Catalyzing change: TfS and the path to decarbonization in the chemical sector

This article is sponsored by Together for Sustainability.

Reflecting on COP29 and its significance for the chemical sector

In 2024, another year of record temperatures has provided a stark reminder of the role our industry must play in reaching the goals of the Paris Agreement.

According to the United Nations Framework Convention on Climate Change (UNFCCC), in order to limit global warming to 1.5 degrees C, greenhouse gas (GHG) emissions must peak before 2025 at the latest and decline 43 percent by 2030. To get there, the chemical sector must continue exploring immediate, ambitious measures to ensure global carbon reduction goals are met.

The discussions at COP29 have underscored themes of significant relevance to the chemical industry, particularly around decarbonization across value chains. Scope 3 emissions are a critical focus, and efforts to enhance transparency, standardize reporting frameworks and promote collaboration across supply chains are essential. Together for Sustainability (TfS) seeks to empower global chemical organizations to tackle the challenge of reducing their Scope 3 emissions. 

The urgent need for decarbonization in the chemical industry

As pressure gradually mounts on carbon-heavy industries from bodies such as governments and regulators as well as stakeholder expectations, the chemical sector has a growing responsibility to align itself with the goals of the Paris Climate Agreement.

Today, Scope 3 emissions account for around 77 percent of the chemical industry’s total. As reporting obligations increase and technology related to Scope 3 data collection matures, the integration of emissions measurement and tracking is key to mitigating both legislative and reputational risks within the chemical sector. Beyond these drivers, businesses are also recognizing the importance of meaningfully contributing to the Paris Agreement, embracing innovation and circularity as critical pathways to decarbonization. To assist organizations in their efforts, TfS launched the Scope 3 GHG Programme, an initiative designed to catalyze greater emissions monitoring, management and reductions throughout the supply chain. Introduced in 2011 in partnership with six chemical firms (BASF, Bayer, Evonik, Henkel, Lanxess and Solvay), today the program’s network has grown extensively and includes 54 of the world’s largest chemical groups.

The PCF Guideline: A game-changer for chemical sustainability

For the chemical industry to make significant contributions to global sustainability efforts, organizations need to be able to substantially reduce their Scope 3 footprint in a structured and comparable way. This is where Product Carbon Footprints (PCFs) can help. TfS’ PCF Guideline represents the global gold standard for calculating PCFs within the chemical industry.

Built to navigate the nuances of the chemical industry, TfS’ Guideline offers tailored advice, enabling organizations to traverse their specific challenges.

The Guideline is a step-by-step guide for calculating the “cradle-to-gate” carbon footprint of products. It provides clear guidance on how to account for emissions throughout the supply chain, from resource extraction (“cradle”) to the point of delivery (“gate”). It also acts as a valuable tool for benchmarking emissions data and ensuring compliance with global standards — ISO or the like.

With COP29 set to place an enhanced focus on transparency and accountability related to Scope 3 emissions, more uniform reporting of carbon accounting means that firms are better able to work towards reducing their Scope 3 emissions.

Expanding influence: TfS’ role in fostering cross-sector collaboration

To support standardization and carbon footprint management, TfS collaborates with other industries and NGOs defining global standards through the TfS Scope 3 GHG emissions – Outreach Workstream. This function, comprising around 30 members, is continuously in touch with stakeholders both within and beyond the chemical sector. Twelve industries, ranging from automotives to textiles, have adopted the TfS PCF Guideline for use in their PCF calculation. 

Continuous improvement: Evolving the PCF Guideline to meet global demands

As global calls for Scope 3 emissions reductions rapidly grow, continuous improvement will be vital to ensuring the Guideline remains relevant. To address feedback from members and suppliers, TfS aims to clarify elements of the Guideline to facilitate easier implementation, such as by enhancing waste definitions. These enhancements aim to improve data quality ratings for members, further enhancing the comparability of PCF practices in line with industry peers and helping to meet COP29 expectations.

The PCF Guideline is harmonized with existing frameworks such as the PACT Framework of the World Business Council for Sustainable Development (WBCSD), Catena-X and the Global Battery Alliance. 

Ensuring credibility: The PCF Verification Framework

Developed in collaboration with Catena-X, the PCF Verification Framework is a dedicated document that outlines how companies can verify data generated according to the TfS PCF Guideline.

As COP29 calls for more transparent Scope 3 data, the PCF Verification Framework can help organizations meet this demand by bolstering the credibility of carbon data.

The Framework has been designed to inspire stakeholder trust at three levels. L1, the entry level, reviews the completeness and syntactic correctness of PCF data sets. L2 requires a third-party certification of underlying PCF programs. Finally, L3 requires full verification, either externally or internally, of the actual PCF.

TfS’ forward vision: Building a sustainable future for the chemical industry

At COP29, discussions highlighted waste management, circular economy principles and low-carbon technologies as critical for reducing supply chain emissions and driving sustainability, with particular focus on plastics, textiles and electronics. To drive innovation and adoption of sustainable technologies as they emerge or become best practice, collaboration across chemical industry value chains will need to be fostered. TfS also aims to evolve in line with technological developments to enhance the tracking and management of emissions data. 

To help enhance PCF data availability and secure data exchange, TfS has launched the PCF Exchange solution. Harnessing Siemens’ SiGREEN technology, the Exchange solution facilitates automated and mass PCF data requests from suppliers on behalf of members at scale, helping to generate more accurate transparency on a firm’s Scope 3 emissions.

Driving decarbonization post-COP29 with TfS

TfS will continue to promote meaningful change within the chemical industry, fostering resilient chemical supply chains that are well placed to respond to future regulatory demand and ready to meet our shared global decarbonization goals.