Going beyond product category-level data

inoqo's climate methodology

Aligned with the 1.5 °C goal

+160
different
crops
+100
processing
processes
+200
territories
around the world
+10K
LCA
datasets

What data is needed for a climate assessment?

inoqo's Product Impact Assessment platform starts with assessing the climate footprint of food and beverage products by analysing the details on their packaging, such as:

  • Weight or volume
  • List of ingredients
  • Nutritional information
This provides a solid understanding of a product's impact on the climate. However, for even more accurate view, inoqo can continuously integrate additional data, such as:
  • Country of farming
  • Country of processing
  • Storage conditions

Goal

Solution

The inoqo Product Climate Footprint (PCF) Assessment Solution is the core engine for highly scalable impact calculations. The solution is aimed at (1) large F&B retail customers who aspire to assess, optimize and report the impact of individual products and whole assortments, with the goal of reducing their negative impact over time, as well as (2) on individual consumers who want to compare the carbon footprint of F&B products as they purchase them. The inoqo solution is tailored to meet F&B industry customers where they currently are in terms of data availability. This means that publicly available product information is enough to start estimating the impact of products.

The inoqo platform (the data management frontend) is built on top of the backend calculation engine and will support customers to ingest further non-public product information, for the purpose of refining the calculation results, find insights on where the largest optimisation potential can be found and track changes (i.e. impact improvements) overtime. The platform leverages cutting-edge technology including a comprehensive LCI (life cycle inventory) data library to accurately evaluate the sustainability of products in line with the latest scientific advancements. Additionally, the platform can be easily integrated into existing systems and processes, allowing retailers to quickly and efficiently assess the sustainability of their product assortment and make informed decisions to improve their environmental impact and communicate it to the consumer.

Scope

Methodological Standards

The methodological framework for “Climate” is the automated conduction of life cycle assessments (LCA) based on the ISO standards 14040/14044 (International Standards Organization 2006). Additionally, further guidance is taken from the Product Environmental Footprint (PEF) (European Commission 2021), including default data on transport modes and distances, as well as impacts arising from storing the products in distribution. Since the F&B retail industry belongs to the Forest, Land, and Agriculture (FLAG) sector, elements of the GHG Protocol Land Sector and Removals Guidance draft (World Resources Institute and World Business Council for Sustainable Development) have been incorporated, enabling the inoqo platform to report an SBTi proxy value.

