SGS Hong Kong Limited (C&P – EET)

Sustainability Services
Malaysia Roadshow Seminar 2024

Restricted Substances and Sustainability in Consumer Products | Litto Tam | Jun 2024
Agenda

01 Trends of Sustainable Materials

02 Product Carbon Footprint
03 Labelling Advisory Service of
Product Packaging
04 SGS Green Mark Certification
Service
Agenda

01 Trends of Sustainable Materials

• Bio-based Plastic
• Recycled Plastic
• Biodegradable / Compostable Plastic
02 Product Carbon Footprint
03 Labelling Advisory Service of
Product Packaging
04 SGS Green Mark Certification
Service
Bio-based Plastic
▪ Plastics are fully or partially made from biological resources, rather than fossil raw materials.
• Biological resources
• E.g. sugar derivatives like cellulose and starch, derived from straw, milk, tapioca, sawdust, wood
chips, food waste, vegetable oils and fats, etc.
• Types of bio-based plastic available commercially
• Cellulose-based
• Starch-based
• Protein-based bioplastics
• Aliphatic polyesters
• Poly-3-hydroxybutyrate (PHB), Polyhydroxyalkanoates (PHA), Polyhydroxyvalerate (PHV),
Polyhydroxyhexanoate (PHH), Polylactic acid (PLA), Polyamide 11 (PA11), etc.
• Bio derived polyethylene
• …
Testing Standard
▪ Testing Principle:
• Living organisms (animal, plant, etc.) keep
intake radioactive carbon (14C) from
atmosphere. 14C’s half-life ~ 5730 years
• Fossil contains nearly zero 14C as the formation
> millions of years
• Biobased carbon content in materials is
measured using the 14C method

▪ Common methods:
• ASTM 6866 - Standard test method for
determining the biobased (carbon) content of
solid, liquid and gaseous samples using
radiocarbon analysis
• EN 16640 - Bio-based products - Bio-based
carbon content - Determination of the bio-based Picture source: https://earthsciences.anu.edu.au/research/facilities/anu-radiocarbon-
carbon content using the radiocarbon method laboratory/radiocarbon-dating-background

• ……
ISO 14021:2016 – Claim on Renewable material
▪ Renewable material (7.14)
• Material that is composed of biomass from a living source and that can be continually replenished.

▪ Qualifications (7.14.2)
• An unqualified claim of renewability shall only be made when the product consists of 100 %
renewable material, allowing for de minimis amounts of non-renewable materials being contained in
that material. Otherwise, renewability claims shall be qualified as follows:
a) where a claim of renewable material content is made, the percentage by mass of renewable material to the
total mass shall be stated;
b) the percentage of renewable material content (mass fraction) for products and packaging shall be
separately stated and shall not be aggregated.
Agenda

01 Trends of Sustainable Materials

• Bio-based Plastic
• Recycled Plastic
• Biodegradable / Compostable Plastic
02 Product Carbon Footprint
03 Labelling Advisory Service of
Product Packaging
04 SGS Green Mark Certification
Service
Market Trends – How Key Brands Act on Product Sustainability?
Information disclosure in brands’ latest sustainability report
Top 10
Electronic New sustainable Reduction of
Hazardous
Brands in Recycled Materials plastic / minimize Enhancing Carbon Footprint
substances
2023 material (biobased, degradable, packaging repairability of Product
management etc.)
(based on revenue) material
[10]

Apple [1] √ √ √ √ √ √

Samsung [2] √ √ √ √ √

Sony [3] √ √ √ √

Lenovo [4] √ √ √ √ √ √

Lg [5] √ √ √

Panasonic [6] √ √ √ √ √ √

Xiaomi [7] √ √ √ √ √

Gree Electric Not disclosed

NVDIA [8] √ √ √ √ √
TCL
√ √ √ √
Technology [9]
Recycled Materials in EE Industries
METAL PLASTIC
• Common type of recycled metal • The Global Post-consumer Recycled
including Aluminum, Steel, Copper, Plastics in Consumer Electronics
Brass, Nickel, etc. Market has been valued at USD 2.14
billion in 2022 and is anticipated to
• Global tech manufacturer HP made project robust growth in the forecast
progress on its sustainability goals in period with a CAGR of 3.85% through
2022, using 45% more recycled metals 2028. (TechSci Research report)
•
• Mitsubishi (Japan) launched Japan's RECYCLED
First Recycled Metal Brand "REMINE“ in
2024
MATERIALS

BATTERY
• EU latest battery directive - mandatory
minimum levels of recycled content
(Co, Pb, Li & Ni) for industrial batteries,
SLI batteries and EV batteries.

• Leading EE brand (mobile device) has • LGE set a target to use a cumulative
set a target to use 100 percent 600,000 tons of recycled plastics from
recycled cobalt in all their own 2021 to 2030
designed batteries
ISO 14021:2016 – Definition on Recycled Content
▪ Recycled material (7.8.1.1 b)
• Material that has been reprocessed from recovered material by means of a manufacturing process and made into
a final product or into a component for incorporation into a product.

