This is part of our series recapping sessions from the 2024 Hybrid IMDS, Product Compliance & Sustainability Conference.
What should you know about product carbon footprint (PCF) today? A session at the 2024 Hybrid IMDS, Product Compliance & Sustainability Conference titled “PCF: Big Picture and Small Steps” covered several key points. Bing Xu, PhD, director of business innovation at iPoint Inc., gave the presentation. Here are some highlights.
BIG PICTURE
The Basics
Carbon footprint is a measure of greenhouse (GHG) gases converted to carbon dioxide emissions, and product carbon footprint is the carbon footprint produced or consumed during a product life cycle. There are three scopes, from direct to indirect emissions (the largest and most complex).
Regulatory Drivers
Several regulatory requirements for PCF in carbon emission reporting and reduction are coming in the next couple years, such as EU battery and digital product passports. “PCF will be a ‘must,’” Xu said.
Technology Enablement
Key elements under Industry 4.0 enable us to use the last 20 years of data and make complex calculations much simpler and faster, such as the PCF/Life Cycle Assessment. Big data and analytics, artificial intelligence and machine learning, and digital twins. “All of these make our life easier when we face the PCF challenges,” Xu noted.
Corporate Environmental, Social, and Governance (ESG) Targets
All major corporates align their ESG targets with the 2050 Net Zero goals. “Design for sustainability and carbon emission reduction play important roles,” Xu said.
Consumer Wants
Consumers are increasingly demanding sustainability information, including PCF, as they become more conscious of the environmental impact of their purchases. “Sustainability, PCF, and environmental impact are becoming significant factors in purchasing decisions,” Xu shared.
IMDS/Catena-X Taking On
In 27 years, IMDS transitioned from focusing on pure compliance requirements to embracing sustainability and circularity requirements ahead of other industries. Strategic joint efforts between IMDS and Catena-X, original equipment manufacturers, and suppliers helped address this new area more efficiently and effectively.
SMALL STEPS
PCF data collection involves all tiers of suppliers. “It’s quite a complex task, and it can’t be done overnight,” Xu said. Thus, small steps are being taken. For example, IMDS is implementing solutions, Catena-X developed a PCF Rulebook, and OEMs/suppliers/C-X/M2030 and solution providers are piloting real-world use cases. Plus, more AIAG awareness/training sessions are planned to train suppliers on PCF-related tasks.
As for potential next steps, it’s about further collaboration, preparing for future demands, and embracing key trends and major technology breakthroughs from the upcoming Industry 5.0. “Obsolete ourselves and continue improving,” Xu concluded.
SAVE THE DATE FOR THE 2025 IMDS CONFERENCE
This topic and more will be covered at the 2025 Hybrid IMDS, Product Compliance & Sustainability Conference October 8–9, 2025, at Suburban Collection Showplace in Novi, Michigan. More details will be forthcoming.
