Understanding the PEF (Product Environmental Footprint) method

In response to consumer demand for transparency, more and more European Union countries are planning to make environmental labelling mandatory. It therefore appeared necessary at European level to propose a standardized approach and to have a reliable life cycle assessment method recognized at European level.

This is why the European Commission has been working for several years to develop the PEF (Product Environmental Footprint) method, with the following objectives:

• To help companies measure, calculate and communicate the environmental footprint of their products on the basis of reliable, verifiable and comparable information.
• Enable consumers to know the environmental impact of the products they buy.

What European legislation applies to the PEF method? Is its use compulsory? How was the method created? What are the steps involved in measuring the environmental impact of products? What data needs to be collected? Is the PEF method different from the ADEME methodology?

We've written this article to answer all your questions on the subject.

☝ The Product Environmental Footprint (PEF ) method is a multi-criteria measure of a product's environmental performance throughout its life cycle.

The European regulatory framework and the creation of the PEF

At the European level, the European Commission regularly introduces new regulations, recommendations, plans and directives concerning the environmental information to be provided to consumers. The EU is therefore stepping up its efforts to make sustainable products the new norm, and is seeking to give consumers the means to inform themselves about the environmental impact of their products.

💡 We have prepared a summary of the European Commission's latest proposal for a directive on ecological claims from March 23, 2023, you can read it here.

History of PEF

2011: Analysis of existing methodologies

2013: Publication of the first PEF guide.

2013-2018: Pilot phase and development of the first PEFCRs leading to a first version of the method

2019: Creation of the Green Pact for Europe (a set of initiatives to reduce greenhouse gas emissions and decouple economic growth from resource use in Europe).

2021: Publication of theofficial WEP guide.

💡The use of the PEF method is not yet mandatory at European level. However, the European Commission is strongly encouraging member states wishing to introduce environmental labelling to use this method.

How does the PEF method work?

The PEF method is designed to meet five key criteria: relevance,completeness, consistency, precision and transparency. Each step of the method is designed to meet these criteria.

1. Life Cycle Assessment (LCA), the foundation of the PEF method

The PEF method is based onLife Cycle Assessment, or LCA, which is the reference method for measuring a product's environmental impact, taking into account its entire life cycle. This method is scientifically recognized as one of the most effective for measuring a product's environmental impact.

☝ The PEF method complies with ISO standards relating to LCA, namely ISO 14040 and ISO 14044, which describe the fundamental principles for carrying out LCA studies.

💡 To find out more about LCA, read our other article here.

2. The PEF method steps

The PEF study consists of several stages, all of which are linked to each other and ultimately enable the environmental impact of a product to be calculated.

Defining the objective and scope of the PEF study

The first step in a PEF study is to define the objective of the study and the scope of the product we are seeking to analyze. In technical jargon, this step is called defining the product's functional unit. The functional unit involves defining the qualitative and quantitative aspects of the product's function, and must enable us to answer the following questions:

• What : functions performed or services rendered?
• How much What is the scope of the function or service?
• How : the desired level of quality?
• How long will How long is the product's lifespan?

💡 For certain product categories such as apparel or footwear, default functional units are proposed (see the section on PEFCR).

Life cycle assessment (LCA)

The second stage of the study involves collecting activity data based on the product's life cycle, such as the raw materials used, the manufacturing stages and their location, transport, etc.

The life cycle stages included in a PEF study are at least the following

1. Raw materials extraction and processing;
2. Product manufacturing stages and transport stages between stages (production of the main product);
3. The distribution stage (product distribution and storage);
4. The product use phase ;
5. End-of-life (including product recovery or recycling).

WEP-compliant database

To calculate the product's environmental impact, activity data (mass of raw materials, etc.) are coupled with environmental data from environmental databases. To ensure the comparability of PEF studies, the European Commission provides a database compliant with the EF standard.

☝ A new version of the EF dataset (EF 3.1) is ready and should be available in the coming months.

