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Looking Ahead: Using AI to Build Dynamic Cost Models
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Looking Ahead: Using AI to Build Dynamic Cost Models

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August 2024

Understanding the Basics: What is a Product Carbon Footprint?

In this guide, we'll break down the key components of a product carbon footprint, discuss methods for measuring it, and explore strategies for reducing it.

If you’re working in sustainability, supply chain management or product design, chances are you’re being asked by executive leadership, shareholders and customers to provide product level emissions data for your many products. Gathering this data and assessing impacts on the climate through the lens of a product is known as a Product Carbon Footprint

In this guide, we'll break down the key components of a product carbon footprint, discuss methods for measuring it, and explore strategies for reducing it. Additionally, we'll illustrate how Muir AI's platform can be a game-changer in your sustainability efforts. Whether you're a CEO, sustainability professional, or supply chain manager, this comprehensive overview will provide the insights you need to make informed decisions and drive your business toward a more sustainable future.

Historically, gathering product level data from the raw materials that go into blended fabric, to the manufacturing processes of creating steel coil you purchased, have been a challenge for sustainability-minded companies, inevitably causing them to focus more on Scope 1 and Scope 2 emissions. 

Put simply, a PCF quantifies the total greenhouse gas emissions produced across a product's entire life cycle. This includes emissions from raw material extraction, manufacturing, transportation, usage, and disposal. In manufacturing specifically, a PCF is considered any emissions produced from cradle to gate during the manufacturing process. At Muir we consider the following in our Carbon Origin engine: 

  • Predicted Bill of Material: Taking simple procurement data, Muir predicts the materials and manufacturing processes of a product from raw material to finished good.
  • Sourcing Location: Project the flow of materials from the direct suppliers up the entire supply chain.
  • Activity Level Emissions Calculation: Understand the cost, risk and emissions contribution at each step, identify the opportunities for action.

In today’s competitive market, understanding and managing your product's carbon footprint isn't just an environmental imperative — it's a strategic business decision. By measuring and reducing emissions, businesses can achieve regulatory compliance, gain a competitive advantage, and unlock financial incentives. The journey toward sustainability may seem daunting, but with the right tools and strategies, it becomes manageable and highly rewarding.

Muir AI offers comprehensive solutions to help businesses navigate this complex landscape. Our advanced analytics and ISO 14067 certified methodology empower you to confidently report your products' carbon footprints. Given our proprietary AI models and databases, we are able to provide these PCFs autonomously, at scale and for a fraction of a cost of traditional methodologies. Whatsmore, the Muir Intelligence Platform gives you the intelligence to finally go beyond reporting and take action. Key areas that Muir can help reduce your carbon footprint are: 

  • Sourcing Sustainable Materials: Muir’s platform identifies opportunities to lower your environmental impact by including recycled materials and purchasing from more sustainable suppliers.
  • Energy-Efficient Manufacturing: Our platform identifies suppliers in your value chain with opportunities to implement energy-saving practices and processes in manufacturing. Transitioning to renewable energy sources for production can significantly cut emissions and reduce operating costs.
  • Greener Transportation: Address transportation emissions by switching to lower-emission shipping methods.
  • Model Cost Across All Your Decisions:  At Muir, we understand that sustainability and your bottom line go hand in hand. With our cost modeling intelligence, know that you’re not only making a decision that is good for the planet, but also beneficial to your bottom line.

By committing to reducing your carbon footprint, you contribute to a healthier planet and a more resilient business. For more information, contact us directly to learn how we can support your Scope 3 sustainability goals.

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