▪ Recycled content (7.8.1.1 a)

• Proportion, by mass, of recycled material in a product or packaging. Only pre-consumer and postconsumer
materials shall be considered as recycled content, consistent with the following usage of terms.

1) Pre-consumer material
• Material diverted from the waste stream during a manufacturing process. Excluded is reutilization of
materials such as rework, regrind or scrap generated in a process and capable of being reclaimed within the
same process that generated it.
2) Post-consumer material
• Material generated by households or by commercial, industrial and institutional facilities in their role as end-
users of the product which can no longer be used for its intended purpose. This includes returns of material
from the distribution chain.
Major International Standards on Recycled Content
ISO 14021 - Environmental labels EN 15343 - Plastics - Recycled EN 45557 - General method for
and declarations — Self-declared Plastics - Plastics recycling assessing the proportion of
environmental claims (Type II traceability and assessment of recycled material content in
environmental labelling) conformity and recycled content energy-related products

▪ Defines the type of recycled ▪ Specifies the procedures needed ▪ Applicable for energy-related
material (pre- and post- recycled for the traceability of recycled products
content) plastics (Focus on recycled ▪ Provides more details information
▪ Provides the guideline in making plastic only) on the chain of custody
claim on recycled content in ▪ Being adopted in Spain for tax traceability requirements for ERP
product reduction regulation ▪ Provides guidance on specific
▪ Provides the evaluation method (accreditation is required) materials (Plastic, metal and
(calculation) on recycled content glass)
▪ Most widely adopted standard
regarding on recycled content
certification and verification
ISO 14021:2016 – Claim on Recycled Content
▪ Qualifications (7.8.2) ▪ Use of a symbol (7.8.3)
• Where a claim of recycled content is • When a claim of recycled content is made,
made, the percentage of recycled material the use of a symbol is optional. (7.8.2.1)
shall be stated. (7.8.2.1)
• If a symbol is used for a recycled content
• The percentage recycled content for claim, it shall be the Mobius loop
products and packaging shall be accompanied by a percentage value stated
separately stated and shall not be as “X %”, where X is the recycled content
aggregated. (7.8.2.2) expressed as a whole number calculated
in accordance with 7.8.4. The percentage
value shall be located either inside the
Mobius loop or outside and immediately
adjacent to the Mobius loop… (7.8.2.2)
Agenda

01 Trends of Sustainable Materials

• Bio-based Plastic
• Recycled Plastic
• Biodegradable / Compostable Plastic
02 Product Carbon Footprint
03 Labelling Advisory Service of
Product Packaging
04 SGS Green Mark Certification
Service
 Microplastic?

Glossary in “BIO” Related Materials

Oxo-degradable = By Oxygen
Bio-Plastic Thermo-degradable = By Heat
Photo degradable = By Light
“Destination /
“Origin / Source” End-of-life”

Non-biodegradable
Bio-based Plastic Bio-degradable Conventional plastics

Plastics are fully or partially VS Fossil-based Bio-based

made from biological
Plastic and not
Plastics can be decomposed and not
resources, rather than fossil biodegradable biodegradable

Fossil-based

Bio--based
by the action of living
raw materials. They are not
organisms, usually microbes,
necessarily compostable or
into water, carbon dioxide,
biodegradable Fossil-based Bio-based
and biomass.
and and
biodegradable biodegradable
Test standards (e.g.): Test standards (e.g.):
• ASTM D6866 • ASTM D5338
• ISO 14855-1 Biodegradable
• CEN/TS 16137
• ISO 14855-2
• ISO 16620-2, etc. • GB/T 19277.1-2011
Source: https://www.eea.europa.eu/themes/waste/resource-efficiency/biodegradable-and-compostable-plastics-
challenges?mc_cid=62bf09875d&mc_eid=64442b4fd1

• ASTM D5511
• ISO 17556
• ASTM D5988, etc.
 Introduction - Bio-based and Fossil-based plastic on
biodegradability
▪ Bio-based plastic ≠ Biodegradable plastic
Non-biodegradable • Bio-based plastic - fully or partly made
Conventional plastics
from biological raw materials (e.g.
Fossil-based Bio-based plant, corn, etc.)
and not and not
biodegradable biodegradable • Bio-based plastics can either be bio-
Fossil-based

Bio--based
degradable or non-biodegradable

Fossil-based Bio-based Type of plastic Example(s)

and and Fossil-based PE, PP, PET
biodegradable biodegradable and not biodegradable
Bio-based Biobased PE, PA, PET
Biodegradable and not biodegradable
Source: https://www.eea.europa.eu/themes/waste/resource-efficiency/biodegradable-and-compostable-plastics-challenges?mc_cid=62bf09875d&mc_eid=64442b4fd1 Fossil-based PBAT, PCL
and biodegradable
Bio-based PLA, PGA, PBS
and biodegradable
Compostable Plastic Biodegradability
• ≥ 90%

Disintegration
Bio-degradable Plastic • ≥90% fraction with
size ≤ 2 mm

Compostable Plastic
Plastic that undergoes degradation by biological
Biodegradation
processes during composting to yield CO2, water,
inorganic compounds and biomass at a rate
consistent with other known compostable materials
and leave no visible, distinguishable or toxic
Non-toxic
residue (ISO 17088)

Harmful substances
• Heavy metals Test specifications
• Fluoride (e.g.):
• EN 13432
Eco-toxicity • ASTM D6400
• Plant • ISO 17088
• Earthworm(*) • AS 5810, etc.

