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1、Version 2.0Pathfinder FrameworkGuidance for the Accounting and Exchange of Product Life Cycle EmissionsVersion 2.0Powered byCollaboratorsWBCSD would like to thank the following companies and organizations that have supported and contributed to the development of the Pathfinder Framework:Knowledge pa
2、rtnerTechnology partnerTHE OPEN GROUPFORUM2Pathfinder Framework:Guidance for the Accounting and Exchange of Product Life Cycle EmissionsContentsForeword 41.Introduction1.1 The challenge 61.2 The solution 71.3 The opportunity 82.Overview ofgeneral setup2.1 Purpose and application 92.2 General structu
3、re 102.3 Approach 102.4 Focus 112.5 Terminology 122.6 Summary of guidelines 133.Emissions accounting3.1Existingmethodsandstandards163.2 Scope and boundary 203.3 Guidance for calculating PCFs 224.Data integrity4.1 Data sources and hierarchy 364.2 Data reliability 395.Assurance andverification5.1 Cont
4、ext 435.2 Objectives and scope 445.3 Assurance roadmap 455.4 Evidence 505.5 Requirements for SMEs 515.6 Process and reporting 525.7 Special cases 536.Data exchange6.1Requiredelementsfordataexchange546.2 Connecting through technology 566.3 Incorporating product-level data into Scope 3 calculations 57
5、AppendixATermsanddefinitions(glossary)58BPCFquestionnaire62CExistingstandardsandguidance67DAssuranceevidencepack68EScope3upstreamaccountingmethods 72Endnotes 743Pathfinder Framework:Guidance for the Accounting and Exchange of Product Life Cycle EmissionsForewordThe world has already warmed by 1.1C a
6、nd is falling behind in limiting the temperature increase to 1.5C.Accurate and transparent accounting of greenhouse gas emissions and their abatement within the private sector is fundamental to preventing backsliding on commitments and pledges aligned with the 1.5C pathway.There are still some signi
7、ficant hurdles to decarbonization,though,even for the most driven organizations.Reduction of Scope 3 emissions is a critical challenge,as they typically account for the largest and most diverse share of a companys footprint.Due to a lack of transparency across value chains,these emissions are also t
8、he hardest to quantify and tackle.Solving this Scope 3 emissions challenge presents one of the most powerful levers to accelerate decarbonization.Regulators are beginning to recognize the power and necessity of addressing the global Scope 3 challenge.The European Commissions Corporate Reporting Sust
9、ainability Directive(CSRD)requires companies to disclose the percentage of primary data used to calculate Scope 3 emissions.While as recently as October 2022,the International Sustainability Standards Board(ISSB)voted unanimously to require company Scope 3 emissions disclosures in addition to Scopes
10、 1 and 2.In order to achieve transparency,we need detailed guidelines to consistently calculate and account for emissions at the most granular level,as well as infrastructure to exchange the resulting verified primary data across value chains.As both a global business membership-based organization a
11、nd co-convenor of the Greenhouse Gas(GHG)Protocol,WBCSD has long understood these challenges and recognized the critical need for Scope 3 emissions transparency.Thats why,in collaboration with 50 companies,standard setters,regulatory bodies,and industry initiatives,wehave developed the Pathfinder Fr
12、amework.The Pathfinder Framework builds on the long-standing work with the World Resources Institute under the GHG Protocol to take a cross-sectoral approach to help organizations develop and exchange primary data-based product carbon footprints(PCFs)across the value chain.The requirements captured
13、in it seek to further enhance data reliability and consistency across industries and value chains,for instance via the inclusion of averification and assurance roadmap.It is important to emphasize that the goal to accelerate decarbonization of value chains cannot be solved by individual actors in is
14、olation.It requires an aligned,coordinated,and open approach,driven jointly by stakeholders across all industries and value chains,including SMEs.Radical collaboration is key.We commend the large and growing number of companies,organizations,and institutions that have collaborated on and contributed
15、 to this Framework.Thank you to those who provided valuable feedback and insights,as well as McKinsey&Company,our knowledge partner,and SINE,our tech collaborator.We urge you to keep these actions up and ensure we all continue to join forces on this essential topic.The uptake of the Pathfinder Frame
16、work represents significant progress in solving the Scope3 emissions challenge.Now is the time for targeted and bold action:we invite you to start applying the Framework within your organizations and to ask key stakeholders within your value chains to do the same.Dominic Waughray Executive Vice Pres
17、ident,WBCSD4Pathfinder Framework:Guidance for the Accounting and Exchange of Product Life Cycle EmissionsThe best time to accurately accountfor,exchange,and reduce Scope3 emissions was yesterday.The second best time is now.1.IntroductionCurrent efforts to reduce greenhouse gas(GHG)emissions are insu
18、fficient to meet the Paris Agreement targets.Accounting for and exchanging reliable and consistent GHG emissions data is key to supercharging decarbonization efforts.1.1 The challengeAccurately quantifying and reducing emissions,particularly those in value chains(Scope 3),are key enablers for changi
19、ng the global warming trajectory and avoiding the worst effects of climate change.However,while Scope 3 emissions often constitute the lions share of companies carbon footprints(Figure 1)1,organizations are still struggling to adequately understand and address these.When accounting for Scope 3 emiss
20、ions,companies share a common challenge:a lack of sufficiently granular,accurate,and verified primary product-level data.This is caused by issues with emissions accounting and data sharing as well as by the increasingly complex ecosystem of stakeholders emerging in the emissions accounting space.Dat
21、a accounting:Room for interpretation and inconsistency in existing methods and standardsMany companies lack Scope 3 primary data to accurately account for emissions arising within their value chains.Secondary emission factor databases are used to fill this gap,though the average or typical data thes
22、e provide are often not specific enough to meet the data needs of companies,which range from climate risk assessments to the implementation and tracking of decarbonization strategies and targets.High-quality product life cycle accounting,considered the most accurate approach to account for value cha
23、in emissions,is also inhibited by the inconsistent use of approaches to account for product emissions,with existing standards and protocols(such as ISO,GHG Protocol,or Product Environmental Footprint standards)leaving room for interpretation.6Pathfinder Framework:Guidance for the Accounting and Exch
24、ange of Product Life Cycle EmissionsAccounting standards and guidelines that are not fully consistent create challenges for a streamlined,scalable application.This results in inconsistent accounting,which in turn leads to insufficient reporting and exchange of emissions data.Data access:Complex valu
25、e chains and lack of interoperability between technology2 solutionsWhile value chains often span multiple(international)stakeholders from different industries,most corporate systems are not able to exchange GHG emissions data with other systems(and across company boundaries),resulting in high transa
26、ction costs for manual efforts in the form of surveys or spreadsheets.New GHG accounting technology and data exchange platforms,while a step in the right direction,still lack one essential feature:interoperability,i.e.,the ability to connect to one another,exchange information,and understand the inf
27、ormation exchanged(or“speak the same language”).In practice,this means companies will typically only be able to access each others data if they use the same technology solution.Ecosystem alignment:Growing number of stakeholders seeking to tackle the transparency challengeThere has been significant m
28、omentum to resolve the challenges around Scope 3 emissions.Regulatory bodies(e.g.,US Securities and Exchange Commission,European Commission,International Sustainability Standards Board)and companies are searching for and developing individual approaches,industry-focused associations are addressing t
29、heir members most pressing concerns,and the broader ecosystem has also started identifying the role it can play.A lack of integration and harmonization across the ecosystem is a major roadblock to transparency,given that no single company,association,or ecosystem stakeholder can achieve this without
30、 the others.As a result of the above challenges,companies Scope 3 decarbonization efforts are inhibited.It is impossible to track and reduce Scope 3 emissions at the scale needed without determining and understanding emissions associated with products and services that are transferred from one compa
31、ny to the next in the value chain.1.2 The solutionAn infrastructure developed in close collaboration with stakeholders is needed to enable the consistent calculation and exchange of accurate,primary,and verified product-level emissions data across all value chains and industries.This infrastructure
32、should be comprised of standardized approaches and common guidelines across both methodology(product-level emissions Figure 1:Percent of total Scope 1 to 3 emissions,2019,based on self-reported CDP dataSource:McKinsey&Company analysis,drawing on select data from CDP and McKinseys Catalyst Zero solut
33、iona.Includes agricultural chemicals.82782625222747579898Air transportCement and concreteChemicalsFertilizeraPharmaOil and gasPrinting and packaging businessFast-moving consumer goodsMiningApparelRetailAutomotiveScope 1 and 2Scope 37Pathfinder Framework:Guidance for the Account
34、ing and Exchange of Product Life Cycle Emissionsaccounting)and technology(product-level emissions data exchange):On the methodology side,this is to ensure product-level emissions are calculated in a comparable and consistent manner,resulting in accurate,high-quality data.On the technology side,there
35、 is a need for common data exchange guidelines and technical specifications for interoperable data exchange across global companies and complex value chains.Furthermore,the creation of a free and open digital network will significantly facilitate data exchange(upstream to downstream,but also downstr
36、eam to upstream)and strengthen quality and credibility.1.3 The opportunityAccess to more granular data can unlock a host of use cases that reinforce internal business decision making and support corporate accountability.Transparency can,for example,positively influence the bottom line,mitigate(clima
37、te-related)risk,or drive competitive advantages.This is precisely why the Partnership for Carbon Transparency(PACT)was established.PACT seeks to turn the Scope 3 emissions challenge into an opportunity for companies and organizations by enabling consistent calculation and exchange of primary data of
38、 product cradle-to-gate emissions across value chain partners.Specifically,PACT:Creates convergence and harmonization on upstream Scope 3 emissions transparency to ensure an integrated and aligned global ecosystem with close collaboration between all stakeholders Establishes the Pathfinder Framework
39、(methodological guidelines)by building on the GHG Protocol and other existing standards to enable consistent product-level emissions accounting and primary data exchange Defines the Pathfinder Network(common technology infrastructure)for the secure exchange of product-level emissions data across tec
40、hnology solutions and data exchange platforms,linking global value chains and industries.Transparency on carbon data can also set the foundations for greater transparency on other environmental factors.If organizations are ready to embark on this journey together,the rewards will be significantnot l
41、east for the climate.This work,therefore,has the potential to be a game changer.8Pathfinder Framework:Guidance for the Accounting and Exchange of Product Life Cycle Emissions2.Overview ofgeneral setupThis section gives an overview of the general setup of the Framework with the aim of easing navigati
42、on and providing essential context.2.1 Purpose and applicationThe Pathfinder Framework was created with the aim of addressing one of the key existing carbon accounting challenges:the exchange of consistent supplier-specific product carbon footprint(PCF)data across the value chain.It seeks to help bu
