This covers all the value additions undertaken within the enterprise. This largely relates to R&D and production within the company’s boundaries. Value addition can occur in many research and production sites involving interplant and intercompany transportation.
PEF tracks all such activities as maintained in the ERP systems directly associated with production systems. Actual emissions in the enterprise (as part of Scope 1 and Scope 2 emissions) can be mathematically allocated to sold products based on the activities undertaken in the manufacture of the products. This provides an accurate method to distribute the Scope 1 and Scope 2 emissions to individual products. If the enterprise has already completed this exercise of mapping value-adding activities to emissions, PEF takes that as the basis for calculating the emissions along the value chain.
The emissions produced by transporting materials are also mapped to each product, thereby providing a holistic picture of the emission footprint of every single product.