
generated electricity) primary data of the electricity
generation system shall be used to calculate the PCF of
the product.
• If the electricity is provided by a third party, a GHG emission
factor obtained from the third party may be used.
If there is a dedicated transmission line between theorganization and the electricity generation plant andenergy attribute certificates have been sold by contractual
instruments to a third party, then the organization must startin stage 3 of the decision tree.

Determining the upstream emission factor
Additional upstream GHG emissions (e. g. from mining andtransport of fuels to the electricity generation facility) caneither be requested from the suppliers of fuel or electricity
or calculated from database values (suitable databases see
chapter 5.2.6). If the organization has internally produced
electricity and decides to calculate upstream GHG
emissions from database values, the fuel consumption
per unit of electricity produced serves as a basis. In caseof electricity from third parties the composition of theelectricity mix is required for calculation.

Stage 2: Electricity from the grid (specificcontract with supplier on energy mix)
Determining the gate-to-gate emission factor
If the organization has a specific contract with anelectricity supplier regarding electricity with a certain GHG
emission factor and no further renewable energy attributecertificates are purchased, then the organization shall use
GHG  emissions from a supplier-specific electricity product.

49

In the case that further renewable energy certificates arepurchased, the organization must check if they are sufficient
to cover the fossil emissions of the obtained electricity.
If not, then a proportional gate-to-gate emission factor
for the electricity must be calculated based on theremaining share that is not covered by the certificates. If thecertificates compensate the fossil emissions, the gate-togate emission factor can be set to zero.
Please note that via contract the electricity supplier must
guarantee that their product is tracked to ensure that no
double counting of renewable electricity occurs.

organizations can use IEA data as gate-to-gate emission
factors. If that route is chosen it is mandatory to calculate
upstream emission factors based on the composition of thegrid mix applying database values for the fuels.
Further notes on renewable energy
The Renewable Energy Directive [EC-Renewable Energy
Directive] defines renewable energy or “green” energy
RES-E as: “...energy from renewable non-fossil sources,
namely wind, solar, aerothermal, geothermal, thermal,hydrothermal and ocean energy, hydropower, biomass,
landfill gas, sewage treatment plant gas and biogases”.

Determining the upstream emission factor
Additional upstream GHG emissions (e. g. from mining
and transport of fuels to the electricity generation facility)
can either be requested from the suppliers of electricity
or calculated from database values (suitable databases
see chapter 5.2.6). If the organization decides to calculate
upstream GHG emissions from database values, thecomposition of the electricity mix is required for calculation.
In the case that further renewable energy certificates arepurchased, the organization must check if they are sufficient
to cover the fossil emissions of the obtained electricity.
If not, a proportional upstream emission factor for theelectricity must be calculated based on the remaining sharethat is not covered by the certificates. If the certificatescompensate the fossil emissions in the gate-to-gate factor,
the organization should determine the upstream emissionsof the applied renewable energy type by calculation fromdatabase values. The upstream emissions may be neglected
if they are insignificant and thus fall under the cut-off criteria(see chapter 5.2.3). To verify that, primary data should be
used. If they are not available, secondary data information
may be helpful for verification of the cut-off.

Stage 3: Residual Mix (no specific contract
with supplier on energy mix or specific data
is not available)
When information on supplier specific electricity is not available
or renewable attribute energy certificates have been sold toa third party, a residual GHG emission factor should be used(market-based approach). This factor represents the emissions
that remain after certificates, contracts, and supplier-specificfactors have been claimed and removed from the calculation.
Organizations should check databases (see chapter 5.2.6)
for residual mixes available for their region of operation.
Database values are preferred if they cover a cradle-to-gate
scope. Alternatively, organizations operating in Europe can use
residual mixes from sources such as AIB [AIB 2021- European
Residual Mix] to determine their gate-to-gate emission factors.
If this source is used, the upstream emission factors must be
calculated based on the composition of the electricity mix
using database values for the fuels. If AIB RES mix are used,
upstream emissions for electricity should be calculated basedon the fuels used. Companies operating in other regions
should check if residual mix data is available (e. g. for certain
US regions residual mixes are published, cf. [Green-e 2021Residual Mix Emission Rate].
If no residual mix data is available, then as a last quality
option according to the GHG Protocol Scope 2 Guidance[GHG Protocol Scope 2 Standard], national grid mixes canbe applied. Organizations should check databases(see chapter 5.2.6) for emission factors covering a cradleto-gate boundary. If no database values are available,
50

Importantly, double-counting must be avoided. According to
ISO 14067 [ISO 14067: 2018], no double-counting occurs:• Where the process that used the electricity and no otherprocess may claim the generator specific GHG emission
factors for that electricity.
• Where the generator-specific electricity production does
not influence the GHG emission factors of any otherprocess or organization [ISO 14067: 2018].
The purchase and use of green electricity can beconsidered in the market-based emission factor provided
that the criteria in ISO 14067 Chapter 6.4.9.4.4 are met[ISO 14067: 2018].
If a unit is running with 20% certificates of 100% renewableenergy, the total production can be claimed as being
renewable by 20%. Alternatively, a mass balance approach
can be applied to renewable or decarbonized electricity. In
this case, the same principles as the mass balance chainof custody (chapter 5.2.10.5) for biomass can be applied.
Renewable energy purchased for specific products may be
applied to those specific products.
Offsets shall not be used in the calculation of renewableenergy.
The same requirements and provisions for Renewable
Electricity are applicable to other Renewable Energy forms,
including Renewable Thermal Energy.

Additional notes:• If processes within the system under study are insmall island developing states (SIDS, as defined by
the United Nations), the PCF or the Cradle-to-Gate
PCF may additionally be quantified using contractual
instruments for such processes, irrespective of gridinter-connectivity.
• Contractual instruments are any type of contract
between two parties for the sale and purchase ofenergy bundled with attributes about the energy
generation, or for unbundled attribute claims.
EXAMPLE: Contractual instruments can include
energy attribute certificates, renewable energy
certificates (RECs), guarantee of origin (GoOs) or
green energy certificates.
• Characteristics of a generator should include theregistered name of the facility, the name of theowners, the nature of the energy generated, thegeneration capacity and the renewable energy
supplied. Additional characteristics can be added todescribe the electricity generation.

5.2.8.2 Raw materials

The average calculation can be based on:

Raw materials are defined as materials that are purchased
and used to produce a product. They can be of primary or
secondary origin. Secondary materials include for example
recycled material. ISO 14040 [ISO 14040: 2006], seechapter 5.2.8.4). Primary raw materials are often named“virgin” materials.

• External source (purchased from external supplier):

According to the Pathfinder Framework [Pathfinder Framework(PACT powered by WBCSD)], raw materials can be:• Extracted directly by the company, e.g. mining activities
or agricultural production.
• Sourced by external suppliers.
• Toll manufactured.
• Coming from recycling processes.

- Raw material is procured from an external supplier.
- All purchased raw material comes with a PCF. PCF
information needs to be obtained either by supplierspecific PCF provided with the raw materials or bysecondary data for the raw material (see 5.2.5 on
requirements for primary and secondary data and 5.2.6
on requirements for emission factors).
- For various suppliers of a raw material, PCF of raw
materials should be averaged by amount of purchasedvolumes. As an alternative, supplier-specific raw
materials may be segregated to specific product lines
with documented justification.
• Company source:

Chemical products are often based on raw materials
that are derived from oil and its derivates. Raw materials
supplied to a machine or processing plant are defined as
feedstocks.
The PCF calculation shall consider the full upstream life
cycles of raw materials; from raw material acquisition andpre-processing or direct generation from natural resources(e.g. mining) to the factory gate. It shall also include disposalof wastes generated during raw material production.

Information on purchased raw materials and raw
materials used in a chemical reaction
In chemical reactions, raw materials can be purchased orused from different sites or different plants within a site.
Production network ratios of chemical products andconsumption mixes of raw materials should be defined asa basis for PCF calculations. The relationships between
products from different sources should be documented
with a bill of materials (BOM) from a reporting system.
Intracompany relations between all involved sites of acompany can be integrated in a network of information.
Representative averages of the production network ratios(percentage rate) should be generated by solving andeliminating inter-company relations. Consolidated BOM
will be used for the calculations. Ratios are available forall raw materials needed in one company based on a
Supply-Demand-Balance for each production/site/plantand company information. To build averages of inputs of thesame raw material from different sources, a mass weighting
approach linked with the PCF of the different raw materials
sourced shall be used.

• Mixed source:- Product is produced in another BOM at the sameinternal site/plant, and/or product is sourced fromanother site/plant of the company, and product is
procured from an external provider [BASF SE [2021]].
The equation in section 5.2.7 shows a basic equation to
calculate GHG emissions (CO2e) from activity data.
Data used for raw materials can be primary or secondary
data (see chapter 5.2.5). Further requirements on emission
factors can be found in Chapter 5.2.6.

Specifications

According to Pathfinder Framework [Pathfinder Framework(PACT powered by WBCSD)], material acquisition refers to
the extraction of resources from the environment needed tocreate a product. Pre-processing refers to the refining of all
the acquired natural and biogenic resources so they can beused in a production facility. Transportation to and from thesites of resource extraction, pre-processing facilities andproduction facilities shall also be included.

- Product is produced per another BOM at the same
company.
- Inter-company transferred product: product is sourced
per a BOM from another internal site or even plant.

There are no minimum data quality requirements (seechapter 5.2.11) for raw materials currently to accommodate
the need for a transition time for capability developmentin the supply chains. It is desirable for TfS or member
companies to implement minimum data quality
requirements in the future.

5.2.8.3 Transport

GHG emissions from transportation often have a minor
impact on the PCF of a chemical product. However, theyshall be considered and checked if important to the PCF by
an iterative process (see also cut-off criteria, chapter 5.2.3).
The following transportation activities shall be included in acradle-to-gate PCF:
• Transportation in the supply chain, for example thetransportation of raw materials to the company site, ortransportation of a raw material from a tier 2 supplier to atier 1 supplier (if not already considered).
• Only if the contribution to the overall PCF is significant(see chapter 5.2.3), in-bound transportation as e.g.,transportation to an internal storage location as part of acompany’s direct activities should be considered.
• The transportation of an intermediate product from one
production site to another shall be considered if relevant
according to the cut-off criteria.

51

GHG emissions of outbound transportation shall not be
included in the cradle-to-gate PCF but calculated andreported separately if requested by customers.

product. In cases where transport is volume limited (fullfreight’s mass is lower than the truck’s load capacity)
allocation shall be based on volume.

In general, the GHG emissions relating to the entire fuellife cycle (i.e., well-to-wheel)1 shall be considered in thecalculation of emissions from transportation.

2.	Where primary data are not available, but data on productspecific transportation emissions has been shared by thethird party operating the transportation, this data should
be used and included in the PCF calculation.

Transports can either be carried out directly by the reporting
company e.g., in company-owned or leased vehicles, or byexternal transport service providers. As such, the method
used to calculate product-related transport emissions isvery much dependent on the availability of information suchas fuel consumption, distance covered, mode of transportor load specifics.

3.	When a company has neither primary data on fuelusage nor access to product-specific transportation
emissions, primary data on mass and most suitabledistance shall be used for the calculation of emissions.
The relevant emission factor per type of transportation(expressed in CO2e per ton-km) e.g., provided by thetransport service provider, should be applied to this data
to calculate product specific emissions. If no emission
factor is available, relevant secondary databases shall be
consulted to obtain the necessary emission factor(see section 5.2.6 for suitable databases or[GLEC Framework]).

The following paragraphs provide guidance on how to
calculate transportation emissions depending on the type ofdata available (see also Figure 5.6), [Pathfinder Framework(PACT powered by WBCSD)]. This guidance is not available
anymore in the updated version of the Pathfinder Framework.
1.	If available, primary data on fuel usage should be used to
calculate product-related transport emissions, based on
actual transportation mode, distance and vehicle load.
The fuel consumption data should cover the full roundtrip that is, include all fuel associated with full, partiallyloaded, and empty trips, when relevant. Allocation ofthese emissions shall be based on the mass of the

NOTE: Aircraft GHG emissions have additional climate
impacts under certain circumstances at high altitudes
because of physical and chemical reactions with theatmosphere. For more information on GHG emissions fromaircraft, see the IPCC Guidelines for National Greenhouse
Gas Inventories and the IPCC Special Report on Aviation.

Figure 5.6 Steps for calculating product transportation emissions [Pathfinder Framework (PACT powered by WBCSD)]

Primary data
for fuel available

Yes

And
/or

Calculate transportation
emission factor 2(CO2e/ton-km) and apply
to mass and distance data
to obtain product-specifictransportation emissions

No

Calculate product-specificemission factor (CO2e/tonshipped) and apply to mass
data to obtain productspecific transportation
emissions(1) Well-to-wheel includes the GHG emissions related to fuel production, distribution, and combustions.
(2) Emission factors are always per transportation mode and type.

52

Verified emission factor
from third party available

And
/or
Yes

No

Apply emission factor to
primary mass
(and/or distance) data tocalculate product-specifictransportation emissions

Obtain relevant emission
factor from secondary
database and apply
to primary mass (and/or distance) data tocalculate product-specifictransportation emissions

Assessment of impacts from transport:
example truck transport
Datasets for truck transport are per tkm (ton*km) expressing
the environmental impact for 1 ton (t) of product that istransported for 1km in a truck with a certain load. The
transport payload (= maximum mass allowed) is indicated in
the dataset. For example, a truck of 28-32 t has a payload of
22 t; the LCA dataset for 1 tkm (fully loaded) expresses theenvironmental impact for 1 t of product that is transported
for 1km within a 22 t loaded truck. The transport emissions
are allocated based on the transported product’s mass andyou get only a share of 1/22 of the truck’s full emissions.
When the load transported is lower than the maximum
load capacity (e.g. 10 t), the environmental impact for 1 t
of product is affected in two ways. First, the truck hasless fuel consumption per total load transported (which is
not considered for simplification reasons) and second, its
environmental impact is allocated by the load transported(e.g., 1/10 t). When a full freight’s mass is lower than
the truck’s load capacity (e.g. 10 t), the transport of the
product may be considered volume limited. In this case,the environmental impact shall be calculated using the realmass loaded. If it is known that empty return transports are
the case, the impact of the transportation emission fromthe round trip shall be considered and attributed to thetransported product. For the empty return transport,a reduced emission factor can be considered compared to
the full payload.

Therefore, we presume smaller differences for bulk andvolume goods and make the following assumptions:• The full load is achieved for the loaded vehicle-km withbulk goods. Additional empty vehicle-km is estimated in
the range of 60% the maximum load for road and 80% of
the maximum load for rail transport.
• The weight related load factor for the loaded vehicle-kmwith volume goods is estimated in the range of 30% of
the maximum load for road and rail transport. The empty
trip factor is estimated to be 10% for road transportand 20% for rail transport related to the maximum load.
These assumptions consider the higher flexibility of roadtransport as well as the general suitability of the carrierfor other goods on the return transport.
EcoTransIT World offers an emission calculator for GHG andexhaust emissions in compliance with EN 16258 and the
GLEC Framework [EcoTransIT- Emission Calculator for
GHG Emissions].
ISO 14083 that is under development will give further
guidance for transportation. All assumptions and cut-offs
considering transportation shall be reported. Furthermore,
the Global Logistics Emissions Council (GLEC) developed
the GLEC Framework, a globally recognized methodology
for harmonized calculation and reporting of the logistics
GHG footprint across the multi-modal supply chain may be
applied [Global Logistics Emissions Council (GLEC)].

Manufacturing of chemical products often involves thegeneration of waste materials, including solids, liquids,
gases, and wastewater.
A waste is any substance or object which the holder
discards or intends to discard per European Waste
Framework Directive [EU Waste Framework Directive].
Waste has no economic value.
A co-product is a product that is produced in a multi-output
process incidentally to the production of products thatare intendedly produced and have the highest economic
value in such a process1. Co-products have an economic
value and shall be considered for PCF calculations. See
chapter 5.2.9 for guidance on how to account for valuable
co-products.
This chapter provides guidance on calculating the burdens
and benefits of waste treatment and recycling processes.
This is relevant to the PCF calculation in three cases:• Treatment of wastes generated from operations related
to product manufacturing.
• The usage of energy which is recovered from waste
incineration for product manufacturing.
• The usage of recycled secondary materials in the
manufacturing of the product.
• Preparatory steps and supporting activities for all
waste treatment- like collection, transportation, sorting,dismantling, or shredding- shall be considered andincluded in the PCF calculation following the guideline as
described below.
Specifications

Based on the assumption of an average load factor of
0.5 net-tons per gross ton can be considered. It can beconcluded that the share of empty vehicle-km in long
distance transport is still significantly higher for rail compared
to road transport. The additional empty vehicle-km for
railways can be partly attributed to characteristics of thetransported goods.

