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Guide to assess a commercial product’s sustainability

White paper 70

Executive summary

As more companies and consumers seek to reduce and report on their environmental footprint, vendors are responding with claims of environmentally sustainable products. Assessing the environmental sustainability of a product is complex and claims are difficult to ascertain without knowing the underlying assumptions and standards upon which they are made. This guide explains international standards for product environmental labels and declarations that help with product assessments. We then discuss how to read a product’s environmental declaration document that helps quantify its sustainability performance. Finally, we provide guidance for how to accurately assess the environmental sustainability of similar products, providing confidence that your buying decisions are in fact reducing your organisation’s environmental footprint.

Introduction

Company leaders, sustainability departments, and procurement departments are striving to improve and report on the environmental sustainability of their businesses. The products and services a company buys play an important role in the company’s environmental sustainability goals in terms of its Scope 1, 2, and 3 CO2e emissions. Consequently, manufacturers are responding with claims of environmentally sustainable products. Assessing the environmental sustainability of a product is complex and claims are difficult to ascertain without knowing the underlying assumptions and standards upon which they’re made. This has led to questionable advertisements and claims of “green” products known as “greenwashing”, as illustrated further in Figure 1. Unfortunately, this practice can undermine a decision-maker’s confidence that the product they’re buying is, in fact, lowering their environmental footprint (see end notes 1 to 4). While there are other environmental impacts like water use and contribution to mineral resources depletion, this guide focuses mainly on carbon emissions as a means of assessing a product’s environmental sustainability. Different types of products are assessed differently in this regard, therefore, this guide relates specifically to electrical and electronic equipment (EEE) and heating, ventilation, and air conditioning (HVAC) products.

Also in this guide, we describe international standards for product environmental labels and declarations that help with product assessments. We then explain how to read a product’s environmental declaration document that helps quantify its sustainability performance. Finally, we provide guidance on accurately assessing the environmental sustainability of similar products, giving you confidence that your buying decisions are truly reducing your organisation’s environmental footprint.

The image of a green earth symbolises a green product claim (i.e., it’s good for the planet), but under the surface the product is not green (i.e., it’s filled with plastic). Advertisements with claims that are too good to be true, are overstated, or misguided are likely examples of greenwashing.

Standards that help with product assessments

Product manufacturers have a significant impact and influence on a product’s environmental footprint. There are different ways a manufacturer can improve their product’s environmental footprint throughout the product lifecycle, including end-of-life. For example, a manufacturer could purchase renewable energy to run its factories, design products to use less plastic and metal, use smaller and more efficient components like wide-bandgap semiconductors, produce packaging from recycled materials, offer take-back programmes for end-of-life products, and many other practices. The question becomes: how does someone assess and validate that one product is more environmentally sustainable than another? The answer lies in environmental labels and declarations and their underlying globally recognised standards.

The International Organisation for Standardisation (ISO) is one of the most recognised standards bodies in the world. In the manufacturing industry, it's well known for its ISO 9000 quality management standards. Similarly, in the environmental community, it's known for its ISO 14000 environmental standards. These standards provide the basis for understanding the environmental sustainability labels a manufacturer applies to its products. In this paper, we describe three pertinent labels:

How to read a PEP

While all EPDs provide similar information, the templates vary by programme operator. Therefore, in this section, we focus on PEPs from programme operator, the P.E.P. Association. The PEP typically starts with a picture and description of the product, followed by detailed information for a particular model. The key information needed for a product comparison is usually presented in the following order:

Guidance for accurate product comparisons

A sustainability comparison makes sense only after developing a list of products that meet your functional requirements. For example, in the case of a UPS, requirements may include runtime, capacity, size, power factor, etc. Once you have a list of products, then you can quantitatively compare their environmental characteristics. The most effective way to do this is to compare their PEP data. A key theme in this section is the concept of comparing “apples to apples”. For example, it’s quite easy to mistake a very inefficient transformer as the most sustainable when looking only at its total carbon footprint.

