Product Carbon Footprint Data From Minviro Brought to the Point of Purchase With the Metalshub Procurement Solution

Dr. Robert Pell: Minviro applies a Life Cycle Assessment (LCA) approach using recognised standards such as ISO 14040, ISO 14044 and ISO 14064. We use a consistent and scientifically robust methodology to calculate the material and energy inputs as well as associated emissions at each stage of the life cycle for material production. Minviro uses a cradle-to-gate approach capturing all impacts from mine to metal and provides data on the climate change impact category.

Dr. Robert Pell: All upstream Scope 3 emissions are included in the PCF calculation. This includes the embodied impacts of all materials consumed in processes both upstream such as chemicals, reagents and other consumables and in the core processes such as mining, mineral processing, and refining.

Dr. Sebastian Kreft: At the moment only some suppliers are able or willing to provide a PCF together with their offers on Metalshub. As a result, buyers lack information in the decision process. With the Minviro integration, Metalshub provides buyers with an accurate PCF estimate right at the point of purchase. The PCF can now be compared across offers from suppliers and taken into account when taking the supplier selection decision.

Dr. Robert Pell: Price will continue to be the key factor, but the environmental credentials of products are becoming more relevant in purchasing decisions as regulations and consumer pressure increase for the sustainability of end products.

Dr. Sebastian Kreft: Buyers receive a monthly report via Metalshub that shows the CO2 emissions in detail for all purchased raw materials. The integration of Minviro into Metalshub allows a qualified estimate of CO2 emissions to be obtained based on the country of origin and the selected process route in case that suppliers do not provide PCF information. In this way, purchasing can incorporate this information into decision-making and, if strategically desired, specifically reduce Scope 3 emissions by avoiding suppliers with a very high carbon footprint.

Dr. Sebastian Kreft: In many product categories, there is not yet enough PCF data to mathematically assess whether a premium exists. On an anecdotal level, for many buying organisations, it starts to play a more and more important role. Some organisations may exclude companies from their preferred supplier list because of weak ESG standards and reporting. Recently, Australian nickel producers have asked the London Metal Exchange (LME) to separate its nickel contract into ‘clean’ and ‘dirty’. While the LME is unwilling to do so, it recommends Metalshub as a place where price discovery for green premiums can take place.

Dr. Robert Pell: Sharing primary PCF or LCA data across supply chains at each part of the supply chain will enable purchasers to make informed decisions and reduce risks related to the sustainability aspects of products and supply chains. To comply with upcoming regulations there will need to be a step change in collaboration across supply chains.

Dr. Sebastian Kreft: Purchasing of raw materials is by far the largest source of Scope 3 emissions for steelmakers. This is where buyers on Metalshub can weigh the carbon footprint in purchasing decisions and bring more supply chain transparency. The integration of Minviro’s PCF data ensures the data is complete. For example, Klöckner&Co already defines categories for green steel based on carbon load thresholds, including Scope 3 upstream emissions. This is mandatory for selling products with a ‘green steel’ label.

Dr. Robert Pell: There are a number of regulations that require environmental impact data for products and processes. Both the CBAM and European Supply Chain Act, as well as corporate reporting requirements such as the EU Corporate Sustainability Reporting Directive (CSRD) and the International Financial Reporting Standards (IFRS) will require more specific PCF and LCA data for products and processes. This will drive opportunities for those producers that can prove the environmental benefits of their products compared to peers.

Dr. Robert Pell: Industry associations and expert groups such as Minviro have an important role to play in the harmonisation of standards for conducting LCAs or PCFs for materials and metals. Standards and frameworks allow for consistent and effective methodologies across product value chains. Minviro has supported the Rare Earth Industry Association (REIA), the International Lithium Industry Association (ILiA), and the European Carbon and Graphite Association (ECGA).

Dr. Sebastian Kreft: ESG standards go beyond carbon. In fact, the LME has recently published its Responsible Sourcing Policy based on OECD’s due diligence guidance on responsible supply chains, which describes the requirements a producer needs to maintain its status as an LME-listed brand. Moreover, in the steel industry, ResponsibleSteel is currently reworking its responsible sourcing requirements where in order to receive the certification steel mills need to achieve a certain threshold of suppliers with approved ESG certifications (e.g. IRMA).

Dr. Sebastian Kreft: In the future, sustainability data will no longer have to be estimated, but all suppliers will be able to provide it to their supply chain partners. Also, there will be measures in place that the data is auditable to avoid fraudulent statements. Suppliers who have invested in high sustainability standards will reap the benefits by becoming the supplier of choice for many buying organisations.

Metalshub is a leading software provider for the raw materials industry, unlocking supply chain value for buyers and sellers of metals and minerals. By leveraging advanced technology and market expertise, Metalshub provides software solutions for buyers and sellers to connect, negotiate, and close transactions. With its innovative solutions, Metalshub empowers businesses to optimise supply chains, make informed decisions, and drive growth in the digital era.

Minviro is a science-driven consultancy, software, research, and data provider. Since 2019, we have delivered 200+ successful projects, from life cycle environmental assessments of mining projects to quantifying the impacts of some of the world’s leading electric vehicle companies. Operating from three offices globally, London, Perth, and Shanghai, we enable businesses in the raw material and technology value chains to progress on their sustainability journey.

www.minviro.com