* Requested in some test standards

Introduction: Biodegradation of Plastic Material (Testing)
Simplified biodegradation formula
Temperature

Environmental
parameters
Microorganisms
Oxygen
Water
pH

𝐶𝑃𝑜𝑙𝑦𝑚𝑒𝑟 CBiomass + 𝐶𝑂2 (+ 𝐶𝐻4) + 𝐻2𝑂

}
Cannot be Can be
quantified quantified
▪ The degree of biodegradability is directly proportional to carbon dioxide and/or methane gas
(anaerobic condition) produced or oxygen consumer (aerobic condition) during the incubation
period
▪ Since the environmental parameters greatly affect the rate of biodegradability, various test
standards from ISO, ASTM, EN, etc. have specified the environment conditions for incubation
• Comparison of the material biodegradability shall be performed only if they are being tested
in the comparable environment and incubation period
 Introduction: Biodegradation of Plastic Material (Testing)
Environment Conditions Test Standard (Example)
Industrial Composting High temperature (>58°C) ISO 14855-1, ISO 14855-2, ASTM
Fungi and bacteria D5338, GB/T 19277.1-2011
More Aggressive Environment

Anaerobic Digestion Plant Elevated temperature (20-45°C) ISO 15985, ASTM D5511
Bacteria
Home Composting Ambient temperature (20-30°C) AS 5810, NF T 51-800
Fungi and bacteria
Soil Ambient temperature ISO 17556, ASTM D5988
Fungi and bacteria
Fresh Water Ambient temperature ISO 14851, ISO 14852, ISO 14853
Bacteria only
Marine Water Ambient temperature ISO 23977-1, ISO 23977-2, ASTM
Diluted bacteria D6691
Landfill Ambient temperature ASTM D5526, ASTM D7475
Bacteria only
Source: Relevance of Biodegradable and Compostable Consumer Plastic Products and Packaging in a Circular Economy
(https://op.europa.eu/en/publication-detail/-/publication/3fde3279-77af-11ea-a07e-01aa75ed71a1)
 Testing in Compostability
Photo Source: https://www.goodstartpackaging.com/commercial-composting/ Photo Source: backyardchickencoops.com.au

Compostable
Material

Industrial Composting Home Composting

Harmful substances Biodegradability Harmful substances Biodegradability
• Heavy metals • ≥ 90% within 180 days • CMR • ≥ 90% within 365 days
• Fluoride (At 58℃) • Heavy metals (At ambient temp.)
• Fluoride
Eco-toxicity Disintegration
• Plant • ≥90% fraction with size ≤ 2 Eco-toxicity Disintegration
• Earthworm(*) mm (within 12 weeks) • Plant • ≥90% fraction with size ≤
• Earthworm(*) 2 mm (180 days)
Test standards (e.g.):
• EN 13432 • AS 4736 (*) Test standards (e.g.):
• ASTM D6400 • GB/T 28206 • NF T51-800
• ISO 17088 (*) • AS 5810 (*)
ISO 14021:2016 – Claims on Degradable
▪ Qualifications (7.3.2)
• The following qualifications refer to all types of degradation, including for instance
biodegradation and photodegradation (7.3.2.1)
a) Claims of degradability shall only be made in relation to a specific test method that includes maximum level
of degradation and test duration, and shall be relevant to the circumstances in which the product or
packaging is likely to be disposed.
b) A degradable claim shall not be made for a product or packaging, or component of a product or packaging,
that releases substances in concentrations harmful to the environment.
ISO 14021:2016 – Claims on Compostable
Qualifications (7.2.2)
▪ A compostability claim shall not be made for a product or packaging or a component of a product or
packaging that:
a) negatively affects the overall value of the compost as a soil amendment;
b) releases substances in concentrations harmful to the environment at any point during decomposition or
subsequent use; or
c) significantly reduces the rate of composting in those systems in which the product or component is likely to be
composted.
▪ All compostability claims shall be clearly qualified as follows.
a) The claim shall specify whether the type of composting facility or process in which the identified component is
compostable is a home-composting facility or an on-site or central composting facility, unless the product is
compostable in all types of composting facilities, in which case no qualification is necessary.
b) If the entire product is not compostable, the claim shall identify specifically which components are compostable.
If the user of the product is required to separate those components, clear direction on how to do so shall be
provided.
c) ……
Agenda

01 Trends of Sustainable Materials

02 Product Carbon Footprint
03 Labelling Advisory Service of
Product Packaging
04 SGS Green Mark Certification
Service
What is “Product Carbon Footprint” (PCF)?
3.1.1.1
carbon footprint of a product
PCF
sum of GHG emissions and GHG removals in a product
system , expressed as CO2 equivalents and based on a life
cycle assessment using the single impact category of climate
change