Environmental footprint reporting

Last but not least, we produce a report on the product's environmental footprint. The aim of this phase is to enable users, whether internal or external, to use the results to work on eco-design and communicate a product's impact transparently.

3. Product Environment Footprint Category Rules (PEFCR)

In addition to the general PEF method, the European Commission provides PEFCR (category rules) which vary from one product category to another. These specific rules complement the PEF method by providing additional specifications for the product category concerned (e.g. defining the functional unit or stages to be analyzed, etc.).

PEFRCs therefore greatly simplify the conduct of a PEF study, enabling the user to concentrate on the most important aspects and parameters, and thus contribute to increasing the relevance, reproducibility and consistency of results compared with a study based on general method requirements.

💡 A PEFCR Apparel and Footwear is being finalized and can be used to carry out PEF studies on apparel and footwear products.

For example, the PEFCR for clothing and footwear provides, for each category (t-shirt, sweatshirt, sneakers etc.) average data on :

• Average energy consumption for the various manufacturing stages, such as knitting, dyeing, weaving ;
• Loss rates for each manufacturing stage;
• Default transport between geographical zones ;
• Default end-of-life scenarios.

Consequently, using the default values, the volume of data a company needs to collect on its value chain with a PEFCR is much lower. This saves valuable time for brands and suppliers alike. In conclusion, PEFCR reduces the effort and cost involved in carrying out a PEF study.

PEF score

To quantify a product's environmental impact, the PEF proposes 16 impact indicators, covering human health issues, impacts on natural resources and impacts on ecosystems.

To make these results easy to understand for consumers, the PEF method has developed the PEF score. This PEF score is presented in Points (one point corresponds to the average annual impact of a European) and gives an overview of the environmental footprint of a product throughout its life cycle.

It is based on the 16 impact categories of the PEF method:

Each impact category contributes a certain % to the final score (this step is called normalization). For example, the impact on climate change has the highest percentage and contributes 21% to the final score. The remainder is divided between the other impact categories.

Thus, a lower PEF score means that the product's environmental impact is lower.

By combining these 16 impact indicators into a single score, the PEF score enables :

• consumers to easily understand the impact and compare it with products in the same category
• brands to use environmental information to improve the environmental impact of their products while avoiding impact transfers

🤔 How does PEF measure impact on biodiversity?🦒
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The PEF method explains: "The PEF method does not include any impact category named "biodiversity", as there is currently no international consensus on a life cycle impact assessment method that reproduces this impact. However, the PEF method does include at least eight impact categories with a bearing on biodiversity:
1.Climate change
2. Freshwater aquatic eutrophication
3. Marine eutrophication
4. Terrestrial eutrophication
5. Acidification
6. Water consumption
7. Land use
8. Freshwater ecotoxicity".

Environmental labelling and the PEF method: what does the future hold for regulations?

Today, there is no regulatory obligation at European level, and the PEF method is applied on a voluntary basis.

In France, however, regulations are becoming increasingly stringent, particularly for priority sectors such as food, textiles and furniture.

The French government and the Agency for Ecological Transition (ADEME) have therefore also developed their own methodology, which differs somewhat from that of PEF (although both are based on LCA).

In response to the need for standardization between French and European methodologies, French institutions are currently looking to move closer to the PEF method, while adapting it to the situation of French companies and the requirements of French law. The French methodology should therefore not run counter to the main principles recommended by the European Commission, but certain adjustments will be proposed to facilitate its implementation.

💡 To find out more about environmental labelling in France, read our article here.

In conclusion, the future of environmental impact measurement is quite clear. The European and French economies are increasingly moving towards a circular economy. By introducing more and more regulations, they are encouraging companies to measure the environmental impact of their products, provide consumers with accurate environmental information and standardize environmental labelling. France has so far taken the lead in terms of regulations, but it's a safe bet that other European countries will follow suit in the years to come.

To anticipate the regulatory timetable**, we advise you to start measuring the environmental impact of your products today** 🌱🌍