A Product Carbon Footprint (PCF) is the total amount of greenhouse gas emissions that result from the production, use, and disposal of a product. This includes emissions from every stage of the product's life cycle. For instance, the EU Battery Directive mandates PCF declarations for specific components, while some organizations may have to report their PCF as part of their sustainability commitments. Additionally, organizations that have pledged to achieve Net-Zero Emissions must also declare their PCF. During the session, it was highlighted that IMDS enhancements will be utilized to communicate the information in the future. Here is a quick summary:

• Many organizations will need to adopt PCF due to regulatory changes. The automotive industry, with its complex supply chain, is no exception. However, there is no system in place for communicating this information. The enhancement-R246 is being developed to incorporate the product's carbon footprint into the IMDS system.
• PCF in the IMDS system will follow a new and enhanced reporting route and will be made available only when the IMDS data sheet has been accepted.
• Calculating PCF is challenging and will require other inputs apart from the PCFs received from the suppliers, sub-suppliers, or any different internal process, and it is not just summarization in the IMDS tool.
• The IMDS SC and AIAG, CLEPA, JAPIA, and DXC collaborate on the PCF integration project. The project is set up with a project group and two subgroups. The Project Group focuses on the overall approach, while the subgroups are responsible for translating the Catena-X Rulebook for PCF and Data Generation and Quality.
• A Bottom-up reporting approach for calculating PCFs has been decided. The calculation of PCF requires various information outside of the IMDS system and hence cannot be directly summarized. PCF information will be a part of the ingredient section. The document provides an introduction and status update on Product Carbon Footprint (PCF) within the International Material Data System (IMDS)

1. Main value calculation: The PCF is calculated based on the Catena-X rulebook or another accepted sector rulebook. This calculation method is used to determine the primary value associated with the product's carbon footprint.
2. Calculation process: The PCF is determined outside of IMDS, potentially with support from the system to display the cumulative sum of received supplier PCFs. This indicates that IMDS might assist in showcasing the combined carbon footprints provided by different suppliers.
3. Inclusivity of factors: The PCF computation includes internal processes, logistics within the supplier's operations, and logistics from the sub-supply chain. This comprehensive approach encompasses various stages of production and transportation to provide a holistic view of the product's carbon footprint.

• It is important to note that quality checks performed on PCF will not cause any disruption to the IMDS submission process. The checks are basic and only aim to ensure that the total PCF value is not greater than the sum of the PCFs of its sub-components. In case of any discrepancies, the IMDS system will issue a warning.

Reach out to our regulation experts on chemical and product regulatory compliances