3.1.4.3 LCA
life cycle assessment
LCA
compilation and evaluation of the inputs, outputs and the
potential environmental impacts of a product
system throughout its life cycle

Source: ISO 14067: 2018

PCF quantification standards
▪ LCA/PCF
• ISO 14067 – Carbon Footprint of Products
• ISO 14040 – LCA Principle and Framework
• ISO 14044 – LCA Requirements and Guideline
• Product category rule (PCR)
▪ Tools
• System process modelling : Simapro v.9.6
• Secondary database : Ecoinvent database v.3.10 or E.F.3.1
▪ Deliverables
• Study report (result, methodology and recommendation)
Why Product Carbon Footprint (PCF)?
Regulations
EU Carbon Border Tax (CBAM)
[2023.5]
EU Battery Regulation [2024.2] Regulation
Pr. EU Ecodesign for Sustainable
Products Regulation (ESPR)
[expected adoption 2024]
Internal Optimization
Hot spot analysis for
carbon reduction plan
Process and product design
optimization
Customer and Market Market Optimization
Precise accounting for scope
‘Green’ product claims in ESPR 3 reporting (SBTi, CSRD.
v.s. China’s carbon goal, etc)
Green-washing in Green Claim Directive
Procurement requirement of buyers
esp. government
Prioritization in online retail
EU New Battery Regulation – Battery type
Starting, lightlng and Light means of
Portable battery Industrial EV(Electric Vehicle)
ignition (SLI) transport (LMT)

• Sealed, <5 kg; ▪ exclusive for ▪ To supply electric • sealed, <25kg ▪ To provide electric
• Not exclusive for industrial uses; or power for starting, • specifically designed power for traction in
industrial; not ▪ for industrial uses lighting, or ignition to provide electric hybrid or electric
SLI/LMT/EV after having been that can also be power for the traction vehicles of Reg
• ‘General use’: subject to used for auxiliary or of wheeled vehicles (EU) No 168/2013
4,5 Volts (3R12) , preparation for backup purposes in Cat L
vehicles, other • Incl. Reg (EU) No
button cell, D, C, repurposing or 168/2013 Cat L and ▪ >25kg;
AA, AAA, AAAA, repurposing means of transport
or machinery not EV battery ▪ Or to provide
A23, 9 Volts (PP3) ▪ other battery that is electric power for
>5 kg and not traction in hybrid
LMT/SLI/EV ▪ Reg (EU) 2018/858
Cat M/N/O
 NB
Carbon Footprint in Battery Regulation - Timeline
2025.2.18** 2026.2.18* 2028.2.18* 2029.2.18* 2030.2.18* 2032.2.18*
2026.8.18* 2027.8.18* 2028.8.18* 2030.8.18* 2031.8.18* 2033.8.18*

EV 1 2 3

Industrial battery 1 2 3
>2kWh except ext.

LMT 1 2 3
1: Declaration
(per model per manufacturing plant)
Industrial battery >2kWh with 1 2 3
2: Labelling and Classification exclusively external storage
3: Maximum Threshold
*: or 18 months after implementation or delegated acts
**: or 12 months after implementation or delegated acts
For 1: calculation methodology and verification; 2: classes and label format; 3: maximum threshold
EU CBAM - Carbon Border Adjustment Mechanism
▪ Regulation (EU) 2023/956, a.k.a. Carbon Tax
▪ Prevent carbon leakage due to Emissions Trading System (ETS)
▪ Covers import from all non-EU countries while China has 2nd most
trade covered under the CBAM

Carbon Border Adjustment Mechanism - European Commission (europa.eu)

EU CBAM - Scope (Potentially applicable to EE products)
CN code – article examples
7318 – Screws, bolts, nuts, coach screws, screw hooks, rivets, cotters, cotter pins,
washers (including spring washers) and similar articles, of iron or steel
7326 – Other articles of iron or steel
7612 – Aluminium casks, drums, cans, boxes and similar containers (including rigid
or collapsible tubular containers), for any material (other than compressed or liquefied
gas), of a capacity not exceeding 300 litres, whether or not lined or heat-insulated,
but not fitted with mechanical or thermal equipment
7607 – Aluminium foil (whether or not printed or backed with paper, paperboard,
plastics or similar backing materials) of a thickness (excluding any backing) not
exceeding 0,2 mm
7614 – Stranded wire, cables, plaited bands and the like, of aluminium, not
electrically insulated
7616 – Other articles of aluminium

CBAM main | Legal text 2023/956 | Implementation act (Reg EU 2023/1773, C/2023/5512)
EU CBAM - Scope: EE accessories (non-electricals)

▪ Other articles of iron or steel

• 7326909000
• 7326909890

▪ Other articles of aluminium

• 7616999000
• 7616999099
EU CBAM - Timeline

2023 2023 2024 2025 2026

May 10 Oct Jan Jan Jan

Signed Reporting 1st report Registration as Only authorized

to law system submission authorized declarant declarant

Transition phase Definitive period

Quarterly report: Not required:

- Quantity of imported goods - Verification by accredited verifier
- Total embedded direct and - CBAM certificate
indirect emissions
- Carbon price due in country of
origin
Environmental claims : mandatory + must be verifiable

Ecodesign for Sustainable Products Regulation Empowering Consumer for Green Transitions
(ESPR)
▪ Proposed requirements on ▪ Adopted, await publication in EU OJ
• product durability, reusability, upgradability,
▪ Environmental claims shall be
and repairability
• with clear, objective, publicly available and
• presence of chemical substances that inhibit verifiable commitments
reuse and recycling of materials
• with realistic implementation plan
• energy and resource efficiency • verified by an independent third party
• recycled content expert
• carbon and environmental footprints • Operationalized in
(proposed) Green Claim Directive
• available product information, in particular a
Digital Product Passport.

▪ Below practices are considered unfair

• making an environmental claim about the entire product or the trader’s entire business when it concerns only
a certain aspect of the product or a specific activity of the trader’s business;
• claiming, based on the offsetting of greenhouse gas emissions, that a product has a neutral, reduced or
positive impact on the environment in terms of greenhouse gas emissions;
Marketing purpose
▪ Other than the PCF value, companies may also go one step further to obtain Carbon Reduction, Carbon
Neutral and/or other kinds of verified claims
▪ Promote a green image of the company to the consumer
▪ Receive direct and quantifiable benefits, for example: Amazon’s Climate Pledge Friendly Certifications
promotes search ranks if the product is certified/verified with approved programs
• 10% increase in page view and traffic on average (Amazon 2023 data)
Internal optimization
▪ PCF study analyze the life cycle processes of the product and identify major carbon-emitting
stages and process
▪ Provide a high-resolution breakdown of the product’s emission data, allow clients to act
accordingly and efficiently
Identification of emission
Raw material hotspot
acquisition Production

Analysis of emission source

Provide advice for

Distribution alternatives / possible actions

End-of-life

Client take actions to reduce

Use
carbon emission
SGS PCF Services

Consultancy Quantification Verification

Legislation Introduction Factory visit Risk assessment
Data Training Data collection and analysis Factory visit
Report computation Report critical review
SGS PCF Services

Consultancy Quantification Verification

Legislation Introduction Factory visit Risk assessment
Data Training Data collection and analysis Factory visit
Report computation Report critical review
Life Cycle Assessment (LCA) approach

Goal and
Inventory Impact Result
scope
analysis assessment interpretation
definition

Climate change ➔
Greenhouse gases
PCF is obtained using an LCA approach ➔ Carbon Footprint
 Goal and
Goal and Scope Definition scope
definition
Inventory
analysis
Impact
assessment
Result
interpretation

Goal: buyer’s
requirement? Fulfil
regulation? Internal
reference?

• Incineration
• Landfill
• Secondary use
 Goal and
Goal and Scope Definition scope
definition
Inventory
analysis
Impact
assessment
Result
interpretation

Scope

Cradle-to-gate
• Incineration
• Landfill
• Secondary use

Cradle-to-grave
 Goal and
Inventory Analysis scope
definition
Inventory
analysis
Impact
assessment
Result
interpretation

Raw materials Product

Material
Semi-products Co-product
Acquisition

Resources Emission
(Energy water, etc) Waste
 Goal and
Impact assessment scope
definition
Inventory
analysis
Impact
assessment
Result
interpretation

Raw materials Product

Material
Semi-products Co-product
Acquisition
CO2 equivalent CO2 equivalent

Resources Emission
(Energy water, etc) Waste
 Goal and
Interpretation scope
definition
Inventory
analysis
Impact
assessment
Result
interpretation

▪ Hot spot analysis

▪ Data quality
evaluation

▪ Carbon reduction
recommendations
▪ Potential improvements
suggestions
LCA/PCF: Required Data
Factory data Factory data
➢ Material weight and source ➢ Workflow and component weight
➢ Transportation means ➢ Energy consumption
➢ Waste generated during production

• Incineration
• Landfill
Buyer data
• Secondary use
➢ Distribution method
Buyer data (if available)
➢ Destination and distance
➢ Waste collection plan ➢ Sales distribution
➢ Recycling rate
Buyer data
➢ Expected lifespan
➢ Operation mode
➢ Power consumption data
➢ Use scenario
Client’s pain point

▪ Lack of expertise
• ISO 14067 standard
• LCA methodology and modeling
• Material know-how
• Secondary data research and review
• Technical judgement
▪ High set-up and maintenance cost
• Personnel
• Continuous training
• Software and database maintenance fee
 Quantification Service Workflow

Project definition
• Product complexity
For internal use / • Factory location
product improvement / • Goal and scope etc.
as an initial PCF study