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Frequently asked questions

Everything you need to know about the inoqo's climate methodology.
01. What is a Product Climate Footprint (PCF)?
The Product Climate Footprint (PCF) measures the total greenhouse gas emissions associated with a product throughout its lifecycle, from the sourcing of raw materials to its end-of-life disposal. It is expressed in kilograms of CO2 equivalents per kg of product.
02. Why is PCF important?
Understanding the PCF of products helps identify areas for reducing carbon emissions, enabling more sustainable consumption and production practices. It assists us and our customers in making environmentally informed choices.
03. How is the PCF calculated?
The PCF calculation is based on the life cycle assessment (LCA) methodology, covering all life cycle stages from cradle-to-shelf, including land conversion, agriculture, production, packaging, transport, retail, and waste. The methodology aligns with the Intergovernmental Panel on Climate Change (IPCC) guidelines and considers both direct and indirect emissions.
04. What data sources are used for PCF calculations?
inoqo utilizes a comprehensive proprietary Impact Database, containing over 10,000 country-specific values for various food products, including crops, livestock, and processed food items. This database incorporates scientific research, agricultural practices, and food processing methods from around 200 areas globally.
05. How often is the PCF updated?
The PCF is recalculated on an ongoing basis to reflect the latest scientific findings, updates in databases, changes in product ingredients, or provision of primary data by suppliers. This ensures that the PCF remains current and accurate.
06. Can the PCF of a product change over time?
Yes, the PCF of a product can change due to several factors, including the provision of primary data, changes in ingredients, or updates in impact data and scientific findings. inoqo’s continuous update of its database ensures the PCF reflects the most accurate impact.
07. What are the limitations of the PCF methodology?
The current PCF methodology is aligned with the EU Product Environmental Footprint (PEF) but is not fully PEF compliant. It focuses on climate change impacts, excluding other environmental impacts like eutrophication and water use. Consumer use and end-of-life stages are not included in the system boundary, and the methodology primarily relies on secondary data.
08. How reliable are the PCF values?
inoqo’s methodology has been critically assessed by a leading LCA consultancy, ensuring that calculations, underlying assumptions, and reporting are justified. The application of a safety margin avoids the presentation of overly positive impacts and encourages suppliers to share more product-specific data.
09. What does the safety margin mean in the PCF score?
The safety margin applied in the PCF score is to prevent greenwashing by not presenting the impact of a product too positively. It encourages food suppliers to provide their primary data, leading to a more accurate and possibly lower PCF score.
10. Why can the PCF results differ from those of similar products?
Several factors contribute to variations in the PCF results for similar products, including:
a) Source of Ingredients: The geographic origin of ingredients can significantly impact the PCF due to differences in agricultural practices, climate, and transportation distances.
b) Production Processes: Variations in manufacturing processes, energy sources, and efficiency can lead to differences in greenhouse gas emissions.
c) Data Sources: The PCF relies on secondary data which can vary in scope and accuracy. inoqo’s methodology uses a comprehensive database that includes scientific research and detailed life cycle assessments (LCAs), which might differ from other databases.
d) Packaging and Transportation: Differences in packaging materials and transportation modes (e.g., air vs. sea freight) can also affect the overall PCF of a product.
e) Safety Margins: The application of safety margins to account for data uncertainties can vary between methodologies, affecting the final PCF score.
11. How does inoqo ensure the accuracy of the PCF calculations?
inoqo ensures the accuracy of PCF calculations through several measures:
a) Utilizing Reliable Data Sources: The methodology is based on scientific research, authoritative databases, and industry standards.
b) Regular Updates: The inoqo's Impact Database is continuously updated with the latest scientific findings, optimization of data, and incorporation of primary data from suppliers.
c) Critical Assessment: The methodology and its assumptions undergo critical assessments by third-party LCA experts to validate the approach and improve result quality.
d) Transparency: inoqo provides detailed explanations of its calculation processes, system boundaries, and data sources to maintain transparency and credibility.
12. Are all stages of a product’s lifecycle included in the PCF calculation?
The current PCF calculation includes all life cycle stages from cradle-to-shelf plus the end-of-life of packaging and food waste. However, the consumer use phase and the end-of-life of the products themselves are not included within the system boundary. This approach aligns with the goal to provide a transparent view of the climate impact of products up to the point of sale.
13. Why do you make food and beverage products appear worse than they actually are by adding a margin of safety?
The inclusion of a safety margin in the Product Climate Footprint (PCF) calculations is a deliberate choice, guided by our commitment to environmental integrity and the promotion of a more sustainable food system. The primary reasons for this approach are twofold:

a) Preventing Overly Optimistic Presentations: By incorporating a safety margin, we aim to avoid presenting the PCF of our products in an overly positive light. This practice ensures that we maintain transparency with our customers, providing them with honest and conservative estimates of the environmental impact of their choices.

b) Driving the Transition to Sustainable Practices: More significantly, the safety margin serves as a powerful incentive for us and our suppliers to supply more detailed, primary data over time. Initial calculations might make a lot of our products appear to have a higher impact than they actually do. However, this methodology allows customers to still discern between high-impact and low-impact products. Importantly, as we and our suppliers provide more specific information (such as the country of origin of ingredients), the inoqo platform can reduce the safety margin, thereby refining the PCF to more accurately reflect the product’s true impact.

The vast majority (approximately 80%) of a food product’s impact is determined by agricultural practices—how fertilizers are used, whether rainforests are cleared, or if diesel is extensively used for irrigation. Our goal is to create a strong motivation for examining these practices in detail, fostering a transition to more sustainable methods. This can only be achieved if we have a comprehensive understanding of the current impact, setting a baseline for measurable improvements.

In essence, while our methodology might initially present our products as having a higher environmental impact, it is a strategic move designed to achieve a long-term vision. By encouraging the collection and sharing of detailed, primary data, we not only gain a more accurate picture of our products’ impacts but also lay the foundation for genuine, impactful changes across the entire value chain. This approach underlines our commitment to not just measure, but to improve the sustainability of our food systems, aligning with our overarching goal of fostering a healthier planet.
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