INTRODUCTION
In the pursuit of a net-zero future, carbon accounting standards are being put under the microscope to build a more sustainable future for the chemical sector and beyond.
Following the launch of the Product Carbon Footprint (PCF) Guideline (3) in November 2022, TfS has outlined improvements for corporate greenhouse gas (GHG) accounting in its first White Paper, Improving and harmonising Scope 3 reporting. Three modifications for improving corporate GHG accounting were identified: biogenic carbon accounting, mass balance as a transitional mechanism and the use of recycled materials.
This article outlines the opportunity for the chemical sector to harmonise carbon accounting methodologies as well as TfS’s three recommended modifications to enable a more sustainable and environmentally responsible industry.
Sparking a change
The chemical industry is uniquely positioned to pioneer and implement new technologies to facilitate the transition to a low-carbon future. In addition to being recognised for its role in numerous innovations and scientific breakthroughs, TfS’s extensive membership (50 companies worldwide) demonstrates the industry’s collective commitment to collaboratively reducing carbon emissions.
However, TfS’s White Paper found that to mobilise the sector to achieve this shift, companies need to be incentivised to invest in and adopt innovative approaches and new technologies. And without a recalibration or adaptation of carbon accounting methodologies such as the GHG Protocol (4), companies cannot accurately measure and report on their progress.
The White Paper further identifies three approaches to accelerate this shift in chemical carbon accounting.
1. Biogenic carbon accounting
“Biogenic carbon sources” refer to carbon derived from natural sources like plants. For example, bio-based plastics, such as corn-based biopolymers, can be used to make long-lasting products like Ethernet cables. When managed sustainably, these sources can significantly cut down on net carbon emissions, serving as an alternative material for fossil feedstocks in various industrial processes. However, the current GHG Protocol doesn’t account for these emissions-saving benefits in a sufficient way supporting the purchasing decisions of companies. It is leading to a lack of motivation for companies to invest in or use these materials with a significantly lower product carbon footprint.
To address this issue, TfS suggests adopting the -1/+1 gross flow accounting approach. This method acts as a comprehensive balance sheet for carbon emissions and removals. Here, emitting a ton of carbon is recorded as “+1” (negative impact), and removing a ton of carbon from the atmosphere is recorded as “-1” (positive impact). This adjustment would encourage companies to embrace biogenic carbon sources by providing a more accurate reflection of their impact on GHG emissions.
2. Mass balance as a transitional mechanism
Mass balance (MB) is an important enabler of raw material change in the chemical industry towards increased non-fossil feedstock sources. The mass balance approach covered in the White Paper involves biomass, recycled materials and energy sources in carbon accounting. This helps companies track the flow of materials and energy, leading to more effective use of renewable or recycled resources, while utilising its existent assets to the largest possible extend. For chemical companies, this approach provides a clearer understanding of, and a way to actively promote, their GHG reduction impacts.
An example of the MB approach is converting kitchen waste into biomethane, which is then used in chemical production. This process results in a variety of chemicals, like an acrylic binder used in indoor paints. Even though current carbon accounting standards such as the GHG Protocol have limitations for MB accounting, TfS supports recognising the potential of this crucial approach to reduce carbon dioxide emissions in the chemical industry.
3. Recycled materials and content
Finally, the chemical industry is now actively using recycled materials, employing both mechanical and chemical recycling methods. This strategic shift is geared towards reducing dependence on new materials and enhancing overall sustainability. However, there are challenges in accounting for GHG emissions related to recycled content. This difficulty arises from existing reporting methods that struggle to accurately measure the environmental advantages of recycling. To fully understand the benefits of recycled materials, TfS proposes a reimagined corporate reporting method that accurately measures the positive impact on carbon emissions.
Conclusion
As the chemical industry takes on the challenge of achieving a net-zero future, it’s increasingly important to review and update how carbon accounting is done. The insights from TfS’s White Paper can play a key role in transforming how we measure carbon impact. However, it’s equally crucial to revisit the standards that guide carbon accounting, like the GHG Protocol. Without this review, companies won’t be able to accurately measure and report their progress.
Moving forward, as the chemical industry leads the way towards a sustainable future, adjusting how we conduct carbon accounting will become a responsibility shared globally.
References and notes
- https://www.tfs-initiative.com/
- https://www.tfs-initiative.com/app/uploads/2023/10/TfS-2097-White-Paper-EN_hi_single_page_no_crop_.pdf
- https://www.tfs-initiative.com/how-we-do-it/scope-3-ghg-emissions
- https://ghgprotocol.org/
