Value-Added Product Services

Product Carbon Footprint Verification

SGS Product Carbon Footprint Value-added Services

SGS Product Carbon Footprint Value-added Services – Driving a Sustainable Future Together

What

What is Product Carbon Footprint (PCF)?

A PCF represents the total greenhouse gas (GHG) emissions associated with a product throughout its life cycle.  It covers all stages—from raw material acquisition and manufacturing to distribution, use, and end-of-life treatment (recycling or disposal).

"Product Life Cycle" definitions vary based on a company's position in the supply chain:

  • Cradle-to-Gate: Included the life cycle stages of raw material acquisition and manufacturing
  • Cradle-to-Grave: Covers the full life cycle from raw material acquisition, manufacturing, distribution/transportation, use, and end-of-life disposal/recycling

What is the difference between Organization-level Greenhouse Gas Quantification (ISO 14064-1) and Product Carbon Footprint (ISO 14067)?

Organization-level verification quantifies the total GHG emissions from all business activities within defined organizational boundaries while a PCF accounts for the GHG emissions across the product's entire life cycle.

Why

Why should enterprises value Product Carbon Footprint (ISO 14067)?

As global climate policies accelerate, governments and international markets are increasingly requiring transparent product-level carbon data.

International Regulations
  • EU Carbon Border Adjustment Mechanism (CBAM)
    • Initially targets six carbon-intensive sectors: cement, electricity, fertilizer, iron and steel, aluminum, and hydrogen.
    • The transition period began on 2023/10/01, during which regulated enterprises are only required to report embedded emissions.
    • From 2026/01/01, the regulation officially enters force. Importers must declare emissions and purchase corresponding CBAM certificates or provide proof of carbon prices already paid in the country of origin.
  • US Clean Competition Act (CCA)
    • Initial control over seven industries: refining, petrochemicals, fertilizers, cement, iron and steel, aluminum, and glass.
    • Passed its second reading in 2022 and is currently still in the draft stage. If passed in the third reading, carbon pricing mechanisms may be introduced in future phases.
    • Carbon tax payments will be calculated based on average carbon emissions of imported products published by the US.
Taiwan Regulations
  • Climate Change Response Act
    • Covers major emitters with annual emissions exceeding 25,000 tons CO2e
    • The primary legislation passed its third reading on January 10, 2023. The associated sub-laws for carbon fee standards entered into force on January 1, 2025, with regulated enterprises now required to submit their first carbon fee payments in May 2026
Corporate Commitments
  • Supply Chain Requirements
    • Since 2022, Apple requires suppliers to track and report Scope 1 and Scope 2 emissions in manufacturing to reach the 2030 carbon neutrality goal.
    • Dell has required global suppliers to provide product carbon emission data since 2007.Note 2
    • Since 2017, Walmart has required global suppliers to provide carbon emission data and is progressively strengthening supplier requirements for obtaining PCF labels.

Therefore, ISO 14067 is not just a trend; its data helps enterprises:

  1. Review carbon emission profiles across the industrial chain to provide a basis for management optimization.
  2. Effectively control emission sources to reduce risks of additional carbon fees or taxes in the future.
  3. Align with global markets, take the lead in developing "sustainable products," and increase commercial value and green competitiveness.

Who

Which types of enterprises need Product Carbon Footprint (ISO 14067)?

PCF assessment is currently voluntary in Taiwan and is not legally mandated. However, it has become essential for the following types of enterprises, driven by market mechanisms within the global supply chain:

  • Enterprises targeting EU and US markets and falling under the industries regulated by CBAM or CCA.
  • Enterprises providing products for downstream processing or modification into final products, where downstream manufacturers require carbon footprint data for their own carbon accounting.
  • Enterprises with internal carbon reduction plans that want to fully understand life cycle emissions to optimize management and reduce emissions from raw materials to recycling.

Notably, CBAM accounting rules differ from ISO 14067; a case-by-case assessment is recommended.

How

How to meet ISO 14067 standards?

What gases are inventoried in ISO 14067?

ISO 14067 covers the 7 kinds of Kyoto Protocol GHGs that have the greatest impact on climate warming: Carbon Dioxide (CO2), Methane (CH4), Nitrous Oxide (N2O), Perfluorocarbons (PFCs), Hydrofluorocarbons (HFCs), Sulfur Hexafluoride (SF6), and Nitrogen Trifluoride (NF3).

What is the display unit for Product Carbon Footprint?

To unify units, all direct and indirect greenhouse gas emission values are converted into CO2 equivalents. Therefore, the unit is: KgCO2e per functional unit.

Solution

How SGS assists you in calculating Product Carbon Footprint: Clarifying your future carbon reduction plans

ISO 14067 Practical Training

Due to the extensive scope of PCF assessments, enterprises frequently face challenges in defining product categories and allocating internal responsibilities. 
The 'ISO 14067 Practical Training' integrates seamlessly with your manufacturing process management. We support enterprises establishing objectives and conducting internal capacity building. This program not only helps companies quantify their product GHG emissions but also directly guarantees the robust implementation of future internal PCF audits.

Smart PCF

Overwhelmed by the complexity of ISO 14067? Tired of lengthy project timelines? Or facing an urgent deadline to submit your PCF data?

Smart PCF is a next-generation service derived from ISO 14067 framework. Offered at a competitive price, it delivers rapid data insights to help you meet critical supply chain carbon management requirements in real time.

Q&A

Frequently Asked Questions

A.
  • Carbon Neutrality = "Emit first, offset later"

    It refers to neutralizing the total GHG emissions from corporate operations or product manufacturing through real-world carbon reduction initiatives and carbon offsets.

  • Net Zero = "Source Control and Near-Zero Reduction"

    It requires minimizing GHG emissions from the very beginning of operations or manufacturing processes to a near-zero level. Furthermore, its scope extends beyond CO2 to encompass all 7 major GHG: CO2, CH4, N2O, HFCs, PFCs, SF6, and NF3.

A.
  • Improve Data Transparency & Identify Hotspots

    Reducing a product's carbon footprint requires a comprehensive grasp of emission data across all life cycle stages. By conducting data analytics to pinpoint carbon hotspots, enterprises can deploy targeted solutions to effectively mitigate and manage their PCF.

  • Align Supply Chains & Optimize Management

    Emissions from procurement and logistics represent a significant portion of a product's carbon profile, yet complex supplier networks often obscure full visibility. By engaging upstream and downstream partners through carbon reduction training, companies can leverage collective action to track emissions and achieve maximum efficiency.

  •  

    Adopt Circular Design to Eliminate Waste (Cradle-to-Cradle)

     

    Sustainability must be integrated at the design stage by prioritizing durability, extending product lifespans, and ensuring components are easily repairable or recyclable. This cradle-to-cradle approach not only drives a highly efficient circular economy model but also optimizes resource and raw material efficiency.

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