What do you think would happen if a customer asked for information about CO2footprint of your product? Would you have that data at your fingertips in a flash? Or would you first have to painstakingly compile it from various Excel files and departments?
If you don’t have the figures ready, your chances of winning the contract are slim. Because while you’re still busy searching for information, your competitors will have already delivered.
Yet it could be so simple: After all, most of the data needed to calculate the Product Carbon Footprint (PCF) is stored in your ERP system. How the ERP system uses bill of materials and process data to calculate CO2footprint of a product.
That’s why a product’scarbon footprint is now crucial
- Rising Market and Customer Expectations
More and more customers—especially large OEMs and international partners—are demanding transparent and reliableCO2 data throughout the entire supply chain. Those who fail to provide this information are quickly excluded from bids or removed from supplier lists. - Sustainability as a New Competitive Factor
Sustainability in production has long since ceased to be merely a matter of image. Rather, it is now a clearly measurable differentiator. Companies that actively communicate theircarbon footprint position themselves as preferred partners. - Regulatory Developments
With initiatives such as the Corporate Sustainability Reporting Directive (CSRD) and the Digital Product Passport (DPP), legal requirements for transparency and traceability are increasing. Companies must prepare to collect emissions data in a structured manner and disclose it regularly.
Changes like these in the market environment naturally create increased pressure at first. But look at it positively: If you’re well-prepared for the Product Carbon Footprint, you can respond more quickly to inquiries and build trust with customers. That, in turn, leads to better positioning in a highly competitive market environment.
Carbon Footprint: Definition of Product Carbon Footprint
The term “Product Carbon Footprint” (PCF) refers to all greenhouse gas emissions generated throughout a product’s life cycle—from raw material extraction through production to use and disposal. It thus illustrates a product’s carbon footprint and highlights the largest sources of emissions. Based on the PCF, it is possible to identify opportunities for optimization, reduce costs, and drive innovation.
In contrast, the Corporate Carbon Footprint (CCF) looks at a company’s total emissions. So while the PCF provides detailed information at the product level, the CCF offers an overview at the organizational level.
Calculate a Product’sCarbon Footprint—Easily via ERP
That is why the ERP is the ideal foundation for PCF calculations
To calculate the Product Carbon Footprint (PCF), you first and foremost need one thing: reliable, up-to-date, and complete data on materials, suppliers, processes, and energy consumption.
An ERP system provides you with exactly this information—for the following reasons:
- The ERP system serves as a central data hub
All relevant company data converges in the ERP system—from purchasing to production to logistics. This centralized structure provides the ideal foundation for consistent and scalable PCF calculations. - All relevant data is already available
Parts lists (also known as bills of materials, or BOMs for short), work plans, and energy and supplier data form the very foundation you need to calculate emissions. - No additional maintenance is required
Since the necessary data is available in the ERP anyway, there is no parallel data maintenance process. This avoids duplicate work and reduces sources of error at the same time. - Automatic Update
If materials, suppliers, or process steps change, the underlying data in the ERP system is updated—and with it, the calculated PCF. This ensures that the results are always up to date without any manual effort.
How the PCF Calculation Works in ERP
- Data Integration
First, all relevant data from bills of materials, processes, and the supply chain is linked together. - Addition of emission factors
The data is supplemented with emission values that come either from suppliers or from the database. - Calculation in the ERP
The ERP system provides theCO2 value per item—similar to how prices or production costs are calculated. - Reliable Results
As a result, you receive transparent, reproducible figures for quotes, reports, and customer statements.
The Most Important ERP Data Sources for PCF Calculations
| ERP Data Source | Contents | Contribution to the PCF |
| Bill of Materials (BOM) | Materials and Components | Determination of Material-Related Emissions |
| Work plans | Manufacturing Steps and Processes | Calculation of Process-Related Emissions |
| Supplier Information | Origin and Partners | Inclusion of Indirect Emissions |
| Energy Consumption | Electricity, gas, or heat requirements per process | Calculation of Energy-Related Emissions |
CalculatingYour Carbon Footprint: A Practical Example
So far, this may all sound very theoretical and not entirely tangible. That’s why we’ve illustrated how to calculate the Product Carbon Footprint with a concrete example in our detailed Whitepaper.
The calculation uses actual data to show how the ERP system reduces CO2footprint of an electric motor. It also quickly becomes clear why each product can have very different PCF values depending on the material and supplier.
The Digital Product Passport is Coming: Get Ready Now!
The introduction of the Digital Product Passport (DPP) is inexorably approaching: It will be mandatory for certain product groups as early as 2027, and by 2030, it is expected to be mandatory for nearly all consumer and industrial products in Europe.
Key components of the DPP are:
- Environmental and sustainability data (e.g., Product Carbon Footprint)
- Material Composition and Origin
- Repairability and Recyclability
- Supply Chain and Production Information
So, in the not-too-distant future, your company will need reliable, digitally accessible data onits carbon footprint. This is the only way you can meet the DPP’s requirements. Manually maintained data stored in isolated data silos is no longer sufficient.
According to the IW Future Panel, however, by the end of 2024 only 4% of German companies had taken steps to prepare for the introduction of the DPP. There’s no need for this hesitation: As outlined above, your ERP landscape provides the perfect foundation for a DPP-compatible data structure. This is because all the information needed for a detailed PCF calculation converges here. Therefore, make sure to address all necessary technical, organizational, and strategic adjustments well in advance.
That’s why it’s worth calculating yourcarbon footprint
We know that rules and regulations can be a major burden for businesses. But don’t forget: The PCF calculation also yields significant business value for your company—value that should not be underestimated. So, let’s conclude by taking another look at the positive aspects of thecarbon footprint.
- Faster Quotation Processes
Thanks to existing PCF data, you can respond to inquiries without delay. This allows you to impress your customers with fast response times. - Greater Credibility
Transparent and traceable emissions data strengthen the trust of customers and business partners. Your company positions itself as a forward-looking player. - Identifying Opportunities for Cost Savings
Since the PCF analysis reveals emission drivers, you can implement targeted cost- and CO₂-reduction measures. - Increased innovative strength
By creating the basis for sustainableproduct and process optimization, PCF data creates new approaches in development and procurement. - Strategic advantage
Companies with established PCF structures are not only optimally prepared for regulatory requirements. They also differentiate themselves positively from competitors.
Conclusion: With yourcarbon footprint, you’re on the winning side
The carbon footprint of products is more than just a regulatory requirement—it’s becoming a real competitive advantage. You can calculate it very easily with a well-designed ERP system. Since most of the necessary data is already available in the ERP, the software can handle the calculation for you virtually at the push of a button.
However, it is important that you start addressing the PCF early on. This will not only give you confidence regarding upcoming requirements, but also allow you to benefit from numerous advantages that will boost your business. The result: better market positioning and, consequently, greater security for the future.
Whitepaper on Product Carbon Footprint
Get detailed instructions on how to calculate the PCF, including a clear example calculation and a checklist for PCF readiness.
