In this episode of our Scope 3 series, we’re flipping the script, compliance to competitive advantage.
Why should suppliers own their product carbon footprint (PCF)? Because it’s not just good for the planet – it’s great for business. Think higher margins, stronger customer trust, and access to top-tier buyers demanding transparent Scope 3 data.
Dr Pratik Gholkar, Senior Knowledge Lead at Ecochain, answers 30 rapid-fire questions that unpack the real business case behind product-level impact data. Whether you’re a small supplier or a major manufacturer, this episode will help you shift from reacting to leading.
Video Transcript:
Pratik: Welcome to another episode in our Scope three series. Today we are flipping the script from compliance to competitive edge. We are talking about: Why owning your product carbon footprint isn’t just good for the planet. It’s great for your business too. Think premium pricing, stronger customer trust, and sit at the table with the world’s biggest buyers. Let’s dive into a series of quick questions to unpack the real business case behind product carbon footprints. for the suppliers who are ready to lead, not follow.
Pratik: Hey Nick, how are you doing?
Nick: Hey Pratik. Nice to see you. I’m doing well. How are you?
Pratik: I’m doing good too.
Nick: Great. Do you have some time to answer some questions for us around the business case for suppliers to comply to Scope three data requests?
Pratik: Sure. Let’s do it.
Nick: Amazing. So what’s one thing that suppliers can do today to stand out?
Pratik: As per my understanding, having accurate carbon footprint data will make them stand out. It’s their ticket to the big league.
Nick: So how does this connect to Scope three emissions?
Pratik: Big corporates, when they are looking at their footprint data, they’re looking at their supply chain. That means they’re looking right at you.
Nick: So what is Scope 3 anyway?
Pratik: These are the indirect emissions arising from the product development and manufacturing at their site. From our experience, what we have seen, most of it comes from the suppliers like you.
Nick: So why is Scope 3 such a hot topic right now?
Pratik: Finally, big corporates are being mandated to reveal what’s happening beyond their four walls and report the accurate carbon numbers. And as part of it, you are part of the game.
Nick: So didn’t CSRD get delayed recently?
Pratik: Yes. But for big corporates it is still mandatory to report their numbers. Consequently, you are part of the reporting too.
Nick: So is this an opportunity or a burden for suppliers?
Pratik: It’s definitely an opportunity. It’s an opportunity where compliance can be converted into a competitive edge.
Nick: So what kind of pressure are suppliers facing from buyers?
Pratik: Buyers wanted these numbers yesterday. There is simply no time for suppliers to calculate these numbers.
Nick: So why is this push happening now, even before regulations kick in?
Pratik: There are these market factors like: Investors, ESG report evaluators, and most importantly, consumers. They’re not going to wait till policy makers implement the policies.
Nick: So how do big companies evaluate supplier footprint data?
Pratik: What big companies are looking at is fact-based data. No fluff. They want clear, transparent, accountable, product specific data.
Nick: And when you’re talking about A PCF, how detailed should it be?
Pratik: Think, SKU product specific, not just company. It should adhere to ISO14067 labeling. And if your company is a PACT Conformant. You should be adhering to the PACT guidelines too.
Nick: So what happens if you don’t have the data?
Pratik: No data, no deal. We have seen suppliers being dropped from the list simply because they couldn’t provide the PCF data.
Nick: So while we’re in this elevator, could you give us a little elevator pitch?
Pratik: For me, PCF is just not another number that you tick off your list. It’s a compliance which you can convert into a competitive edge. With PCF greenwashing is out. Fact-based data is in. When you calculate your product, carbon footprint data and provide it to your customers, you become part of your customer’s sustainability journey.
Most importantly, that data is important for your customer to report in their ESG reporting. Additionally, by providing your sustainability data and being part of your customer’s sustainability journey helping them achieving their net zero goals, you win their trust. And trust is everything when you want to be in their supply chain.
Nick: So how do you see procurement teams changing in the supply chain?
Pratik: These days procurement teams are becoming more and more data driven, along with the product quality and cost numbers. Carbon numbers are becoming more and more important.
Nick: Is this shift happening across industries?
Pratik: Totally ranging from construction to food and beverages.
Nick: And what about food and beverage suppliers?
Pratik: We have We have seen that companies do not accept you unless you provide your product carbon footprint data. More importantly, we also have seen some retailers won’t allow you to put your products on their shelves till you provide the data.
Nick: What about FMCG?
Pratik: Companies like Unilever, you are out of their suppliers.
Nick: If you don’t provide the number. Do you wanna come in?
Pratik: Yes. Thank you so much. Welcome to our office, Ecochain. Thank you.
Nick: Is this just a European thing?
Pratik: No, it’s a global thing, it’s just that Europe is leading this transition.
Nick: So when you’re talking about PCF’s, is this something that really can increase revenue for suppliers?
Pratik: I Have seen that with an accurate product, carbon footprint, even for the small companies, big corporates can open their door.
Pratik: Do you want to have something?
Nick: Yeah. Do you have a bottle of water?
Pratik: We are a sustainable company. We don’t use single use plastics. Do you mind having a glass of water instead?
Nick: A glass is perfect. Thank you. So what about the profit margins?
Pratik: It’s the value story, not the cost one. But…. With the accurate product, carbon numbers and transparency, you can justify higher prices for your product.
Nick: But does it then help also with the long term growth of the company?
Pratik: Definitely, Having accurate product, carbon footprint calculations will also steer your innovation, which will help you to be in the game for a long time.
Nick: Is it expensive to calculate your own PCF as a supplier?
Pratik: Definitely not as expensive as losing your next deal.
Nick: Can’t I just hire a consultant for this?
Pratik: Yes, you can, but then you lose the control on your data. More importantly, increased cost, especially when you scale up.
Nick: And what is the risk in outsourcing your footprint?
Pratik: It’s like outsourcing your intelligence, you know? You have no idea how your data is being used by your consultant.
Nick: So what is then the upside of doing it in-house?
Pratik: You own the data, you own the narrative, and you can move faster.
Nick: Is owning the data really that important?
Pratik: Yes, totally. When you own the data, you know exactly what insights are and you can move faster. As well as you can provide your product carbon footprints when your customers are asking for it.
Nick: What if I’m only a small supplier? Does it still matter?
Pratik: When it comes to product carbon footprint assessment, size doesn’t matter. We have seen that with a solid PCF or LCA even your innovations can shine at the big corporates.
Nick: So one final reason to start owning your PCF today.
Pratik: What we have seen that early movers are already winning. It’s you who have to make the decision. You want to lead the change or be a follower. Now, please let me work guys.