43、sinesses develop a better understanding of their value chain emissions by encouraging and guiding the exchange of primary carbon footprint data across value chains.The Framework builds on existing frameworks and standards to provide guidance on accounting,verification,and exchange of cradle-to-gate
44、PCFs with the aim of creating more granular,comparable,and consistent emissions data.The Framework should thus be seen as a supplement to the existing methods and standards referenced in Section 3.1 and shall be used in conjunction with these.The Framework has been drafted as a blueprint applicable
45、to different industries.It,therefore,constitutes a foundation to build on to meet additional sector-specific needs.As alignment in this context is critical,PACT has been set up to support this process.While the Framework is designed to be a guidance document and is therefore voluntary in nature,its
46、application will lead to greater emissions data consistency for all stakeholders across industries.To further encourage broad application and facilitate scaling,the Framework has been published openly for everyone to freely access and use.9Pathfinder Framework:Guidance for the Accounting and Exchang
47、e of Product Life Cycle EmissionsThe Framework should be applied by stakeholders such as:Businesses wishing to better understand and exchange the carbon footprint of their products as well as the products they purchase Auditors supporting businesses in the above endeavor by verifying carbon footprin
48、t data exchanged Technology companies creating solutions for the calculation or exchange of such carbon footprints Initiatives driving industry-focused approaches to data transparency and developing additional methodological guidance or technological solutions for data exchange in this context Polic
49、y makers wishing to align their regulations to PCF methodologies validated and implemented industry-wide2.2 General structureThe Pathfinder Framework is divided into three key parts,which together drive forward the ambition of creating more transparency:emissions accounting,creating integrity,and da
50、ta exchange(Figure2).While the first part provides some additional context and outlines fundamental guardrails for suppliers calculation of PCFs by building on existing standards,part two details key steps in the process toward creating trust in the data and transparency across the value chain.The t
51、hird part provides details on how the Pathfinder Framework could be integrated as part of an IT infrastructure to facilitate application of the Framework and enable the standardized exchange of emissions data(Section 6).A summary of key takeaways for each section can be found below(Figure2).2.3 Appr
52、oachThe Pathfinder Framework has been developed following a collaborative approach and is the result of an iterative stakeholder consultation process that also included a pilot testing exercise of the first version of the Framework(published in November2021).This updated version of the Pathfinder Fr
53、amework builds on the first version to incorporate further clarity and additional guidance in the following key areas:1.Hierarchy for the application of product category rules(PCRs)2.Quality safeguards for PCRs and secondary data sources3.More specific PCF accounting guidance on:a.Exemption rulesb.A
54、llocationc.Biogenic emissions4.Data quality indicators5.Assurance and verification roadmap6.Incorporation of PCFs into Scope 3 inventoriesAs the development of consistent rules requires some trial and error,additions or adjustment revisions may be necessarye.g.,as a result of the pilot testing and t
55、he practical implementation of the guidance or to remain aligned with the evolving industry needs around emission reduction opportunities and the landscape of carbon accounting and reporting.Figure 2:Figure 2:Overview of sections within the Pathfinder Frameworka.Out of the Scope of the Pathfinder Fr
56、amework.Section 3EmissionsaccountingSection 4DataintegrityScope and boundaryCalculating product carbon footprintsExisting methods and standardsData sources and hierarchySection 6DataexchangeConnecting through technologyaIncorporating PCFs into Scope 3 inventoriesRequired elements for PCF data exchan
57、geData reliabilitySection 5Assurance and verificationAssurance and verification10Pathfinder Framework:Guidance for the Accounting and Exchange of Product Life Cycle Emissions2.4 FocusThe Framework builds on existing product-level accounting standards and contains guidance for the calculation of crad
58、le-to-gate PCFs to further enhance consistency,data integrity,and comparability.It also covers requirements regarding the exchange of PCF data,in particular focusing on data quality requirements and assessment thereof,verification and assurance of data,and data elements to be exchanged downstream(Fi
59、gure 3).This Framework focuses on emissions and removals generated during a products life cycle and does not address avoided emissions or actions taken to mitigate released emissions.This standard is also not designed to be used for quantifying GHG reductions from offsets or claims of carbon neutral
60、ity.Figure 3:Focus of the Pathfinder Frameworka.Additional technological guidelines and mechanisms for standardized data exchange have been developed in parallel by the Pathfinder Network(e.g.,technical data specifications,company onboarding mechanism,or governance structure for the extension of req
61、uired data elements).Exchange of PCFs along the value chainRelating to existing product standards and methods Hierarchy of application Unification of relevant approachesAdditional elements Hierarchy of allocation approaches Approach to secondary data sources Exemption rulesGuidelines for emissions a
62、ccountingPCFPCFCompany BCompany ACompany C Hierarchy of data types Data quality assessment based on data quality matrix Calculation process for determination of primary data share in PCFs Assurance and verification guidelinesGuidelines for data integrity Temporal validity of exchanged PCFs Minimum r
63、equired data elements for exchangeGuidelines for data exchangea11Pathfinder Framework:Guidance for the Accounting and Exchange of Product Life Cycle Emissions2.5 TerminologyThe Pathfinder Framework uses different terms to differentiate between requirements,recommendations,and permissible or allowabl
64、e options(Table 1).Additional definitions of frequently used terms throughout the Framework can be found in the glossary(Appendix A).Table 1:Pathfinder Framework terminologyTermDefinition“Shall”Indicates which rules need to be followed by companies applying the Pathfinder Framework“Should”Indicates
65、which rules are recommendations“May”Indicates an option that is permissible or allowable12Pathfinder Framework:Guidance for the Accounting and Exchange of Product Life Cycle Emissions2.6 Summary of guidelinesTable 2:Summary of guidelinesEmissions accounting The Pathfinder Framework shall be read in
66、conjunction with existing methods and standards listed in Section 3.1 for the assessment of PCFs PCRs or sector-specific rules shall be prioritized for the calculation and allocation of PCFs PCRs shall only be considered valid if they comply with the Pathfinder Frameworks quality safeguards If multi
67、ple PCRs are applicable,companies shall follow the PCR hierarchy laid out by the Pathfinder Framework Where no regulations or product-or sector-specific rules exist,companies shall follow the Pathfinder Framework requirements For elements not specifically addressed by the Pathfinder Framework,the PC
68、F calculation shall be compliant with the sector-agnostic standards3.1Existing methods and standards Companies shall account for all GHGs identified within the GHG Protocol Their respective 100-year global warming potential(GWP;including carbon feedbacks)shall be derived from the latest Intergovernm
69、ental Panel on Climate Change(IPCC)Assessment Report publication Companies shall report cradle-to-gate PCF,comprising all upstream stages of the product life cycle up to the reporting companys gate(including upstream transportation),excluding downstream emissions from product use and end-of-life PCF
70、s shall be exchanged upstream to downstream,providing kg of CO2e per unit of analysis3.2Scope and boundary3.3Guidancefor PCFs All attributable processes shall be identified Companies shall collect relevant activity data and emission factors based on identified attributable processes Manufacturing of
71、 production equipment,buildings and other capital goods,business travel by personnel,travel to and from work by personnel,and research and development activities should not be included within the boundaries of the PCF,unless materially significant Companies shall be able to exclude individual attrib
72、utable processes representing less than 1%of the total cradle-to-gate PCF In aggregate,exclusions shall represent less than 5%of the total cradle-to-gate PCF emissions If necessary:allocation of emissions to outputs should follow the Pathfinder Framework allocation hierarchy3.3.1Accounting for produ
73、ct GHG emissions13Pathfinder Framework:Guidance for the Accounting and Exchange of Product Life Cycle EmissionsTable 2:Summary of guidelines(continued)Emissions accounting3.3Guidancefor PCFsBiogenic emissions and removals Biogenic emissions and removals associated with the following shall be calcula
74、ted and included as part of the“PCF(incl.biogenic emissions and removals)”metric from 2025 onwards:Direct land-use change(dLUC)Land-management-related changes(including land carbon pools and other non-CO2 emissions related to land management)Other biogenic GHG emissions not covered in dLUC and land
75、management Biogenic CO2withdrawals The biogenic carbon content of the product(mass of carbon)shall be calculated and reported separately as part of the data exchange form GHG emissions associated with indirect land-use change(iLUC)emissions may be calculated and reported separately as part of the da
76、ta exchange form.iLUC emissions shall not be included as part of the PCF To support transparency,all of the metrics above shall also be reported separately whether they are included in the PCF or notTransportation emissions Upstream and direct transportation emissions within the cradle-to-gate bound
77、ary,including storage,shall be calculated and included in the PCF Only transportation emissions relating to the fuelalso known as well-to-wheel emissionsand the energy consumed by storage facilities shall be included(i.e.,the manufacturing of the vehicles used for the transport of goods shall not be
78、 included)Waste treatment and recycling emissions All production emissions shall be allocated to the outputs with economic value,rather than to the waste or recyclable material itself Emissions resulting from waste treatment as part of the production process shall be calculated and included in the P
79、CF of the company that manufactured the product and generated the waste Emissions from the end-of-life stage of the products shall not be included in the PCF boundary Since the Pathfinder Frameworks boundary is cradle-to-gate,the“recycled content”method should be used for the allocation of emissions
80、 from recycling materials and energy recovery3.3.2Additional guidance14Pathfinder Framework:Guidance for the Accounting and Exchange of Product Life Cycle EmissionsCreating integrityTable 2:Summary of guidelines(continued)Pathfinder Framework definitions shall be used by companies to determine the n
81、ature of activity data and emissions Activity data that is used to calculate PCF shall be company-specific Secondary emission factors used shall be compliant with Pathfinder Framework safeguards Companies may use proxy data to bridge minor data gaps4.1Data sources and hierarchyAssurance and verifica
82、tion Verification of the PCF shall be done by an independent third party following the considerations laid out in the Pathfinder Frameworks roadmap5Assurance and verificationData exchange Data owners shall exchange their cradle-to-gate PCFs alongside a set of minimum required data elements listed by
83、 the Pathfinder Framework downstream in the value chain6.1Requirements for PCF data exchange Companies that have calculated their PCFs should exchange these using the Pathfinder Network6.2Connecting through technology Companies should incorporate PCFs into their corporate Scope 3 footprints by multi