5.2.8.4 Waste treatment and recycling

Due to the cradle-to-gate boundary of the PCF calculation
within this guideline, emissions from the use and end-of-lifestage of the product itself shall not be included in the PCF
calculation. If materials are used for the product as raw
materials in a circular approach, they shall be consideredfollowing the relevant chapters in this guideline.
For the consideration of biogenic carbon please refer tochapter 5.2.10.1
Emission factor sources:• Whenever possible, companies should use waste
treatment emission factors based on primary data.
- If the waste is treated by the company who generates it,
the emission factor shall be calculated based on internal
primary data.
- If the waste is sent to a third party for treatment, thetreatment provider shall calculate their waste treatment
emissions, develop emission factors, and verify andcommunicate these to the company who has generated
the waste. The emission factors from the third-party
treatment shall be calculated based on the TfS approach.

(1) Refer to Waste Framework Directive (2008/98/EC) for further definition requirements of by-products.

53

• If primary emission factors cannot be obtained,
secondary emission factors shall be used in the following
hierarchy:

Typical waste treatment operations include disposal
activities such as:••••- Emission factors shall be estimated based on available
information on the waste composition and process
technology and parameters of the applied treatment
technology. The calculation shall be based on the
TfS approach.
- If this is not possible, emission factors should be derived
from accepted secondary databases (chapter 5.2.6).
- In the case of no data is available, some proposals todevelop proxies for landfilling and Wastewater treatment
are shown in the appendix.
Guidance on calculating emission factors for waste
treatment and disposal

Landfill.
Wastewater treatment.
Incineration without energy recovery (see example 1).
Hazardous waste treatment.

In some cases, different types of waste streams areco-treated in a single waste treatment facility, for example
in the case of co-incineration of high and low calorific value
waste streams or wastewater treatment for wastewater
streams with different compositions. Such a waste
treatment processes are multi-functional, regardless ofwhether it includes energy recovery. If data is available, thenthe impact of the incineration process shall be allocated tothe different waste types following the allocation hierarchy
for multi-functional processes as described in chapter 5.2.9.
Example 1: Waste incineration without energy
recoveryEmissions from the treatment of non-recycled waste
generated during production shall be allocated to the main
product or co-products and therefore shall be reflectedin the PCF. Since waste is considered an output without
economic value, no production emissions are allocated tothe actual waste generated during production.

Waste from the manufacturing process of product A isincinerated without energy recovery (either on site or by athird party).
The impact of the incineration process should be calculatedor estimated based on the requirements outlined in thisguideline. The resulting emission factor shall be allocated to
the PCF of product A.

Figure 5.7 Waste incineration without energy recovery and without use of the energy
Company A
2.0 t CO2e

0.1 t CO2e

Production process“Product A”

Waste
incineration
0.1 t

Waste

0.4 t CO2e
1MWh
Combined heat andpower plant

Electricity/SteamPCFProduct A = 2.0 t CO2e/ t + 0.4 t CO2e/ t + 0.1 t CO2e/ t = 2.5 t CO2e / t

54

Guidance for calculating emission factors for waste
treatment with energy recovery

with their pros and cons below (Table 5.4). One of the threeallocation approaches shall be followed. The choice shallbe documented and communicated through the additional
information of the PCF.

“Energy recovery from waste is the conversion of
non-recyclable waste materials into usable energy such asheat or electricity, through a variety of processes, including
combustion and other processes to recover energy. This
process is often called “waste to energy” [EPA].

The discussion to select the most appropriate guidance inthis chapter will be continued inviting additional stakeholders
to contribute. The guideline will be updated accordingly toreflect changes and consensus. TfS also encourages thedevelopment of targeted solutions for such cases throughamong others, product category rules.

The impact of waste treatment with energy recovery shallbe included in the product life cycle inventory and systemboundary following the calculation approach outlined in thissub-chapter.

Energy recovery within the system boundaries
of a productMaterial recycling processes are such processes thatderive a secondary material from a waste material which
is further used as material for manufacturing of products.
Such processes are for example chemical recycling throughpyrolization, distillation or mechanical recycling. Guidanceon the calculation approach for material recycling can befound below.
Material recycling and waste treatment with energy recovery
are considered separate and not equal. To reduce theemission of GHGs, the chemical industry should strive tokeep carbon in a material loop. This is primarily achieved
through the reduction of waste generation and material
recycling of remaining waste. The impact attribution
approach should be designed to incentive both.

Example 2: Waste incineration with energy recovery
within the system boundaries
Waste from the manufacturing process of product A
is incinerated with energy recovery on-site and underoperational control. The recovered energy is used in the
production process of Product A. Since the recovered
energy is used within the system boundaries of Product  A,
no allocation is needed. All CO2e emissions from theprocess shall be attributed to Product A.

Specifications

Incineration is the least favorable solution because it is a
final disposal. The different available calculation approaches
regarding waste treatment with energy recovery have been
discussed among TfS group members and no consensus
has been reached so far. This document in the current
state discusses three approaches, which are described

If all processes related to energy recovery from waste
are included in the system boundary, an allocation is not
required, or all allocation approaches lead to the same
result. This is the case if the energy generated is directly
used in the process of the studied product. The impactof the waste incineration shall be included in the PCF (seeExample 2). This closed loop recycling means that the direct
recycled energy has no additional environmental impact(=  0). The same applies for material recycling within thesystem boundaries, as described in the sub-chapter below.

Figure 5.8 Waste incineration with energy recovery within the system boundaries of the company
Company A
2.0 t CO2e

0.4 t CO2e

Production process“Product A”

Waste
incineration
0.4 t

Waste

0.2 t CO2e

0.5 MWh
Combined heat andpower plant

0.5 MWh

Electricity/SteamElectricity/SteamPCFProduct A = 2.0 t CO2e/ t + 0.2 t CO2e/ t + 0.4 t CO2e/ t = 2.6 t CO2e / t55

Energy recovery outside of the system boundaries
of a productWaste material is part of the life cycle of a product system.
It can be treated with energy recovery and this energy can beused in additional product systems. This creates the need to
split the impact of the treatment process and identify the partof the impact to be added to each product system.
The following general rules shall apply:
1.	Whenever applicable and possible, process subdivision
shall be used to divide common processes to avoid theneed for allocation [GHG Protocol Product Standard (2011)].

2. For waste treatment with energy recovery, wheneveravailable, allocation methods in line with published andaccepted product category rules (PCR) shall be applied.
3.	If none of the above apply, either of the three allocation
approaches described below shall be applied. The
choice shall be documented and communicated throughthe additional information of the PCF.
The following table describes the three different approaches
and discusses its pros and cons. Any of the three methods
can be used until further updates following ongoing
discussions through TfS.

Table 5.4 Overview of different assessment approaches

Cut-off approachalso known asrecycled content
approach
Description“Energy producer takes
control”
All burden allocated togenerated energy

Reverse Cut-off
approachalso known as waste
allocation“Polluter pays”
All burden allocated towaste generation process

Substitution“Market implications
considered”
Emissions fromincineration reduced bycredit for substituted
energyWho carries theburden?

Energy user(s)Waste generator

Energy user(s) and waste
generator

Who receives thebenefit?

Waste generator

Energy user

Energy user(s) and waste
generator

Pros+ Incentivizes waste
treatment with energy
recovery compared towithout+ Incentivizes waste
reduction+ Incentivizes waste
treatment with energy
recovery compared towithout+ In alignment with GHG
Protocol and WBCSD
Pathfinder+ Simple to applyCons–	No incentive for material
recycling compared toenergy recovery–	No incentive to reducewaste–	No incentive to use
energy compared torenewable energy(Higher emission
factors compared tobest technology)+ Incentivizes energy
recovery from waste
treatment+ Simple to apply+ Simple data exchange(waste generator
provides waste data for
calculation and receives
emission factor)–	Deviates from GHG
Protocol–	No difference inenergy emission factor
compared to renewablesources–	Lower incentive forenergy reduction–	Some LCA databaseneed to be adjusted+ GHG & ISO conform+ Commonly implemented
in LCA databases+ Incentivizes waste
reduction if more
renewable energy isavailable–	Result depends
strongly on selectedcomparative system for
substitution–	Complex dataexchange data forcomparative solution
required (market data)
and agreed by energy
user and waste provider–	Some LCA databaseneed to be adjusted
Link to/ Implications
for corporate GHG
emissions reporting56

In line with corporate GHG
reportingCorporate reporting has
to be adjusted

Substituted emissions
need to be reported
separately

Following the cut-off approach (also known asrecycled content approach):

Following the reverse cut-off approach(waste allocation approach)• The impact of preparatory steps and supporting
activities such as collection, transportation, sorting,dismantling, or shredding shall be added to theinventory results of the product system producing
the secondary product.
• The waste input to the energy recovery process shallbe treated as free of burdens. Burdens or credits
associated with material from previous or subsequent life
cycles are not considered i.e., are “cut-off”.
• The impact of the energy recovery process shall be
added to the inventory results of the product that uses
the energy.

• The impact of preparatory steps and supporting
activities such as collection, transportation, sorting,dismantling, or shredding shall be added to the inventory
results of the product system generating the waste.
• The impact of the process treating waste with energy
recovery (e.g. incineration) shall be added to theinventory results of the product system that generated
the waste treated in the process.
• The energy recovered from the waste-to-energy process
shall be treated as free of burdens. Burdens or credits
associated with previous or subsequent life cycles are
not considered i.e., are “cut-off”.

Example 3: Energy recovery with several productsystems (cut-off approach)

Example 4: Energy recovery with several productsystems (reverse cut-off approach)

Organic solvent waste from the manufacturing process ofthe product A is treated in a waste incineration process withenergy recovery on-site and under operational control. The
recovered energy is not used in the manufacturing processof product A. It is used in the manufacturing of product B.

Organic solvent waste from the manufacturing process ofthe product A is processed by a third party in an energy
recovery process. The recovered energy is not used in
the manufacturing process of product A. It is used in the
manufacturing of product B.

Following the cut-off approach, the impact of the waste
treatment process shall be allocated to the user of theenergy, product B. No impact from the production process
for product A shall be allocated to the PCF of product B.
If any of the processes, e.g. the production process“Product B” is not operated by company A but operated
by a third party, the same approach shall be applied.

Following the reverse cut-off approach, the impact of
the waste incineration process shall be allocated to thegenerator of the waste, product A. The energy shall beconsidered free of burden.

Specifications

Figure 5.9 Energy recovery from waste incineration with application of the cut-off approach
Company A
2.0 t CO2e

Systemcut

Production process“Product A”

0.1 t CO2e

2.0 t CO2e

Waste
incineration

Production process“Product B”

Waste

0.3 t

Electricity / steam

0.2MWhPCF Product A = 2.0 t CO2e / t
PCF Product B = 2.0 t CO2e / t + 0.1 t CO2e/ t = 2.1 t CO2e/ t
PCF Energy = 0.1 t CO2e / 0.2 MWh = 0.5 t CO2e/ MWh57

Figure 5.10 Energy recovery from waste incineration with application of the reverse cut-off approach
Company A
2.0 t CO2e

0.1 t CO2e

Production process“Product A”

Waste
incineration

Systemcut

2.0 t CO2e

Production process“Product B”

Waste

0.3 t
Electricity / steam

0.2MWhPCF Product A = 2.0 t CO2e/ t + 0.1 t CO2e/ t = 2.1 t CO2e/ t
PCF Product B = 2.0 t CO2e/ t
PCF Energy = 0 t CO2e/ MWh

Following the substitution approach:
The substitution approach is a method to distribute theimpacts of multifunctional process (e.g. waste treatment
with energy recovery) between the waste generating andenergy using system. Following the substitution approach
this is achieved, with the help of including a reference
system for energy production. Following this approach:• The impact of preparatory steps and supporting
activities such as collection, transportation, sorting,dismantling, or shredding shall be added to the inventory
results of the product system generating the waste.
• The energy recovered from the recovery process(e.g. incineration) shall get a PCF representing the impactof the reference energy production (e.g. steam fromnatural gas of a combined heat and power plant).

This impact shall be added to the product system using
the energy. The product system using the energy receives
no benefit from waste treatment with energy recovery.
• The impact of the recovery process (e.g. incineration)
shall be added to the waste generating systems. A credit
shall be subtracted for the amount of energy recovered
using the impact of the reference energy production.
Example 5: Energy recovery with several productsystems (substitution approach)The production process of product A generates a waste(e.g. solvent waste). This waste is incinerated with energy
recovery. The energy is used in the production of product B.
As reference, energy can be produced by incineration of a
primary fuel.

Figure 5.11 Energy recovery from waste incineration with application of the substitution approach
Company A

2.0 t CO2e

Reference energy
production
Credit for energy
based on referenceenergy production

Production process“Product A”

0.1 t CO2e

2.0 t CO2e

Fuel

Waste
incineration

Production process“Product B”

0.3 t CO2e

Waste
Energy production

1 MWh
0.3 t
0.2 MWh

Electricity / steam

Impact from referenceenergy production

58

PCF Product A = 2.0 t CO2e/ t + 0.1 t CO2e/ t – 0.2 MWh * 0.3 t CO2e /MWh = 2.04 t CO2e/ t
PCF Product B = 2.0 t CO2e/t + 0.2 MWh * 0.3 t CO2e /MWh = 2.06 t CO2e/ t
PCF Reference Energy = 0.3 t CO2e/ 1 MWh

Electricity / steam

Example 6: Energy recovery in a heat network(comparison of the three approaches)
For a comparison of the different approaches, this example
is calculated for all three approaches discussed in thischapter. The example shows a simplified scheme of a
possible production network in a value chain. The different
PCF values for steam and the products calculated with thedifferent approaches are shown in Table 5.5.

Company A produces product A. Waste that is generated in
the production of product A is incinerated with energy recovery.
In addition to steam generated by the waste incineration
with energy recovery, the steam grid consists of a combined
heat and power plant and a municipal waste incineration thatincinerates product C at its end of life with energy recovery.
Both company A and B are using steam in the production of
their products. 1t of product A and 1t of Product B are producedin the system. 1t of product C is treated at its end of life.

Figure 5.12 Example of interlinked system with energy recovery from both production and municipal waste

Company A

Company B

4.0 t CO2e

6.4 t CO2e

2.1 t CO2e

Production process“Product A”

Chemical waste
incineration

Production process“Product B”

Waste

12 MWh16 MWhSteam

30 MWh

3.6 t CO2e

19 MWhSpecifications

combinedheat andpower plant

6.2 t CO2e

End of Life
“Product C”
Waste

Municipal
waste
incineration

15 MWh59

Table 5.5 PCF calculation for example of Figure 6 for the different assessment approaches

Unit: t CO2e/kg (materials)
t CO2e/MWh (steam)Cut-off
approach

Reverse cut-off
approach

Substitution
approach

Steam

PCF (Steam,
combined heat andpower plant)

3.6 / 19 = 0.19

3.6 / 19 = 0.19

3.6 / 19 = 0.19

PCF (Steam,chemical waste
incineration)

6.4 / 12 = 0.53

00.19 = PCF (Steam,
combined heat andpower plant)

PCF (Steam,municipal waste
incineration)

6.2 / 15 = 0.41

00.19 = PCF (Steam,
combined heat andpower plant)

PCF (Steam, total)(3.6 + 6.2 + 6.4) /(19 + 15 + 12) = 0.35

3.6 / (19 + 15 + 12)= 0.078

0.19 = PCF (Steam,
combined heat andpower plant)

Direct process
emissions

4.0

4.0

4.0

Waste incineration
emissions

0

6.40

6.40

Steam emissions

16 * 0.35 = 5.63

16 * 0.078 = 1.25

16 * 0.19 = 3.04

Steam credit

00

12 * 0.19 = 2.28

PCF (Product A)

9.63

11.65

11.16

Direct process
emissions

2.10

2.10

2.10

Waste incineration
emissions000Steam emissions

30 * 0.35 = 10.56

30 * 0.078 = 2.34

30 * 0.19 = 5.70

PCF (Product B)

12.66

4.44

7.80

EoL emissions

0

6.20

6.2 – 15 * 0.19 = 3.35

Product A

Product B

Product C

Guidance for calculating emission factors formaterial recycling
Material recycling processes are processes that derive asecondary material from a waste material which is further
used as material for manufacturing of products.
Such processes include chemical recycling throughpyrolization, distillation of materials or mechanical recycling.
The impact of material recycling shall be included in the
product life cycle inventory and system boundary following
the calculation approach outlined in this sub-chapter.
Recycling within the system boundaries of a productIf all processes related to recycling from waste are includedin the system boundary, no specific considerations are
required. The impact of the recycling process shall be
included in the PCF. This approach is described for waste
treatment with energy recovery in example 2.
Recycling outside the system boundaries of a product60

Industrial materials can also be recycled along a value chain.
Waste material is part of the life cycle of a product system
and is reused or recycled as a secondary material in a new

product system. This creates the need to split the impact ofthe processes related to recycling, as they may be shared
between two different product life cycles.
To reduce the emission of GHGs, the chemical industry
should strive to keep carbon in a material loop. This is
primarily achieved through the reduction of waste generationand material recycling of remaining waste. The impact
allocation approach should be designed to incentive both.
The different available calculation approaches have been
discussed among TfS group members and no consensus
has been reached so far. The discussion to select the mostappropriate guidance in this chapter will be continued,
inviting additional stakeholders to contribute. The guideline
will be updated accordingly in due time to reflect changes
and consensus. TfS also encourages the development oftargeted solutions for such cases through among others,
product category rules.
Standards for Product LCAs and corporate sustainability
reporting are currently not harmonized and do not
fully address the steering effect of PCFs for important
technologies with the potential to de-fossilize the chemicalindustry, such as chemical recycling. The following

For specified cases, an upstream system expansion
approach can be used as an alternative option. In thisapproach, the cradle-to-gate PCF is provided considering acredit for the avoided waste treatment from the first life cycle.

methodologies are a proposal by the chemical industry tosteer those technologies but are not yet harmonized withexisting standards, including the GHG Protocol.
The following section is focussing on the assessment of postconsumer waste recycling. Post-industrial waste streams ofhigh quality and/or high value that will be recycled and therefore
used in another application shall be assessed as by-products
following the guidance in 5.2.9. This shall not interfere with thewaste classification according to legal regulations.

