Procurement Glossary
Product Environmental Footprint (PEF): definition and application in Procurement
November 19, 2025
The Product Environmental Footprint (PEF) is a standardized method for assessing the environmental impact of products over their entire life cycle. This EU initiative enables purchasers to make informed decisions based on scientifically sound environmental data. Find out below what PEF is, how it is implemented and which key figures are relevant for Procurement .
Key Facts
- PEF is an EU-wide standard method for measuring environmental impacts across 16 categories
- Based on Life Cycle Assessment (LCA) and enables comparable product evaluations
- Supports buyers in sustainable procurement decisions and supplier evaluations
- Is increasingly being integrated into EU regulations and sustainability reporting
- Enables identification of hotspots and optimization potential in the supply chain
Contents
What is the Product Environmental Footprint (PEF)?
The Product Environmental Footprint (PEF) is a method developed by the European Commission for the standardized assessment of the environmental performance of products and services.
Core elements of the PEF approach
PEF is based on life cycle analysis and assesses environmental impacts in 16 categories:
- Climate change and greenhouse gas emissions
- Ozone depletion and acidification
- Eutrophication of water bodies and soils
- Resource consumption and toxicity
- Land use and water consumption
PEF vs. product carbon footprint
While the Product Carbon Footprint only considers CO2 emissions, PEF covers a broader spectrum of environmental impacts. The Life Cycle Assessment forms the methodological basis for both approaches.
Importance of PEF in Procurement
PEF provides buyers with a scientifically sound assessment of the environmental performance of products and suppliers. The method supports the implementation of compliance requirements and contributes to the decarbonization of the supply chain.
Implementation, obligations and evidence
The practical application of PEF requires structured processes and clear responsibilities in the procurement organization.
Implementation in procurement processes
The integration of PEF begins with the adaptation of supplier qualifications and tendering procedures. Buyers must incorporate PEF criteria into evaluation matrices and request appropriate evidence from suppliers.
- Definition of PEF requirements in specifications
- Training of purchasing teams on PEF methodology
- Development of evaluation skills for environmental data
Data collection and validation
Suppliers must provide PEF-compliant data that has been collected in accordance with uniform standards. Validation is carried out by independent inspection bodies or internal audit processes.
Legal framework
PEF is increasingly anchored in EU regulations and influences corporate sustainability due diligence processes. The Corporate Sustainability Reporting Directive requires corresponding reporting.
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Compliance key figures and quotas
Effective PEF implementation requires measurable metrics to monitor environmental performance and compliance.
Environmental performance indicators
Central KPIs comprise the 16 PEF categories with specific metrics per product unit. These enable benchmarking and continuous improvement of procurement performance.
- CO2 equivalents per product unit
- Water consumption and acidification potential
- Resource consumption and toxicity indicators
Supplier compliance quotas
The proportion of suppliers with validated PEF data shows the quality of implementation. EcoVadis ratings can serve as a supplementary basis for assessment.
Process efficiency indicators
Key figures on data quality and validation speed measure the operational excellence of PEF implementation. Integration with GRI standards enables standardized reporting.
Compliance risks and controls for PEF
The implementation of PEF entails various compliance risks that must be minimized through suitable control mechanisms.
Data quality and validation risks
Incomplete or incorrect PEF data can lead to incorrect procurement decisions. Suppliers could provide inadequate or manipulated environmental data.
- Implementation of dual control principle for data validation
- Regular audits of supplier data
- Development of internal PEF expertise
Regulatory compliance risks
Non-compliance with PEF requirements can lead to legal consequences and reputational damage. Due diligence processes must be adapted accordingly.
Supply chain risks
Complex supply chains make it difficult to fully record PEFs. Upstream emissions and Scope 3 emissions are often difficult to track, which can lead to compliance gaps.
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Practical example
A car manufacturer implements PEF to evaluate battery suppliers for electric vehicles. The company requires all suppliers to provide PEF-compliant data on lithium-ion batteries, including raw material extraction, production and transportation. The assessment is based on the 16 PEF categories, with climate change and resource consumption taking top priority. Through systematic application, Procurement identifies a supplier with 30% lower environmental impact, which is selected based on the overall assessment despite 5% higher costs.
- Development of supplier-specific PEF requirements
- Integration into existing supplier evaluation systems
- Continuous monitoring and improvement
Current developments and effects
PEF is evolving from a voluntary initiative into a regulatory standard with far-reaching implications for procurement.
Digitalization and AI integration
Artificial intelligence is revolutionizing the PEF application through automated data analysis and pattern recognition. AI systems can process complex environmental data and identify optimization potential in real time.
- Automated PEF calculations from ERP systems
- Predictive analytics for environmental impacts
- AI-supported supplier evaluation
Regulatory developments
The EU is planning the mandatory introduction of PEF for certain product categories. This will have a significant impact on EU taxonomy classifications and CBAM calculations.
Industry-specific applications
Various industries are developing specific PEF rules that take sector-specific environmental impacts into account. This leads to differentiated requirements for suppliers and procurement strategies.
Conclusion
The Product Environmental Footprint is establishing itself as the central standard for assessing the environmental impact of procurement. Systematic implementation enables well-founded decisions and supports regulatory compliance requirements. Buyers should build up PEF expertise at an early stage and support suppliers during implementation. Integration into existing procurement processes creates long-term competitive advantages and contributes to the sustainable transformation of the supply chain.
FAQ
What distinguishes PEF from other environmental assessment methods?
PEF is a standardized EU method that comprises 16 environmental categories and is based on uniform rules. In contrast to proprietary methods, PEF enables comparable assessments between different products and suppliers.
How can buyers request PEF data from suppliers?
Buyers should define PEF requirements in tenders, offer appropriate training and implement them step by step. It is important to support suppliers with data collection and validation.
What are the costs of PEF implementation?
Costs include training, software tools, external consulting and additional work for suppliers. In the long term, however, cost savings can result from optimized procurement decisions and risk minimization.
How is PEF used in sustainability reporting?
PEF data is incorporated into Scope 3 emissions calculations and supports reporting in accordance with GRI standards and other frameworks. They form the basis for science-based climate targets and sustainability indicators.
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