Product Decarbonization

Around the world, many governments are introducing requirements aimed at advancing carbon neutrality and promoting the development of a circular economy, including mandatory carbon emissions reporting and Extended Producer Responsibility (EPR) programs.

Beyond governments, a broad coalition of stakeholders are encouraging additional sustainability efforts:

Investors and financial institutions – Climate-change risk and mitigation efforts may play a role in decision-making, and these stakeholders demand disclosure of high-quality environmental, social, and governance (ESG) data.¹
Retailers – Sales of products with ESG-related claims are growing more quickly than goods without those claims, and retailers are responding with curated selections of products that meet sustainability expectations.²
Manufacturers – Disclosure of carbon impact, including Scope 3 and other sustainability metrics throughout the supply chain, are growing more common.³
Consumers – Not only are consumers increasing their purchases of more sustainable goods; they’re also willing to pay a premium of more than 9%.⁴
Employees – Staff are more loyal to companies that make a positive impact on social and environmental issues.⁵

Why decarbonization of products is important

Increasingly, businesses view risk from climate change as a core business challenge. Sustainability strategies need to center resilience while adapting to changing regulatory requirements and voluntary commitments.

Approaches to product decarbonization

Reduce carbon emissions generated by your product portfolio through a variety of actions, including:

Shifting to lower-carbon manufacturing and shipping methods
Adapting design or manufacturing processes to minimize waste
Sourcing validated recycled content
Analyzing supply chain partner activities

Life cycle assessments (LCA) provide a comprehensive, standardized way to evaluate the environmental impacts of products and processes throughout the entire product or system life cycle, from raw material extraction to disposal. These reports identify and quantify greenhouse (GHG) product emissions and empower companies to establish baselines, identify carbon-intensive areas and make informed decisions to reduce the overall carbon footprint of their products.

LCA calculations are based on ISO 14040:2006 and include inputs, such as energy and raw materials, as well as outputs, like air emissions and wastewater discharge. These calculations are associated with specific environmental impacts and help develop an impact profile for a product.

Advantages of product decarbonization

Product decarbonization offers numerous benefits for businesses, paving the way for sustainability and resilience.

Streamlining costs and generating new revenue – Cost savings are realized by optimizing energy use and minimizing waste, while new revenue comes through additional products with sustainability claims.
Financial resilience – Companies with a strong commitment to sustainability may attract investment, enhance their brand reputation and increase company valuation while reducing risk premiums.
Regulatory compliance – Reducing the carbon footprint of your product portfolio supports compliance with environmental and sustainability regulations.
Operational innovation – Product decarbonization strategies challenge organizations to use different materials, implement more efficient processes and streamline supply chain activities.

Learning from an LCA to product decarbonization

LCAs can be transformative opportunities for an organization to understand its cradle-to-grave environmental impact and drive meaningful changes that enhance product portfolios and sustainability performance.

Reduce product carbon footprint.
Choose lower-carbon materials.
Reduce energy consumption and waste.
Identify more sustainable modes of transportation.
Design products for energy efficiency and longevity.
Establish end-of-life management practices, including product recycling, reuse or disposal.

UL Solutions LCA expertise and services

Our firm commitment to a safer, more secure and sustainable world drives us to continually offer services that help our customers reduce environmental impact through data-driven support. We offer various LCA and LCA related services to help you through and communicate your environmental impact journey.

UL Solutions experts are ready to work with organizations to provide accurate insights based on real-world data to help advance climate action planning and product carbon footprint reduction to satisfy the demands from corporate purchasers, consumers, investors and regulators.

Let’s act now for a more sustainable future.