How does a climate contribution work at product level?

‍Greenproduct = no footprint? Unfortunately not! Even if we switch our energy supply to photovoltaics (PV), for example, the investment causes emissions over the life cycle of the product that need to be offset. In a joint article with daheim Solar, we explain the difference between the company footprint and the product footprint.

daheim Solar offers photovoltaic systems for private individuals so that they can contribute to the energy transition with clean energy from home free of charge. With locations in Munich, Nuremberg, Leipzig, Dresden, Erfurt and Essen, daheim Solar manages photovoltaic projects from expert energy advice to installation and grid registration. The photovoltaic components are manufactured in the EU and elsewhere and are tailored to the needs of the home and individual electricity consumption.

With a new initiative, daheim Solar is now making a climate contribution for every new PV system installed at a customer's home. In this article, we explain the background to this initiative.

What is the difference between the company footprint and the product footprint?

The difference between corporate and product footprints lies in the perspective: while the corporate carbon footprint (CCF) covers the total emissions from a company's business activities, the product carbon footprint (PCF) focuses specifically on the impact of an individual product throughout its entire life cycle, from production to use and disposal. By distinguishing between these two footprints, companies can develop and implement more targeted measures to reduce their environmental impact.

Greenhouse gas emissions are usually divided into three categories for the calculation of the CCF: Scope 1, Scope 2 and Scope 3. Scope 1 includes direct emissions resulting from the company's own operational activities, such as combustion of fuels in company-owned facilities or vehicles. These are often under the direct control of the company. Scope 2, on the other hand, refers to indirect emissions resulting from the consumption of purchased energy, such as electricity or heat. These are generated outside the company's direct operating sites, but through the company's activities. Scope 3 covers all other indirect emissions that are outside the direct control of the company, such as emissions from the entire supply chain, the use of products by customers or business travel by employees. 

This subdivision does not apply to the PCF. To calculate the PCF, the emission values of the individual product components and manufacturing steps are considered.

How is the footprint of a product calculated?

In order to calculate the greenhouse gas emissions of a product, the first step is to gain an overview of the entire value chain and the life cycle of a product. The following categories should be taken into account:

• Raw material extraction and production: This includes the emissions associated with the extraction and processing of raw materials, as well as the energy required for the production of materials and components.
• Manufacturing processes: The emissions generated during the manufacture of the product, such as those caused by energy consumption in factories, the use of chemicals and other resources, and the handling of waste and wastewater.
• Transportation and logistics: The emissions caused by the transportation of raw materials, components and finished products between the various production sites, warehouses, retail outlets and customers.
• Use of the product: The emissions generated during the use of the product by the end user, such as the energy consumption of electronic devices, the fuel combustion of vehicles or the use of water and electricity in household appliances.
• Disposal and end-of-life management: The emissions associated with the disposal of the product, including waste, landfill, recycling or incineration at the end of its life.
• Packaging: The emissions associated with the manufacture, transportation and disposal of the product's packaging.

Obtaining the underlying data sources can be a challenge. As a rule, different data sources and methods should be combined in order to obtain a good and comprehensive overview of the environmental impact of a product. This includes, for example, internal data, supplier and partner data, public databases and measurement results from research projects.

How can you reduce the impact of the product on the environment?

There are a variety of measures that companies can take to make the PCF more sustainable. As a first step, the calculation of the PCF reveals sources of emissions so that reduction measures can be taken. This transparency allows resources to be used more effectively, e.g. to reduce material waste or by using sustainable materials. Production and transportation routes can also be made more efficient on the basis of this data. Another possibility is to improve product lifespan, promote the circular economy and product innovations, e.g. through sustainable design. 

If these options have been exhausted, companies can also make a climate contribution in addition to these efforts in order to support climate protection outside their own value chain. This can be done, for example, by investing in climate protection projects, either by the company itself or by end consumers.

daheim Solar has also followed this approach in order to make a climate contribution for the product emissions of its photovoltaic systems. Although the product in and of itself reduces the_{CO2 footprint} of customers, it was important to daheim Solar to take a holistic view of the footprint of its photovoltaic systems. What can this look like in concrete terms? Our joint case study provides insights into how the footprint of a product can be made more sustainable.

Case study: Photovoltaic system with climate contribution from daheim Solar

PV systems from daheim Solar ensure that private individuals can drive forward the energy transition in their own homes. Nevertheless, PV systems also generate greenhouse gas emissions over their lifetime. In order to become aware of these, daheim Solar first collected the sources of emissions and calculated the footprint of photovoltaics.

As daheim Solar produces some of the PV components in the EU, transportation routes account for a smaller proportion of the PCF. And the overall climate footprint of a PV system is also low in comparison with other means of generating electricity. 

Nevertheless, daheim Solar has set itself the goal of making a climate contribution to the PCF for its customers in order to take a holistic approach to climate protection and respond to the sustainability needs of end consumers.

"As a company, we want to take responsibility and make a contribution to climate protection for the CO2 generated during the construction of a PV system. Regionality was important to us. We are delighted to have found a partner in Pina Earth that makes climate protection possible on our own doorstep, so to speak. In this way, we are actively helping to make our forests biodiverse and resilient to increasing heat, storms and drought." - Alexander Heisler, Team Leader Product Management and Marketing

For every PV system, daheim Solar supports the conversion of 500 square meters of spruce forest in the "Schlegel" project in Thuringia. In the forest conversion project, a total of 471 hectares of spruce monoculture (left in the picture) will be converted into a biodiverse and future-proof mixed forest (right in the picture) over a project period of 30 years. Activities such as promoting natural regeneration and planting new species make the forest more resilient to the consequences of climate change such as storms, drought and beetle infestation.

With this commitment, daheim Solar is helping forest owners to implement the cost-intensive conversion measures and prepare forests in Germany for climate change in the long term. Further insights into this and our other projects can be found under this link in our forest dashboard.

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