Periodic Reporting for period 1 - TCF - Tanso Total Carbon Footprint (AI-based Total-Carbon-Footprint for a low-carbon European manufacturing sector)
Reporting period: 2023-03-01 to 2024-02-29
Today, manufacturing companies in Europe are pressured by regulations such as CSRD, CBAM or CSDDD to report their carbon emission values on Scope 1-3. However, due to the fast-changing regulatory environment in the field of carbon accounting, heterogenous standards for the calculation of these values, as well as intransparent value chains, complying with regulations is an very challenging - while the cost of non-compliance is high, both for the companies as well as for the environment.
No tool on the market allows companies to report their carbon emissions in line with all the relevant European regulations, let alone in a scalable way. As a result, mid-sized manufacturing companies fail to comply, face important losses in competitiveness and market shares and European regulations cannot achieve their expected impact.
This is the issue that we are tackling with our project. With the Tanso software, manufacturing companies can calculate their full scope 1-3 emissions in a scalable way - enabling efficient compliance, and effective decarbonisation measures. Our core software for CCF (Corporate Carbon Footprint) is completed by a solution for PCF (Product Carbon Footprint), as well as CSRD and CBAM compliance. Our software helps calculate PCF emissions and realize synergies with CCF calculations, leveraging our unique calculation methodology connecting ISO 14064 and ISO 14067.
With that, we help companies comply with regulation and decarbonize efficiently.
No tool on the market allows companies to report their carbon emissions in line with all the relevant European regulations, let alone in a scalable way. As a result, mid-sized manufacturing companies fail to comply, face important losses in competitiveness and market shares and European regulations cannot achieve their expected impact.
This is the issue that we are tackling with our project. With the Tanso software, manufacturing companies can calculate their full scope 1-3 emissions in a scalable way - enabling efficient compliance, and effective decarbonisation measures. Our core software for CCF (Corporate Carbon Footprint) is completed by a solution for PCF (Product Carbon Footprint), as well as CSRD and CBAM compliance. Our software helps calculate PCF emissions and realize synergies with CCF calculations, leveraging our unique calculation methodology connecting ISO 14064 and ISO 14067.
With that, we help companies comply with regulation and decarbonize efficiently.
Extensive comparative research between the different standards and guidelines for PCF calculations was performed to understand aspects such as the scope of the lifecycle stage covered, including indicators, and geographic & sector relevance. Both general standards and sector-specific guidelines were considered. As a result, this gave us a clear understanding that ISO14067 is the standard to focus on and ensure that our software covers all key requirements.
Additionally, we put together a team of carbon specialists, in the climate intelligence team whose work is to monitor changes in regulations, standards, guidelines, and work on our emission factors, and develop communication material to our team and customers on the climate accounting field. With these experts, we have aggregated and harmonized >13.000 emission factors from scientific sources relevant and recognized by the industry. The harmonization of this data across temporal, geographical, and system boundaries is aimed to result in a mutually exclusive, collectively exhaustive database fit for the carbon accounting of manufacturers.
We have launched PCF STARTER, software available from Q2 2023 to Q2 2024 to all members of the leading industry association VDMA. This software covers the main cradle-to-gate emission sources and is compatible with the industry-specific VDMA PCF Guideline, GHG Protocol, and ISO 14067. Comparisons between the PCFs calculated with PCF STARTER, and other ISO-certified PCF calculators, as well as LCAs, were made. Only negligible differences were found, which proves the reliability and strength of this MVP despite its pragmatic approach.
Additionally, as security and credibility are critical for the success of the project, therefore we have invested in measures such as row-level database security and certifications. In 2023, our core software was certified for GHG Protocol, equivalent to ISO 14064, by TÜV Rheinland. In Q1 2024, we extended the MVP and released our in-app Beta for PCF calculations, which is in use by multiple customers testing the solution. We also started the process for ISO 14067 certification, to achieve double ISO certification on our software.
Also, Gyri Reiersen (Co-Founder & CPO) is involved in multiple expert groups researching the topic of carbon accounting. As a result of this work, for example, she co-authored the VDMA Guideline for PCF calculations, together with manufacturing companies part of the VDMA Expert Group on PCF.