84、plying the PCFs provided by suppliers with the number of product units purchased from them6.2Incorporating product-level data into Scope 3 calculations Companies shall either assess the primary data share(PDS)or the data quality of the PCF until 2025;after 2025,both KPIs shall be calculated and exch
85、anged If calculated,the PDS shall be based on both the nature of the activity data and the emission factors used If calculated,the data quality ratings(DQRs)shall use the Frameworks data quality assessment matrix,excluding any inputs representing less than 5%of the total PCF4.2Data reliability15Path
86、finder Framework:Guidance for the Accounting and Exchange of Product Life Cycle Emissions3.Emissions accountingIn order to foster better understanding of emissions,companies shall calculate their cradle-to-gate PCF and exchange this along the value chain.3.1 Existing methods andstandardsThe Pathfind
87、er Framework builds on existing methods and standards to provide guidance on which methods to use and when and to provide additional guidance where existing guidelines offer flexibility.3.1.1 RelationshipThe Framework leverages and builds on existing methods and standards for the calculation and all
88、ocation of product-level emissions,including:Product Life Cycle Accounting and Reporting Standard(GHG Product Standard)and Corporate Value Chain(Scope 3)Standard(GHG Scope3 Standard)by WBCSD and World Resources Institute under the GHG Protocol ISO standards(14044/40,14067,14025)Product Environmental
89、 Footprint(PEF)method and Product Environmental Footprint Category Rules(PEFCRs)by the European Commission(see Box 2)PCRs by Environmental Product Declaration(the International EPD System)and other program operators Any other product-or sector-specific rules that are compliant with the GHG Protocol
90、rulesThe Pathfinder Framework builds on these with the aim of ensuring PCF accounting consistency and comparability.Please refer to Appendix C for examples.16Pathfinder Framework:Guidance for the Accounting and Exchange of Product Life Cycle Emissions3.1.2 Hierarchy of applicationIn general,existing
91、 methods and standards can be classified into three types:1.Product-specific rules(e.g.,PEFCRs)2.Sector-specific rules(e.g.,Together for Sustainability or PlasticsEurope)3.Overarching sector-agnostic or cross-sectoral protocols and standards(e.g.,GHG Protocol standards,ISO standards,PEF method)Appli
92、cation of these rules follows the hierarchy shown in Figure 4,whereby three scenarios are envisaged.Please note that product-level regulations applicable to any given product or company(e.g.,depending on the sector they operate in)should be prioritized over other existing methods and standards.Figur
93、e 4:Prioritization of methods and standardsa.Sector-specific rules should align with Pathfinder Framework requirements and build from them.In cases where sectoral guidance does not fully align,aspects not in alignment should be highlighted.b.Elements specifically addressed by the Pathfinder Framewor
94、k(e.g.,allocation)shall be prioritized over cross-sectoral standards.123Product-specific rulesMost prescriptive,product-specific guidelines(e.g.,PEFCRs or PCRs)compliant with PCR quality safeguardsSector-specific rulesaSector-specific guidelines built on recognized standards to cater to sectoral spe
95、cificitiesCross-sectoral standardsbMost-used guidelines in practice,but not sufficiently specific(e.g.,GHG Product Standard,ISO 14067,PEF)+Pathfinder Framework requirements17Pathfinder Framework:Guidance for the Accounting and Exchange of Product Life Cycle EmissionsProduct-specific rules existAccor
96、ding to ISO 14067,3 a PCR is a“set of specific rules,requirements and guidelines for carbon footprint of a product or partial carbon footprint of a product quantification and communication for one or more product categories.”Where product-specific rules exist,their application should always be prior
97、itized for the cradle-to-gate PCF calculation,as they provide the most detailed guidance in relation to a specific product and hence can contribute to increasing the accuracy and consistency of data exchanged across value chains.4PCRs will most likely overlap with the requirements of Section 3.3 of
98、this document.In such cases,in line with the hierarchy,the PCRs should be prioritized.To ensure robustness and reliability,only PCRs meeting the following safeguards shall be considered valid for the purpose of this guidance:PCRs shall be developed in accordance with the ISO 14000 series or other cr
99、oss-sectoral guidance to be considered an eligible PCR.PCRs shall be developed through a multistakeholder process and independently peer reviewed.PCRs shall be reviewed at least every five years to ensure they are up to date with the latest methodological developments,standards,and market expectatio
100、ns.PCRs shall be applicable to the geography where the product is being marketed or produced.Please note,in some cases,the methodology presented by a PCR may be relevant and appropriate for a given product while their accompanying databases may not be.For example,the methodology presented by a PEFCR
101、 may be relevant for a product manufactured in a non-European region,whereas the European data sets may not be the most accurate for that given region.In such cases,companies shall communicate whether a company has followed only the methodological requirements of a PCR but not the accompanying data
102、set.Sector-specific rules existWhere no product-specific rules exist,companies shall prioritize the use of sector-specific rules built on cross-sectoral standards(i.e.,ISO,GHG Protocol,PEF)for the calculation of PCFs.Please note that the development of new sector-specific guidance should build on an
103、d seek alignment with the proposed Pathfinder Framework requirements and further refine them to cater to sectoral specificities(e.g.,Together for Sustainability guidance for the chemical sector).5Box 1:Hierarchy of PCRsWhile the aim of PCRs is to provide more granular product-specific guidance to fa
104、cilitate accuracy and consistency,in some instances several PCRs compliant with the quality safeguards may exist for a product or product category(e.g.,two PCRs covering the same product but in different regions).The applicability of these different PCRs for companies may vary depending on the purpo
105、se behind the development of the PCF.For example,a region-specific PCR may be able to better capture nuances around the manufacturing process of a product in a given region,while a PCR from a global operating association may be better suited to ensuring accounting consistency worldwide.For the purpo
106、se of this guidance,companies should thus base their choices on the following hierarchy:1.If the calculation is to be done for compliance purposes,PCRs compliance with the regulation should be followed(e.g.,PEFCRs).2.If there is a global sector-specific initiative validating PCRs,these should be pri
107、oritized(e.g.,TfS,Catena-X).3.If the calculation is to be done for commercial purposes and no sector-specific guidance on PCRs exists,companies should base their PCR choice on the market in which the product is intended to be manufactured or sold.For instance,if it is intended for the global market,
108、companies should prioritize PCRs from global program operators(e.g.,EPD International Program),but if the intended market is a specific country or region,companies should prioritize PCRs applicable to that given geography(e.g.,PEFCRs being used for EU market).4.If the intended market is unclear,comp
109、anies should prioritize more globally accepted PCRs to favor consistency and broader acceptance.18Pathfinder Framework:Guidance for the Accounting and Exchange of Product Life Cycle EmissionsOnly overarching rules exist Where no product-or sector-specific rules exist,companies shall follow the Pathf
110、inder Framework accounting requirements for more consistency of PCF calculation.For elements not explicitly addressed by the Pathfinder Framework,the methodology used to calculate PCFs shall be compliant with the cross-sectoral standards(GHG Product Standard,ISO14067,or PEF).All of the above standar
111、ds shall be compliant with ISO 14040 and ISO 14044,which provide foundational requirements and guidelines for life cycle assessments(LCAs)and may be consulted as a reference.In parallel,businesses are encouraged to develop more detailed product or sectoral rules in collaboration with other stakehold
112、ers to address any sector-or product-specific needs and drive further consistency in the PCF calculation of any given product.6Box 2:EU PEF method and PEFCRsa.Equivalent methods have been developed with regard to organizational declarations.BackgroundWhile the demand for environmental declarations a
113、t the product(and organizational)level has increased in recent years,so far there has not been a single,widely adopted approach,resulting in a lack of comparability and consistency.The European Commission has sought to address this gap through the development of accounting methodologies captured wit
114、hin the PEF and the accompanying PEFCRs.aAs defined in the PEFCR Guidance:The PEF is based on an LCA method to quantify the relevant environmental impacts of products(goods or services).PEFCRs are rules based on product category and life cycle rules that complement general methodological guidance fo
115、r PEF assessments by providing further specifications at the level of aspecific product category.To date,PEFCRs have been developed for more than 20 different product categories,following a common process defined by the PEF method and,whenever possible,building on existing work such as PCRs.The obje
116、ctive of these PEFCRs is to help companies identify the most significant environmental impacts and activities throughout the life cycle of a given product.In addition,the use of these common PEFCRs will increase the comparability and consistency of results.UseFrom 2013 to 2019,the European Commissio
117、n led a pilot phase for 26 product categories.The development phase is now entering a transition stage where the PEFCRs will be implemented on a larger scale,which will determine if and how the PEFCRs will come into effect or be required by law within the European Union.Link to the Pathfinder Framew
118、orkThe Pathfinder Framework promotes the application of PEFCRs where available.Notably,PEF methodology and PEFCRs include a set of overarching and product-specific rules,definitions,and proprietary secondary data sources,as well as further life cycle impact categories,which are an addition to the ge
119、neral framework stipulated here.In order to meet the additional requirements from the PEF and PEFCR methodology,companies should refer to the PEF method and respective PEFCR documentation.Any developments by the European Commission in this context will be closely monitored to evaluate and assess the
120、 further implementation of PEF and PEFCR requirements into future iterations of this Framework.19Pathfinder Framework:Guidance for the Accounting and Exchange of Product Life Cycle Emissions3.2 Scope and boundaryUnderstanding the Scope and boundary of this Framework is an essential starting point fo
121、r the calculation of PCFs.3.2.1 LCA approachThe Pathfinder Framework is based on the attributional LCA approach.This approach seeks to determine the ex post environmental impacts associated with a products life cycle.GHG emissions are attributed to a specific unit of a product by adding up the emiss
122、ions of all attributable processes along its life cycle.A PCF represents the potential life cycle impact of a product on the environmental impact category of climate change.This impact category considers that different GHGs have different impacts on climate change,expressed as their GWP with the uni
123、t kg CO2 equivalent(CO2e).7The basic equation to calculate GHG emissions(CO2e)for activity data is:Kg CO2e=Activity data(amount of activity)Emission factor(kg GHG/unit of activity)GWP(kg CO2e/kg GHG)3.2.2 Focus on GHG emissionsThe Pathfinder Framework provides the methodological framework for studyi
124、ng GHG emissions.Companies shall account for the GHGs identified within the GHG Protocol titled“Required Greenhouse Gases in Inventories;Accounting and Reporting Standard Amendment.”8 The list includes carbon dioxide(CO2),methane(CH4),nitrous oxide(N2O),hydrofluorocarbons(HFCs),perfluorinated compou
125、nds,sulfur hexafluoride(SF6),nitrogen trifluoride(NF3),perfluorocarbons(PFCs),fluorinated ethers(HFEs),perfluoropolyethers(e.g.,PFPEs),chlorofluorocarbons(CFCs),and hydrochlorofluorocarbons(HCFCs).Following common practice,the global warming impact of these gases can be converted into and expressed