PCF
quantification
~2-3 weeks ~2-3 weeks ~1 week

Review / verify
PCF by third party
review/verification

Source: ISO 14067: 2018

Our clients
Client Project description Credibility
“H” brand – global Audio products, including • Verified and accepted by third-party
leading audio products sound bar and headphones

Earphones • Verified and accepted by SCS Global

• Successfully applied Carbon Neutral Claim
with our report
• Amazon climate pledge friendly program
approved
Surveillance camera and • Verified by SCS Global
systems • Successfully applied Carbon Neutral Claim
with our report
• Amazon climate pledge friendly program
approved
SGS PCF Services

Consultancy Quantification Verification

Legislation Introduction Factory visit Risk assessment
Data Training Data collection and analysis Factory visit
Report computation Report critical review
Review and verification

ISO 14044 Clause 5.2 - Additional requirements and

guidance for third-party reports
▪ When results of the LCA are to be communicated to any
third party (i.e. interested party other than the
commissioner or the practitioner of the study), regardless of
the form of communication, a third-party report shall be
prepared.

An organization cannot perform

both PCF quantification and
verification on the same product
Why Carbon Footprint of Product (PCF)?
Regulations
EU Carbon Border Tax (CBAM)
[2023.5]
EU Battery Regulation [2024.2] Regulation Quantification
Pr. EU Ecodesign for Sustainable
Products Regulation (ESPR)
[expected adoption 2024]
Internal Optimization
Quantification + Hot spot analysis for
Verification carbon reduction plan
Process and product design
optimization
Customer and Market Market Optimization
Precise accounting for scope
‘Green’ product claims in ESPR 3 reporting (SBTi, CSRD.
v.s. China’s carbon goal, etc)
Green-washing in Green Claim Directive
Procurement requirement of buyers
esp. government
Prioritization in online retail
Critical review
depends on acceptance
Critical Review Workflow

Goal and scope Quotation

Project definition Enquiry Kick-off meeting
discussion
• Product complexity
• Factory location
• Goal and scope etc.

PCF
Quantification Study Report
Can be used for
footprint communication

PCF Communication
Critical review and updates on Critical review Publication
Critical review of report report
findings
~1 week ~1 week ~1 week

Source: ISO 14067: 2018

Verification Workflow

Project definition Goal and scope Quotation Kick-off

Enquiry
discussion • Product complexity meeting
• Factory location
• Goal and scope etc.

PCF
Quantification Verification
Study Report Planning Can be used for marketing
purposes, application of various
~1 week
eco-marks, carbon neutral plans

PCF Verification Communication

Verification and updates on Verification Publication
Activity
findings report
e.g. Audit
~1-2 weeks ~1 week ~1 week
 Critical review vs Verification
Critical review Verification
Reference ISO 14044 Clause 6 – LCA Requirements and ISO 14064-3 Specification with guidance for the
standard Guideline – Critical Review verification and validation of greenhouse gas
statements
ISO 14071 LCA - Critical review processes and
reviewer competencies: Additional requirements
and guidelines to ISO 14044:2006
Can be 1) Independent team in SGS that did not involve External verifier
done by in the same project
OR
2) External reviewer
Involved Relatively simple, mostly document review More complication, including planning, risk
activities assessment, factory audit and document review
Deliverables Critical review report Verification report
Critical review statement Verification statement
Application Footprint communication Footprint communication
Application of Eco-marks
PCF verification standards
▪ “Critical Review”
• ISO 14044 Clause 6 – LCA Requirements and Guideline – Critical Review
• ISO 14071 – LCA - Critical review processes and reviewer competencies:
Additional requirements and guidelines to ISO 14044:2006
▪ “Verification”
• ISO 14064-3 – Specification with guidance for the verification and validation
of greenhouse gas statements
• Methodologies in critical review
▪ Deliverables
• Report – comments and findings of conformance to standard clauses
• Statement – summary and conclusion
SGS Environmental Claim Verification Mark

▪ Ensures that the PCF information is accurate,

complete, consistent, transparent, and in
compliance with the relevant standards and
methodologies.
▪ Adds credibility to your PCF study and
mitigate the risk of greenwashing and
subsequent reputational damage.
▪ Helps with accurate communication of your
environmental performance to the
stakeholders and differentiate your product
from the competitors.
▪ Global recognition – This mark can be used
Validity: 2 years on the product, packaging, promotional
materials and advertisement to show end-
users that the claim is verified by SGS.
Agenda

01 Trends of Sustainable Materials

02 Product Carbon Footprint
03 Labelling Advisory Service of
Product Packaging
04 SGS Green Mark Certification
Service
Background
▪ Increasing demand on improving environmental policies
▪ Directive (EU) 2018/852 of the European Parliament and of the Council of 30 May 2018
amending Directive 94/62/EC on packaging and packaging waste
• Emphasized “extended producer responsibility”, “circular economy”
• Revised to a higher recycling rate target
▪ Driven EU members to update their own packaging and packaging waste law
• New labelling requirements on packaging waste
▪ For example:
• France updated the environmental code in 2020 to make Triman logo and sorting
instruction mandatory
• Italy implemented the updates also in 2020, requires all packaging to properly label with
material identification code and information for disposal.
• Other member states are also implementing the updates into their own environmental or
packaging related law.
Scope
Labels on packaging

