Supplier Decarbonization Platform

Reporting and calculating the Product Carbon Footprint (PCF)

As part of UPM’s -30 by 30 program for value chain (Scope 3) emissions reductions, UPM requests its suppliers and partners to provide data about the carbon footprint of the goods and services that UPM purchases from them. UPM refers to this data as the Product Carbon Footprint (PCF) data.

UPM requests new and existing suppliers and partners to provide the carbon footprint data. The data must be updated and reported to UPM on an annual basis.

Providing the carbon footprint data for products and services is one of UPM’s environmental requirements to its suppliers and partners. Please make sure that you have also familiarized yourself with UPM’s general supplier requirements: 

1. The UPM Supplier and Third-Party Code – a mandatory requirement for all UPM suppliers
2. UPM Supplier Assessment Criteria – a general overview of all supplier requirements
3. Sourcing category specific requirements – more detailed requirements specific to UPM’s different business areas.

Scope of the PCF calculation

The carbon footprint for the goods and services that UPM purchases from its suppliers and partners should cover the relevant cradle to gate greenhouse gas emissions of a product or service. This means all the relevant emissions from the supplier’s own upstream supply chain and operations. The visualization below shows the GHG scopes that should be included in the PCF calculation. UPM does not require its suppliers to report the three scopes separately in their PCFs, with the exception of downstream Scope 3 emissions as described below.
 

Regarding Scope 2 emissions from purchased electricity and heat, UPM recommends using the market-based approach in the emissions calculation. For more information, see the specific considerations section.

Regarding downstream Scope 3 emissions for transportation from the supplier’s facility to UPM, these emissions should be reported if the transportation is organised by the supplier. These emissions must be reported separately from the PCF and should, if possible, cover well-to-wheels, as explained in the specific considerations section. If primary emissions data from carriers are available, UPM recommends its suppliers reporting that. Alternatively, the emissions can be calculated using suitable data sources as mentioned below.

The carbon footprint data is to be disclosed in kg of CO₂e per unit of product, excluding biogenic carbon (for more information, see the specific considerations section). The unit of product refers to, for example, litres, cubic metres, or tonnes of product. The reported unit should be in line with the purchase order. If the carbon footprint data is not reported in 100% dry matter/active substance, it must be clearly stated.

Specific considerations

Quality of the product carbon footprint information

Whenever possible, the product carbon footprint calculation should be based on primary data, meaning data about the actual consumption of materials, energy, etc. collected directly at the source. If this is not possible, secondary data can be used. Secondary data refers to, for example, data derived from research, governmental or other public organisations and databases.

See some examples of reliable secondary data sources below:

Use of credible standards and sources of information

At a minimum, the product carbon footprint calculation should follow the GHG Protocol Product standard or applicable ISO standards, notably the ISO 14067. For logistics emissions, the EN 16258 standard is recommended.

UPM recommends conducting the product carbon footprint calculations according to:

• the most recent valid industry association recommendations,
• Product Category Rules (PCRs) by the Environmental Product Declaration (the International EPD System)
• other program operators’ Product Environmental Footprint (PEF) method and the Product Environmental Footprint Category Rules (PEFCR) by the European Commission

Transparency of the carbon footprint information

The product carbon footprint should account for all the significant emissions sources along a product or a service’s life cycle. The exclusion of life cycle stages, processes, inputs or outputs is only permitted if they do not significantly change the overall conclusions of the PCF.

Any exclusions must be clearly stated and reported as part of the PCF, along with the threshold that has been used to determine whether an emissions source is significant (significance threshold). The reasons for exclusion and their implications must also be explained.

UPM strongly recommends that an accredited third-party conduct an assurance or verification of the PCF data, or alternatively, that a critical review or a peer review is conducted. If there is no widely used methodology for calculating the PCF for a specific type of product or service, or if the methodology is under development, collaboration with a credible institution or organization is recommended for ensuring the reliability and transparency of the calculation methodology.

UPM expectations & requirements

We want to first and foremost collaborate with our suppliers and partners to adopt more climate-friendly practices.

UPM has been requesting PCF data from suppliers since 2022 and encourages all suppliers and partners to provide this data as soon as possible. However, we recognize that setting up the necessary data collection and calculation infrastructure may take time and therefore, the provision of emissions data will become a requirement from 2024 onwards.

Key principles and summary of the product carbon footprint information

How to fill out the questionnaire (tutorial)

You will be contacted by your responsible UPM Sourcing contact person for the request of data. Any questions should primarily be addressed towards them. Once you have received our questionnaire, please follow the instructions as stated in this tutorial. 

Logistics and other service providers

Are you a logistics or service provider to UPM? We are aware that calculating a Product Carbon Footprint might be challenging or even irrelevant in your case. We are working closely together with our indirect materials and service suppliers to find ways to calculate and report their CO² emissions. Potential solutions may include the identification of suitable unit of measurements, e.g., kg of CO² emissions per hour worked, or following a spend-based approach. Please contact your UPM contact person for more information. We have a solution for (almost) everything!