126、as CO2e.Their respective characterization factors(100-year GWP,including carbon feedbacks)shall be derived from the latest version of the IPCC Assessment Report publication.93.2.3 Scope and boundary of the Pathfinder FrameworkThe life cycle of a product is composed of five stages:(1)material acquisi
127、tion and preprocessing,(2)production,(3)distribution and storage,(4)product use,and(5)end-of-life.The boundary of the Pathfinder Frameworki.e.,the processes and their associated GHG emissions that shall be accounted for and exchanged as part of the PCF by a companyis a cradle-to-gate PCF,covering st
128、ages 1 to 3 above.This includes all the attributable upstream and direct emissions10 of a product,including all upstream transportation activities.11 The life cycle emissions that shall be accounted for in this cradle-to-gate PCF exclude downstream emissions related to the product use and end-of-lif
129、e stages.When accounting for emissions,companies shall further define their cradle-to-gate boundary by organizing the attributable process of their studied product into the defined life cycle stages(Figure 5).In calculating cradle-to-gate PCFs,which are in turn shared downstream with the next value
130、chain actor,the entire value chain of products and carbon emissions can be linked up,ultimately creating greater transparency for businesses and end consumers alike.The selected system boundary facilitates the integration of received PCF data from suppliers into own PCF calculation and downstream sh
131、aring with respective customers.To increase the transparency of data exchange and to prevent double counting or excluding emissions,the Pathfinder Framework requires companies to report on the attributional processes included in each of the life cycle stages covered by the PCF.The requirements and r
132、ecommendations for data exchange are explained further in Section 6 and Appendix B.20Pathfinder Framework:Guidance for the Accounting and Exchange of Product Life Cycle Emissions3.2.4 Unit of analysisThe unit of analysis of the product serves as the basis for all data collection and inventory result
133、s.Final PCF inventory results shall thus be disclosed as kg of CO2e per unit of analysis(e.g.,GHG emissions per 1 kg or 1 liter of product).Please note that cradle-to-gate PCFs typically use a“declared unit”approach(Box 3).Figure 5:Life cycle stages included in the boundary of the Pathfinder Framewo
134、rka.Contains product storage and shipping processes,including transportation within and between these life cycle stages.NatureRecycled or reused(circularity)Material acquisitionand preprocessingDistribution and storageaProduct useProductionEnd-of-lifeReturned to natureNot included in Pathfinder Fram
135、ework boundaryIncluded in Pathfinder Framework boundaryBox 3:Distinction between functional and declared unita.This term is used in ISO 14044 and PEFCRs.LCA inventory results are provided in terms of functional units.a A functional unit describes the function of a product in question.For example,for
136、 a laundry detergent,the functional unit could be defined as“washing 4.5 kg of dry fabric with the recommended dosage with medium-hard water.”Understanding the functional unit is essential for comparability between products with the same function,as it provides the reference to which the input(mater
137、ials and energy)and output(such as products,by-products,waste)are quantified.Intermediate products,i.e.,products that will still be processed further to create a final product,can,however,have several functions based on their eventual end use.In this case(and where an LCA does not cover the full lif
138、e cycle),the term declared unittypically referring to the physical quantity of a product,e.g.,“1 liter of liquid laundry detergent with 30 percent water content”can be used instead.21Pathfinder Framework:Guidance for the Accounting and Exchange of Product Life Cycle Emissions3.3 Guidance for calcula
139、ting PCFsThis section provides guidance on how to calculate a PCF,which should be used in conjunction with existing methods and standards.Companies calculating their PCF in accordance with a PCR or sector-specific guidance may skip this section.Figure 6:Overview of steps for PCF calculationa.E.g.,x
140、kgCO2per y tons of steel.b.Using secondary database(s)according to agreed upon guidelines.c.Companies shall avoid allocation whenever possible.From internal systemsFrom suppliersEmissions from different activities added upAllocate emissions(if necessary)Calculate andadd emissionsCollect emission fac
141、torsIdentify all attributable processes and collect primary activity data Categorize dataOtherwise:emission factors from secondary databasesbIf available:cradle-to-gate PCF(primary emission factora)If available:primary emission factorsDirect emissionsUpstream activitiesDirect activitiesPCFOtherwise:
142、emission factors from secondary databasesbActivity dataemission factorsActivity emissionsActivity emissionsActivity emissionsActivity emissionsMulti-input/output unit process emissionsDepending on type of processesc1a1b231cActivity data:material and energy inputs,purchased product components,and oth
143、er direct emissionsShare PCF22Pathfinder Framework:Guidance for the Accounting and Exchange of Product Life Cycle Emissions3.3.1 Accounting for product GHG emissionsThe following steps are used in the calculation of a PCF:(i)identifying and collecting necessary data,(ii)calculating emissions using r
144、elevant emission factors,and(iii)allocating these to specific products or materials(Figure 7).3.3.1.1 Data identificationFirst,all the attributable processes linked with the Scope identified in Section 3.2(cradle-to-gate)should be identified.This guidance defines“attributable processes”as any proces
145、ses associated with services,materials,or energy flows that become,make,or carry a product throughout itslife cycle.In alignment with the GHG Product Standard,only those processes that are immediately related to the production of the studied product are part of the assessment.In light of this,the fo
146、llowing activities should not be included within the boundaries of the PCF,unless materially significant for the reference product:manufacturing of production equipment,buildings and other capital goods,business travel by personnel,travel to and from work by personnel,and research and development ac
147、tivities.While all of these activities are linked to company operations and should be accounted for within companies Scope 3 inventories in line with the GHG Scope3 Standard,they do not tend to be specific to any given product and should therefore not be included in PCFs unless they represent a mate
148、rial percentage of the PCF(e.g.,in the case of wind or solar power generation,where the building of the panels and turbines is not negligible on a per kWh basis over the lifetime of the equipment).In accordance with the cut-off criteria defined in Section 3.3.1.2 of this guidance,packaging may be ex
149、cluded or included in the PCF calculation,depending on its contribution to the PCF.Ifpackaging is included,it should be visible in the description of the product.To determine multi-input/output unit process emissions,relevant activity data and emission factors based on a companys own processes(direc
150、t activities)as well as the relevant material or energy input flows from suppliers upstream(upstream activities)shall be collected.Inventory data shall be compiled with regard to the following processes:Material inputs(e.g.,10 tons of steel,300 kg of aluminum)Energy inputs12 such as purchased electr
151、icity,cooling,and heating(e.g.,100 kWh)Purchased materials or feedstocks(e.g.,chemical component,unit,amount)Inbound transport and storage-related inputs(e.g.,10 km transport of 10 kg of chemical components from supplier to manufacturing site in a diesel-fueled truck)Production waste and treatment(e
152、.g.,10 kg of cardboard waste sent to landfill)Any other direct emissions not included(e.g.,CO2 formed during the production process)After identification of the data,all data shall be categorized as direct or upstream activities(Figure6).3.3.1.2 Exemption rulesCompanies should seek to incorporate all
153、 attributable cradle-to-gate processes into their PCF.However,there are instances where the lack of data availability or the effort and resources required to calculate certain attributable processes can far outweigh their overall GHG contribution to the PCF.In these cases,companies can exclude the p
154、rocesses if they disclose and justify these,based on their degree of significance to the final PCF.Figure 7:General steps for the calculation of a PCFData identificationIdentify all attributable processes and collect primary activity data and emission factors(if not available,use secondary data)Calc
155、ulationCalculate total emissions based on activity data and emission factors(CO2e)per activity dataAllocation(if necessary)Partition emissions among multiple outputs to calculate PCF on product level(CO2e/declared unit)123Section 3.3.1.1 and Section 3.3.1.2Section 3.3.1.3Section 3.3.1.423Pathfinder
156、Framework:Guidance for the Accounting and Exchange of Product Life Cycle EmissionsTo do so,companies can conduct an initial screening of the product to identify all attributable processes and their contribution to the total PCF to understand whether,in the most conservative case,a process may be dee
157、med insignificant(e.g.,via a sensitivity analysis).For this purpose,companies shall only be able to exclude individual attributable processes representing less than 1 percent of the total cradle-to-gate PCF.In aggregate,the sum of excluded processes(in percentage contribution to total PCF)shall be l
158、ess than 5 percent of the total estimated cradle-to-gate PCF emissions.13Should no major product modifications occur,companies can employ the results of the initial screening in future iterations.To justify any exclusions,companies shall provide the percentage of emissions excluded from the PCF as w
159、ell as a description of the excluded attributable processes and the estimation technique used to determine insignificance.3.3.1.3 CalculationGHG emissions arising from a process are determined by multiplying activity data with the relevant emission factor(CO2e per declared unit).The resulting activi
160、ty emissions can then be added to direct emissions,if any,to obtain multi-input/output unit process GHG emissions(Figure 6).Emission factors,used to convert a given amount of activity data into GHG emissions,are not to be mistaken for characterization factors,which in the context of emissions assess
161、ments refer to the 100-year GWP of the GHGs included in the assessment based on a CO2e amount(e.g.,the GWP of methane is 22 kg CO2e/kg).Relevant emission factors can be obtained in two ways:Primary emission factors.Where such emission factors are available directly from suppliers or internal process
162、es,these shall be used(e.g.,blast furnace of gas mix emissions measured directly on site).14 Secondary emission factors.Where no such data is available,secondary sources compliant with the safeguards listed in Section 4.1.3.2 shall be used to find the most suitable emission factors.Please refer to S
163、ection 4.1.1 for a more detailed definition of the different types of emission factors.Example:Case study demonstrating ajustified exclusionConsider a process for which no primary or secondary data is available on material input X.The company estimates that even if material X has the highest possibl
164、e GHG intensity based on a threshold of GHG intensity for proxy data,its impact,based on the total amount present in the product,does not exceed 1 percent of the carbon emissions impact;therefore,the material input is a justified exclusion as long as the total 5 percent threshold including all other
165、 exclusions is not surpassed.24Pathfinder Framework:Guidance for the Accounting and Exchange of Product Life Cycle Emissions3.3.1.4 AllocationIn the context of this guidance,allocation means splitting multi-input/output processes into single output unit processes by using physical,economic,or other
166、criteria to partition the emissions between the product system being studied(also known as the studied product)and one or more other product systems(also known as co-products).15 When outputs include both co-products and waste(i.e.,outputs with no economic value),the emissions shall only be allocate
167、d to co-products.While there are methods to avoid it,allocation is unavoidable in many cases.In the absence of a PCR or sector-specific guidance on allocation rules,companies should allocate the emissions in line with the hierarchy presented by recognized cross-sectoral standards(i.e.,ISO 14067 and