Both methods are explained in the following text providing
examples.
Following the cut-off approach (also known asrecycled content approach):• The impact of preparatory steps and supporting activities
such as collection, transportation, sorting, dismantling,or shredding shall be added to the inventory results of the
product system producing the secondary product.
• The waste input to the recycling process shall be treatedas free of burdens. Burdens or credits associated withmaterial from previous or subsequent life cycles are notconsidered, i.e., they are “cut-off”.
• The impact of the recycling process shall be added to theinventory results of the product that uses the secondary
material.
• For the product in scope the PCF of all burden shall bereported. Additionally, the EoL of the virgin alternative
should be shown in comparison to the recycled product.
This is a specific PCF covering EoL effects as well. With
this approach, benefits of the recycling of materials canbe shown but are beyond a cradle-to-gate scope.

Energy intensive recycling (e.g., chemical recycling)technologies are used to recycle waste streams whichcannot be recycled through other methods (e.g. mechanicalrecycling due to technical and economic reasons). Examples
are various types of mixed plastics waste after the sorting
step and separating materials that cannot be handled ine.g., mechanical recycling. If a recycling technology enables
waste to be used as a feedstock (and thus prevents otherless favorable end-of-life options and keeps carbon in theloop), it creates societal benefits in form of CO2 reduction andresource savings and should be acknowledged accordingly.
The following general rules shall apply:
1.	Whenever applicable and possible, process subdivision
shall be used to divide common processes to avoid theneed for allocation. [GHG Protocol Product Life Cycle
accounting standard].

Details of this calculation approach are shown in example 3of this chapter.

2.	For secondary material derived from a recycling process,whenever available, “allocation methods in line withpublished and accepted product category rules (PCR) of
analogous processes shall be applied, e.g., Plastics Europe”[Pathfinder Framework (PACT powered by WBCSD)].

Example Cut-off and additional information

3.	If none of the above apply, the two calculation approaches
described below shall be consulted.
The first choice shall be a cut off approach due to therequirements of the GHG Protocol [ [GHG Protocol ProductStandard] with additional requirements on reporting. When
providing a cradle-to-gate PCF, the figure for end-of-lifeemissions shall be reported additionally.

Specifications

Standard reporting for cut off as follows:
PCF virgin (cradle-to-gate first life cycle) = 2.0 kg CO2e /kg
PCF secondary material (cradle-to-gate first life cycle)= 3.0 kg CO2e /kg
Additional reporting information:
PCF virgin product incl. EoL = 5.5 kg CO2e /kg
PCF secondary material incl. EoL = 3.0 kg CO2e /kg

Figure 5.13 Cut-off and additional information approach - exemplary dataCut-off and Cut-off plus
- exemplary data -Virgin product lifecycle

Secondary material lifecycle= product based on chemically recycled material
5.5

3.5

3.0
2.0

2.0
0
Cradle-to-gate PCF productbased on recycling material

Product manufacturing(incl. processing andpolymerization)

Recycled feedstock(Pyrolysis incl. sorting andcollection)

Cradle-to-gate + EoL

EoL product

Cradle-to-gate PCF
first lifecycle

1.0

Cradle-to-gate + EoL

2.0

3.0

EoL product based onrecycled material

2.0

Product manufacturing(incl. feedstock extraction,
processing and polymerization)

kg CO2e/kg

5.5

61

The assumed EoL technology in this example for thevirgin material was incineration in Europe based on the
C-content of the virgin material. All impact of the incineration
was allocated to the EoL including the substitution of therecovered energy. If no further information of the EoL of
the virgin material is available, the country mix of disposal
technologies of the country of origin shall be consideredThis approach is close to the cut-off approach described in
the GHG Protocol. Through the additional information of the
cut-off plus, the benefit of the recycled material compared
to a virgin material becomes apparent.
Following the Upstream System Expansion (USE)
approach:
In exceptional cases the benefits of a recycled material canbe shown using the “Upstream System Expansion (USE)”
approach [BASF (2020)]. These exceptional cases shall fulfill
all the following criteria:• Showing a societal benefit in form of overall reduced
GHG emissions in comparison to relevant other available
treatment methods.
• Being a new technology with high likelihood of
improvement of efficiencies after commercial scale up.
• Ensuring the use of regularly updated data according to
the TfS guideline.
• Market for the alternative waste treatments is known,
the requirements shall be clearly defined.
• ISO compliant substitution approach is applied, theexact use of the waste is known.
• Substitution shall only be applied if the alternative treatment
directly replaces the final disposal, and the process istherefore reduced through provision of the co-product.
• Data about the impact of the alternative production processneeds to be obtained to calculate the PCF of the alternative
product and compare it to the system under study.
• A clear description of the process for selecting the final
EoL option substituted by chemical recycling shall be
documented.

The burdens from collection, sorting, recycling step(e.g., pyrolysis) and further processing of the final product(e.g., cracking) are accounted to the secondary material
as well the burden of the recycling process. All burdens
shall be reported. Additionally, the credit of the displaced
EoL impact can be deducted. As a basis for EoL impact
estimations, the country mix of disposal technologies of thecountry of origin shall be considered if there are no further
information of the EoL of the virgin material available.
In a second step, the emission of the counterfactual
scenario (what would have happened with the waste if
not used for recycling) must be identified. In the case ofchemical recycling, the used waste streams are difficult
to recycle and would have been incinerated otherwise.
The emissions of the counterfactual scenario need to be
calculated, e.g., incineration of mixed plastics including
energy recovery using commonly available technologies inthe defined region [GHG Protocol Product Standard (2011)].
The final PCF of the chemically recycled products resultsfrom the burdens of the recycling deducted by the savingsof the counterfactual scenario, because the technology
is benefiting to societal CO2 savings by replacing the lessfavorable waste treatment option.
With this approach, benefits of the recycling of materials canbe shown but are beyond a cradle-to-gate scope.
Example USE
PCF virgin (cradle-to-gate first life cycle) = 2.0 kg CO2e /kg
PCF secondary (cradle-to-gate based on recycled mat.)= -0.5 kg CO2e /kg
Additional information:
PCF virgin product incl. EoL = 5.5 kg CO2e /kg
PCF secondary material incl. EoL = 3.0 kg CO2e /kg

Figure 5.14 USE approach - exemplary data

Virgin product lifecycle

Secondary material lifecycle= product based on chemically recycled material
5.5

2.0

62

3.5

2.0

3.0

2.0
2.0

1.0

Cradle-to-gate + EoL

EoL product based onrecycled material

PCF according to USE method-0.5
Cradle-to-gate PCF productbased on recycling material

Displaced EoL

Product manufacturing(incl. processing andpolymerization)

Recycled feedstock(Pyrolysis incl. sorting andcollection)

Cradle-to-gate + EoL

EoL product

Cradle-to-gate PCF
first lifecycle-3.5
Product manufacturing(incl. feedstock extraction,
processing and polymerization)

kg CO2e/kg

5.5
3.5

Depending on the methods used, the corporate accounting
in categories 3.1. and 3.12. may differ and are explained in
the description of corporate reporting of TfS.
This approach is different to the existing GHG Protocol
approach. The results of the USE method incl. EoL considersa scope beyond cradle-to-gate. To derive a PCF from there
can be further addressed in a stakeholder alignment process.
The accounting for the EoL along the value chain among therecyclers and users of the material should be a part of this.

5.2.8.5 Direct emissions

Direct emissions are emissions from processes owned orcontrolled by the company arising from:• Chemical reactions.
• Waste treatment with and without energy use (e.g., flares).
• Fuel and residues incineration in process plants.
Direct emissions shall be calculated by determining theamount of emitted GHGs based on stoichiometry, massbalance or measured data. The emissions shall then be
multiplied with the respective global warming potential (GWP)
to calculate the emission factor as CO2eq per declared unit.
When relevant, fossil and biogenic direct CO2e emissions
to be reported separately according to the guidance inchapter 5.2.10.1.
5.2.9 Multi-output processes

Leaning on hierarchies described in the GHG Protocol
Product Standard, ISO 14040:2006, ISO 14044: 2006,
ISO 14067: 2018, the WBCSD Pathfinder Frameworkand the European Commission Environmental Footprint
recommendations, the following steps shall be applied toattribute impacts in multi-output situations (see Figure 5.15):
1)	Multi-output situations shall be avoided by using
process subdivision, whenever possible. The common
process shall be disaggregated into sub-processes that
separately produce the co-products. Process subdivision
may be done through sub-metering specific process lines
and/or using engineering models to model the process
inputs and outputs [GHG Protocol Product Standard].

Substitution, as described in chapter 5.2.9.1, may be
applied to attribute impact to co-products in multi-output
situations if all of the following apply:a. The co-products are generated in the process
additionally but are not the main products of the process.
Main products are defined as products that the process
is operated for and optimized to produce. Additionally,
the economic values of the main products are generally
significantly higher than for the co-products.
b. The co-product directly replaces an alternative productwith a dedicated production process on the market.
The production of this alternative product is reduced
through provision of the co-product.
c. Data about the impact of the alternative production
process is available to calculate the PCF of thealternative product.

Specifications

This chapter is about attributing inputs and emissions in
multi-output situations, i.e., when a process delivers morethan one product, referred to as co-products. The term
co-product also includes energy products such as steam
or electricity, or any other product with a defined economic
value such as a residual fuel. Energy is in this sense
understood as direct energy e.g., from exothermal reactions[Pathfinder Framework (PACT powered by WBCSD)].
Waste materials that go directly to a final disposal, e.g., anincineration or landfill, are not co-products as they do nothave an economic value and hence, shall be excluded fromthe attribution of environmental burdens of the multi-output
process. The energy generation from waste incineration is
described in the waste treatment chapter.

2)	If the multi-output situation cannot be avoided bysubdivision, a system expansion shall be applied.
System expansion refers to expanding the system byincluding the co-products into the system boundary andcommunicate PCF results for the expanded system[PEF - GUIDE: 2012]. System expansion and substitution
can be a means of avoiding allocation. The product systemthat is substituted by the co-product is integrated in the
product system under study. In practice, the co-products
are compared to other substitutable products, and theenvironmental burdens associated with the substituted
product(s) are subtracted from the product system understudy [ISO 14044: 2006]. System expansion by substitution(further referred to as “substitution”) is only acceptable if
the declared unit stays as defined in chapter 5.1.3.

d. There is consensus for a production path of thedisplaced product agreed by TfS. Note: TfS will maintainand publish a positive list of processes and products.
3)	T he approach described in published and accepted
product category rules (PCR) or Industry Association
projects, where available, for corresponding productsystems shall be applied (see 5.2.4 Standards used).
When more than one PCR exists for a product or
product category, priority shall be given to allocations
rules as described in chapter 5.2.9.3.
4)	In all other cases companies shall allocate the impact toco-products following the allocation rules described inchapter 5.2.9.3. The applied approach to solve multifunctionality shall always be stated and justified.
TfS will align with WBCSD and Catena X on the allocation
hierarchy and thus the allocation approach as describedin a PCR might be prioritized before System expansion
and substitution. As already ranked very high, PCR will
overrule other approaches.

63

Figure 5.15 Decision-making tree to show
allocation rules and reduce assessment
burden downstream [Pathfinder Framework(PACT powered by WBCSD)]

Is process subdivision possible?

Yes

No

Apply process
subdivision

Is there a dominant,identifiable substituteproduct?1

Yes

No

Apply system
expansion via
substitution

Approved/aligned 2
product categoryrules (PCRs) or sector
specific guidance

Yes

No

Follow PCR or sector
specific guidance

Ratio of the economic
value of the
co-products

5.2.9.1 Substitution

In Substitution, the co-products of process are compared tosimilar alternative products, and the environmental burdens
associated with the alternative product(s) are subtracted fromthe product system under study to obtain the impact of themain product of the production process (see Figure 5.17)[ISO 14044: 2006]. The use of substitution as a means to
avoid allocation requires an understanding of the market forthe co-products. To ensure that an ISO compliant substitution
approach is applied, the exact use of the co-product needs tobe known. Substitution shall only be applied if the co-product,
which must not be the main product, directly replaces thealternative product on the market and the production of thisalternative product is therefore reduced through provisionof the co-product. Data about the impact of the alternative
production process needs to be obtained to calculate the
PCF of the alternative product and subtract it from the system
under study. If a co-product and substituted alternative
process fulfill all above mentioned requirements, they may
be considered for adoption in the TfS positive list. A clear
description of the process for selecting the alternative productsubstituted by the co-product shall be documented.
Energy co-products such as residual fuels or excess steam
shall be treated by substitution if these co-products substituteproducts that would have been otherwise generated froma primary energy source. Please see further explanation in
below example.

>5

=<5

Apply economic
allocation

Underlying physicalrelationship between
the co-products

Yes

No

Apply physicalallocation basedon most suitablephysical relationship 364(1) System expansion via substitution should only be used if there is a dominant, identifiabledisplaced product and production path for the displaced product based on sector consensus.

Use economic or
alternative allocation(2) Sector specific guidance or PCRs shall be used if approved and required as Drop-in
standards by TfS for Chemical Industry, by Catena-X for other automotive industry supplying
sectors or by WBCSD pathfinder for sectors other than those covered by TfS and Catena-X.
(3) In doubt, mass allocation should be prioritized, but there are instances where other allocation
factors may be more suitable (e.g. volume for gases, energy content for energy).

Figure 5.16 Decision tree for the applicationof substitution, PCR, and allocation

Is the process operated to produce only one of the co-products,
the other co-products are unavoidable but not desired by-products?

Yes

Does a dedicated process
exist to produce theunavoidable by-products?

No

No

Yes

Is your production reducing
the production through thisprocess?

No

Apply method as describedin PCRNo

Use allocation (see allocation
hierarchy) and document
method in additional
information

Does a product categoryrule (PCF) exist for the main
product or an analogous
process?

Yes

Does your production
through this process reduce
the production of the same
product anywhere else?

Yes

No

Yes

Specifications

Is there consensus for a
production path of thedisplaced product agreed
by TfS?

No

Yes

Use substitution anddocument method in additional
information

5.2.9.2 Examples for Substitution

In the example both co-product A and co-product B are
produced as co-products of the same process.
The process produces 2 t co-product A and 1 t co-product B
with associated CO2e emissions of 5 t CO2e (see Figure 5.16).
Process subdivision is not possible, and a product categoryrule does not exist. The process is operated and optimized
to produce co-product A as the main product. Co-product
B is unavoidably co-produced and is considered aby-product. The co-product B is the same product as
product B derived from a single output production process
and substitutes product B (material or energy) from asingle-output process.

In the market, co-product B directly substitutes analternative product B, produced through a process with
an impact of 3 t CO2e/1 t product B. This impact is now
assumed for co-product B from the system under study.
As the process under study produces 1 t of product B
within the system boundaries, the impact of the substituted
alternative process can be subtracted from the total impactof the process. As a result, 2 t of co-product A have an
impact of (5-3) t CO2e = 2 t CO2e. As a result, co-product A
has a PCF of 1 t CO2e/t co-product A.

65

Figure 5.17 Substitution and its modelling of multi output processes

Single output
production process
1t

CO2

Product B(material or energy)

Sales Product B
PCF Product B = 3 t CO2e/t

3 t CO2e total
direct substitution

Multi output
production process

1t

Co-product B(material or energy)

CO2
5 t CO2e total

PCF Product B = 3 t CO2e/t

Sales Product A
2t

Co-product A(material or energy)

5.2.9.3 Allocation rules

Allocation means splitting multi-output processes into
single output unit processes using physical, economic, orother criteria by partitioning the input and output flows of aprocess or a product system between the product system
under study and one or more other product systems. When
outputs include both co-products and waste, the inputs andoutputs shall be allocated to the co-products only.
There are different allocation methods applicable for thecase of a multi-output process. ISO 14067 [ISO 14067: 2018]
differentiates between allocation based on the underlying
physical relationships between the products and co-products
such as mass, volume or energetic content and economic
allocation – where physical relationship is the preferredchoice. Furthermore, input materials as e.g. chemicals canbe allocated by stoichiometry to the products according to
the chemical reaction and elemental connectivity.
The following general rules shall apply:
If the multi-output situation cannot be avoided, emissions
shall be divided among the co-products in an accurate andconsistent manner. This is essential for the quality of a PCF.
Allocation rules shall follow the hierarchy described in figure5.15. [Pathfinder Framework (PACT powered by WBCSD)]:a)	Allocation methods in line with published and accepted
product category rules (PCR) of analogous processes
shall be applied where available (see 5.2.4 Standards
used). When more than one PCR exists for a product or
product category, priority shall be given to allocations
rules accepted by TfS in a published list or PCR given in:a. Existing regional law.
b. PCRs from world-wide operating associations.
c. PCRs from regionally operating associations.
(e.g., Plastics Europe).
d. PCR from EPD programs.

