Carbon emissions are increasingly taking a key position in organizations’ suppliers, materials and product selection processes. In the past, a purchase order generally would list requirements only of price, quality, and volume and timeframe (delivery times, etc.), whereas at present buyers may request from suppliers an indication of the Carbon Footprint of a product, as part of the RFQ.
This is where a Carbon Label comes into place. A Carbon Label indicates the overall GHG emissions attributed to a product or service, and can facilitate manufacturers/exporters to respond to modern RFQ or customers’ specifications.
In this blog, we will talk about Carbon Labels Explained: Why Your Next RFQ Might Ask for One.
What is a carbon label?
A carbon label is information written on a product, package or on product literature that indicates the carbon footprint of the product or process. The product footprint is typically calculated in kilograms or tons of CO2 equivalent (COe) and may include emissions at every stage of a product’s lifecycle, from the extraction of raw materials to the manufacturing, transportation, use and disposal of the product.
An example of calculation would be a supplier of packaging providing data on one tonne of the production of cardboard packaging. The figures can then be given to a consumer in support of an environmental profile of the packaging supplier.
A carbon label does not have to mean the product itself has no emissions associated with it, but is a way of attributing and informing about the climate impact of a product.
Why are we seeing more calls for carbon labels?
Companies, especially large ones retailers and brands, are facing pressure and commitments to measure and reduce environmental impacts, and emission-reduction goals are being adopted across supply chains.
Since each individual supplier will impact the total company emissions, buyers want to achieve better environmental information from their suppliers.
This can be reflected in RFQs asking questions like:
- What is the product carbon footprint?
- Do you offer product emissions data?
- Are you able to supply a PCF (Product Carbon Footprint)?
- What emission data can you provide regarding raw materials?
- Has your methodology been validated by a third party?
- What share of recycled content can you provide?
The questions raised by buyers are moving from optional sustainability add-ons to integrated purchasing-related requirements for suppliers.
Carbon Label vs. Carbon Footprint
These are somewhat connected but not the same thing. A carbon footprint refers to the amount of greenhouse gas emissions a person, place, product, service, activity, or organization contributes to our atmosphere. A carbon label is then the message communicating those numbers to an end-user or other interested parties.
An example is that a company might do the calculation that each unit the company makes produces 2.5kg. The calculation is what is referred to as a carbon footprint and if these facts are printed on a package or a document that supports it is then called carbon labeling.
What is A Part of a Product’s Carbon Footprint?
Product carbon footprint involves using the supply chain and production processes of a product.
Typical data points may include:
- Types and quantities of raw materials consumed
- Energy used during the manufacturing process
- Fuel used by production machinery
- Sources of electricity used
- Packaging materials used
- Transportation distance and mode of transportation
- Waste streams from the production process
- Routes for recycling or disposal of products/waste.
The boundaries can vary depending on the specific calculation chosen – for example, a calculation for a manufacturer might only consider the production stage, while a broader calculation may consider the entire lifecycle.
This is why it’s important for suppliers to know explicitly what they are including and excluding from their carbon calculations.
Reasons your next RFQ might include a carbon data request.
A purchaser may wish for carbon data because they require an additional comparison criterion besides cost alone between their suppliers.
For instance, consider two suppliers who produce two competing products at a comparable price point. The former can produce trustworthy carbon data for their product and the latter cannot at all. Then the first supplier may have the edge if the purchaser itself has their own goals or emission reports it has to fulfill.
Carbon information can also offer procurement teams options for reducing emissions in the area of material choices, production techniques, transport and packaging. The environmental performance and climate information is also gaining in significance on some markets and this may also, as a rule, be a factor when qualifying a supplier and making purchasing decisions.
Where Suppliers can get ready
Manufacturers do not always need to wait for a customer’s question about carbon data to appear; having some initial emission data readily available can simplify RFQ responses down the road.
You may start by looking at your key emission categories-energy/electricity, fuel, raw materials, packaging, shipping.
It is also helpful to have clear production records for areas such as energy usage, raw material volumes, amounts of product produced, and distances products have traveled.
It is also worth documenting your own approach. If you are asked for carbon data by several customers, then not having to rework each instance of carbon calculation every time means that you develop and use a system.
For complex products, it may be worthwhile to bring in an environmental consultant or carbon accounting service provider to do the calculation for you.
Key buyer checks
A carbon number is not necessarily reliable just because it’s published. Buyers should always inquire as to how the figure was calculated: the system boundaries involved, the emissions factors used and whether the calculation has been independently assured or reviewed. This ensures that data received from various suppliers may, on a broad level, be considered comparable.
The Conclusion
Carbon labels are rapidly developing into yet another useful piece of data within the modern buying cycle. Beyond asking for pricing and specifications, businesses may eventually ask for product carbon footprints within their requests for quotation, for a range of supplier industries.
For manufacturers and exporters that plan and prepare solid carbon data well in advance, it will not only improve conversations with customers and enhance transparency with a wider supply chain, but will also give them a distinct edge over competitors looking for green-market customers. Ultimately, a carbon label is not merely an environmental statement, it will increasingly represent a key facet of global trade.
Yiruixing Packaging is a top company that provides the highest quality packaging options and sustainable packaging to different businesses around the world. Feel free to learn more about the packaging services provided by the company.
Contact details
Company Name – Yiruixing Packaging
Address – No.1218 B Block, Yin Ye Hui Zhong Building, No. 3 Nan Guo East Road, Da Liang Street, Shunde District, Foshan, Guangdong, China, 528399
Contact (WhatsApp) – +86- 18824821039
E-mail – info@yiruixingpackaging.com
Website – https://yiruixingpackaging.com/
Frequently Asked Questions
1. What is a carbon label?
A carbon label indicates the amount of greenhouse gas emissions associated with producing, distributing, using, or disposing of an item.
2. Why would a customer request a carbon label in an RFQ?
A customer might request such data to evaluate a vendor, achieve compliance, or simply compare products.
3. Is a carbon label the same as a carbon footprint?
A carbon footprint is a quantity, whereas a carbon label communicates the information to customers.
4. What kind of information would be necessary in order to calculate a product’s carbon footprint?
Some such data include materials used, energy consumed during manufacturing and for other relevant purposes, manufacturing process steps, transport steps, packaging of the product and shipping.
5. Does every item need to have a carbon label?
No, that is not a generally applicable thing that every product has to do – requirements change with the market, segment or other factors. Nonetheless, it is certainly becoming a more generally requested thing for B2B sales.
6. How might a manufacturer get ready to face an RFQ that asks for carbon information?
A producer might like to document its energy consumption, product input, output volume per period, and amounts of transport as well as waste.