168、the GHG Protocol)and reflected in Table 3.These standards state that companies are to prioritize physical allocation if an underlying physical relationship can be established and is applicable,or to allocate the inputs and emissions based on economic or other established and justifiable relationship
169、s if an underlying physical relationship does not exist or is not applicable(Table 3).However,the flexibility these standards provide means that in many cases it may not be clear whether a physical relationship is applicable or not(see examples on Figure 9,10,and 11).Companies may therefore struggle
170、 to determine if an economic relationship should be prioritized instead.To promote a consistent decision-making process and minimize the room for interpretation,the Pathfinder Framework has developed a cross-industry allocation hierarchy(Figure 8)that companies should follow to increase the consiste
171、ncy and automatization of PCF calculations.Table 3:Allocation methods presented by ISO and the GHG Protocol by order of priorityMethodDefinitionPhysical allocationAllocating the inputs and emissions of the system based on an underlying physical relationship between the quantity of product and co-pro
172、duct and the quantity of emissions generatedEconomic allocationAllocating the inputs and emissions to the product and co-product(s)based on the market value of each when they exit the common processOther relationshipsAllocating the inputs and emissions to the product and co-products(s)based on estab
173、lished and justifiable relationships other than physical or economicSource:GHG Protocol25Pathfinder Framework:Guidance for the Accounting and Exchange of Product Life Cycle EmissionsStep 1:Avoid allocationIn accordance with the LCA International Standard(ISO 14044)and the GHG Product Standard,alloca
174、tion shall be avoided whenever possible by using process subdivision,i.e.,disaggregating the common processes into subprocesses that separately produce the studied product and co-products.The common process needs to be subdivided only to the point at which the studied product and its function are is
175、olated,not to the point that every co-product has a unique and distinct process.16 Step 2:Prioritize PCRs and sector-specific guidanceWhen avoiding allocation is not possible,allocation methods in line with published and accepted sector-specific guidance or PCR fulfilling the quality requirements li
176、sted in Section 3.1.2 shall be prioritized.When more than one PCR exists for a product or product category,priority shall be determined in line with the hierarchy specified in Section 3.1.2.Should no PCR or sector-specific guidelines exist,companies shall apply system expansion via direct substituti
177、on only when companies have“direct knowledge of the function and eventual use of the co-product.”17 This entails defining a dominant,identifiable displaced product and production path for the displaced product for which sector consensus exists.Figure 8:Pathfinder Framework decision-making tree to co
178、nsistently implement ISO and GHG Protocol allocation rulesa.Sector-specific guidance or PCRs shall be used only if compliant with quality safeguards presented in Section 3.1.2,or if approved and required by sector-specific standards aligned to the Pathfinder Framework.b.System expansion via substitu
179、tion should only be used if there is a dominant,identifiable displaced product and production path for the displaced product based on sector consensus.c.If in doubt,mass allocation should be prioritized,but there are instances where other allocation factors may be more suitable(e.g.,liters for liqui
180、ds,energy content for energy).Best-case approachAvoid allocationPrioritize PCRs and sectoral guidanceDetermine ratio of economic valueSelect most suitable allocationStep 1Step 2Step 3Step 4Apply physical allocation based on most suitable physical relationshipcUse economic or alternative allocationIs
181、 process subdivision possible?Apply process subdivisionApprovedaPCRs or sector-specific guidance?Apply economic allocation for co-productsIs there anunderlyingphysical relationship between the co-products?YesNoYes55YesNoFollow PCR or sector-specific guidanceIs there a dominant,identifiable substitut
182、e product?bNoYesNoRatio of the economic value of the co-products?Apply system expansion via substitution26Pathfinder Framework:Guidance for the Accounting and Exchange of Product Life Cycle EmissionsStep 3:Determine the ratio of economic valueWhen allocation cannot be avoided and there are no establ
183、ished product-or sector-specific allocation rules,companies shall calculate the ratio of the economic value of the co-products.To calculate the ratio,the highest value product is placed in the numerator,regardless of whether it is the reference product or not.This ratio is employed in the next step
184、to determine the most suitable allocation approach.The underlying logic is that,in the case of high discrepancy in the market value of product coming from a common process(i.e.,economic value ratio higher than five),the product(s)with significantly higher economic value can be considered the“driver(
185、s)of the process.”In other words,the production would not take place in the absence of the product with the highest economic value.The economic value of products should be calculated based on stable market prices.In case of high year-on-year price fluctuation(i.e.,over 100 percent),companies should
186、use the average market price of products over ideally the last five years,and,if not possible,over the last three years in order to reduce the economic value fluctuations.If market prices are not available,other financial metrics(e.g.,costs)may be used as long as they are justified and transparently
187、 communicated.Step 4:Select the most suitable allocation methodIf the calculated economic value ratio is equal to or lower than five,18 companies should apply physical allocation between the studied product and the co-product(s).That is,allocating the inputs and emissions of the system based on the
188、most relevant underlying physical relationship between the product and co-product.For this,the physical property used as the allocation factor should most accurately reflect the underlying physical relationship between the studied product and co-product.Should no underlying physical relationship exi
189、st,companies shall allocate emissions based on the economic value and amount of each co-product that is produced or based on alternative factors established by the sector,company,academia,or other sources of conventions and norms(Figure 9).Figure 9:Apply system expansion via substitutionExample of p
190、hysical allocation based on massCase study:Factory produces two different clothing garments on equal measure but is unable to perform process subdivision.No PCRs exist.Our studied garment weighs 0.5 kg and has an economic value of$2,while the co-product weighs 1 kg and has an economic value of$3.The
191、re are 10 tCO2e to be allocated.Is process subdivision possible?Apply process subdivisionApproved PCRs or sector-specific guidance?Apply economic allocation for co-productsUse economic or alternative allocationYesNoYes55YesNoFollow PCR or sector-specific guidanceIs there a dominant,identifiable subs
192、titute product?NoYesNoRatio of the economic value of the co-products?32=1.5Is there anunderlyingphysical relationship between the co-products?Yes,massApply physical allocation based on most suitable physical relationshipStudied garment=(0.51.5)10=3.33 tCO2e of factory GHG emissions allocatedCo-produ
193、ct:(11.5)10=6.66 tCO2ePath followed27Pathfinder Framework:Guidance for the Accounting and Exchange of Product Life Cycle EmissionsWhen the calculated economic value ratio is higher than five,companies shall directly apply an economic allocation between the studied product and the co-product(s).That
194、is,allocating the inputs and emissions to the product and co-product(s)based on the economic value and the amount of each that is produced when they exit the common process(see Step 3 for more detailed guidance on how to calculate the economic value)(Figure 10).Figure 10:Example of economic allocati
195、onPath followedCase study:Lobster fishing company has caught significant amounts of fish(by-catch)alongside lobsters during the studied year.When seeking to allocate 500 tCO2e emissions associated with the yearly activity,they account for 10 t of by-catch and 2 t of lobster(our studied product).A lo
196、bsters economic value is$3/t,compared to$0.5/t for the by-catch.Is process subdivision possible?Apply process subdivisionApproved PCRs or sector-specific guidance?Is there anunderlyingphysical relationship between the co-products?Apply physical allocation based on most suitable physical relationship
197、Use economic or alternative allocationYesNoYes55YesNoFollow PCR or sector-specific guidanceIs there a dominant,identifiable substitute product?NoYesNoRatio of the economic value of the co-products?30.5=6Apply system expansion via substitution3232+0.510500=272.7 tCO2eLobster=0.51032+0.510500=227.3 tC
198、O2eBy-catch=Apply economic allocation for co-products28Pathfinder Framework:Guidance for the Accounting and Exchange of Product Life Cycle EmissionsAllocation with more than one co-productIn the case of more than one co-product,the economic value ratio shall be calculated based on the ratio between
199、the highest valued and the lower valued co-product,regardless of whether that includes the studied product.This approach aims to ensure consistency in the allocation followed regardless of which product becomes the studied product.Similar to above,if the difference between the highest and lowest val
200、ued co-products is lower than five,emissions shall be allocated following physical allocation if possible,and economic or alternative allocations if not possible.See Figure11 below for a more visual representation of this process.Regardless of which allocation methods are used to avoid or perform al
201、location,companies shall disclose and justify these,including why the methods and factors most accurately reflect the studied products or co-products contribution to the common process total emissions.Figure 11:Example of allocation with more than one co-productPath followedCase study:Mining company
202、 extracts and sells three products from a single mine.Process subdivision is not possible,and no PCRs are available.Studied products economic value is$500 M/t and has a mass of 1.5t;it has two co-products with values of$10 M/t and 30 t(co-product A)and$400 M/t and 0.5 t(co-product B),respectively.Th
203、ere are 10,000 tCO2e to be allocated.Is process subdivision possible?Apply process subdivisionApproved PCRs or sector-specific guidance?Is there anunderlyingphysical relationship between the co-products?Apply physical allocation based on most suitable physical relationshipUse economic or alternative
204、 allocationYesNo5YesNoFollow PCR or sector-specific guidanceIs there a dominant,identifiable substitute product?Ratio of the economic value of the co-products?50010=50Apply system expansion via substitutionNoNoYes5YesApply economic allocation for co-products5001.55001.5+1030+0.540010,000=6,000 tCO2e
205、Studied product=30105001.5+1030+0.540010,000=2,400 tCO2eCo-product A=4000.55001.5+1030+0.540010,000=1,600 tCO2eCo-product B=29Pathfinder Framework:Guidance for the Accounting and Exchange of Product Life Cycle Emissions3.3.2 Additional guidance3.3.2.1 Accounting for biogenic emissions andremovalsThi
206、s section provides guidance and requirements on how to account for and report biogenic emissions and removals associated with land-based products as part of the PCF.The calculation of all the below metrics shall be done in accordance with internationally recognized methodologies.The methodologies an
207、d resources used to calculate and report on biogenic emissions and removals shall be provided and documented as part of the PCF data exchange form.Please note,2025 has been set as the first mandatory year to report biogenic emissions and removals to give companies enough time to familiarize themselv
208、es with the content.However,companies who consider biogenic emissions and removals to be relevant for their products should include these in the calculations and data exchanged.A.Accounting for direct land-use change(dLUC)emissionsGHG emissions associated with dLUC(allocated to the reference product