66

Sales Product B

PCF Product A = 1 t CO2/t A= (5 t CO2e – 1 t B * 3 t CO2e/t B) / 2 t Ab)	The guidance of the WBCSD Chemicals [WBCSD
Chemicals LCA Guidance (2014)] used the applicationof the economic value of co-products as a criterion
to decide between physical allocation and economic
allocation firstly. The criterion for economic allocation was
adopted as well by the Pathfinder project and alignedwith TfS (Figure 5.15). Economic allocation factors should
be calculated based on stable market prices, as a yearly
average or over multiple years in case of high fluctuation(e.g. >100%) of prices to average out high fluctuations ofprices, influencing the outcome of an allocation process
based on economic values as prices [BASF SE (2021)].
If market prices are not available, other economic factors
can be applied.
If the share of a co-product is very small (in mass orvolume < = 1%), it can be skipped in the decision about
the allocation method (see also Chapter 5.2.3 for rules on
cut-off criteria). If there are more than two co-products, use
the highest and lowest value of all co-products to determine
the value ratio.
Exceptions to the above allocation rules are possible only inrare instances such as:
1.	Carbon dioxide that is captured and used as input in
another process is be treated separately (see chapter
5.2.10.3 Carbon Capture & Utilization).
2.	If hydrogen is a co-product allocation by heating value
shall be applied because of the low molecular weight ofhydrogen. Example: Syngas process that generates COand hydrogen, both are gases and valuable products.
If hydrogen is a co-product in a multi-output process,mass allocation shall not be applied because of the low
molecular weight of hydrogen.
The applied approach to solve multi-output situations shallalways be stated and justified, and the sum of the allocatedinputs and outputs of a unit process shall be equal to the
inputs and outputs of the unit process before allocation.

5.2.9.4 Examples for allocation

The allocation procedure has a significant impact on
the PCF result as can be seen below in the example of
Chlor-Alkali Electrolysis, a multi-output process generating

chlorine, caustic soda, and hydrogen (see Figure 5.18).
Hence a uniform approach for how to deal with multi-output
situations for all possible types of product and co-products
is needed to generate consistent and comparable results.

Figure 5.18 Outputs of a Chlor-Alkali electrolysis process

1 kg Chlorine with price of 0.42 USD/kg

Chlor-Alkali
Electrolysis
process

1.085 kg Caustic soda (100%) with price of 0.1 USD/kg

0.028 kg Hydrogen with price of 5 USD/kg

It should be noted that an association document exists
for the Chlor-Alkali Electrolysis and the different allocation
approaches shown are simply illustrative examples.

Mass-based allocation
This type of allocation is the distribution according to mass,measured in terms of total mass (see Table 5.6).

Specifications

Table 5.6 Example calculation for mass-based allocation

DefinitionMass[kg/kg Chlorine]

Share of impact

Chlorine

1.00

47%

Caustic soda (100%)

1.085

51%

Hydrogen

0.028

2%

Sum

100%

67

Stoichiometric or elemental allocation

for input materials that have a chemical connectivity
only to certain products and not all co-products.
Stoichiometric or elemental allocation can be combinedwith e.g., mass allocation for other raw materials,
energy, waste, emissions etc (see Table 5.7).

Stoichiometric ratios of chemical reactions can beused as basis for the allocation. This approach is
helpful if mass flows would not reflect the elemental
reality of the co-products. This allocation can be used

Table 5.7 Example calculation for stoichiometric or elemental allocation[g/mol]Stoichiometric
relation to NaCl

Chlorine, Cl2

70.9

0.5

60.7%

Caustic soda, NaOH
(100%)

40

1

39.3%

Hydrogen, H2

2

0

0%

Definition

Molar massSum

Share of NaCl
impact100%

Share of NaCl impact = Molar mass of product * stoichiometric factor of product / molar mass of NaCl.
Economic allocation
The economic allocation refers to the economic value ofthe products at the location (e.g., in the plant) as well as
in the state (e.g., not cleaned) and quantity as provided
by the multi-functional process. A specific market price isattributed to each product (see Table 5.8).

If large fluctuations in prices exist, an average priceover several years should be calculated to reduce thesefluctuations. Most recent prices should be used if available
and appropriate.

Table 5.8 Example calculation for economic allocation

Mass

Value x Mass

[USD/kg][kg/kg Chlorine][USD]

Chlorine

0.42

1.00

0.42

63%

Caustic soda (100%)

0.10

1.085

0.108516%

Hydrogen

5.00

0.028

0.14

21%

Sum

In cases where the product is not sold or the determinationof market prices is hardly possible (e.g. intermediates which
are internally used, chlorine for PVC), other approaches
might be used, e.g. a combination of production costs andmarket price of the processed product or the turnover.

68

Share ofimpactValue

Definition

0.6685100%

Overview of calculation examples with a multi-output-allocation
Table 5.9 General examples for allocation approaches and calculation rules

Example case
Chlorine-Alkali-Electrolysis delivers
besides chlorine, mainly hydrogen andsodium hydroxide; energy co-products
such as steam are not generated.

Applicable PCF calculation rule
“how to do it”
Follow decision tree above: apply allocation scheme as specified in the
PCR from [Eurochlor [2022]].
Sodium chloride input is allocated by means of stoichiometry to all
products containing either sodium or chlorine atoms (or both): chlorine,
sodium hydroxide, sodium hypochlorite and sodium sulphate.
Sulphuric acid input is allocated to chlorine production only, since it isused for chlorine drying.
Hydrogen emissions are allocated to hydrogen production only,
since they refer to losses of hydrogen to the atmosphere.
Chlorine gas emissions are allocated to chlorine production only,
since they refer to losses of chlorine to the atmosphere.
Electricity, steam and all other inputs and outputs are allocated by mass
to all valuable products, for solutions to mass content of active molecule.

The steam cracker process turns fossilhydrocarbon feedstocks (predominantly
ethane, LPG, naphtha, or gas oil) into
several different main products,
like ethylene and propylene, benzene,
butadiene and hydrogen. The process
yields additional further chemicals like,acetylene, butene, toluene and xylene.

This complicated process for a LCA needs some specific approaches
for an accurate calculation. Therefore, a PCR from Plastics Europe1
was developed to harmonize the approach. The PCR distinguishes
per definition between so-called “main products” (ethylene,
propylene, benzene, butadiene, hydrogen, toluene, Xylene andbutenes) and “additional products” (all other products). It is definedthat the feedstock used shall be allocated on mass basis to all steam
cracker products.
Energy demand and emissions shall be exclusively allocated on amass basis to the “main products” only.
The formaldehyde process produces a co-product which is only usedin energy recovery. Following the decision tree and its exceptions, theallocation issue can be solved by system expansion and substitution.
This means that the CO2e impact of the inputs and outputs of theprocess are completely allocated to the main product. At the sametime, however, the process receives a CO2e credits that corresponds
to the CO2e impact of steam generated in the on-site CHP plant
based on natural gas. When using the waste steam as input in
another production process is carries the CO2e burden of the steam
generated in the CHP based on natural gas. In this way the CO2balance is closed, and the steam generating process is rewarded
as it produces a product that substitutes a product that would havebeen otherwise produced.

Atmospheric gases as nitrogen, oxygen,argon and other inert gases are produced
using a process known as air separation.
In this process, atmospheric air is split into
its primary components via a fractional
distillation. Cryogenic air separation units(ASUs) are built to provide nitrogen or
oxygen and often co-produce argon.
High purity gases can be obtained from thisprocess. Rare gases as neon, krypton, andxenon can be isolated with the distillation of
air using at least two distillation columns.

Follow decision tree above: no PCR exists, comparison of economic
values of co-products (=prices) results in a ratio of > 5. [Price Product1 (max) / price Product 2 (min) > 5]. The CO2e impact from the input
and output flows shall be allocated based on an economic allocation
approach.

Specifications

The production of formaldehyde frommethanol produces besides formaldehyde
excess steam that is used in anotherproduction plant at the same site of thereporting company. The steam substitutes
steam generated in an on-site CHP plant
based on natural gas.

If the economic values of co-products (=prices) results in a ratio of=< 5, allocations based on physical relations shall be applied. In atypical distillation process that is applied for the separation of e.g.
different chemicals with different boiling points, the boiling points
can be used as basis for allocation. Higher boiling points get higher
burdens because more energy is needed to distill the products.

This type of distillation can be transferred
to almost all other distillations very
often used in the chemical industry. The
process is applied for the separation ofdifferent fractions of chemicals and for the
purification of chemicals.
(1) Plastics Europe recommendation on Steam Cracker allocation. Plastic Europe- Stream Cracker Allocation

69

Figure 5.19 Decision Tree for Reportingof Biogenic Carbon Content (BCC)
in a Product1

5.2.10 Additional rules and requirements

5.2.10.1 Approach to consider biogenic carbon
in the PCF

Is there any physical or attributed BCC
in the product?

Yes

No

“During photosynthesis, plants remove carbon (as CO2) fromthe atmosphere and store it in plant tissue. Until this carbon
is cycled back into the atmosphere, it resides in the carbon
pools” [GHG Protocol Corporate Standard], like bio-basedmaterials. “Carbon can remain in some of these pools for long
periods of time, sometimes for centuries. An increase in thestock of sequestered carbon stored in these pools represents
a net removal of carbon from the atmosphere”. As biobasedmaterials origin from plants, the same is true for them.”
The requirements in this guidance are aligned to therequirements set out in ISO 14067 [ISO 14067: 2018].

Is biomass balance
chain of custodyused to attribute BCC
to product?

Company shall report
BCC = 0Yes

No

Company shall report
BCC per certified massbalance attribution
AND physical content,
indicating that thewhole or parts of the
product BCC is basedon attribution

Is the reporting year
2025 or later?

Yes

No

Company shallreport BCC per
based on analyticalmeasurement,
calculation or
estimate

Company shouldreport BCC per
based on analyticalmeasurement,
calculation or
estimate

Other requirements:
Company shall indicate if BCC is based on
physical basis or attribution.
BCC shall be corrected after any economic
allocations applied in supply chain.

(1) 2025 was set as the first mandatory year for reporting biogenic carbon to give
all involved companies enough time to prepare for this.

70

According to ISO 14067, biogenic removals from CO2
uptake during biomass growth shall be included in the
PCF calculation. Additionally, all biogenic emissions(e.g. methane emissions from manure application etc.)
and further emissions from relevant processes, such as
cultivation, production and harvesting of biomass shall be
included in the PCF [ISO 14067: 2018].
Removals of CO2 into biomass shall be characterized in
the PCF calculation as −1 kg CO2/kg CO2 when entering
the product system, while biogenic CO2 emissions shall becharacterized as +1 kg CO2e/kg CO2 of biogenic carbon[ISO 14067: 2018]. As referred to in Chapter 5.3.2, the PCF,
that considers biogenic emissions and removals shall bereported as PCF (including biogenic CO2 removal).
It should be noted that other systems (namely the European
Commission Product Environmental Footprint (PEF 2021)
system) treat biogenic emissions and removals differently.
PEF does not consider biogenic CO2 emissions andbiogenic CO2 removals (0/0 approach) so far, but biogenic
CH4 emissions. Furthermore, PEF considers biogenic
CO2 emissions and biogenic CO2 removals as neutral,
independently from its end-of-life treatment. For short term
uses of materials with incineration, this approach is identicalwith the approach of consideration of biogenic carbon
uptake and subsequent emission from incineration. To fulfill
PEF and current GHG Protocol requirements, additionallythe “PCF (excluding biogenic CO2 removal)” shall bereported, which does not consider biogenic removals, but
all biogenic and fossil emissions. The biogenic emissions
contain the CH4 emissions that are derived from bio-based
C and converted to Methane as well and are transferred toCO2e. N2O emissions derived from bio-based materials are
expressed in CO2e as well. If N2O is emitted from the use ofa fertilizer that is based on fossil materials it is linked to thefossil CO2e.
The upcoming GHG P Land sector and removal Guidance
will overrule all the existing GHG P standards in terms ofbiogenic emissions and accounting requirements. TfS will
update this guideline if the final version is published.
Because the prescribed scope of PCF (including biogenic
uptake) within this context guideline is a cradle-to-gateconsideration exclusively, the total carbon content andthe biogenic carbon content of the material shall also bereported alongside the PCF (including biogenic uptake)with the aim to close the biogenic carbon balance in further
downstream calculations or at the end-of-life, which are
not in scope of this document [BASF SE (BASF)],

[ISO 14067: 2018]. Figure 5.19 presents a decision tree
for biogenic carbon content (BCC) reporting. Biogenic
carbon is defined as carbon derived from biomass.
Biomass refers to material of biological origin andincludes both living and dead organic material, such as
trees, crops, grasses, tree litter, algae, animals, manure,and waste of biological origin. In this document, peat is
excluded from the definition of biomass [ISO 14067: 2018].
Within the context of products, biomass-derived carbon
contained in a product is referred to as the biogenic
carbon content of the product [ISO 14067: 2018]. BCC
may be present in products due to physical presence or
due to attribution in biomass balance. If biomass balanceis used then provisions shall be in place to avoid double
counting, especially in products which do not receive
attributed BCC.
If the mass of biogenic carbon containing materials in
the product is less than 5% of the mass of the product,
the declaration of biogenic carbon content may beomitted ([EN15804+A2 2019: 46]).

• Carbon content in ethanol (carbon molecular weight/ total ethanol molecular weight) = (24g/mol / 46g/mol) = 52.17% C content in ethanol.
• 1 kg ethanol contains 521.7 g C.
• As the biogenic Carbon content accounts 100%,
the biogenic C content is also 521.7 g C/kg.
• The biogenic removal is 521.7 g C/kg * 44/12(conversion of carbon into carbon dioxide)= 1 913 g CO2 / kg ethanol.
When the ethanol is incinerated e.g. in an EoL process,this amount of CO2e will be released as emission1. If theethanol is used as a pre-cursor for a chemical productand this product is applied in a long-term application, thecontribution from the ethanol is negative. The new GHG
Protocol Land sector and removal Guidance has a new
approach on how to account for delayed emissions fromproduct carbon pools. The TfS guideline will be adapted
if the Guidance is published.
An example how to report emissions for biobased
ethanol is provided below in table 5.10.

An example of how to calculate and report the biogenic
uptake and the carbon content is presented for abio-based ethanol below.

Table 5.10 Calculation and reporting of PCF results with biogenic materials included

Accordingto PEF 2021

Biogenic carbon in products(kg biogenic C/kg ethanol)

0.521

0.521

Equivalent biogenic carbon removal in product,
expressed in carbon dioxide(kg CO2 /kg ethanol)

-1.9

0.0

Equivalent biogenic carbon overall removal,
expressed in carbon dioxide(kg CO2 /kg ethanol)-2.334

0.0

Emissions, land use anddirect land use change(kg CO2e/kg ethanol)

0.2

0.2

Of that is direct land use change (kg CO2e/kg ethanol)

0.1

0.1

Emissions, biogenic(kg CO2e/kg ethanol)

0.8

0.4

(0.4 from Methane)(Methane)

Emissions, fossil (kg CO2e/kg ethanol) (net result offossil emissions and fossil removals)

2.0

2.0

Cradle-to-gate emission(kg CO2e per kg ethanol-2.334+0.2+0.8+2.0= 0.67

0.0+0.2+0.4+2.0= 2.6

Specifications

According to ISO 14067:
2018; GHG Protocol
Product Standard

Simplified calculation example:
For 1 kg of ethanol(1) During modeling of EoL, e.g. when biomass is used as energy source for a process, the biogenic carbon in the product should be released in the same way like the fossil carbon
depending on the specific EoL technology (e.g. under consideration of conversion into all relevant carbon-based gases (CO2, CO, CH4)). It should be checked that the carbon balance isclosed (uptake equal emissions).

71

• Biogenic methane emission and corresponding
CO2 uptake:
0.4 kg CO2e / kg ethanol
0.4 / GWP factor methane (30 kg / kg Methane)= 0.013 kg Methane / kg Ethanol
0.013 kg methane = (0.013/16) * 44 = 0.04 kg CO2 uptake• Additional uptake from biogenic CO2 emission:
0.4 kg CO2e / kg ethanol• Total CO2 uptake:-1.9 kg CO2 – 0.04 kg CO2 – 0.4 kg CO2 = -2.34 kg CO2
According to ISO 14067 [ISO 14067: 2018] the biogenic
carbon in products, fossil and biogenic GHG emissions andremovals shall be reported. GHG emissions and removals
from land use should be reported.
In some cases, e.g. when allocation is applied, the carbon
flows might not represent physical reality in terms of
C-content. To avoid misleading or incorrect calculations,a carbon correction shall be applied at the end of the PCF
calculations. It must be ensured that the biogenic carbon
content in the product is equal to the sum of biogenic
removal of CO2 and biogenic emissions of CO2 andmethane. If this is not the case (e.g. because of allocation
somewhere along the value chain) then the value of thebiogenic CO2 removal shall be adjusted.

