Currently, there are (too) many methods to choose from when you want to measure the environmental footprint of your product. The abundance of different methods demands a level playing field. Already back in 2010, the European Commission started with the development of a harmonised methodology for calculating the environmental impact of both products and organisations. In this article, we focus on describing the new standardised method to measure the environmental performance of a product: the Product Environmental Footprint, PEF.
What is the PEF-method?
The Product Environmental Footprint (PEF) approach, grounded in life cycle assessment (LCA) techniques, establishes guidelines for quantifying and conveying the environmental impacts of both products and services. The PEF is part of the "Single Market for Green Products Initiative", initiated by the European Commission.
Leveraging international standards, such as ISO 14040/44, PEF aims to mitigate environmental effects across a product's entire supply chain—from the extraction of raw materials through to disposal.
The PEF sets out detailed criteria for mapping material flows, emissions, and waste streams,
The accompanying PEF category rules describe a common outline of how to perform such measurements by stating all steps and rules needed to make appropriate calculations.
Besides the methodology, the PEF also provides a database. This database was developed to support the PEF method and functions as a new standard environmental database for the EU industries.
The PEF methodology is currently still in its 'transition phase,' which is set to conclude by the end of 2024. And it is not yet a mandatory framework, some sectors, like food or textiles, are beginning to see obligatory adaptations to meet PEF standards.
The European Commission is expected to finalise the details of PEF as we near the end of this transition period, with forthcoming updates likely to introduce new deadlines and stages of implementation.
What is the role of LCA in the PEF?
The Life Cycle Assessment (LCA) is the method that forms the basis of PEF. The reason is that LCA focuses on all life cycle stages of a product. Furthermore, it also identifies other important environmental indicators besides just CO2.
The advantage of the LCA approach is that it takes a holistic view at the product and at the value chain and avoids possible burden shifting to other life cycle stages. An LCA looks at product phases like production, transport, use, and end of life. Moreover, it enables companies to identify “hotspots”.
These hotspots are the elements in the life cycle that contribute most to the environmental impact. This again enables companies to actively and knowingly intervene strategically, i.e. through the design of their products, to make sure that the hotspots are reduced.
Where some methods focus on a single environmental indicator (CO2), LCA takes into account several other relevant environmental indicators. Again this prevents burden shifting; what might be reducing your carbon footprint, might have a large impact on water use for example.
The flow-chart down below illustrates the different phases of a PEF study.
So what is the difference between LCA and PEF?
LCA forms the foundation of the PEF. Both methods are grounded in science, provide clear quantitative measures of environmental impacts, and consider the complete life cycle of products—from resource extraction through to emissions to air, water, and soil, and resource depletion.
But the PEF employs stricter guidelines, compared to standard LCA practices, due to its singular approach and the detailed nature of the Product Environmental Footprint Category Rules (PEFCR).
And the PEF method, supported by its specialized database, facilitates benchmarking by allowing comparisons of products within the same group, enhancing its utility for evaluating relative environmental performance.
Read more in our article LCA, EPD, and PEF: What are the differences? - Hedgehog Company (hhc.earth)
What are the PEF, Product Environmental Footprint, Category Rules (PEFCRs)?
The Based on the PEF framework, specific guidelines known as Product Environmental Footprint Category Rules (PEFCRs) are crafted to enhance the consistency, comparability, and reliability of environmental data for distinct product groups or sectors.
These rules, which are developed, overseen, and periodically updated by the Technical Secretariat, provide standardised procedures for measuring and comparing environmental impacts within a product category.
This structure not only supports, but also simplifies and reduces the expenses associated with conducting PEF studies. And these rules enable PEF studies which are more reproducible, comparable and verifiable, if these studies have all been conducted based on the same PEFCRs.
The PEFCRs have to be updated to reflect market developments, new data and methodological developments. So please note that more PEFCRs are currently being developed.
Examples of PEFCRs that already are developed are Food and Textile.
And for product categories where there is no PEFCR yet, organisations can use the 'main' PEF method, as a general guideline to conduct the LCA.
Take a look which specific PEFCRs are already existing, on this official website of the European Commission: https://green-business.ec.europa.eu/environmental-footprint-methods/pef-method_en
What will the PEF mean for your organisation?
Companies will be able to easily benchmark the performance of their product within their sector or product category. This benchmark allows for a better understanding on how their environmental performance is, in comparison to their competitors.
Benchmarking your product is a strong reputational incentive. Sustainability increasingly plays an important role for consumers when buying a product. Hence, for many companies, being a good environmental performer improves business values and strategy.
Product category and sector benchmarks stimulate product improvements and have the potential of making products of the whole sector or product category more sustainable.
And the PEF enables consumers to make more informed purchasing decisions. This is achieved by the ability to compare the performance of products in the same product category. Products now have one uniform label – based on the same method – which allows for one on one comparison.
By integrating PEF into your environmental strategy, organisations not only align with European standards, but also enhance their market credibility by demonstrating commitment to verified and transparent sustainability practices.
How to start with the PEF?
And how to start? First thing could by familiarising yourselves with the specific requirements and guidelines that govern PEF assessments. This involves understanding the Product Environmental Footprint Category Rules (PEFCRs), applicable to your product categories.
So an initial step is to conduct a comprehensive review of your company’s product lines, to determine which categories fall under the scope of existing PEFCRs.
And for product categories where there is no PEFCR yet, use the 'main' PEF method as a general guideline to conduct the LCA.
Following this, you should gather all relevant environmental data on your products, which includes details on raw material sourcing, manufacturing processes, product use, and end-of-life disposal.
You can take this step by yourself, or get guidance from a sustainability consultant or an expert in life cycle assessments. They can provide necessary guidance and ensure that the methodology is correctly applied.
Background
The origin of the PEF method
The aim of the EU was to develop a common way to create product footprints. This resulted in two methods; the Product Environmental Footprint (PEF) and the Organisation Environmental Footprint (OEF), which together fall under the EU Environmental Footprint (EF) methods.
They have been developed based on existing and widely used methods, standards and guidelines, such as the International Life Cycle Reference Database Handbook, ISO 14040-44, ISO 14064, PAS 2050, WRI/WBCSD, GHG protocol and others.
The ultimate objective of the PEF
Currently, there are (too) many methods to choose from when you want to measure the environmental footprint of your product. This creates confusion in the market. The abundance of different methods and the increasing importance of environmental footprinting demands a level playing field.
Methods are generally diverging on several issues, or leave some methodological choices open for the user. This means that it’s not possible to compare the results of measurements using different methods.
Luckily, the PEF is addressing this problem. Because PEF’s ultimate goal is to stimulate a stronger market for green alternatives and ensure transparent assessments of environmental impacts. The aim of this Environmental Footprint method is to
‘establish a common methodological approach to enable Member States and the private sector to assess, display and benchmark the environmental products, services, and companies based on a comprehensive assessment of environmental impacts over the life-cycle’ (JRC, 2012).
This should help companies to calculate their environmental performance based on reliable, verifiable and comparable information and for other actors such as NGOs to have access to this information.
