IMPA SAVE / IMEF Webinar: Full Recording and Bonus Q&A Now Available

Thank you once again to the many people who joined us at the end of last month for the first IMPA SAVE / IMEF Live Webinar. We appreciate your participation and engagement during the event, and hope you have found that a valuable session on this new ambitious initiative.

The recording of our session on the IMEF initiative is now live on IMPA's YouTube Channel, and, starting at the 51:20 mark, you will now find, as promised, a further recording of a Q&A session on Product Carbon Footprints (PCF). This additional Q&A will hopefully answer most of the questions that were asked during and since the live webinar, and an Executive Summary is included below for your reading.

Thank you once again for your support and participation, and please do reach out to our team should you have any questions whatsoever. We are always happy to help and very much hope to have you join this journey with us.

Mikael Karlsson (IMPA SAVE Chair) and Rasmus Elsborg-Jensen (IMPA SAVE Council Member)

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Executive Summary: Key Insights from the Q&A Session in Singapore on Product Carbon Footprints (PCF)

This dialogue between Michael Karlsson and Rasmus Elsborg-Jensen from ReFlow provides critical insights into the challenges and opportunities surrounding the calculation of Product Carbon Footprints (PCFs), particularly within the maritime industry. Below are the key takeaways:

1. Feasibility of Global Carbon Footprint Calculations

• Challenge: Diverse production methods and supply chains complicate global carbon footprinting.
• Proposed Solution: Use background databases like ecoinvent to calculate average emission factors for raw materials and production processes when direct data is unavailable. This method, though not precise, offers a practical interim approach.

2. Addressing Emissions for Smaller Items

• Challenge: Accounting for emissions of smaller ship chandlery items (e.g., hand tools, screws) can be labor-intensive.
• Approach: Begin with proxy methods using aggregated data for similar items. Focus on high-sales or customer-prioritized products first, then progressively engage suppliers for detailed data.

3. Scope 3 Emissions and Mandatory Reporting

• Current Practice: Most shipowners rely on spend-based methods, which lack granularity and are prone to inaccuracies from external factors like inflation.
• Future Trend: Shift toward activity-based reporting for more accurate and actionable emissions data. This hybrid approach allows for gradual improvement in data collection while maintaining compliance.

4. Industry Readiness and Overcoming Data Gaps

• Issue: Many suppliers lack the infrastructure to track emissions beyond manufacturing (e.g., logistics, storage).
• Recommendation: Initially focus on cradle-to-gate emissions to avoid over-complicating calculations. Expand to full lifecycle assessments as capabilities improve.

5. Encouraging Decarbonization

• Starting Point: Establishing a baseline for emissions data is essential for identifying reduction opportunities.
• Risk of Greenwashing: Without credible data, companies risk reputational damage and regulatory penalties. Conversely, accurate data enables confident claims and market differentiation.
• Greenhushing: Some companies hesitate to publicize their sustainability efforts due to lack of robust data. Data transparency can combat this trend and inspire industry-wide improvements.

6. CSRD Compliance and Global Implications

• Scope: The EU’s Corporate Sustainability Reporting Directive (CSRD) mandates sustainability reporting, initially targeting large, publicly traded corporations but expanding over time.
• Global Impact: Non-EU suppliers working with EU entities will likely face indirect compliance pressures. Early engagement with customers about requirements can provide a competitive edge.

7. Collaboration Through IMEF

• Objective: The IMPA Maritime Environmental Footprint (IMEF) initiative fosters industry-wide collaboration on standardized emissions calculations.
• Participation: Open to all stakeholders, IMEF aims to unify methodologies rather than impose rigid frameworks, ensuring inclusivity and flexibility.

8. Complexities of Green Fuels

• Observation: Green fuels like methanol and ammonia have lower Scope 1 emissions but higher Scope 3 emissions due to energy-intensive production and logistics.
• Takeaway: A thorough understanding of fuel lifecycle emissions is essential to accurately assess their environmental impact.

Conclusion

This discussion underscores the importance of data-driven strategies to tackle the complexities of decarbonization. Stakeholders must adopt a phased approach to improve data quality, align with emerging regulations, and leverage industry initiatives like IMEF for collaborative progress. Rasmus emphasizes that while challenges remain, the journey starts with education and baseline data collection, paving the way for meaningful action and industry transformation.

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Interested in learning more about the IMEF Initiative? Visit: www.impasave.org/imef-initiative.