1.	The biomass used should follow a transparent
certification standard and the conformance to thecertification should be verified by an independent andqualified independent party.
a. The certification system shall have clear chain ofcustody rules, traceability requirements, definedboundaries, guidelines for marketing claims, include
safeguards against double counting in any sense,and shall identify the type of sustainable raw material
throughout the supply chain.
b. E xamples of acceptable certification systems include
ISCC PLUS, REDcert2, UL ECVP 2809, RSB Advanced
Materials, FSC, RSPO, or equivalent.
2. The LCA of the manufacturing process in which themass balance attribution occurs can be reviewed by anindependent party and confirmed to be in conformancewith ISO 14044 [ISO 14044: 2006] or ISO 14067[ISO 14067: 2018]. The study shall document how thematerial flow and attributions were calculated.

Consequently, the information shown in Table 5.10 needs
to be reported and transferred to the recipient separately(see also Chapter 5.3). In addition, information about carbon
content shall be added:

For example, the EU sustainability criteria are extended
to cover biomass for heating and cooling and power
generation in the revised Directive [EU] 2018/2001. EU
countries were required to transpose the new rules by
30 June 2021, and the voluntary schemes have to adjust thecertification approaches to meet the new requirements.

• Biogenic carbon content: 0.5217 kg C / kg Ethanol.
• Total carbon content: 0.5217 kg C / kg Ethanol(= biogenic carbon content of 0.5217 kg C / kg product+ fossil carbon content of 0 kg C / kg product).

For a scheme to be recognized by the European
Commission, it must fulfil criteria such as:

For the raw material calculation in section 5.2.8.2 the total
figures according to ISO 14067 [ISO 14067: 2018] shall be
used. The results for a product calculation includes thebiogenic removal at the gate. The biogenic carbon uptake
shall be reported in addition. This will enable the calculationof a correct PCF depending on the end-of life treatment of
the final user of the product.
When considering biogenic carbon removal in products for a
specified duration, the effect of the timing of GHG emissions
and removals shall be assessed [ISO 14067: 2018].
Where GHG emissions and removals arising from the use
stage and/or from the end-of-life stage occur over more than
10 years (if not otherwise specified in the relevant PCR) after
the product has been brought into use, the timing of GHG
emissions and removals relative to the year of production of
the product shall be specified in the life cycle inventory. The
effect of timing of the GHG emissions and removals from theproduct system (as CO2e), if calculated, shall be documented
separately in the inventory [ISO 14067: 2018].
The biogenic carbon content of the packaging (if consideredin the PCF) shall be excluded or reported separately for an
accurate end-of life calculation.

72

Biomass used for chemical production should be of highquality and should be produced addressing importantsustainability aspects of a high level of sustainability. The
following requirements should apply for the usage of massbalance chain of custody in determination of PCF:

• Feedstock producers comply with the sustainability
criteria of the revised Renewable Energy Directive and its
implementing legislation.
• Information on the sustainability characteristics can betraced to the origin of the feedstock.
• All information is well documented.
• Companies are audited before they start to participate in
the scheme and retroactive audits take place regularly.
• The auditors have both the generic and specific auditing
skills needed with regards to the scheme’s criteria.
• The decision recognizing a voluntary scheme has usuallya legal period of validity of 5 years.
If a mixed raw material containing less than 100% biogenic
materials is used, the biogenic content shall be calculated
according to the share of the biobased materials andreported accordingly. The other share of materials is linked
to fossil Carbon.
If a PEF compliant calculation is requested, the PEF figures
shall be used.

Table 5.11 dLUC and iLUC [ISO 14067: 2018]

Direct land use change (dLUC)

Indirect land use change (iLUC); optional

Change in the human use of land within the relevantboundary which leads to a change in soil- and biomass
carbon stocks.

Change in the use of land, which is a consequence of
direct land use change, but which occurs outside therelevant boundary.

E.g. Primary forest is converted to agricultural land or
grassland.

E.g. Change in use of agricultural land for food toagricultural land for bio-based chemical feedstocks whichlead to shift of food production outside the boundary.

GHG emissions and removals associated with thesechanges from reference land use to land use underassessment need to be addressed and shall be included in
the PCF calculation.

5.2.10.2 Land-use-change emissions

5.2.10.3 Avoided emissions and offsets

Land use change (LUC) refers to a change from one landuse (can be natural habitats such as primary forests oralso agricultural land) to another land use (most times
to “human use or management of land.”). As a result ofland use change, GHG emissions and removals occur
through changes in soil- and above- and below ground biomass carbon stocks that are not the result of changes
to management of land [ISO 14067: 2018]. Changes inmanagement of land within the same land-use category
are not considered land use change (e.g. agricultural landto agricultural land). Land use change can be classified as
direct or indirect land use change (Table 5.11):

Definition of avoided emissions

The GHG emissions and removals occurring becauseof dLUC within the last decades (IPCC tier 1 period of 20
years is frequently used) shall be assessed in accordancewith internationally recognized methods, such as the IPCC
Guidelines for National Greenhouse Gas Inventories[IPCC- GHG Inventories Guidelines].
If a specific approach (e.g. based on site, regional or
national data) is used, the data shall be based on a verifiedstudy, a peer reviewed study or similar scientific evidence
and shall be documented in the PCF study report[ISO 14067: 2018].
If a product is 100% fossil based including all relevant
pre-cursors, this category is of very low relevance and canbe neglected in the evaluation and should be reported as“not applicable”.

For more information on avoided emissions see WRI
Guideline on avoided emissions [Estimating and Reporting
the Comparative Emissions Impacts of Products],[GHG Protocol Product Standard], [ICCA - Avoided
Emission Challenge [2017]] or [WBCSD - SOS 1.5],
expected to be released end of 2022.
Specifications

In accordance with ISO 14067 [ISO 14067: 2018] GHG
emissions and removals occurring because of dLUC shallbe included in the PCF calculation and shall be declared
separately in the documentation [ISO 14067: 2018]. GHG
emissions and removals as a result iLUC can be considered
for inclusion and – if calculated - shall be documented
separately [ISO 14067: 2018].

In this standard, avoided emissions are quantified as
emissions reductions that are indirectly caused by thestudied product or process or by market responses tothe studied product or process that occurs in the studied
product’s life cycle. Avoided emissions shall not be
subtracted from the total inventory results of the PCF.

Definition of emission offsets“Emission offsets are emission credits (in the form ofemission trading or funding of emission-reduction projects)
that a company purchases to offset the impact of the studied
product’s emissions. Companies typically use offsets for oneof two reasons: to meet a reduction goal that they cannot
reach with reductions alone, or to claim a product as carbon
neutral” [GHG Protocol Product Standard].
Emission offsets shall not be subtracted from the total
inventory results of the PCF. However, if a company wishes
to purchase offsets for its product inventory, it may provide
information on the offsets separately from the inventory
results. For these offsets to be provided separately as
additional information, the company should: Purchase offsets
for which GHG emission benefits are quantified followinginternationally accepted GHG mitigation project accounting
methodologies (e.g. GHG Protocol Project Protocol); only
account for product-level offsets to avoid double counting ofcorporate-level offsets [GHG Protocol Product Standard].
Definition of emission removals
The sequestration or absorption of GHG emissions fromthe atmosphere, which most typically occurs when CO2 isabsorbed by biogenic materials during photosynthesis.

73

Table 5.12 Examples for avoided emissions by off-setting

Example caseVoluntary additional
information for emission
offsetApplicable PCF
calculation rule

The company purchases emission
credits from a project investing inreforestation to offset 50% of thecalculated PCF

The PCF remains the same as
calculated

The emissions offset of 50% may beprovided separately from inventory
results

The company purchases
emission credits from a carbon
capture and storage facility fromanother company to offset 30%of the calculated PCF

The PCF remains the same as
calculated. The GHG reduction
by CCS cannot be considered as
emission reduction in the PCF, as the
CCS is not part of the product system

The emissions offset of 30% may
be provided separately from theinventory results

Since there are developments towards new ISO standards,
aspects might be addressed differently. On ISO Level there
is a new standard, ISO 14068 “Climate neutrality” underdevelopment. A Net-Zero approach of ISO started as wellwith the IWAR 42 Net Zero Guiding principles. These activities
might initiate new calculation aspects and implementation of
PCF in specific calculations. This guideline will be updated
accordingly, when these standards will be published, andnew requirements need to be addressed.

CCU (CO2 capture and utilization) refers to technicalprocesses where the separated CO2 is converted into
valuable products. In contrast to CCS, the CO2 storagein CCU is only temporary. Emissions can be delayed andthus, do not contribute to climate change during the time ofstorage [Müller, Kätelhön et al (2020)].

5.2.10.4 Carbon Capture followed by Storage,
Utilization

Carbon Capture and Storage“Carbon Capture” refers to processes where CO2 isseparated from industrial and energy-related sources ortechnically captured from the atmosphere. This guidancerefers to the capturing of CO2 at the emissions source only.
Direct air capture technologies are out of the scope of
this sub-chapter. For other technologies to capture other
Carbon sources (e.g. CH4), further definitions are needed.
CCS (Carbon Capture and Storage, or more accurate: CO2
capture and storage) refers to the separation of CO2, andinjection into a geological formation, resulting in long-term
isolation from the atmosphere.

CC only refers to industrial emission sources, while biologicalprocesses, where CO2 is also stored (or sequestered) suchas planting trees, is not covered by the terminology.

CCS may be included in the PCF calculation if a permanentand complete storage in storage facilities is guaranteed.
Permanent storage technologies are characterized by avery low risk of a physical reversal of the storage process.
The World Economic Forum offers a comprehensive
overview of storing technologies. The net result of GHG
emissions, stored GHG emissions and the deployed storage
technology shall be documented. The individual amountsof emitted GHG (e.g. via capturing, transport, storage) andstored GHG could be reported separately [BASF SE (2021)].
CSS may only be included in the PCF if the CCS technology
is active whenever the product is being produced.

Long-term means the minimum period necessary to beconsidered an effective and environmentally safe climatechange mitigation option [ ISO 27917:2017], [ISO Guide
84:2020].

Table 5.13 Examples for CCS

Example caseApplicable PCF
calculation rule

The company installs a facility forcarbon capture and guarantees
permanent and complete storageof 0.6 tons of CO2 (CCS)The capture of 0.6 tons of CO2 should
be considered. The net result of the
PCF shall include the stored emissionof 0.6 tons as well as released
emissions from the capturing,
any transport as well as the storage(See figure 5.20)(See figure 5.20)

74

Voluntary additional
information for emission
offsetAbsolute values of released
emissions and stored emissions canbe reported individually

Figure 5.20 Carbon Capture and Storage example (CCS) assuming 0.6t CO2 storage per ton product A
Cradle-to-gate PCF

2.0 t CO2e

0.4 t CO2e

0.1 t CO2e

0.6 t CO2

1.0 t productPrechain Product A

Process Product A

Treatment & storageof CO2CO2

Product A

PCF (Product A) = 2.0 t CO2 e/ t + 0.4 t CO2 e/ t + 0.1 t CO2 e/ t = 2.5 t CO2 e/ t

• Net PCF including CCS (Product A) to be reported:
2.5 t CO2e.
• Voluntary additional information on CCS: 0.6t CO2(captured and stored).
• Voluntary additional information on released GHG
emissions: 0.4t (process) and 0.1 t (treatment).

Captured CO2 is a product of human transformation,consequently, CO2 is a technical flow and a chemical
feedstock for CO2 utilization. When CO2 is captured andused, ISO- and TfS allocation hierarchy shall be used,meaning that if the multi-output situation cannot be avoided
by subdivision, a system expansion or allocation following
the approach described in published and accepted productcategory rules (PCR) or Industry Association projects,
where available, for corresponding product systems,
shall be applied (see chapter 5.2.9). Both approaches would
not be favorable for such a new technology, as shown andexplained in the following chapter. Thus, TfS decided to
set up an alternative approach to be further discussed andconsidered.

Specifications

Without Carbon Capture and Storage, the emission of the“Process Product A” would be 1t CO2e, which would resultin an overall emission of 3.0t CO2e. With CCS, the emissionof the “Process Product A” is lowered to 0.4t. For treatment
and storage, 0.1t CO2e are emitted; thus, the overall net
CO2e is 2.5t CO2e (2.0t + 0.4t +0.1t)

Carbon Capture and Utilization
Standards for Product LCAs are currently not harmonizedand do not fully address the steering effect of PCFs forimportant technologies with the potential to de-fossilize thechemical industry, such as carbon capture and utilizationand chemical recycling. Thus, the following methodologies
are a proposal by the chemical industry to steer for thosetechnologies, but are not harmonized yet with all standards,
including the GHG Protocol standard.

Sources of CO2 can be either direct air capture (DAC) or point
sources (industrial processes like ammonia production).
For both sources, the technological transition by capturing
and using CO2 for chemical products is driven by CO2 users;
for point sources, it is also driven by the CO2 source. The
decision-making of CO2 sources and CO2 users can only besteered through an assessment methodology that reflects
the relationship between main product and the CO2.
Based on exemplary data as provided in table 5.14, theimpacts of different assessment methodologies were
calculated for an ammonia plant (as point source) and amethanol production (user of CO2) as well as a reference
CO2 source from Direct Air Capture (DAC).

75

CO2e to account for adsorbent losses. In the above example
a CO2e emission factor for electricity of 0.08 kg CO2e/MJ
was used.

Figure 5.21 reflects the results of this cradle-to-gatecalculation for CO2-based methanol with two different
sources of CO2: Direct Air Capture (DAC) and an industrial
point source, an ammonia plant. In the exemplary
calculation for DAC (see Figure 5.21 and Table 5.14), 1 kgof CO2 is captured via the DAC. The total PCF related to theCO2 capturing and the capture process for DAC accounts
in this example for 0.60 kg CO2e/kg CO2. Including theremoval of the 1kg CO2, the total PCF for captured CO2 is-0.40 kg CO2e per kg CO2. The calculation considers per kgof captured CO2: 2.52 MJ electricity, 11.9 MJ heat provided
via heat pump, which relates to an electricity demand of
4.74 MJ (assumed COP of heat pump of 2.51), and 0.02 kg

In scenario 1) “No multi-output system”, the methanol
process uses 1.46 kg CO2 from the DAC to produce
1kg CH3OH. As shown in Figure 5.21, accounting for
all emissions from methanol and the raw material H2
production, the total PCF of the CO2-based Methanol from
DAC accounts 2.57 kg CO2e per kg CH3OH. Where DAC isused and thus, no capturing takes place at the ammonia
plant, the production of ammonia leads to a PCF of
1.98 kg CO2e per kg NH3 (Table 5.15).

Figure 5.21 DAC scenario – The CO2 is captured in DAC and processed to Methanol.
No CO2 capturing at the ammonia plant (Table 5.15 column 1)-0.40 kg CO2e / kg CO2

1kg CO2-1kg CO2

Direct Air Capture(DAC)

sourceuser

1.46 kgCO2

Direct Air Capture(DAC)

CO2-based methanol

CH3 OH

H2

CO2 from direct air capture

CH4

Fossil-basedammonia

NH3

1kg NH3 + 1 kg CH3OH = 4.55 kg CO2e

Table 5.14 PCF results using the “No-multi output” approach76

Unit: kg CO2 eq

PCF ammonia as
CO2 source(1kg NH3)PCF Methanol as
CO2 user(1kg CH3OH)

System expansion(1kg NH3 +1kg CH3OH)

CO2 from DAC

1.98 (no capture)

2.57

4.55

In the case where CO2 is captured in a point source,
the assessment approach influences the PCFs of theammonia and the methanol. In the following example
calculation, the two assessment approaches “system
expansion with subsequent substitution of an ammonia
plant” and “economic allocation” have been applied toshow the impact of different approaches on the PCFs ofthe two products and thus, the steering effect.
In the scenario 2) “System expansion: avoided
ammonia production w/o capture”, a credit foravoided operation of an ammonia plant without capture
is used to determine the PCF of captured CO2 froman ammonia plant. By this approach, the 1.46  kg  CO2

(needed for production of 1 kg methanol) would leave
the Ammonia plant with a PCF of -0.97 kg CO2 per
kg CO2 captured (-Avoided CO2 + Emissions from
capture = -1 kg CO2 eq per kg + 0.03 kg CO2 per kg
CO2). The PCF incentivizes the usage of CO2 (PCF of
CCU-Methanol accounts 1.73 kg CO2e/kg taking into
consideration the negative PCF for CO2); but does notincentivize the producer of the CO2, the fossil processof ammonia production. The ammonia production with
capture would result in a PCF of 1.98 kg CO2e/kg NH3
like in the first scenario of no capture.