209、)shall be calculated and included as part of the PCF and shall also be reported separately as part of the data exchange form.In the case of no value chain and/or data traceability to account for dLUC,companies shall account for statistical land-use change(sLUC)emissions as a proxy for dLUC and follo
210、w the same reporting requirements.B.Accounting for land management emissions andremovalsGHG emissions and removals associated with land-management-related changes should be calculated and included in the PCF and shall also be reported separately as part of the data exchange form.Land management emis
211、sions and removals include all land carbon poolsi.e.,soil organic carbon,dead organic matter,and biomass carbon stocksas well as other non-CO2 emissions related to land management.The following list provides an overview of non-CO2 sources related to land management GHG emissions:CH4 and N2O emission
212、s from livestock,including emissions from enteric CH4 fermentation and manure management Non-biogenic CO2 and N2O emissions from agricultural soils and inputs,including fertilizers,pesticides,and herbicides CH4 and N2O emissions from biomass burning and fires CH4 emissions from rice production Other
213、 CH4,N2O,non-biogenic CO2,HFCs,and PFCs emissions,including emissions from on-site fuel and energy consumption,fuel combustion,air conditioning and refrigerant use,on-site waste or wastewater management,and indirect emissions from purchased energy.If land management emissions and removals are not as
214、sessed,this decision shall be justified in the PCF data exchange form.Box 4:GHG Protocol Land Sector and Removals GuidanceTo enable better and more consistent quantification of emissions related to land use,land-use change,and biogenic products in the value chain,the GHG Protocol is developing the G
215、HG Protocol Land Sector and Removals Guidance.The Guidance provides corporate-level guidelines and requirements on accounting for and reporting biogenic emissions and removals across the value chain.While the guidance focuses on corporate-level accounting,it has clear implications and overlaps with
216、biogenic emissions within product-level accounting(see Section 6.3).Please note that this section of the Pathfinder Framework will be revisited once the Land Sector and Removal Guidance is published to ensure companies are able to consistently report biogenic emissions and removals at both the corpo
217、rate and product level.30Pathfinder Framework:Guidance for the Accounting and Exchange of Product Life Cycle EmissionsC.Accounting for other biogenic emissionsAll other biogenic GHG emissions associated with product manufacturing and transport that are not included above should be calculated and inc
218、luded in the PCF and shall also be reported separately as part of the data exchange form.If such biogenic emissions are not included as part of the PCF,this decision shall be justified in the PCF data exchange form.D.Accounting for the biogenic carbon contentThe biogenic carbon content in the produc
219、t(mass of carbon)shall be calculated and reported separately as part of the data exchange form.E.Accounting for biogenic CO2 withdrawalsBiogenic carbon content in the product converted to CO2e shall be calculated and reported separately as part of the data exchange form.19 F.Accounting for indirect
220、land-use change(iLUC)GHG emissions associated with iLUC emissions may be calculated and reported separately as part of the data exchange form.iLUC emissions shall not be included as part of the PCF.The following table summarizes the requirements specified above,detailing which elements shall be repo
221、rted within the“PCF(incl.biogenic emissions and removals)”metric and which elements shall not be included but may be reported separately.To support transparency,all of the metrics shall also be reported separately,regardless of whether they are included in the PCF or not(Table 4).Table 4:Summary of
222、biogenic emissions and removals data attributes to be included in the PCF data exchange formUnit Included in PCF (incl.biogenic emissions and removals)a Reported separately Mandatory dLUC emissionsKgCO2eYesYesYes,from 2025Land management GHG emissions or removals(incl.non-CO2 sources)KgCO2e Yes Yes
223、Yes,from 2025b Other biogenic emissions(excl.land-use change and land management)KgCO2e Yes Yes Yes,from 2025c Biogenic carbon contentKgNoYesYes,from 2025Biogenic CO2 withdrawalKgCO2eYesYesYes,from 2025 iLUC emissionsKgCO2eNoYesNoa.For the full list of data attributes to be calculated and exchanged
224、as part of the data exchange form,please refer to Appendix B.b.If changes in land carbon pools are not assessed,this decision shall be justified in the PCF data exchange form.c.If such biogenic emissions are not included in the PCF,this decision shall be justified in the PCF data exchange form.31Pat
225、hfinder Framework:Guidance for the Accounting and Exchange of Product Life Cycle Emissions3.3.2.2 Accounting for transportation and distribution emissionsTransportation and storage of products can take place as follows:Internally and as part of direct activities in vehicles and sites owned by the co
226、mpany undergoing the assessment,e.g.,the transportation of intermediate or final products between different sections within the factory or agricultural mobile emissions such as tractors Externally between different tiers in the supply chain in vehicles or facilities owned by third-party companies,e.
227、g.,the transportation of raw materials to the company site(upstream)or transportation of the final product to consumers(downstream).All significant upstream and direct transportation emissions within the cradle-to-gate boundaryi.e.,transportation and storage emissions related to a companys direct ac
228、tivities and distribution activities between tiers in the supply chain relating to the PCFshall be accounted for.For all these activities,only emissions pertaining to the fuel life cycle(well-to-wheel emissions)and the energy consumed by storage facilities shall be included(Figure 12).20To this end,
229、the following data and information should be collected and used:Fuel usage Mode of transportation,such as road or rail Mass of transported product in tons(expressed per unit of analysis)Distance covered Load specifications(if available)Energy consumed by storage facility Area contracted to store ref
230、erence product(incase of third-party storage).Figure 12:Transportation emissions accounted for within the transportation boundary of the Pathfinder FrameworkNot included in Pathfinder Framework boundaryIncluded in Pathfinder Framework boundaryFuel life cycle emissions(well-to-wheel)Emissions related
231、 to:Well-to-tank:upstream fuel production and transportationTank-to-wheel:fuel combustionEmissions related to maintenance of infrastructure for transportation services(e.g.,road or port infrastructure)Infrastructure construction and maintenanceVehicle construction Emissions related to construction o
232、f vehicle transportation equipmentStorageEmissions related to the energy consumed by the storage facilities32Pathfinder Framework:Guidance for the Accounting and Exchange of Product Life Cycle EmissionsA.Accounting for storage emissionsIf material,calculation of storage emissions will be done by mul
233、tiplying the percentage of the total area that is covered by the reference product with the total energy consumption of the storage facility,which in turn will be multiplied by the emission factors associated with the different energy sources used on site(see the formula below).Should no information
234、 be available on the total energy usage of the facilities,companies may use industry benchmarks based on the sites total floor area.B.Accounting for transportation emissionsCalculation of product transportation emissions depends on the availability of data on fuel consumption,mass,distance,and load
235、factor(Figure13).The prevalent unit of measure used for calculation and exchange of logistics emissions is ton-km,reflecting the mass of the shipment(in tons)and distance transported.For further guidance,please refer to the Global Logistics Emissions Council(GLEC)Framework andGHG Protocol standards.
236、Figure 13:Steps for calculating product transportation emissions based on data availabilitya.Emission factors are always per transportation mode and type.Calculate product-specific emission factor(CO2e/t shipped)and apply to mass data to obtain product-specific transportation emissionsCalculate tran
237、sportation emission factora(CO2e/t-km)and apply to mass and distance data to obtain product-specific transportation emissionsObtain relevant emission factor from secondary database and apply to primary mass(and/or distance)data to calculate product-specific transportation emissionsApply emission fac
238、tor to primary mass(and/or distance)data to calculate product-specific transportation emissionsPrimary data for fuel available?Verified emission factor from third party available?YesbaNoYesNoAnd/orAnd/orGHG emissionsstorage=Areaproduct Energy consumptionsite Emission factorenergy typeAreastorage sit
239、e33Pathfinder Framework:Guidance for the Accounting and Exchange of Product Life Cycle Emissions3.3.2.3 Accounting for waste treatment and recycling emissions within the cradle-to-gate boundaryIn alignment with the GHG Product Standard and the International EPD System,responsibility for waste proces
240、sing is placed on the company that generates the waste during the production phase until the waste is returned to nature(e.g.,incinerated)or has reached its end-of-waste state,21 e.g.,is used in another products life cycle(recycled).For each product that generates waste,companies need to determine w
241、hether such waste will be recycled or discarded as waste.If it is discarded,any emissions arising from the treatment of waste during the production process shall be included in the total PCF.Since the Pathfinder Frameworks boundary does not include the end-of-life stage(see Section 3.2),the“recycled
242、 content”or cut-off method of the GHG Product Standard22 should be used for the allocation of emissions from recycling materials.The recycled content method stipulates that companies using recycled material as an input in their production shall account for the emissions from the recycling stage,simi
243、lar to when they account for the emissions of the material they purchase(Figure 14).The cut-off approach should also be used when accounting for waste treatment with energy recovery.Companies following a different approach shall communicate this when exchanging the data to ensure all waste-related e
244、missions are accounted for and allocated among the different value chain players.The cut-off method is preferable as it is applicable to most use cases,including complex supply chains or where the product system includes many recycled material inputs and outputs.23 Additionally,it is recommended for
245、 Scope 3 inventories due to its ease of implementation and consistency with inventory accounting methods and secondary emission factors.24 Finally,the method also prevents emissions from being double counted if a company both purchases and sells recycled products.Regardless of the approach followed,
246、avoided emissions shall not be included in the final PCF.Figure 14:Allocation of waste treatment and recycling emissionsa.Waste and recyclable material streams are not burdened by production impacts(exit burden-free).Direct emissions should be only allocated to main products and by-products(Product
247、1).b.Material that would otherwise have been considered waste.c.Can include preprocessing.Recycling processesRecycledmaterialWaste treatmentProduct 1Material forrecyclingbProduction phaseWasteCompany BCompany ACompany CRecyclablematerial Collection processescEmissions included in subsequent life cyc
248、le stageEmissions from material flows within production phase included in PCF of Product 1a34Pathfinder Framework:Guidance for the Accounting and Exchange of Product Life Cycle EmissionsEmissions from the treatment of waste generated during production shall be allocated to the studied product or co-
249、products following the hierarchy stipulated in Section 3.3.1.4.Since waste is considered an output without economic value,no production emissions are allocated to the actual waste generated during production.The applicable approach to calculating emissions depends on where the waste is treated.A.Was
250、te treated by the company that generates it Emissions shall be calculated using primary activity data regarding the type of waste,its composition,and type of waste treatment activity.Depending on the type of waste treatment(e.g.,landfill or incineration),companies may use waste treatment emission fa