Additionally, we put together a team of carbon specialists, in the climate intelligence team whose work is to monitor changes in regulations, standards, guidelines, and work on our emission factors, and develop communication material to our team and customers on the climate accounting field. With these experts, we have aggregated and harmonized >13.000 emission factors from scientific sources relevant and recognized by the industry. The harmonization of this data across temporal, geographical, and system boundaries is aimed to result in a mutually exclusive, collectively exhaustive database fit for the carbon accounting of manufacturers.
We have launched PCF STARTER, software available from Q2 2023 to Q2 2024 to all members of the leading industry association VDMA. This software covers the main cradle-to-gate emission sources and is compatible with the industry-specific VDMA PCF Guideline, GHG Protocol, and ISO 14067. Comparisons between the PCFs calculated with PCF STARTER, and other ISO-certified PCF calculators, as well as LCAs, were made. Only negligible differences were found, which proves the reliability and strength of this MVP despite its pragmatic approach.
Additionally, as security and credibility are critical for the success of the project, therefore we have invested in measures such as row-level database security and certifications. In 2023, our core software was certified for GHG Protocol, equivalent to ISO 14064, by TÜV Rheinland. In Q1 2024, we extended the MVP and released our in-app Beta for PCF calculations, which is in use by multiple customers testing the solution. We also started the process for ISO 14067 certification, to achieve double ISO certification on our software.
Also, Gyri Reiersen (Co-Founder & CPO) is involved in multiple expert groups researching the topic of carbon accounting. As a result of this work, for example, she co-authored the VDMA Guideline for PCF calculations, together with manufacturing companies part of the VDMA Expert Group on PCF.
50.000 companies, of which 15.000 are manufacturers representing about 30% of European emissions, are affected by CSRD and have to report up to 1176 certified sustainability-related KPIs. EFRAG confirmed that a large part of the recurring cost and effort to comply with this regulation comes from climate disclosures in ESRS E1, and larger manufacturers force the pressure down their supply chain, requesting product carbon footprints from their suppliers.
However, midsized companies struggle to report these numbers, and thus cannot reduce their emissions. Thanks to our software project, 15.000 companies will be able to calculate the emissions of their product portfolio, which typically includes thousands of SKUs, in a scalable way. This means that they will be able to comply with regulations and standards within the deadlines, remain competitive in their respective markets and geographies, and save significant time and money. As our software gains in market share, the supply chain of the manufacturing industry will become more transparent and allow for industrial decarbonization.
In the last months, as our project evolved, the following achievements were also made:
- Frauenhofer Institute, the most renowned research office in Germany, benchmarked us against >100 different European Carbon Accounting & Management Software and we made the top 5
- Gyri Reiersen, Co-Founder & CPO, received the “Ethics in Electronics” award for her work on developing carbon accounting methodologies and drive the topic in the electronics industry by the Electronics
- In April 2023, Tanso closed a Seed-Round of €4M, financed by leading VC funds and angel investors, to complement the EIC Grant
- Thanks to the development in the Tanso software, real impact has already been perceived at customers. Among others: our customer Heroal is could divide by 2 the time spent for Scope 1-3 carbon accounting in its second year of using Tanso; or Heidelberger Druckmaschinen achieved very similar results when comparing the PCF of one of its wallbox calculated with PCF STARTER, compared to a previously conducted LCA.
However, midsized companies struggle to report these numbers, and thus cannot reduce their emissions. Thanks to our software project, 15.000 companies will be able to calculate the emissions of their product portfolio, which typically includes thousands of SKUs, in a scalable way. This means that they will be able to comply with regulations and standards within the deadlines, remain competitive in their respective markets and geographies, and save significant time and money. As our software gains in market share, the supply chain of the manufacturing industry will become more transparent and allow for industrial decarbonization.
In the last months, as our project evolved, the following achievements were also made:
- Frauenhofer Institute, the most renowned research office in Germany, benchmarked us against >100 different European Carbon Accounting & Management Software and we made the top 5
- Gyri Reiersen, Co-Founder & CPO, received the “Ethics in Electronics” award for her work on developing carbon accounting methodologies and drive the topic in the electronics industry by the Electronics
- In April 2023, Tanso closed a Seed-Round of €4M, financed by leading VC funds and angel investors, to complement the EIC Grant
- Thanks to the development in the Tanso software, real impact has already been perceived at customers. Among others: our customer Heroal is could divide by 2 the time spent for Scope 1-3 carbon accounting in its second year of using Tanso; or Heidelberger Druckmaschinen achieved very similar results when comparing the PCF of one of its wallbox calculated with PCF STARTER, compared to a previously conducted LCA.