Figure 5.22 CCU from point sources – effects of two different allocation schemes on PCF
of Ammonia and PCF of Methanol (Table 5.15 column 2 and 3)

sourceuser

1.46 kgCO2
CH4

Fossil-basedammonia

CO2-based methanol

NH3

CH3 OHH2

1kg NH3 + 1 kg CH3OH = 3.71 kg CO2eSpecifications

To avoid this fossil-lock in and to share incentives between
both processes (CO2 source and CO2 user), TfS is in favorof applying system expansion with substitution of direct air
capture (Table 5.15 column 4). As shown in the example
below, the ammonia producer can lower the PCF of NH3 to
1.14 kg CO2e/kg NH3. The PCF of Methanol would accountto 2.57 kg CO2e/kg CH3OH, which is comparable to the
DAC scenario and in the average range between system

expansion with substitution of an ammonia plant(1.73 kg CO2e/kg CH3OH) and economic allocation(3.25 kg CO2e/ kg CH3OH). The overall emission of thesystem is conserved 3.71 kg CO2e/ (kg CH3OH + kg NH3)
as for the other approaches. There is a split of incentives
between the two products. The approach and rationale ofsystem expansion with substitution of direct air capture is
described in the next chapter.

Figure 5.23 CCU from point sources – proposed allocation methodology:
System expansion with avoided direct air capture (Table 5.14 column 2 and 3)

sourceuser

1.46 kg CO2
CH4

Fossil-basedammonia

CO2-based methanol

NH3

CH3 OHH2

1kg NH3 + 1 kg CH3OH = 3.71 kg CO2e77

CO2 capture from point sources is due to their high CO2
concentrations in general less emission-intensive than direct
air capture. The assessment approach for this specific topic
should steer CO2 demand towards CO2 supply with minimal
emissions (from point sources). Thus, CO2 usage from point
sources should benefit from avoiding direct air capture by
applying system expansion with upstream substitution of thealternative CO2 source DAC. Accordingly, the separation of
CO2 from CO2 point sources and subsequent use in chemicals
production should benefit as well because otherwise theCO2 will be emitted or transferred to storage. The CO2 point
source (e.g. ammonia plant) and the CO2 user would apply thefollowing calculation logic:
The CO2 user (here: Methanol plant) applies the PCF of
CO2 of using the best-in-class direct air capture process
operated in the region of the point source (in this example:
PCF CO2 = -0.40 kg CO2 e/kg CO2 for DAC source).
In Table 5.14 column 4, this credit is recalculated with theamount of CO2 used (1.46 kg CO2) and thus accounts for-0.58 kg CO2 e for the methanol production The CO2 source

Table 5.15 Summary overview ofassumptions for calculation(here: Ammonia plant) gets the credit of being a more efficient
CO2 capture than the direct air capture process. The PCF for
the Ammonia would be reduced by the credit of CO2 derived
from the point source (compared to DAC)., i.e., here:
PCF Ammonia with capture/avoided DAC = Sum emissions
Ammonia plant – (PCF avoided DAC * CO2 -Output
Ammonia plant).
In the example this equals
Total per 1 kg NH3 + 1.46 kg CO2:
Emissions from Ammonia: 1.58 kg CO2 - 1.46 kg CO2= 0.12 kg CO2
PCF Ammonia = (0.36 + 0.08 + 0.12) – (-0.58 kg CO2e)= 1.14 kg CO2e per kg NH3
Total per 1 kg CH3OH:
PCF Methanol = (2.94 + 0.09 + 0.12) + (-0.58 kg CO2e)= 2.57 kg CO2e per kg CH3OH

1) Nomultioutput
system2) S ystem
expansion:
avoidedammonia
production
w/o capture3) Allocation
based oneconomicvalue4) Point source
Ammoniaplant (avoided
DAC)

in kg CO2e
Direct Air
captureAmmonia
production

CO2 captured (kg CO2)

1.00

-

-

-

Contribution electricity direct

0.20

-

-

-

Contribution electricity for heat

0.38

-

-

-

-

-

-

Contribution for amine losses

0.02

Per kg CO2-0.401CO2 captured (in kg CO2)0

PCF of captured CO2(per kg CO2)
Contribution captured CO2(per 1.46 kg CO2)

CO2-based
Methanolproduction

78

-

1.46

1.46

1.46

-0.97

0.07

-0.40

-

-

-0.58

Contribution raw
material production

0.36

0.36

0.292

0.36

Contribution electricity
consumption

0.04

0.04

0.072

0.08

Contribution direct emissions

1.58

1.58

0.10 20.12

Outputs

1 kg NH3

Per outputs

1.98

1kg NH3 + 1.46kg CO2
1.98

0.462

1.14

Input CO2

1.46

1.46

1.46

1.46

PCF of captured CO2(kg CO2eq / (kg CO2))

-0.40

-0.97

0.072

-0.40

Contribution raw material
production - CO2

-0.58

-1.42

0.12

-0.58

Contribution raw material
production - H2

2.94

2.94

2.94

2.94

Contribution direct emissions

0.09

0.09

0.09

0.09

Contribution energy consumption

0.12

0.12

0.12

0.12

Outputs

1 kg CH3OH

Per output

2.57

1.73

3.25

2.57

Per (1 kg NH3 + 1 kg CH3OH)

4.55

3.71

3.71

3.71

1 kg CH3OH(1) PCF CO2 lowered by capture energy, which needs to be considered(2) Economically allocated emissions-based price Ammonia (380 EUR/ton) and price CO2 (60 EUR/t). Source: https://pubs.rsc.org/en/content/articlepdf/2020/ee/d0ee01530j

The PCF for CCU processes calculated in accordance withthis TfS guideline shall use system expansion with avoided
DAC. For the calculation of the PCF of captured CO2,
the following energy demand shall be considered: 2.52 MJ
electricity per kg CO2 captured and 4.74 MJ of electricity
that are used for the provision of low temperature heat(>100°C) via a heat pump [Deutz 2021]. Additionally,
0.02  kg CO2e per kg of captured CO2 shall be considered toaccount for adsorbent losses during air capture. Note that in
the examples above a CO2e emission factor for electricity of
80 g CO2 e per MJ of electricity was used. This factor shallbe adjusted to reflect the electricity consumption mix of thecountry where the CO2 producer is located. The following
formula shall be used:
PCF of 1kg captured CO2 = 0.02 kg CO2e +(2.52 MJ+4.74 MJ) *spec. emission factor electricity – 1kg CO2.

The mathematical approach to calculating PCF for processes
in which mass balance attribution occurs is beyond thescope of this guideline because it is different for different
types of chemical processes. An industry guidance, productcategory rule, or international standard is needed for
implementation of mass balance in LCA. It is not possible tostandardize an approach in this TfS guideline for this complex
and emerging topic. Further standards development on chainof custody considerations in LCA is needed.

It must be noted that in LCA databases, life cycle inventories
of multi output systems are often modelled differently
following deviating allocation principles (e.g., physicalallocation versus economic allocation) or system expansion
followed by substitution. Therefore, when selecting
secondary data sets, care must be taken to ensure thatthey comply with the allocation principles as defined in thisguideline. If these are not available, they must be developedwith the database providers, if possible, to achieve
harmonization. Otherwise, the result of the PCF calculation
also depends on whether a supplier-specific data set froma chemical company that adheres to the principles of thisguideline, or a secondary data set was used. The modelingapproach for systems with CCU (system extension withavoided direct air capture) suggested in the guideline is
not yet reflected in the existing LCA databases with theconsequence of creation of different results. A meaningful
reporting that shows the calculation approach shall belinked to the figures also for comparison of different PCF of
CCU products.

a. The certification system shall have clear chain ofcustody rules, traceability requirements, definedboundaries, guidelines for marketing claims, include
safeguards against double-counting, and shall identify
the type of sustainable raw material throughout the
supply chain.

The following requirements shall apply for the usage ofmass balance chain of custody in determination of PCF:
1.	The mass balance shall follow a transparent certification
standard and the conformance to the certification shall beverified by an independent and qualified third party.

2.	The LCA of manufacturing process in which the massbalance attribution occurs shall be in conformance with
ISO 14044 [ISO 14044: 2006] The study shall document
how the material flow and attributions were calculated.

Specifications

For bio- or bio-circular attributed raw materials the biogenic
uptake can be considered, but double counting shall be
avoided. (e.g. biogenic uptake has to be allocated in a
stoichiometric way to bio-based material and potential
bio-waste streams). Therefore, high attention is necessary
when allocating biogenic or bio-attributed carbon. To also
reflect mass-balance products the term biogenic carbon
content should be enlarged to biogenic carbon content/
attributed biogenic carbon (acc. to the mass-balance
approach).

5.2.10.5 Calculation of mass-balanced products

Mass balance is a chain of custody used in multiple industries
in which it is not practical to maintain physical segregation ofalternative and conventional materials during processing. Massbalance helps enable a transition to a sustainable and circular
economy by enabling the efficient co-processing of alternative
materials in existing large-scale assets and complex supply
chains. Alternative materials can be e.g., bio-based feedstocks
but also other feedstocks such as chemically recycled
feedstocks, waste feedstocks or CO2-based materials. Massbalance is especially important to many companies in thechemical industry who are transitioning to use of waste plastic
and bio-based materials as feedstocks to reduce the usage ofvirgin fossil-based materials and to help solve the global plastic
waste dilemma with molecular recycling. Mass balance does
require a physical link between input and outputs materials
and is therefore different from more indirect chain of custody
approaches such as Book and Claim.
Mass balance ensures that the quantity of output material isbalanced with (does not exceed) the input of material and isappropriately adjusted for yields and conversion factors.
Co-processing of alternative and conventional raw materials
results in the production of materials of mixed origin which
are not distinguishable in terms of composition or technicalproperties. Mass balance allows alternative content to be
attributed to individual outputs to create value from theuse of alternative inputs. Large integrated assets cannot
be transitioned immediately, and mass balance provides a
critical bridge.

As one published example, Jeswani [Jeswani et al [2019]]
described a methodology for integrating the mass balance
approach into LCA for biomass applications in the chemical
sector using pyrolysis followed by steam cracking. The
concept conforms to the requirements ISO 14044[ISO 14044: 2006] and may be applied to mass balance
applications using bio-based feedstocks (biomass balance)or recycled feedstocks (circular mass balance). The numberof sustainable feedstocks required to replace the fossil inputs
are calculated through material flow analysis. The life cycle
inventory of outputs with attributed sustainable content (usingmass balance) are determined based on relative conversion
rates of the different feedstocks and chemical values of theresulting outputs.
5.2.11 Data quality and share of primary data

5.2.11.1 Share of primary data

To create visibility on the share of primary data in PCF
calculations, the primary data share (PDS) in each dataset
should be determined (and shared) [Pathfinder Framework(PACT powered by WBCSD)]. This can be done by calculating
the proportion (%) of the total GHG impact (CO2 eq) that isderived by using primary data in the cradle-to-gate systemboundary (see Formula 2). See glossary for definitions of primaryand secondary data.
79Formula 3: Calculation approach of the PDS
Part of PCF based on
primary data (CO2e)
PCF (CO2e)= PDSPCF(%)

Ideally, the share of primary data for relevant input flows
obtained from upstream suppliers (tier n-1) are available.
If so, the PDS of the PCF should be calculated using a PCF
attributed average approach of the material and energy
inputs. If not all members of the supply chain are encouraged
to participate in this effort as the share of primary data canonly be accurately determined if the respective information for
most inputs is provided by the respective suppliers.

To do so, the individual PDS received from supplier(PDS external components) as well from other components(PDS other components), e.g., energy inputs or directemissions from production, should be multiplied with theirrespective relative contribution (in %) to the PCF. All weighted
PDS (weighted PDS components) should then be added up
to obtain an overarching PDS (PDS output). To help increasetransparency on primary data use, information on PDS should
be shared downstream (tier n+1) together with the PCF. The
inclusion of an explanation for the share of primary data is thus
encouraged, with the objective of helping businesses support
each other in increasing the amount of primary data flowing
through the system and ensuring more accurate PCFs if thequality of the data is in addition very good (Figure 5.24). The
general approach is shown in Figure 5.25.

Figure 5.24 Calculation of Primary data shares of two components

PDS calculation
Product
Mass: 1 kg
PCF: 2.8 kg

Component 1
Mass: 0.9 kg

PDS (PCF based)

PCF: 2 kg

PDS (mass based)(0.9 kg x 2 kg x 90%)+ (0.1 kg x 10 kg x 20%)= 65%
(2.8 kg x 100 %)PDS: 90%

Component 2

65% of the total PCF was
calculated by using primary data.

Mass: 0.1 kg
PCF: 10 kg
PDS: 20%

0.9 × 0.9 kg + 0.2 × 0.1 kg

= 83%

1 kg

PCF of 83% of the total product mass was calculatedusing primary data. However, these 83% of total
product mass only cause 3.8 kg of CO2 emissions(only 32% of the total PCF). Therefore, a PDS
calculation based on relative mass is misleading
and a PCF based calculation shall be carried out.

Figure 5.25 Calculation of Primary data share for a PCF [Pathfinder Framework (PACT powered by WBCSD)]

Company A
PDSPCF component 1%

Company C

Company D

PDSPCF product%

Company B
PDSPCF component 2%

Formula to calculate PDS PCF product(PDS PCF

component 1

X Relative emission) + (PDS PCFcomponent 2 X Relative emission) = PDSPCF productcontribution to PCF(%)
contribution to PCF(%)
Weighted PDS component (%)% Primary Data Share (PDS)80

A detailed example is shown in Figure 5.26 with applicationof detailed steps in the generation of a PDS for a PCF of a
product. A primary data share shall only be attributed, if
both the activity data (e.g. amount in kWh) and the emission

factor information is derived from primary sources. If one ofthese two information is derived from secondary data, thewhole PDS for this unit process is rated as secondary data.

Figure 5.26 Calculation of Primary data share for a PCF, example
Input material 1 with 0.5 t
PCF (Input 1) = 2.0 t CO2
PDS = 80%

1.0 t CO2PDS Input 1:
1.0 / 2.6 * 80% = 30%

CO2

PDS Input 2:
0.8 / 2.6 * 90% = 28%

0.5 t CO2
Input material 2 with 0.2 t
PCF (Input 1) = 4.0 t CO2
PDS = 90%

0.8 t CO2

2.6 t
CO2

Input material 3 with 0.3 t
PCF (Input 1) = 1.0 t CO2
PDS = 85%

PDS Input 3:
0.3 / 2.6 * 85% = 10%

ProcessPDS Process:0.5 / 2.6 * 100% = 19%

PDS = 100%

0.3 t CO2PDS Total:
30% + 28% + 10% + 19%
= 87%

CO2

In general, a primary dataset can only be rated as
primary, if the activity data (data source) and the emission
factor (EF source) is a primary information. If only one of
the two factors of the PDS calculation is secondary, thewhole rating for this contribution is rated as secondary
and will be implemented in the PDS calculationaccordingly. An example is given in Table 5.16.

Table 5.16 PDS calculation example for primary and secondary data sourcesData
source

EF
(kg
CO2e)

EF
source

kg
CO2e

% PCF

Total
PDS

A

10,435

Primary

0.19

Primary

1,983

42%

42%

B

10,000

Secondary

0.18

Secondary

1,800

38%

0%

C

5,000

Primary

0.18

Secondary

900

19%

0%

4,683

5.2.11.2 Data quality rating (DQR)

During the data collection process, companies shall assessthe data quality of activity data, emission factors, and/ or
direct emissions data by using the data quality indicators.
If higher-quality data exists in-house than available insecondary databases (for example, in-house emission
factors for fuel) and is used for calculations, the adequacy ofsuch in-house data shall be reviewed and reported in a DQR
following the criteria outlined in this chapter. Data sourced
from verified emission factor databases (See chapter
5.2.6) shall be reported in a DQR as well, addressing its
representativeness, relevance, and correct application to
the product in question as well. The calculation and reportingof a DQR becomes mandatory only from 2025 on to givecompanies enough time to prepare for this. Until then it isrecommended to do it on a voluntary basis.
The standard defines five data quality indicators to
use in assessing data quality. They are shown below
and summarized in Table 5.18.

Specifications

Material

Data
input
(kWh)

42%

• Technological representativeness: the degree towhich the data reflect the actual technology(ies) used in
the process.
• Geographical representativeness: the degree towhich the data reflects actual geographic locationof the processes within the inventory boundary(e.g., country or site).
• Temporal representativeness: the degree to which thedata reflect the actual time (e.g., year) or age of the process.
• Completeness: the degree to which the data arestatistically representative of the process sites.
• Reliability: the degree to which the sources, datacollection methods, and verification procedures used toobtain the data are dependable.
Assessing data quality during data collection allows companies
to make data quality improvements more efficiently than whendata quality is assessed after the collection is complete.
The Pathfinder Framework requires only those inputs
representing more than 5% of the total PCF to undergo
the DQR assessment which reduces the workload for thegeneration of DQR factors. TfS recommends this approach
as well (Table 5.17).
81

Table 5.17 Data quality indicators of GHG Protocol

Indicator

Description

Relation to data quality

TechnologicalrepresentativenessThe degree to which the data reflects theactual technology(ies) used.

Companies should select data thatare technologically specific.

Temporal representativenessThe degree to which the data reflects
the actual time (e.g., year) or age of theactivity.

Companies should select data thatare temporally specific.

GeographicalrepresentativenessThe degree to which the data reflects theactual geographic location of the activity(e.g., country or site).