251、ctors calculated based on internal primary data.Internal emission factors should be verified by an independent auditor prior to being used.If no primary emission factors are available,emission factors derived from accepted secondary sources can be employed(Section 4.1.3.2).B.Generated waste sent to
252、a third party for waste treatment Waste treatment facilities should calculate their waste treatment emissions(Scope 1 and 2),develop emission factors,and verify and communicate these to either the company that generated the waste in instances where the waste is not recycled or the company making use
253、d of the recycled material in instances where it is.25 This approach is consistent with the cut-off method detailed above.Alternatively,the waste treatment facility may share primary data via the supplier-specific method.26 This involves collecting certified emissions data from waste treatment compa
254、nies and allocating the corresponding emissions to the products in question(if required)using the same allocation framework used to allocate direct emissions across the products(Section 3.3.1.4).If companies do not have access to primary data from waste treatment facilities,they shall estimate waste
255、 treatment emissions using primary activity data on the waste type and composition and secondary emission factors according to the type of waste treatment and disposal(landfill,incineration,or recycling).The criteria used to determine valid secondary emission factors in Section 4.1.3.2 shall be refe
256、rred to in this context.35Pathfinder Framework:Guidance for the Accounting and Exchange of Product Life Cycle Emissions4.Data integrityOne of the core aims of PACT is to increase the share of quality primary data used to calculate PCFs.4.1 Data sources and hierarchyThis section provides definitions
257、and overarching guidance for the prioritization of data sources and the use of secondary data when primary data is not available.274.1.1 Defining the data hierarchyFor a PCF calculation to take place,two types of data are required:activity data and emission factors.Both of these can be derived from
258、different sources,which this guidance categorizes into primary,secondary,and proxy data.Table 5 presents the definitions that shall be used by companies to determine the nature of activity data and emission factors.One of the core aims of the Pathfinder Framework is to enable the use of high-quality
259、 data for PCF calculations.In line with this ambition,companies are encouraged to directly measure GHG emissions or calculate GHG emissions based on both primary activity data and emission factors(“best case”).However,the use of secondary or proxy data is practically unavoidable,especially in the ca
260、se of missing data or when conducting an initial PCF screening.28 Table 6 shows a hierarchy for data sources that can be used for energy(electricity,heating,cooling)and material inputs.4.1.2 Selecting primary dataCompanies shall prioritize the collection of primary activity and emissions data to cal
261、culate their PCFs(e.g.,by requesting that suppliers report PCFs following Pathfinder Framework requirements).In some cases,further polishing and aggregating the data may be required to refine the emissions estimate.Algorithms may be used to fill in the missing data,or data aggregation may be require
262、d to dampen the effect of revisions,turnarounds,or other atypical production conditions.36Pathfinder Framework:Guidance for the Accounting and Exchange of Product Life Cycle EmissionsTable 5:Data type definitionsData typeActivity dataEmission factorExamplePrimary Site-or supplier-specific data direc
263、tly measured,collected,or calculated(e.g.,engineering estimates)Calculated based on company-owned primary activity data or provided by a supplier for a process under their controlDirect GHG combustion emissions or well-characterized emission factors based on stoichiometry Secondary Data not directly
264、 collected,measured,or calculated based on specific company production data Emission factors derived from secondary sources Default factors,regional industry averages,literature studies,government statistics,financial data,and environmentally extended input-output databases(EEIO)Proxy Extrapolated,s
265、caled-up,or customized data.Data from similar processes used as a stand-in for a specific process,e.g.,based on geography,outdated data Customizing amount of material consumed by a process from another products life cycle Using electricity grid emission factors from one region for another region wit
266、h similar generation mixTable 6:Data hierarchy for energy and material inputsActivity data sourceEmissions factor sourceData typeEnergya MaterialEnergyMaterialBest case In-house/process-based data For on-site production:in-house/primary For purchased electricity:supplier-specific or via a certificat
267、ion mechanism(e.g.,guarantees of origin)b For other purchased energy:supplier-specific or well-characterized emission factors based on stoichiometrySupplier-specific(e.g.,via Pathfinder Network)Best casec In-house/process-based dataSecondary process-based sourcesWorst caseIn-house/spend dataEEIO dat
268、abases and data proxiesa.Electricity,heating/cooling,steam.b.Allowed only if mechanism excludes renewable energy purchased from regional grid mix.c.Prevalent approach in practice.37Pathfinder Framework:Guidance for the Accounting and Exchange of Product Life Cycle EmissionsThe use of modeling tools
269、to estimate GHG emissions is a common practice in many sectors(such as agriculture),where emissions calculation is complex and affected by several interrelated parameters(such as geography,temperature,type of input,and agricultural practice).For the purposes of this guidance,the results of a model t
270、hat uses primary data as an input would also be considered primary.4.1.3 Selecting secondary data4.1.3.1 Activity dataAs displayed in Table 6,activity data that is used to calculate product-level GHG emissions shall always be company-specific.However,this guidance acknowledges that there may be inst
271、ances where company-specific process-based data may not be available(e.g.,where there is no traceability in the value chain).In these instances,companies may resort to using spend-based data and EEIO emission factors for their PCF calculations(“worst case”),bearing in mind this will reflect negative
272、ly in their data quality assessment scores(see Section 4.2.2).4.1.3.2 Emission factorsPrimary emission factors are also not always available.For instance,suppliers may be unable to provide GHG data for a component required to manufacture the product for which CompanyX wishes to calculate a PCF.In su
273、ch scenarios,emission factors from secondary sources should be used(base case).The employment of secondary emission factors shall be compliant with the general quality rules for secondary data sources.To ensure the use of verified and credible secondary emission factors while still allowing for flex
274、ibility in the data sources used,the Pathfinder Framework defines a series of safeguards that secondary emission factors shall comply with if they are to be used for the calculationof PCFs:1.Documentation:Data included in the secondary emission factor shall be validated in line with globally recogni
275、zed LCA principles.29 The emission factor source should ensure transparency by providing information on key methodological(i.e.,LCA modeling approach,aggregation and allocation approach,if any)and data(time period,geography,technology,representativeness)elements.2.Management and maintenance:If life
276、cycle inventory databases are used,they shall be periodically maintained and updated with the latest data sets.3.Choice of modeling:The modeling of the secondary emission factor shall be consistent with the methodological principles of this Framework(e.g.,attributional approach).Companies shall prov
277、ide references to the main sources used for their PCF calculation,including the specific data set used,as part of the data exchange form.Examples of secondary emission factor sources can be found in Table 7 below.4.1.4 Filling in data gapsWhen primary and secondary data are not available,proxy data
278、may be used to bridge minor data gaps(worst case).The selection of proxy data sets is usually based on the knowledge and experience of the LCA practitioners and the subject matter expert for that sector or product category.30Box 5:Market-based approachesFurther work is ongoing to understand the appl
279、ication of market-based approaches(e.g.,purchases of carbon credits,value chain interventions,mass-balance certification,book-and-claim certification)in company and product GHG inventories.The aim is to standardize the accounting methodologies,reflected in the GHG Protocols update to corporate,Scope
280、 2,and Scope 3 standards.PACT will revisit the use of market-based mechanisms when further evidence from ongoing review of the accounting standards emerges.38Pathfinder Framework:Guidance for the Accounting and Exchange of Product Life Cycle Emissions4.2 Data reliabilityThis Framework introduces two
281、 metrics to track,report,and improve data quality,as well as increase the use of primary data.By managing these metrics,companies can assess and improve the overall quality of PCF calculations.4.2.1 IntroductionInitially,companies shall calculate and report,as part of PCF data exchange,on at least o
282、ne of the following metrics:Primary Data Share(PDS).Percentage of PCF emissions that were calculated using primary activity and emissions data(Section 4.2.1)Data Quality Ratings(DQRs).Quantitative score for five data quality indicators based on the data quality matrix(Section 4.2.2)From 2025,both me
283、trics shall be reported by companies to ensure continued alignment with the Pathfinder Framework.This will ensure a fuller picture of both the quality of the PCFs and the amount of primary data being used to calculate them.Until 2025,companies should base their initial choice of metric(s)on the rele
284、vance to their situation and resources available.For instance,a company calculating a PCF for the first time may not have access to a large amount of primary data and may wish instead to reflect on the accuracy of the secondary sources used to calculate its PCF.4.2.2 Primary Data ShareTo create visi
285、bility on the share of primary data in PCF calculations,the PDS in each data set should be determined and exchanged across the value chain.This can be done by calculating the proportion(percentage)of the total GHG emissions(CO2e)that is derived using primary data:In order for an input to be consider
286、ed primary data,both the activity and emission factor shall be compliant with the primary data definitions included in Table 5(see a clarifying example below,Table 8).In order for the upstream emissions PDS to be greater than 0,companies would need to request PCFs and their corresponding PDS from th
287、eir suppliers.Should PDS for relevant components be obtained from upstream suppliers(tier n-1),the total PDS of the PCF should be calculated using a weighted average approach of the material and energy inputs based on their GHG contribution to the studied products PCF.To do so,the individual PDSs re
288、ceived from every input supplier(PDSPCFcomponent 1 and PDSPCFcomponent2)as well as other components,such as energy inputs or direct emissions from Part of PCF based on primary data(CO2e)=PDSPCF(%)PCF(CO2e)Table 7:Examples of secondary emission factor databases accepted under the Pathfinder Framework
289、DatabaseSectorLinkEcoinventAllhttps:/www.ecoinvent.org/GaBi(thinkstep)Allhttp:/www.gabi- GLEC databaseTransportationhttps:/www.smartfreightcentre.org/en/downloads/Official national emission factor databasesAll E.g.,US EPA database:https:/cfpub.epa.gov/ghgdata/inventoryexplorer/PEF All https:/www.ope
290、nlca.org/product-environmental-footprints-pefs-in-openlca/UNEP Global LCA Data Access NetworkAll https:/www.globallcadataaccess.org/39Pathfinder Framework:Guidance for the Accounting and Exchange of Product Life Cycle Emissionsproduction,should be multiplied by their respective relative contribution
291、(in percentage)to the PCF emissions.All weighted PDS components should then be added up to obtain an overarching PDS(PDSPCFproduct)(Figure 15).Table 8:Example of calculation of PDSComponent Data input,kWh Activity data source Emission factor,kgCO2eEmission factor sourceTotal,kgCO2e PCF Total PDS PDS
292、PCF component 110,000Primary0.19Primary1,90042%42%PDSPCF component 310,000Secondary0.18Secondary1,80038%0%PDSPCF component 35,000Primary0.18Secondary90019%0%4,60042%Note:For the purpose of this example,please note that Component 1 is considered to have a PDS of 100%,since both the activity and emiss
