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[Music]
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hello everyone
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we
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that is tfs together for sustainability
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are excited to introduce you to the
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solution we are providing for the
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chemical industry to counteract the
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current situation of climate change
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we will start by outlining the impacts
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of climate change and the urgency to act
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for those who do not know who or what
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tfs is we will introduce the
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organization and its mission
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in order to understand current
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challenges in the chemical industry to
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actively improve their impact on climate
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change the terms and meanings of ghg
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ghg protocol and pcf will be explained
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we then present what our solution looks
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like and how it meets our we needs
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the effects on the environmental
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situation are already visible as
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elevated temperatures rising sea levels
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and increased frequency of storms and
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floods that is why the political
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situation has changed and politicians
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have reacted and set climate targets at
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the u.n climate change conference in
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paris 2015.
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the agreed goal is to limit climate
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change and global warming to well below
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2 celsius preferably 1 5 celsius
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compared to pre-industrial levels
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to achieve this goal the world must
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reduce man-made greenhouse gas emissions
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to zero between 2045 and 2060 and thus
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pursue very ambitious climate protection
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this is a global challenge and an urgent
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call to action for all governments
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societies and industries
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within the chemical industry more than
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33 companies have joined forces and
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created the initiative together for
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sustainability tfs comprises a global
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network of chemical companies and
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therefore delivers the de facto global
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standard for environmental social and
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governance performance of chemical
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supply chains being a procurement driven
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initiative tfs delivers a groundbreaking
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framework with robust tools to
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continuously improve the sustainability
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performance of our chemical companies
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and our suppliers at tfs we are
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committed to contributing our part to
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the achievement of the paris climate
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agreement by providing solutions for the
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chemical industry we want to be part of
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the solution
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our mission is to make a concrete and
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measurable contribution to climate
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protection together with our members and
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suppliers
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transparency is the most important
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prerequisite for this we invite you to
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be part of the solution
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as tfs members and multinational
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companies we strive for sustainable
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development
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we take responsibility for our own
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operations
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and in our supply chain sphere of
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influence to support adherence to
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existing regulations
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and to respond to the needs and
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expectations of consumers and society
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through tfs we join forces to harmonize
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requirements and manage complexity and
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risk in our global value chains
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we engage in open and constructive
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dialogues with our suppliers and
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relevant stakeholders to improve the
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working and environmental conditions in
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our supply chains and so to shape
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sustainable business
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we want to make a positive contribution
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to climate change
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we want to achieve the goal of the paris
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agreement
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we want to reduce greenhouse gas
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emissions
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and to do so we are developing a
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harmonized approach to calculating
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greenhouse gas emissions from chemical
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materials so we can then base emission
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reduction decisions and measures on
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reliable data
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if we're only able to achieve the goal
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of the paris agreement through
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cooperation and collaboration so
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let's decarbonize together
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as we said before
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to be able to reduce greenhouse gas
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emissions
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in short ghg
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and to decarbonize we must first be able
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to account for ghg emissions the most
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common standard companies used to do
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this is the greenhouse gas protocol the
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ghg protocol is a set of standards for
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accounting of greenhouse gas emissions
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greenhouse gases are gases that
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contribute to the greenhouse effect the
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best known is by far co2
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however there are also five other ghgs
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and each gas has a different impact on
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climate change if you refer to the
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entire and combined impact of all ghgs
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we can call them co2 equivalents
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the ghg protocol standard distinguishes
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between three scopes to which emissions
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can be assigned scope one two and three
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scope one includes all direct emissions
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of the company such as company
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facilities company vehicles and fugitive
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emissions
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scope 1 emissions are referred to as
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direct emissions as these are generated
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directly by companies as scope 2 and 3
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emissions are not generated within the
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company itself these are referred to as
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indirect emissions
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scope 2 defines the energy purchased by
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the company from outside this can
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include purchased electricity steam
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heating and cooling
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many companies now extend their
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commitments to the entire value chain
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and these are grouped under scope 3.
