European Commission Launches Green Products Initiative

 
The European Commission is proposing EU-wide methods to measure the environmental performance of products and organisations, and encouraging Member States and the private sector to take them up.

Currently, companies wanting to highlight the environmental performance of their products face numerous obstacles including the need to choose between several methods promoted by governments and private initiatives. As a result, these companies may be forced to pay multiple costs for providing environmental information and consumers are faced with confusion resulting from excessive labelling that makes products difficult to compare.

For example, a company wishing to market its product as a green product in France, UK and Switzerland would need to apply different schemes in order to compete based on environmental performance in the different national markets. In France, it would need to carry out an environmental assessment in line with the French method (BP X30-323); in the UK, it would need to apply the PAS 2050 or the WRI GHG Protocol; and in Switzerland, it would need to apply the Swiss approach which is currently under development.

According to the latest Eurobarometer on Green Products, 48 % of European consumers are confused by the stream of environmental information they receive, which affects their readiness to make green purchases.  A number of industrial groups have called for a pan-European approach built on EU-wide science-based assessments and Life Cycle Analysis.  This is because of concerns that multiple initiatives at Member State level would run contrary to Single Market principles, confusing consumers and increasing costs for industry.

To address these problems, the European Commission has launched the Single Market for Green Products initiative, which proposes the following actions:

  • establishing two methods to measure environmental performance throughout the lifecycle – the Product Environmental Footprint (PEF) and the Organisation Environmental Footprint (OEF);
  • recommending the use of these methods to Member States, companies, private organisations and the financial community through a Commission Recommendation;
  • announcing a three-year testing period to develop product- and sector-specific rules through a multi-stakeholder process;
  • providing principles for communicating environmental performance such as transparency, reliability, completeness, comparability and clarity; and
  • supporting international efforts towards more coordination in methodological development and data availability.

The three-year testing period will be launched soon. An open call for volunteers will be published by the Commission on the Product Environmental Footprint and the Organisation Environmental Footprint sites, inviting companies, industrial and stakeholder organisations in the EU and beyond to participate in the development of product-group specific and sector-specific rules. On these sites, some preliminary information is already available about the objectives and expected timing of the test. For more information, please see this link.


 

New GHG Standards for Corporate Value Chain and Product Life Cycle Released

 
On October 4, 2011, the Greenhouse Gas Protocol launched two new standards that will enable businesses to better measure, manage, and report their greenhouse gas (GHG) emissions. Developed by the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD), the Corporate Value Chain (Scope 3) and Product Life Cycle Standards are aimed at saving money, reducing risks, and gaining a competitive advantage for companies. These new standards were created in response to businesses that want to better understand and measure their climate impacts beyond their own operations. By using these new standards, companies will be able to create better products and improve efficiency throughout the value chain.

Corporate Value Chain (Scope 3) Standard

The Corporate Value Chain (Scope 3) Standard is designed as a first tool that companies can use to assess their entire value chain impacts and to identify opportunities for them to make more sustainable decisions about their activities and the products they produce, buy and sell. In particular, the new standard provides a harmonized global methodology for businesses to measure corporate value chain and product GHG emissions, which will help drive strategic business decisions regarding GHG reductions. Total corporate emissions often come from Scope 3 sources (i.e. indirect emissions that occur in the value chain, including both upstream and downstream emissions), which means that many companies have been missing out on significant opportunities for improvement. Users of the new standard can no account for emissions from 15 categories of Scope 3 activities. The Scope 3 framework also supports strategies to partner with suppliers and customers to address climate impacts throughout the value chain. As a result, both large and small companies can look strategically at GHG emissions across their value chain and focus limited resources in order to yield the biggest impacts.

Product Life Cycle Standard

The Product Life Cycle Standard is a tool to help users understand the full life cycle emissions of a product and focus efforts on the greatest GHG reduction opportunities. The new standard covers raw materials, manufacturing, transportation, storage use and disposal, and is aimed at facilitating the improvement and design of new products. The results can create competitive advantage by enabling better product design, increasing efficiencies, reducing costs and minimizing risks. In addition, the new standard will help companies respond to customer demand for environmental information and make it easier to communicate the environmental aspects of products. Like the Corporate Value Chain Standard, the Product Life Cycle Standard represents a globally consistent approach to measure and manage GHG emissions.
 

The new standards are available in our link section.