293、ion factor data come from primary sourcesFigure 15:Calculation of PDSCompany APDSPCF component 2%PDSPCF component 1%PDSPCF product%Formula to calculate PDSPCF productPDSPCF productRelative emission contribution to PCF,%PDSPCF component 2PDSPCF component 1Relative emission contribution to PCF,%Weight
294、ed PDS components,%Company DCompany BCompany C40Pathfinder Framework:Guidance for the Accounting and Exchange of Product Life Cycle EmissionsTo help increase transparency on primary data use,the overarching PDS(PDSPCF product)should be exchanged downstream(tier n+1)together with the PCF.The inclusio
295、n of an explanation for the share of primary data is thus encouraged,with the objective of helping businesses support each other in understanding the nature of the exchanged data and promoting an increase in the amount of primary data flowing through the system.This process will contribute to more a
296、ccurate PCFs.4.2.3 Data quality assessmentWith companies able to calculate their PCFs using several data types,data quality assessments provide data users with a better understanding of the overall integrity of the data and the resulting PCF.Additionally,understanding the quality of the data allows
297、companies to identify key secondary data sources that should be improved or replaced with primary data in order for companies to be able to track the impact of emissions reduction plans more accurately.Once the GHG calculations for the PCF have been completed,companies undergoing the data quality as
298、sessment shall calculate a DQR for the following five indicators,defined in line with the GHG Protocol guidelines:Technological representativeness.The degree to which the data reflects the actual technology(ies)used in the process.31 Geographical representativeness.The degree to which the data refle
299、cts the actual geographic location of the processes within the inventory boundary(e.g.,country or region).32 Temporal representativeness.The degree to which the data reflects the actual time(e.g.,year)or age of the process.33 Completeness.The degree to which the data is statistically representative
300、of the process sites.Reliability.The degree to which the sources,data collection methods,and verification procedures used to obtain the data are dependable.By adapting the data quality assessment matrix proposed by the GHG Protocol,subjectivity in the assessment will be minimized and a more clear-cu
301、t distinction across all levels ensured.The quality levels against which each indicator shall be assessed are 1Good,2Fair,and 3Poor(Table 9).This matrix shall be used by companies to derive quantitative DQRs for each of the indicators.Companies shall include in the assessment any contribution that r
302、epresents at least 5 percent of the overall PCF.To facilitate clarity and transparency,companies shall report the ratings of each data quality indicator separately.If a company produces the studied product in more than one site,it shall define the DQRs using the weighted average of production volume
303、s of the respective sites.Table 9:Streamlined version of GHG Protocol data quality assessment matrixData quality indicators1 Good2 Fair3 PoorTechnological representativenessSame technology Similar technology(based on secondary data sources)Different or unknown technologyTemporal representativenessSa
304、me reporting year Less than 5 years old More than 5 years old Geographical representativenessSame country or country subdivisionSame region or subregion Global or unknown Completeness Activity data collected for all relevant sites for specified period Activity data collected for 50%of sites for shor
305、ter periodActivity data collected for 10%3 years or earlier if variance 10%AnnualEvidence pack guidanceCompanies should use guidance around evidence consolidation(see Appendix D)to facilitate and streamline the assurance processPhased-in approach for SMEsAll requirements above identically apply to S
306、MEs but with a 2-year time lag to allow for capacity building46Pathfinder Framework:Guidance for the Accounting and Exchange of Product Life Cycle Emissions5.3.3 CoverageThe coverage of the assurance and verification defines the type and level of GHG data to be assured(e.g.,corporate level,product l
307、ine level,or PCF level).Short termCompanies shall assure emissions data at the corporate level.Assurance on a more product-specific level,such as product line or product level,isdesirable but not required.Medium term Companies shall assure PCFs are aligned with Pathfinder Framework requirements:At t
308、he product-line level,where the PCF of a representative product is assured By verifying the underlying methodology used by a system(e.g.,software)for the purpose of PCF calculationThe rationale behind these options is to approach and build capabilities around product-level assurance without requirin
309、g product-specific assurance directly.Figure 18 below gives an overview of the definitions and steps that companies shall comply with when following either of these approaches.Please note that companies may still need to verify specific PCFs at the product level if regulations or customers require i
310、t.Long termIn the long term,companies shall follow the same requirements as in the medium term.Figure 18:Assurance coverage options in the medium termStep 2Step 3Step 1Option B:PCF calculation systemCalculation tool applicable across products used by companies to convert raw data inputs into a final
311、ized PCFOption A:product lineRepresentative product sharing key characteristics with group of products(e.g.,purpose,materials,or manufacturing process)Assure RP following Pathfinder Framework requirementsAssure whether the tool(s)calculate(s)company PCFs following Pathfinder Framework requirementsPi
312、ck representative product(RP)by defining the product line it represents based on the above definitionDefine what constitutes the PCF system,i.e.,whether there is only one software tool or several interconnected toolsUse assurance statement of RP as proof of verification for any product within produc
313、t line,provided explanation on representativeness is givenUse assurance statement of PCF system as proof of calculation being aligned with Pathfinder Framework.Communicate data inputs have not been assured47Pathfinder Framework:Guidance for the Accounting and Exchange of Product Life Cycle Emissions
314、5.3.4 ConformanceThe assurance process verifies whether emissions data output was calculated according to methodological rules.The conformance of the assurance defines adherence to which standard is verified,i.e.,which methodological standards serves as the reference.Short termCompanies may use any
315、recognized standard included in Appendix C has the basis for corporate-level assurance.Companies wishing to go beyond the minimum coverage requirements of this guidance and assure on a product-specific level may use any recognized standard as the basis for assurance.Medium termCompanies should use t
316、he Pathfinder Framework as the methodological basis for assurance and verification.Please note that,in line with the standards hierarchy established in Section 3.1,companies may be required to calculate certain PCFs following PCR or sector-specific guidelines.In those cases,conformance with the PCR
317、or sector specific methodology shall be followed.To the extent possible and relevant,conformance with the Pathfinder Framework is encouraged,but not required.Any PCR or sector-specific methodology or standard used shall be publicly disclosed and referenced in the assurance and verification process a
318、s well as in the data exchange information to ensure downstream users of the information have a complete understanding of the conformanceofthe PCF.Long termCompanies shall follow the same requirements as in the medium term.5.3.5 BoundaryThe boundary of the assurance and verification,asits name sugge
319、sts,defines the boundary of life cycle stages included in the assurance process.While the PCFs exchanged under the Pathfinder Framework are cradle-to-gate footprints,the boundary of the assurance and verification of the PCF can be broader,narrower,or equal to the boundary ofthe PCF.Short termCompani
320、es shall assure their gate-to-gate emissions.This requirement is,in part,a consequence of the initial corporate-level coverage requirement(see Section 5.3.3).In the context of this guidance and in line with the corporate-level coverage requirement,gate-to-gate emissions on the company level are cons
321、idered to be equivalent to Scope 1 and Scope 2 emissions,as defined by theGHG Protocol.Medium termCompanies shall ensure that the entire cradle-to-gate footprint of PCFs has been verified,i.e.,the entire footprint up to the point where it is passed on downstream(see Figure 5).Long termCompanies shal
322、l follow the same requirements as in the medium term.5.3.6 Level of assuranceThe level of assurance defines the degree of confidence in the assurance statement.Box7 provides further context on assurance levels.34Short termCompanies are required to conduct limited assurance.Medium termCompanies shall
323、 follow the same requirements as in the short term.Long termCompanies shall conduct reasonable assurance to fulfill the requirements of this guidance.48Pathfinder Framework:Guidance for the Accounting and Exchange of Product Life Cycle EmissionsBox 7:Assurance levelsWhy?To ensure all stakeholders un
324、derstand the degree to which emissions disclosures have been verified.The goal is to enable:Companies to plan the assurance process and depth of verification they desire Assurers to prepare the verification according to standardized practices External stakeholders,such as downstream companies,to und
325、erstand the reliability of the reported dataWhat?There are two assurance levels commonly used in emissions disclosure assurance:Limited level.The conclusion of a limited level of assurance is framed in a negative sense,indicating that the assurer did not find any evidence that the emission disclosur
326、es contain any material misstatement based on the applicable criteria.Reasonable level.The conclusion of a reasonable level of assurance is framed in a positive sense,indicating that,according to the assurer,the emission disclosures have been prepared according to the applicable criteria in all mate
327、rial aspects.Table 11 provides an additional overview of the different characteristics of the two levels.How?Companies should define which level of assurance they are going to seek before an assurance engagement,in line with the requirements set by this guidance.The assurance provider may suggest ad
328、justments if they believe the desired level will not be feasible(provided that the minimum requirements of this guidance aremet).Table 11:Assurance levels comparisonDimensionLevelAspectsLimited assuranceReasonable assuranceOpinion statements Negative“Nothing has come to our attention that the assura
329、nce statement does not conform with the Pathfinder Framework and contains material misstatements”Positive“In our opinion the disclosure conforms with all Pathfinder requirements and is fairly stated in all material aspects”ApplicationCommonly used for nonfinancial disclosuresCommonly used in financi
330、al disclosuresProcess Limited in Scopedifferent or fewer checks than reasonable assuranceGreater sampling at a greater depth and comprehensiveness49Pathfinder Framework:Guidance for the Accounting and Exchange of Product Life Cycle Emissions5.3.7 ProviderThe provider of the assurance is the entity t
331、hat verifies the emissions data.When the reporting company also performs the assurance,this is known as first-party assurance.When a party other than the reporting company performs the assurance,this is known as third-party assurance.35Companies shall choose an independent third party to conduct the
332、 verification process.While first-party quality controls and plausibility checks are encouraged,they do not suffice to fulfill the assurance requirements of this guidance.Companies may choose any qualified assurance provider,as long as the provider meets the expertise requirements to conduct an assu
333、rance engagement.Proof of such expertise may include previous assurance engagements around PCFs,industry-specific knowledge,and technical capabilities in carbon accounting.Section 5.6.2 provides additional details on criteria to consider when selecting an assurance provider.5.3.8 Process cycleThe process cycle defines the validity period of the assurance statement(e.g.,one year or more).Short term