Environmental label
Rating label
Country of Mandatory Voluntary claim/
origin
self declaration
Product
info.
CE mark

Care label
Nutrition
facts label Implementation of EU
Directive (EU) 2018/852

Banned claims
Etc.
The pain points about those labelling requirements
▪ Non-harmonized mandatory requirements
• Within the EU
• EU members implement the regulation at their own pace and variations
• Some country might have banned certain logos which are mandatory to others
• A reason is that the implementation details is based on the condition of the countries
• e.g.: recycling ability, infrastructure, technologies, etc.
• World-wide
• EU, US, Asia countries etc. have their own labelling requirement
• Some in common while some are not

▪ Various voluntary labels on the market

France: Triman Logo & Sorting Instruction
▪ Introduced by Decree No. 2020-105 and implemented by Decree No. 2021-835
▪ “Any product placed on the market for households subject to I of Article L. 541-10, excluding
household packaging of glass beverages, is the subject of a sign informing the consumer
that this product is subject to sorting rules (exhibit A). This signage is accompanied by
information specifying the methods of sorting (exhibit B) or bringing in the waste from the
product.”

▪ Exhibit A ▪ Exhibit B

Symbol prescribed
by the regulation
Label Composition for Packaging
Scope of the Requirements
▪ Article L. 541-10-1 of Environmental code
• Product categories under the principle of extender producer responsibility
1) Packaging used to market products consumed or used by households, including those consumed outside the
home
2) Packaging used to market products consumed or used by professionals and which are not already covered by 1 °
of this article, as of 1 January 2025, with the exception of those consumed or used by professionals engaged in a
catering activity, for which these provisions apply from 1 January 2023.
3) Paper print, with the exception of books, issued, including free of charge, by principals or on their behalf, and paper
for graphic use, intended for end users who produce household and similar waste
…

5) Electrical and electronic equipment, whether intended for use by individuals or professionals, so that the
components and waste generated by this equipment, including rare metals from high-tech electronic devices,
particularly phones and tablets, can be collected and reused after use
6) Batteries and accumulators
…

9) Perforating medical devices used by patients in self-treatment and users of self-tests mentioned in Article L. 3121-2-
2 of the same code, including, from 1 January 2021, electrical or electronic equipment associated with such a device
and which are not subject to 5 ° of this article
The coming trend in the EU - PPWR
▪ Packaging and packaging waste regulation (PPWR) proposal – expected to be adopted in 2024
▪ Will be applicable across the whole EU
▪ Article 12 – Labelling of packaging
• Packaging placed on the market shall be marked with a label containing information on its material
composition in order to facilitate consumer sorting
• The label shall indicate that the material is compostable, it is not suitable for home-composting, and
compostable packaging shall not be thrown away in nature
• Reusable packaging shall bear a label informing users that the packaging is reusable. Further
information on reusability
Other than label – recyclability and recycled content
Text indicating the coming trend
Article 6 – 1. All packaging placed on the market shall be recyclable.
Recyclable 2. Packaging shall be considered recyclable if it fulfils the following conditions:
packaging (a) it is designed for material recycling, which enables the use of resulting secondary raw materials that
are of sufficient quality when compared to the original material that it can be used to substitute primary raw
materials, in accordance with paragraph 4
(b) when it becomes waste, it can be collected separately in accordance with Article 48(1) and (3), sorted
into specific waste streams without affecting the recyclability of other waste streams and recycled at scale,
on the basis of the methodology set out in accordance with paragraph 5
Article 7 – 1. By 1 January 2030 or three years after the date of entry into force of the implementing act referred to in
Minimum paragraph 8, whichever is the latest, any plastic part of packaging placed on the market shall contain the
recycled following minimum percentage of recycled content recovered from post-consumer plastic waste, per
content in packaging type and format as referred to in Table 1 of Annex II, calculated as an average per
plastic manufacturing plant and year:
packaging (a) 30 % for contact sensitive packaging, except single use beverage bottles, made from polyethylene
terephthalate (PET) as the major component;
(b) 10 % for contact sensitive packaging made from plastic materials other than PET, except single use
plastic beverage bottles;
(c) 30 % for single use plastic beverage bottles;
(d) 35 % for plastic packaging other than those referred to in points (a), (b) and (c).
SGS Services
1. Regulatory overview of packaging requirements
• A summary of the regulatory requirements on packaging symbols and voluntary, yet commonly
used, symbols of the targeted jurisdiction, recycling rate targets, and other requirements related
to packaging

