Software Innovations Bridging The Product Carbon Footprint Data Gap

Software Innovations Bridging The Product Carbon Footprint Data Gap

Firms face increasing pressure to communicate product carbon data to customers and consumers to gain a competitive edge in the low-carbon economy. At the same time, they must comply with stringent product sustainability regulations such as the Ecodesign for Sustainable Products Regulations (ESPR) and the EU Carbon Border Adjustment Mechanism (CBAM).

Although nearly 70% of corporate respondents to the Verdantix global supply chain carbon management survey express confidence in their ability to calculate and report Scope 3 emissions and product carbon footprints (PCFs), lack of supplier engagement remains a key challenge. This suggests that many firms still rely on top-down estimations or secondary data, which can be outdated and inaccurate. To improve accuracy, organizations are shifting towards bottom-up data collection from suppliers or basing their calculations on more granular and up-to-date data sets.

Adding to the complexity, sustainability teams face an increasing volume of PCF requests with no standardized reporting framework, creating a significant time burden. Furthermore, functions beyond sustainability – such as procurement and R&D – are becoming more involved in product emissions management, amplifying the need for streamlined solutions.

While commercial software is widely used for supplier data collection, performance monitoring and risk assessment, product carbon footprinting often remains siloed within internal teams or external consultants. This has created a market opportunity for software providers to automate and scale PCF data collection. Players from diverse backgrounds are now entering the space, bringing innovation in:

• Enhancing supplier engagement with AI.
  Large suppliers are accustomed to handling multiple PCF requests. For example, Schneider Electric’s Environmental Data Programme enhances environmental data transparency across its entire product portfolio, helping customers meet reporting requirements and decarbonization goals. Smaller suppliers, however, often lack dedicated sustainability teams and expertise. To bridge this gap, software providers are now offering AI-powered PCF calculators that guide less mature suppliers through the process step-by-step – often for free.
  
  
• Integrating with data exchanges.
  The lack of PCF standardization can lead to duplicated efforts and supplier fatigue. Industry initiatives, such as Catena-X for the automotive industry’s supply chain, are tackling this challenge by providing centralized data sharing networks. Software providers can now integrate with exchanges like this, enabling suppliers to submit standardized data once and seamlessly share information with multiple customers.
  
  
• Optimizing product design to decarbonize.
  Software is becoming a key enabler for R&D teams, allowing firms to evaluate alternative product designs with lower emissions. These tools enable scenario modelling for ecodesign, assessing how changes in materials, suppliers or sourcing regions impact a product's carbon footprint.
  
  

To learn more about software innovation in product carbon footprinting, who the main providers are and how to choose a suitable solution, read Verdantix Smart Innovators: Product Carbon Footprinting and join our webinar on May 20^th.