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scope 3 emissions can be subdivided into
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downstream activities for example
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activities of the clients and upstream
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activities for example activities of the
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suppliers the focus of the scope 3
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upstream calculation is usually on the
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purchased goods and services
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in other words on the products that we
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as tf members are buying from you
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if we look at the emissions in the
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chemical industry three-quarters of
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these consist of the ghg emissions
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arising from purchased goods and
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services
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so emissions is the responsibility of
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suppliers and again their suppliers
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this is why scope 3 is often the focal
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point in the company's internal ghg
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balance if you look closer
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it is apparent that scope 3.1 emissions
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account for the largest share of scope 3
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emissions
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scope 3.1 refers to the emissions caused
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by the purchased goods and services of a
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company
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which means your product is our purchase
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and a big share of our emissions are
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associated with it
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the emission value which we propose to
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provide to us for the purchased chemical
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product is called the cradle to gate
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product carbon footprint
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the short form for this is pcf ctg what
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exactly is pcf ctg
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pcf as we call in this video is
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balancing all the greenhouse gases of a
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product during its upstream life cycle
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cradle to gate is a partial life cycle
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inventory including all emissions from
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material source through to when the
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immediate product leaves the reporting
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company's gate typically immediately
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following its production and excluding
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final product use and end of life
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emission factors are needed to calculate
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the pcf the calculation method includes
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the data from the scopes 1 2 and 3
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upstream emissions
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emission factors are representative
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values that attempt to relate to the
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quantity of a ghg released to the
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atmosphere with an activity associated
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with the release of these emissions
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it considers the tons of co2 per product
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or per defined functional unit
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by calculating the pcf it is possible to
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improve the complex value chain in terms
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of its greenhouse gas emissions one
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benefit is the increased transparency
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for customers and consumers due to the
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pcf's high accuracy of the exchange data
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further it is possible not only to
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calculate the pcf
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but it also allows to track emissions
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and to create and initiate projects with
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the goal of decarbonization
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another important value add is that the
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pcf is a reproducible approach for other
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products and clients
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in other words it allows to compare and
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evaluate emission values in a simple way
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your pcf is part of our scope 3 and we
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need your pcf to calculate our scope 3
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emissions accurately
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most companies are not yet able to
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calculate and provide pcfs according to
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the methodology we just described this
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poses several challenges for the
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chemical industry as a whole
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currently different kinds of calculation
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methods are available they are all based
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on the iso
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14067 standard the current challenge is
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that harmonized allocation rules for the
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calculation methods are missing
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consequently the results of the
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different calculation approaches cannot
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be compared with each other
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this in turn means that it is not yet
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possible to include pcf as a decision
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factor
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during the supplier selection process
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alongside availability quality and cost
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are being we are however sure this will
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be required in the future and we would
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like to consider and award your efforts
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and special decarbonization projects
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based on pcf data as mentioned before
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emission factors are needed for some
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calculation approaches however the
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availability of emission factors is
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limited and selection of appropriate
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emission factors require experience to
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ensure consistency and compatibility of
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results another critical issue as of
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today
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is the limited available options to
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actually share data between companies in
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a secured manner
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last but not least it requires high
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effort if different customers request
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different calculation methods therefore
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for us as members of tfs and companies
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in the chemical industry we want to
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overcome this calculation challenge of
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upstream emissions
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we want to create deep understanding
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amongst companies for the importance of
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the topic to pave the way for data
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transparency and for the provision of
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valid robust and consistent pcf data
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this is only possible through
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cooperation and joint efforts so we can
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decarbonize the whole value chain and
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reduce ghg
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because your pcf is part of our scope 3.
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to solve this challenge
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we as tfs member companies
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we have decided to provide a solution to
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the current situation leveraging the
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expertise know-how and experiences of
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all of us tfs member companies combined
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we have developed a calculation approach
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for pcfs and we have partnered with all
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relevant stakeholder groups and
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organizations working on guidelines and
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frameworks to ensure the guideline to
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become the de facto industry standard
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and the only one of its kind for the
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chemical industry
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this means that our pcf calculation
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guideline will be applicable and
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specific to chemical materials across
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the board and find common acceptance
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also in frameworks beyond the chemical
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industry
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the goal of the guideline is to
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harmonize and specify the approach to
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calculate product carbon footprints the
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guideline will enable you to calculate
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pcf's and provide your customers with
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comparable pcf data
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the guideline will help provide
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necessary transparency for
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decarbonization
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the selection of relevant emission
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factors will be guided and the sharing
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potential of available data will be
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increased
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moreover the guideline does not only
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help the chemical industry it offers a
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cross-industry solution in combination
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with our industry standards
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the aim of tfs is to create more clarity
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by creating a precise and consistent
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guideline
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what are the most important issues
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calculation criteria are explained in
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detail as well as the evaluation of the
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pcf results and the system boundaries
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that must be uniformly defined for the
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calculation
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in addition we will be detailing our
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currently missing specifics about
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allocation approaches cut-off criteria
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data collection energy use bio-based
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materials etc
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let's look more closely at the
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organizations that tfs partners with to
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ensure our solution is in line with
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existing standards and offers indeed a
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cross-industry solution the guideline
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aims to provide a drop-in solution that
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allows industries to use the calculation
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results for their industry the developed
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drop-in solution is based on the
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existing standards and guidelines
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such as iso 14067
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pathfinder framework by the world
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business council for sustainable
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development and others
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the guideline is being developed in
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collaboration with the ghg protocol
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moreover it provides an auditable basis
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as it is accredited by an external
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auditor to extend the outreach of the
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guideline as much as possible tfs is
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also highly engaged within a network of
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associations such as the world business
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council for sustainable development and
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the science-based targets initiative
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the unique value-add of the guideline is
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its specific focus on the chemical
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industry
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the tfs members have jointly detailed
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out aspects in the mentioned existing
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guidelines or elaborated on them
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where specificity for chemical materials
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was lacking
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on the one hand side there are
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advantages for the industry as a whole
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to use the guideline and on the other
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hand side there are benefits for your
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company
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the introduction of the guideline has a
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unique advantage of enabling uniform
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coordination within the industry
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and between all chemical companies the
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comparability of the data is facilitated
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and this doesn't apply only to the
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chemical industry but also to other key
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industries as it can serve as a drop-in
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solution
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it creates it necessary transparency and
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promotes dialogue along the value chain
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by applying the guideline your company
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has advantage of having access to a
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precise and consistent calculation
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methodology
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transparency is highly improved not only
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for your customers but also for your
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company if you ask your suppliers to
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follow the guideline as well
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therefore you will be able to better
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meet the requirements of your
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stakeholders
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furthermore you can make your carbon
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dioxide emission calculation process
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more efficient with this clearly defined
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standard for the calculation within the
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industry
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you can benefit from a strong
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competitive advantage as you will be
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able to calculate your own pcf data
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and improve your negotiation power
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towards your customer requirements
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to increase credibility this method will
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be verified by external experts
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the guideline will be launched in the
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summer 2022
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we are delighted that the tfs member
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companies have joined forces to produce
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the guideline to help us all decarbonize
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it is available to all free of charge
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and will be developed further please use
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it and help us to create comparability
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together