Companies should select data thatare geographically specific.

CompletenessThe degree to which the data arestatistically representative of the relevant
activity.

Companies should select data thatare complete.

Completeness includes the percentage
of locations for which data is available
and used out of the total number that
relate to a specific activity. Completenessalso addresses seasonal and othernormal fluctuations in data.
Reliability

The degree to which the sources, datacollection methods and verification
procedures 1,2 used to obtain the data aredependable.

Companies should select data thatare reliable.

(1) Adapted from B.P. Weidema, and M.S. Wesnaes, “Data quality management for life cycle inventories - an example of using data quality indicators,”
Journal of Cleaner Production. 4 no. 3-4 (1996): 167-174.
(2) Verified data: Verification may take place in several ways, e.g., by on-site checking, by recalculation, through mass balance, or by crosschecks with other sources.

Table 5.18 Data quality assessment used in TfS and [Pathfinder Framework (PACT powered by WBCSD)]

DQI

1 - Good

2 - Fair

3 - Poor

Technology

Same technology

Similar technology(based on secondary data)

Different or unknown
technology

Time

Data from reporting year

Data less than 5 years old

Data more than 5 years

Geography

Same country or country
subdivision

Same region or subregion

Global or unknown

CompletenessAll relevant sites for
specified period<50% of sites for specified
period or >50% of sites for
shorter periodLess than 50% of sites
for shorter time period or
unknown

Reliability

Measured activity data

Activity data partly basedon assumptions

Non-qualified estimate

The quality assessment of data based on the Table 5.14 canbe used to derive more quantitative information in form of a
Data Quality Rating (DQR) to give users of the data a better
impression of the overall quality of data and the resulting PCF.
The data quality of each PCF shall be calculated andreported. The DQR calculation shall be based on
five data quality criteria (each criterion considered ofequal importance) where TeR is the TechnologicalRepresentativeness, TiR is the Time/Temporal

82

Representativeness, GeR is the GeographicalRepresentativeness, C is completeness and R is reliability.
The quality levels are expressed in three categories from, 1
Good, 2 Fair, 3 Poor. The representativeness (technological,
geographical, and time-related) characterizes the degree
to which the processes and products selected depict thesystem analyzed, while the completeness and reliability
addresses the quality of the generated PCF result.

The contributions of the input materials to the PCF of theprocess are linked with the DQR of the input material. As
lower the DQR score and as higher the share of the total
PCF for an input material is, as more positive is the impact of
an input material to the overall DQR total score.
For example:

Product 1

Product 2

Technologicalrepresentativeness (TeR):

2

3

Temporal
representativeness (TiR):

1

3

Geographicalrepresentativeness (GeR):

2

2

Completeness (C):3

3

Reliability (R):

2

3

Total

10

14

DQR Process (Total / 5)2

3

For an example see Figure 5.27. The Total DQR for thisprocess is 2.0 and shall be reported to the recipient of the
PCF data as well after 2025. The DQR can be used as an
input for complete LCA which enables the final calculationof a complete DQR. The DQR supports the interpretationof PCF data and supports the identification of improvement
potentials of the quality of the PCF data. Note that the
DQR of the process is not always equal to 1 depending on
which data are available. A process where primary data
can be generated, can always have a low Technological or
Temporal representativeness ending in lower scores than 1.
Company owned processes must be assessed in the samemanner as upstream processes.
Improving data quality
Collecting data and assessing its quality is an iterative
process for improving the overall data quality of the productinventory. If data sources are identified as low quality using
the data quality indicators, companies should re-collectdata [GHG Protocol Product Standard].

In Formula 4, the aggregation of all single results of all input
materials from upstream is shown. The second line shows
the general calculation of a single DQR of a process, basedon the five criteria described above. In line 4 it is shown,how to add process related DQR and the upstream DQR
according to Figure 5.27.

The following steps are useful when improving data quality:
1.	Identify sources of low-quality data in the productinventory using the data quality assessment results.
Sources with low quality data that have been identified as
significant to the PCF results should be given priority.

Formula 4: General calculation of data quality ratings
2.	Collect new data for the low-quality data sources as
resources allow.

DQRupstream = (DQR Inputmaterial 1* PCFtotal share 1+ DQR
Inputmaterial 2* PCFtotal share 2 + DQR Inputmaterial 3*
PCFtotal share 3+ DQR Inputmaterial n* PCFtotal share n)
DQRprocess = (TeR + TiR + GeR + C + R) / 5
DQRprocess contribution = DQRprocess*PCFtotal share process

Specifications

3.	Evaluate the new data. If it is of higher quality than theoriginal data, use in its place. If the data are not of higher
quality, either use the existing data or collect new data.
4.	Repeat as necessary and as resources allow.
If companies change data sources in subsequent
inventories, they should evaluate whether this change
creates the need to update the base inventory.

DQRtotal = (DQRupstream + DQRprocess contribution)
The DQR total shall be calculated for the output ofe.g. 1kg or 1t output as defined in the declared unit.

Figure 5.27 DQR example for a process including upstream DQR (Source TfS)
Input material 1 with 0.5 t
PCF (Input 1) = 2.0 t CO2
DQR = 2.5

1.0 t CO2DQR Contribution Input 1:
1.0 / 2.6 * 2.5 = 1.0

CO20.5 t CO2
Input material 2 with 0.2 t
PCF (Input 2) = 4.0 t CO2
DQR = 1.5

0.8 t CO2DQR Contribution Input 3:
0.3 / 2.6 * 2.5 = 0.3

2.6 t
CO2

Input material 3 with 0.3 t
PCF (Input 3) = 1.0 t CO2
DQR = 2.5

Process

DQR Contribution Input 2:
0.8 / 2.6 * 1.5 = 0.5

DQR = 1.0

DQR Contribution Process:0.5 / 2.6 * 1.0 = 0.2

0.3 t CO2
CO2

DQR total:(1.0 + 0.5 + 0.3 + 0.2)
= 2.0

83

5.3 Verification and reporting
Table 5.19 Reporting examples in different approaches of companies

Example case
The company purchases
emission credits from a project
investing in reforestation to offset
50% of the calculated PCF

The PCF remains the same as
calculated.

The emissions offset of 50% may beprovided separately from inventory
results

The company purchases emission
credits from a carbon capture andstorage facility to offset 30% of
the calculated PCF

The PCF remains the same as
calculated.

The emissions offset of 30% may beprovided separately from the inventory
results

The company purchases
renewable electricity certificatesto offset 100% of the electricity
consumption of a particular site,
and as a consequence, reduces
to zero the electricity-related
emissions of the PCF

The PCF is reduced according to the
reduction potential of electricity use
Offsets are not taken into accountas credits

The emission offset may be provided
separately from inventory results

The company generates
direct CO2 within a reaction,
which is captured and sold asa by-product. (see Chapter
5.2.10.4)

The impact of the process capturing
atmospheric CO2 and sold as aby-product shall be added to theinventory results of the PCF according
to the amount of CO2 captured, andmay be subtracted from the inventory
results of the process

As an alternative to subtracting theCO2 emissions captured and sold fromthe inventory results, the emissions
captured may also be provided
separately

5.3.1

 erification of PCF calculations
V/ Quality assurance

A verification is defined as the confirmation, through theprovision of objective evidence, that specified requirements
have been fulfilled [ISO 9000: 2005]. To achieve theverification, the calculations shall be cross-checked against
the requirements of this guideline and the results shall bereported.
Verification of PCF data prior to sharing is strongly
encouraged to ensure high quality and trustworthy data
[Pathfinder Framework (PACT powered by WBCSD)].
A significant update has been made to the verification andassurance chapter within the Pathfinder Framework.
No verification is not allowed under TfS. Possible typesof verification can be an internal LCA expert, a third party
verification - product review or a independent party verification- systematic approach review. The type of verification must bereported together with the PCF (see 5.3.2).
If internal verification is done, the claim of the PCF figure
shall always include that the PCF was calculated inalignment with the TfS Guideline, while a third-party
verification allows a stronger claim (e.g. verified against TfS)

84

Voluntary additional
information for emission
offsetApplicable PCF
calculation rule

Any type of verification should include a 4-eye-principal
check by an internal LCA expert or external auditor
regarding the following aspects:• The goal and scope and its related aspects (see 5.1).
• The calculation rules (see 5.2).
• The system boundaries (see 5.1.2 and cut-off criteria(see 5.2.3).
• The data quality (see 5.2.5).
A third-party verification can be helpful, to fulfill theserequirements. This can either be done on a product level
or in a systematic approach verification where a company
methodology to calculate consistent PCF is verified.
The quality assurance is defined as part of quality
management focused on providing confidence that quality
requirements will be fulfilled. In this sense, a quality assurance
shall address, if the PCF results and the approach to achieve
them fulfills requirements of high quality beyond data quality(adopted from [ISO 9000: 2005]).

The following short checklist can help the LCA practitioner
to validate the PCF. Besides the LCA expert, people thatcan support the validation, include technology experts,
controllers, plant managers and site managers:- Check if technology and geography represented in the
LCI is the appropriate.
- Check if the application of proxies is appropriate.
- If supplier data is available replace dataset.
• Check if a data quality score was generated and if it ismeaningful.
• Check why there are significant deviations to LCA
benchmark data.
• Sensitivity analysis and quality checks of results:
Sensitivity analyses with different modeling choices(e.g., another dataset for a raw material, anotherallocation method for the foreground product system)
should be performed to test the robustness of the result.
• A variation of 10% of the PCF result by including or
excluding life cycle stages is a variation that is mainly
accepted by practitioners due to inherent uncertainties,
variabilities of factors or data sets used in a PCF
calculation. Any decisions shall be clearly stated in
the internal PCF calculation report and the reasons andimplications for their exclusion shall be explained.
The threshold for significance shall be stated and justified.

This section specifies the information requirements to beprovided by suppliers alongside PCF values. Additional
information besides the PCF value is needed to support
the interpretation and validation of PCF data, as well as toprovide necessary information for quantification of customer
PCFs further down the value chain. The PCF covers
one environmental impact. In this context it should be
mentioned, that no overall statements on the environmental
performance of the product can be given. Comparisons of
PCF are only possible under certain criteria if all relevant
information is reported.
The fields marked as “mandatory” in the table 5.20 (“yes”)
shall be provided by suppliers when disclosing PCF values.
Some fields will become mandatory from 2025 onwards
to provide a transition period for adaptation. TfS still
highly recommends reporting as much data as possible.
Additional details, currently not mandatory, may also be
provided if available to provide further support. ISO 14067[ISO 14067: 2018] describes requirements for reportingwhich are reflected in the attributes list. To be fully compliant
for a PCF study, all reporting requirements shall be
addressed. In the B2B exchange, if no further information isrequested, the following GHG values shall be the basis for a
PCF study report:• Declared unit.
• Total GHG emissions and removals. Optional their link tothe main life cycle stages in which they occur, including
the absolute and the relative contribution of each life
cycle stage.
• Net fossil GHG emissions and removals.
• Biogenic GHG emissions and removals.
• GHG emissions and removals occurring because of land
use and direct land use change.
• Biogenic carbon content of products.
• Functional or declared unit and reference flow.
• The selected cut-off criteria and cut-offs.
• The selected allocation procedures.
• Description of data and data quality.
• Treatment- and use of electricity.
• Description of the stages of the life cycle.
• Time period for which the PCF is representative.
• A graphical presentation of results of the PCF.
• Where an aviation multiplier is used, the effect of thismultiplier shall not be included in the PCF and shall bereported separately together with the source.

Specifications• Check the overall mass balance (includes raw material
inputs, product outputs, wastes as well as emissions
into air and water).
• Completeness of life cycle stages.
• Check the elementary balance by doing a stochiometriccalculation.
• Check if direct emissions are realistic, e.g., by carbon
balance.
• Check if the carbon balance is closed, all inputs are
considered and balanced with outputs to products,
emissions (air, water, soil), wastes. Check if process
related direct emissions are plausible (carbon, nitrogenprocess input output balances).
• Check data aggregation, data polishing and underlying
modeling to calculate product inventory of your own
data sets.
• Check if correct calculation formulas where applied.
• Check utility consumption (plausible?).
• Check allocation factors (in line with chapter 5.2.9): thesum of the allocated inputs and outputs of a unit processequals the inputs and outputs of the unit process before
allocation and allocation factors over all co-products ofone multi-output process sum up to 1.
• CO2e benchmark against own calculations, same
product from other sites/plants companies, existing LCA
data, LCIs from other third-party databases.
• Check if biogenic emissions and uptakes are correctly
considered and reported (5.2.10.1).
• Check the appropriateness of the secondary datasets
selected for Scope 3 upstream data:

5.3.2 Information to be reported with PCF

Any additional information available such as a PCF reportor a critical review statement can be added or attached tocomplement and provide more details to the information[BASF SE (2021)].
Results reported in the PCF study report may be used infootprint communications [ISO 14026: 2017].

85

Table 5.20

Category

Attribute

Further
explanation

ExampleMandatory(Semantics and ILCD)

Company andproduct

PCF

Company name(Legal) Name ofData owner

My corpyes

Company ID

Abstract ID

E.g. # 311

yes

Product trade nameProduct nameGreen Ethanol

yes

CAS

CAS Number

58-08-2

yes, if available

Declared unit: kg

Unit of analysis of the
product (always kg)

1 kg

yes

Product description
including reference tothe solution for which PCF
is reflected(Technical) descriptionof product or waste

Ethanol, 95% solution

yes

Unique ID

ID of exchanged PCF,
e.g. UUID

58-08-2-0017

noPCF (excl. Biogenic
emissions and removals)

Cradle-to-gate PCF in
kg CO2e/kg product2.6 kg CO2e/kg
Ethanolyes

0.7 kgCO2e/kg Ethanol

yes, from 2025 on

1.	Fossil CO2e: 2.0 kg
CO2e/kg Ethanol

Separated emission
values: yes, from2025 (at least 1, 2-4
only if applicable)

Sum of separate
emission values 1 +
2+3
PCF (incl. biogenic
emissions and removals)

Cradle-to-gate PCF
in kg CO2e/kg productSum of separate
emission values
1+2+3+4

Separated into emission
values:In kg CO2e/kg product2.	Biogenic CO2e *: 0.4
kg CO2e/kg Ethanol

1.	Fossil CO2e-emissions(net result of fossil
emissions and removals)

3.	Land use /LUC
CO2e: 0.2

2.	Biogenic CO2e-emissions(only other GHG emissions
than CO2 – excludes
biogenic CO2)

4.	Biogenic removal:-1.9 kg CO2e/kg
Ethanol

3.	Land use and direct
land use change
CO2e-emissions

Please keep in mind thatreporting is mandatory
if a compliance with
ISO 14067, PEF or the
Pathfinder is anticipated

5. Aircraft CO2e:
0.0 kg CO2e/kg

4.	Biogenic removals(biogenic CO2 containedin the product)
5. Aircraft CO2e-emissions
Total carbon content

Kg C/kg product0.521 kg/kg Ethanol

yes

Reference period(year or start/end date
if > one yr) and version(if revised within reference
period)Year/period of PCF
calculation

2021, v 2.0

yes

Geography (as specificas possible)

Location of production/ product

Or01/01/2020 –31/12/2021
Global, Europe,
Germany, orLudwigshafen, 67063,
Germanyyes* If the share of biogenic CO2 emissions is not known and cannot be determined, the calculated CO2 emissions shall be considered asfossil CO2 emission. In this case the CO2 removal shall only be calculated based on the carbon content in the product.
86

Category

Attribute

Further
explanation

ExampleMandatory(Semantics and ILCD)

Technological reference *Technologicaldescription

Electrolysis

yes, from 2025 on

Data quality rating (DQR)

DQR in scorefrom 1 to 3

DQR 1.5

yes, from 2025 onPrimary data share (PDS)

PDS in %PDS 95%yes, from 2025 on
Please keep in mind thatreporting is mandatory
if compliance with
Pathfinder is anticipated

Source of secondary data
and version

Refers only to sourceof secondary data atreporting company

ILCD, Carbon Minds,
ecoinvent 3.8, open
sourcesyes

Allocation method used *Type of allocation

Mass allocationyes

Verification by internal
LCA expert

yes

Verification approach (None,
Internal LCA Expert, Third
Party Verification Product Review,
Third Party Verification- Systematic Approach
Review)
PCF calculation Standards
or guidelines used(or product or sector
specific rules if used)

Standard used for
calculating the PCF

PCR, TfS Guideline
2022, ISO 14067: 2018

yes

Additional
information  –
biobasedmaterials

Biogenic carbon content(physical
or BMB)Kg Bio-C/kg product0.52 kg biogenic
C/kg Ethanol

yes, from 2025 on

Additional
information  –
waste
incineration

Allocation approach used
for waste incineration withenergy recovery

Cut-off, reverse cut-off
or system expansion

Additional
information  –
chemicalrecycled
material

Recycled carbon content(physical or BMB)

Kg recycled-C/kg
product

Additional
information  –
Capturedand used CO2
materialyes

0.5 kg recycled C /kg
Ethanolno

Allocation method used forrecycled carbon content

Upstream System
expansion or cut-offnoType of recycled content

Post-industrial,
post-consumerno0.5 kg recycled C/kg
Ethanolno

System expansion
and substitutionnoCCU-based carbon content

Kg CCU-C/kg product

Allocation method used for
CCU

Specifications

Boundary &standards

CO2-origin

Source from where
CO2 is captured

DAC or Point sourceammonia plantnoAdditional
information –transportation

CO2e-emissions fromtransportation between
producer and customer

Kg CO2e per kg
product

0.08 kg CO2e/kg

noAdditional
information –generalFurther information onmodelling

Assumptions andlimitations

Cut-off set on 6%

no* Of the foreground system, i.e. the last process in the value chain that is calculated.
87

Glossary88Abbreviation

Term

Definition

Activity data

“Activity data are quantified measures of a level of activity that resultsin GHG emissions or removals”1. Activity data can be measured,modeled, or calculated.
There are two categories of activity data: process activity data andfinancial activity data.
Process activity data are physical measures of a process that
results in GHG emissions or removals. These data capture thephysical inputs, outputs, and other metrics of the product’s life cycle(e.g. energy, mass, volume etc). Financial activity data are monetarymeasures of a process that results in GHG emissions.
Partitioning the input or output flows of a process or a productsystem between the product system under study and one or moreother product systems.