How to ensure a valid comparison

While the ISO standards provide the basis for LCAs and EPDs, they don’t eliminate manufacturer mistakes or ensure valid comparisons. Therefore, end users must be vigilant when comparing PEPs for two or more products, especially if they’re from different manufacturers. In this section, we list the common errors people make when comparing the carbon footprint of two or more products. Note that while we focus on carbon, these mistakes tend to apply to other environmental impact indicators.

Other criteria to assess

The following criteria are more difficult to assess and compare across similar products. However, having some of this information will aid the buyer in their final purchase decision.

Request for proposal (RFP) requirement

Companies looking to add sustainability requirements to their procurement processes are challenged with collecting environmental data from their suppliers. Many manufacturers will not have this information available. Other manufacturers may have some information available but in an unstructured way. Eventually, manufacturers will make their products’ environmental sustainability data transparent and available online. However, purchasing departments can expedite this by making PEPs (and EPDs in general) a required part of their RFP process (see end note 10). While processes vary from company to company, the requirement to submit a PEP not only enables you to perform a quantitative environmental sustainability comparison, but also signals that the manufacturer is serious about environmental sustainability.

Schneider Environmental Data Programme

The Environmental Data Programme by Schneider Electric is how we categorise, measure, and compare the environmental attributes and footprint of our products. It builds on the legacy of our Green Premium programme using a science-based methodology that provides transparent access to different types of environmental data for all Schneider products.

Conclusion

While there are other environmental impacts, like contribution to mineral resources depletion, this guide focuses mainly on carbon emissions as a means of assessing a product’s environmental sustainability. Type III labels, i.e., environmental product declarations (EPDs), are a key tool to quantitatively assess a product’s environmental impact. These documents are based on ISO standards and have been validated. Manufacturers must not only make product environmental data readily available to their customers but also make it easy to understand, since EPDs are generally overcomplicated and difficult to follow. Furthermore, manufacturers should provide transparency in the assumptions and standards used for formulating carbon footprints and other product environmental indicators. In addition to Type III labels, Type I labels are third-party verified and useful for specific performance measures like energy efficiency. Type II labels are self-declared but can be helpful if the manufacturer provides the underlying documentation which provides its credibility.

While EPDs are meant to be standard, they can vary from manufacturer to manufacturer and product category to product category. A product environmental profile (PEP) is a version of an EPD for use with electrical and electronic equipment (EEE) and HVAC products that follow specific product category rules (PCRs). The PEP sheet should include the product’s name, weight and function, and important environmental impact indicators including “contribution to global warming”, which is the carbon footprint for 5 stages of the lifecycle: manufacturing, distribution, installation, use, and end of life. When comparing products, it’s tempting for consumers to just compare the total carbon footprint, but that is not always an accurate apples-to-apples comparison. We recommend that consumers compare each of the 5 lifecycle stages and look out for differences in emission factors, use profiles, components included, evidence of claims, and definitions.

Schneider Electric has decided to go one step further by launching the Environmental Data Programme. This programme goes beyond carbon data and develops environmental transparency, allowing customers to make even more informed choices.

End notes

[1] FashionUnited, 42 percent of companies exaggerate sustainability claims, says new report, 2/2021

[2] Adweek, Brands Hit With Guidelines to End Greenwashing Amid Consumer Scepticism on Sustainability, 4/2022

[3] The Intercept, Bottled Water Giant BlueTriton Admits Claims of Recycling and Sustainability Are “Puffery”, 4/2022

[4] TFL, H&M is Being Sued Over “Misleading” Sustainability Marketing, Product Scorecards, 7/2022

[5] A product category can have only one programme operator.

[6] ISO 14025:2006 Environmental labels and declarations – Type III environmental declarations – Principles and procedures

[7] This applies to business-to-business products only

[8] An emission factor is the rate of carbon emissions per MWh of electricity generated. Multiplying this factor (kg CO2e/MWh) by the energy used (MWh) results in the total CO2e emissions.

[9] M. Bach & L. Breuer, An institutional analysis of EPD programmes and a global PCR registry, 2014, p.1

[10] While this white paper focuses on environmental sustainability, the RFP process should also account for social and governance (ESG).

Download this white paper

White paper 70, Guide to assess a commercial product’s sustainability by the Energy Management Research Centre

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