Introducing Carbon Footprint to the IMDS System: A Key Tool for Decarbonization in the Automotive Industry


The automotive industry is undergoing a significant shift towards sustainability and reducing greenhouse gas (GHG) emissions. In this context, the International Material Data System (IMDS) is incorporating Product Carbon Footprint (PCF) to help companies measure and reduce their emissions.

What is Product Carbon Footprint (PCF)?


PCF represents the total amount of GHG released during a product's life cycle, from raw material production to the point it leaves the factory. This enables companies to identify areas of high emission intensity and develop effective decarbonization strategies [2].

Introduction of PCF in IMDS

The IMDS Steering Committee has been working on incorporating PCF into the IMDS system. According to Oliver Schmid, Senior Engineer at Hyundai Motor Europe Technical Center GmbH and IMDS Steering Committee member, "PCF is the next big thing" and "IMDS is the most efficient system established for reporting PCF in the automotive industry".

The introduction of PCF in IMDS will be gradual, starting with a focus on reporting Scope 3 emissions, which include all indirect emissions that occur in the reporting entity's value chain. The PCF calculation will be based on the Catena-X Rulebook V2 standard and is expected to be a dynamic process that allows for automatic updates [1].

However, the plan is to eventually incorporate Scopes 1-3.


What are Scopes?


Scopes 1, 2, and 3 are categories of greenhouse gas (GHG) emissions defined by the Greenhouse Gas Protocol (GHG Protocol) to help organizations measure and report their carbon emissions.

Scope 1: Direct Emissions

  • Emissions that occur directly within the organization, such as:
  • Burning fossil fuels in boilers, furnaces, or company-owned vehicles.
  • Industrial processes that release GHGs, such as cement production or oil refining.
  • Fugitive emissions from refrigerants or industrial processes.

Scope 2: Indirect Energy Emissions

  • Emissions that occur in the production of energy that the organization purchases and consumes, such as:
  • Electricity purchased from the grid.
  • Heat or steam purchased from a cogeneration plant.

Scope 3: Indirect Value Chain Emissions

  • Emissions that occur in the organization's value chain, but are not directly controlled by it, such as:
  • Emissions from the production of raw materials and purchased goods.
  • Emissions from transportation and distribution of products.
  • Emissions from the use and end-of-life of sold products.
  • Emissions from employee commuting and business travel.


Benefits and Challenges


The incorporation of PCF in IMDS offers several benefits, including:

  • Improved transparency: enables companies to have a clear view of their emissions and take measures to reduce them.
  • Identification of hotspots: helps identify areas of high emission intensity and develop effective decarbonization strategies.
  • Compliance with regulations: facilitates compliance with international regulations and standards related to emission reduction.

However, there are also challenges to overcome, such as:

  • Calculation complexity: PCF calculation requires expertise and specialized tools.
  • Data quality: the quality of data used to calculate PCF is crucial for obtaining accurate results.

Conclusion

The introduction of PCF in IMDS is a significant step towards reducing emissions in the automotive industry. While there are challenges to overcome, the benefits of transparency, hotspot identification, and regulatory compliance make this initiative a key tool for decarbonization in the industry.

References

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PFAS - What are they? and How are they being regulated?: PFAS (Perfluoroalkyl and Polyfluoroalkyl Substances) are a group of over 10,000 synthetic fluorinated compounds that contain extremely strong carbon-fluorine bonds. 



Component Engineer: A Crucial Role in Product Development: In the engineering and product development industry, a Component Engineer (CE) plays a vital role in identifying and selecting the right components for a product.

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