Background data

See also secondary data. Data that concern processes outside theoperational control of the company.

Bill of materials (BOM)

A structured list of all the components, and their quantities that makeup an assembly or product.

Biogenic carbon content

Fraction of carbon derived from biomass in a product.

Biogenic emissions

CO2 emissions from the combustion or biodegradation of biomass.

Biogenic removals

The sequestration or absorption of GHG emissions from theatmosphere, which most typically occurs when CO2 is absorbed bybiogenic materials during photosynthesis.

Biomass

Material of biological origin excluding material embedded ingeological formations and/or fossilized.

CAS number

Chemical Abstracts
Service Registry Number

See table 4.2

CCS

Carbon Captureand Storage

CCS involves the capture of carbon dioxide (CO2) emissions fromindustrial processes, such as steel and cement production, or fromthe burning of fossil fuels in power generation. This carbon is thentransported from where it was produced, via ship or in a pipeline,
and stored deep underground in geological formations.

CCU

Carbon Captureand Utilization

Carbon capture and utilization (CCU) involves the capture of thegreenhouse gas CO2 from point sources or ambient air and its
subsequent conversion into valuable products.

CFP

Carbon footprintof a productSee Product Carbon Footprint (PCF).

CFCs

Chlorofluorocarbon

See Greenhouse Gas definition.

CH4

MethaneSee Greenhouse Gas definition.

CMP

Contract manufactured
products

Contract manufacturing occurs when a company outsources partof the manufacturing process to a third-party company in order toreduce the expenses of production.

Cradle-to-gate

An assessment that includes part of the product’s life cycle,
including material acquisition through the production of the studied
product and excluding the use or end-of-life stages.

Cradle-to-grave

A cradle to grave assessment considers impacts at each stage ofa product’s life cycle, from the time natural resources are extracted
from the ground and processed through each subsequent stageof manufacturing, transportation, product use, recycling, andultimately, disposal.

Glossary

Allocation(1) https://ghgprotocol.org/sites/default/files/standards/Product-Life-Cycle-Accounting-Reporting-Standard_041613.pdf

89Abbreviation

Term

Definition

Conformity assessment

Demonstration that specified requirements relating to a product,
process, system, person or organization are fulfilled.
Note 1 to entry: Adapted from ISO/IEC 17000: 2004, definition 2.1.
ISO/TS 14441:2013(en), 3.13

90Consumption mix

This approach focuses on the domestic production and the imports
taking place. These mixes can be dynamic for certain commodities(e.g., electricity) in the specific country/region.

CO2e

Carbon Dioxide Equivalent

Carbon dioxide equivalent, or CO2e is a metric measure representing
all greenhouse gases by converting them to the equivalent amountof CO2.

C14-method

Radiocarbon dating

A form of radiometric dating used to determine the age of organic
remains in ancient objects, such as archaeological specimens,on the basis of the half-life of carbon-14 and a comparison between
the ratio of carbon-12 to carbon-14 in a sample of the remains to the
known ratio in living organisms.

Declared unit

Intermediate or final products, that is, products which will still beprocessed further to create a final product, can, however, haveseveral functions based on their eventual end use. In this case(and where an LCA does not cover the full life cycle), the term
declared unit – typically referring to the physical quantity of a
product, for example “1 liter of liquid laundry detergent with30  percent water content”– shall be used instead.

DUNS

Duns and Bradstreet
Number

The Dun & Bradstreet D‑U‑N‑S Number is a unique nine-digit
identifier for businesses.

ECICS

European Customs
Inventory of Chemical
Substances

See table 4.2

EEIO

Environmentally-extended
input and output

Environmentally extended input–output analysis (EEIOA) is used inenvironmental accounting as a tool which reflects production andconsumption structures within one or several economies.

EF

Environmental Footprint

It is a multi-criteria measure to calculate the environmental
performance of a product, service or organization based on a life
cycle approach.

EoL

End of Life

End-of-life describes the end of the life cycle of a product. Here one
can distinguish between different treatment methods: Recycling,
landfill and incineration

ERP system

Enterprise resource
planning system

Enterprise resource planning is a system that helps automate andmanage business processes across finance, manufacturing, retail,supply chain, human resources, and operations.

EU

European Union

The European Union is a supranational political and economic union of
27 member states that are located primarily in Europe.

Functional unit

A functional unit describes the function of a product in question. For
example, for a laundry detergent, the functional unit could be definedas “washing 4.5 kg of dry fabric with the recommended dosage withmedium-hard water”. Understanding the functional unit is essential
for comparability between products with the same function, as itprovides the reference to which the input (materials and energy) andoutput (such as products, byproducts, waste) are quantified.

Abbreviation

Term

Definition

GHG

Greenhouse Gases

Greenhouse gases constitute a group of gases contributing to global
warming and climate change. The Kyoto Protocol, an environmental
agreement adopted by many of the parties to the United Nations
Framework Convention on Climate Change (UNFCCC) in 1997 to
curb global warming, nowadays covers seven greenhouse gases:
The non-fluorinated gases:• Carbon dioxide (CO2)• Methane (CH4)• Nitrous oxide (N2O)
The fluorinated gases:••••

Hydrofluorocarbons (HFCs)
Perfluorocarbons (PFCs)
Sulphur hexafluoride (SF6)
Nitrogen trifluoride (NF3)

Converting them to carbon dioxide (or CO2) equivalents makes it
possible to compare them and to determine their individual and total
contributions to global warming.
Greenhouse Gas
Protocol Standard

International Standard on how to calculate Greenhouse Gases.

GLO

GlobalGWP

Global-warming Potential

Global-warming potential, is a term used to describe the relative
potency, molecule for molecule, of a greenhouse gas, taking accountof how long it remains active in the atmosphere.

HCFCs

Hydrochlorofluorocarbon

See Greenhouse Gas definition.

HEFs

Fluorinated ethers

Liquid Chemical.

HFCs

Hydrofluorocarbons

See Greenhouse Gas definition.

HS

Harmonized Commodity
Description and Coding
Systems

See table 4.2

IECInternational
ElectrotechnicalCommission

Founded in 1906, the IEC (International ElectrotechnicalCommission) is the world’s leading organization for the preparationand publication of international standards for all electrical, electronic
and related technologies.

ILCD

International Life Cycle
Data System

The International Reference Life Cycle Data System is an initiative
developed by JRC and DG ENV since 2005, with the aim to provide
guidance and standards for greater consistency and quality
assurance in applying LCA.

ISOInternational Organizationfor Standardization

The International Organization for Standardization is an international
standard development organization composed of representatives
from the national standards organizations of member countries.

ISOPA

European Diisocyanate
and Polyol Producers
Association

ISOPA is the European trade association for producers
of diisocyanates and polyols, the main building blocks ofpolyurethanes.

ISO 14067: 2018

ISO standard on
Greenhouse gases— Carbon footprint of
products — Requirements
and guidelines forquantification

ISO 14067: 2018 specifies principles, requirements and guidelines
for the quantification and reporting of the carbon footprint of a
product (CFP), in a manner consistent with International Standards
on life cycle assessment (LCA) [ISO 14040 [ISO 14040: 2006]
and ISO 14044].

IT

Information technology

Glossary

GHG protocol

91Abbreviation

Term

Definitionkg

kilogramm

kWh

Kilowatt-hour

LCA

Life Cycle Assessment

The compilation and evaluation of the inputs, outputs, and thepotential environmental impacts of a product system throughout
its life cycle [ISO 1440: 2006].

LCI

Life Cycle Inventory

The phase of life cycle assessment involving the compilation andquantification of inputs and outputs for a product throughout its life
cycle [ISO 14040:2006].

LCIA

Life Cycle Impact
Assessment

The phase of life cycle assessment aimed at understanding
and evaluating the magnitude and significance of the potential
environmental impacts for a product system throughout the life cycleof the product [ISO 14040:2006].

NACE

Nomenclature of
Economic Activities

NACE (Nomenclature of Economic Activities) is the European
statistical classification of economic activities. It is established by law.

NF3

Nitrogen triflouride

See Greenhouse Gas definition.

N 2O

Nitrous oxide

See Greenhouse Gas definition.

OCF

Organizational Carbon
Footprint

Carbon Footprint of an Organisation.

Primary data

Sometimes also called activity data. Data that concern processes
inside the operational control of the company or data from specificprocesses in the product life cycle.
A partial PCF is considered primary data if the measure of theactivity data and the measure of the emission factor are based ondata where the data generators have a direct access to via direct
measurements or assessments where they have a direct control.
“Data pertaining to a specific product or activity within a company’svalue chain. Such data may take the form of activity data, emissions
or emission factors. Primary data is site-specific, company-specific(if there are multiple sites for the same product) or supply chain–specific.
Primary data may be obtained through meter readings, purchaserecords, utility bills, engineering models, direct monitoring, material or
product balances, stoichiometry or other methods for obtaining datafrom specific processes in the value chain of the company”[Path 2021:41]

92

PCF

Product Carbon Footprint

The Product Carbon Footprint is the most established method for
determining the climate impact of a product, considering the total
greenhouse gas (GHG) emissions caused to produce a product,
expressed as carbon dioxide equivalent. The PCF can be assessedfrom cradle-to-gate (partial PCF) or from cradle-to-grave (total PCF).

PCR

Product Category Rules

Set of specific rules, requirements, and guidelines for developing
Type Ill environmental declarations for one or more productcategories. [ISO 14025:2006]

PFCs

Perfluorocarbons

See Greenhouse Gas definition.

PFPEs

Perfluoropolyethers

Perfluoropolyethers (PFPE) are a group of plastics, usually liquid topasty at room temperature, that are fluoropolymers consisting offluorine, carbon and oxygen.

PRODCOM

Production
Communautaire(Community Production)

See table 4.1

Production mix

This approach focuses on the domestic production routes andtechnologies applied in the specific country/region and individuallyscaled according to the actual production volume of the respective
production route. This mix is generally less dynamic.

Abbreviation

Term

Definition

RemovalThe sequestration or absorption of GHG emissions from theatmosphere, which most typically occurs when CO2 is absorbed bybiogenic materials during photosynthesis.

Secondary data

See also background data. Data that concern processes outside theoperational control of the company or process data that are not from
specific processes in the product life cycle.
“Data that is not from specific activities within a company’s value
chain but from databases, based on averages, scientific reports orother sources.”[Path 2021:41]

SF6

Sulphur hexafluoride

See Greenhouse Gas definition.

SIC

Standard Industrial
Classification

The Standard Industrial Classification (SIC) is a four-digitclassification system that classifies industries according to businessactivities.

SMILES

Simplified Molecular Input
Line Entry System

See table 4.2

System expansion

Expanding the product system to include the additional functions
related to the co-products. System expansion is a method used to
avoid co-product allocation.

TÜVTechnischerÜberwachungsverein(engl.: MOT)
Unit process

Smallest element considered in the life cycle inventory analysis(3.1.4.4) for which input and output data are quantified.
[ISO 14040:2006], 3.34]

UNSPSC

United Nations Standard
Products and Services
Code

See table 4.2

Utilities

The term “utilities” includes here: Electricity, process steam,excess steam, cooling water, demineralized water, process water,compressed air and nitrogen.

Validation

the process of evaluating a system or component to ensurecompliance with the functional, performance and interface
requirements.
[ISO/IEC 14776: 2010]

Value Added Tax
Verification

Glossary

VAT

Confirmation, through the provision of objective evidence,that specified requirements have been fulfilled.
[ISO 9000: 2005; ISO 14025:2006]

Waste

Substances or objects which the holder intends or is required todispose of.
NOTE This definition is taken from the Basel Convention on theControl of Transboundary Movements of Hazardous Wastes
and Their Disposal (22 March 1989), but is not confined in thisInternational Standard to hazardous waste.
[ISO 14040:2006], 3.35]

WBCSD

World BusinessCouncil for Sustainable
Development

The World Business Council for Sustainable Development (WBCSD)
is a business-led organization that focuses exclusively on businessand sustainable development.

93

References

94AIB, (2022), European Residual Mixes- Results of thecalculation of Residual Mixes for the calendar year 2021,
https://www.aib-net.org/facts/european-residual-mix,(Accessed 18 August, 2022)
BASF SE, (2021), Guideline for Product Carbon Footprint
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Appendix

Proposals for calculating proxies in the case of noprimary or secondary data are available

Example: Landfill
The carbon content of the waste material shall be
converted fully to CO2e when waste is disposed ofon surface landfills.
There shall be no GHG emissions allocation for
waste that is disposed of in underground landfills
or similar (e.g. deep well injection).
• Waste to underground landfill: no GHG
emissions to be allocated.
• Waste to surface landfill: 100% conversion toCO2e based on carbon content.
[BASF SE (2021)]

Example: Wastewater treatment
Emissions from treatment of wastewater that is
generated during the production of a product A be
allocated to the PCF of the product A.
The GHG emissions calculation from wastewater
treatment shall include the emissions comingfrom the biological degradation as well as theemissions from the operation of the wastewater
treatment plant and the disposal of the sludge(incineration etc.). The carbon content of the wastematerial shall be converted fully to CO2e. As abasis for this calculation, the Total Organic Carbon(TOC) load of the process can be used if available.
If the Total Organic Carbon (TOC) load of yourprocesses is known:• 100% conversion to CO2e based on carbon
content.
• Utilities for treatment of wastewater and sludge
incineration included using an emission factorof the treatment plant, e.g. 1 kg CO2e fromtreatment of 100 kg waste water.
[BASF SE (2021)]
e.g. A product generates 100 kg wastewater per kgof product. The amount of product therein is 0.1 kg.
0.001 kg CO2e/ kg waste water from electricity
0.0005 kg CO2e/ kg waste water from sludge
incineration
PCF Product A = 0.001 kg CO2e/kg WWT electricity* 100 kg + 0.0005 kg CO2e/kg WWT sludge
incineration * 100 kg + 0.7 kg CO2e/kg WWT TOC= 0.85 kg CO2e/kg
Further information can be found at:

97

Appendix

Hernández-Chover, V.; Bellver-Domingo,  A.,Hernández-Sancho, F.; (2018), Efficiency ofwastewater treatment facilities:
The influence of scale economies,
Journal of Environmental Management,
Volume 228, 77-84, ISSN 0301-4797,
https://doi.org/10.1016/j.jenvman.2018.09.014.

Overview examples of different allocation approaches

CO2emissionsfrom Input
kg/kg

Outputmaterials

Amounts
in kg

Amounts
in mol

N content in
kg N/kg

Prices inEuro/kg

5.00

Product A

0.2

0.3

0.1

20

Product B

0.4

0.5

0.2

5

Product C

0.3

0.2

0.3

1

Total

0.9

Mass
in kg
outcome

Allocation
factor:Mass  / Total
mass

Allocation
factor *emission(B*5)

kg CO2 per
kg of product(C / B)

Product A

0.20

0.22

1.11

5.00

Product B

0.40

0.44

2.22

5.00

Product C

0.30

0.33

1.67

5.00

Total

0.90

1.00

5.00

Proceeds:
Amount *Price in kg *Euro

Allocation
factor:
Proceeds  /
Total
proceeds

kg CO2per kg ofproduct(B * 5)

Product A

4.00

0.63

3.17

Product B

2.00

0.32

1.59

Product C

0.30

0.05

0.24

Total

6.3

Mass
allocation

Economic
allocation

Nitrogencontent
allocation

Proceeds:
Amount * N
in kg

Allocation
factor:
Proceeds  /
Total
proceeds

kg CO2per kg ofproduct(B * 5)

Product A

0.02

0.11

0.53

Product B

0.08

0.42

2.11

Product C

0.09

0.47

2.37

Total

0.19

Stoichiometricallocation

98

5.00

5.00

Proceeds:
Amount *mol

Allocation
factor:
Proceeds  /
Total
proceeds

kg CO2per kg ofproduct(B * 5)

Product A

0.06

0.19

0.94

Product B

0.20

0.63

3.13

Product C

0.06

0.19

0.94

Total

0.32

5.00

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