European countries The American Countries Asia Pacific Countries Middle East Countries
France Finland United States China Saudi Arabia
Italy Sweden Canada South Korea United Arab Emirates
Spain Ireland Mexico Japan Kuwait
Germany Norway Malaysia Oman
Austria Poland Philippines Qatar
The Netherlands Greece Thailand Bahrain
Belgium Czech Republic Hong Kong Turkey
Bulgaria Romania Taiwan Israel
Portugal Croatia Singapore
Luxemburg Hungary Vietnam
Malta Great Britain Indonesia
Cyprus Switzerland India
Lithuania Ukraine Australia
Denmark Russia New Zealand
SGS Services (cont’d)
2. Labelling advisory service
• Review the packaging and suggest the required labelling information
• Mainly on: France and Italy, due to their unique requirements
• Also capable for: major Asia markets, whole EU

• Complementary vectors and pictograms

• Provide customized pictograms upon request
3. Labelling review service
• Review the printed outcome of the label if it meets the requirements
• Provide comment and recommendation
Service Value
Agenda

01 Trends of Sustainable Materials

02 Product Carbon Footprint
03 Labelling Advisory Service of
Product Packaging
04 SGS Green Mark Certification
Service
Market trends and
pain points
Generational Differences in Eco-friendly Consumerism

By PwC

• 58% of core millennials have become more

100 58 ~35 eco-friendly
• Willing to spend up to 20% more
The Natural Marketing Institute
Current Market Environment for Green Products
▪ 2023 International Consumer Survey –
sheds light on the urgency of tackling
greenwashing
• 48% of the respondents prefer buying products
bearing an environmental label than products
without one
• 34% say they have noticed greenwashing at
least once over the past 12 months
• Only a mere 3% say they would be able to
always distinguish false green claims
• 75% of them believed green claims and labels
should only be authorized if pre-approved or
verified
• Almost 70% say they trust public authorities and
third-party organizations to fulfil that role
➢ Consumers want to take action to reduce their
environmental footprint and look out for reliable
information but end up frustrated with the
confusing, never-ending sea of green labels and
claims
The SGS Green Mark Initiative
▪ Market pain points: ▪ Values for the industry: ▪ Values for society:
• Businesses/brands have • Provides third party credibility to • Improves green claim
striven to meet escalating single-attribute environmental claims transparency and relevancy
consumer demand for and helps facilitate trust and
greener products and confidence • Facilitates the
services standardization of the
• Reduces the risk of greenwashing content to be disclosed for
• Lack of reliable and scientific environmental claims
data to support green claims • Differentiates product from the
competition • Ensures the product has a
• Freestyle green marketing positive impact regarding
claims lead to confusion for • Visualizes corporate commitment to the assessed environmental
consumers environmental and social attribute
governance, and to leadership in
• Product greenwashing green product development • Increases consumer
confidence in green product
• Facilitates access to new customers selection
and markets
• Enhances brand image
Key Details

Claim/product
Criteria Validity Product surveillance
organization
• One environmental • Each environmental • Refer to the individual • Refer to the individual
claim per certificate/ claim is protocol for duration protocol for
statement assessed according to of validity required frequency
• Different marks can be an individual protocol
applicable to different • Product must fulfill
product categories the requirements
• One certificate may as stated in
cover a range of the individual protocol
products if limitations
are met (based on
Green Mark
team review)
SGS Green Mark and Greenwashing
SGS Green Mark and Greenwashing

Independent 3rd party Traceability

certified / verified

Applicability Relevance
Well-defined
Current Approved Schemes (7+2)
Certification Scheme
▪ Industrial Compostable
▪ Biodegradability
▪ Biobased
▪ Hazardous Substances Assessed
▪ Recycled content
▪ PVC Free
▪ PFAS Assessed

Verification Scheme
▪ Product Carbon Footprint
▪ Carbon Footprint Reduced
SGS Green Mark: certification/verification workflow
Deliverables (using PFAS Assessed as an example)

OR

es

▪ SGS Green Mark - ▪ Certificate ▪ QR Code landing ▪ Targeted

PFAS Assessed page substances list
Benefits
▪ Focused and clear claims, supported by
third party certification
▪ Test-based determination (for all but
recycled content certification) – a direct
measure of product performance, not an
assessment
▪ Everything handled under one roof – no
need for separate program holders, test
labs and assessment bodies:
• Cost competitive
• Less coordination effort
▪ No membership required
Successful case sharing

Samsung Display Co. Ltd

Certified product: OLED laptop display panel
Certification scheme: Hazardous substances assessed

“
Clear, comprehensive guidance on
certification requirements made it easier
to understand what is expected.

Samsung Display Co. Ltd ”

Successful case sharing

TCC Global
Certified product: Recycled stainless steel knife
Certification scheme: Recycled content

“
Our partnership with SGS enables us to
substantiate our products’ sustainability
credentials, such as recycled content validation
and supply chain authenticity. This also reinforces
our portfolio of more sustainable rewards and
ensures higher customer satisfaction.

Mr. Nicolas Garrelly

Head of Sustainability, Global
TCC Global ”
Inquiries
Email
▪ [email protected]
Link
▪ www.sgs.com/green-mark

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 Questions?

© SGS Société Générale de Surveillance SA. (2024)

 Thank you!
Do you have any questions?
[email protected]
(852) 2774 7187

© SGS Société Générale de Surveillance SA. (2024)