When calculating the footprint of your products, always use the energy that was physically consumed at the processing location. This is called the location-based approach.
Understanding how LCA works (and what data it actually needs)
Life Cycle Assessment (LCA) measures the environmental impact of a product based on what physically happens across its lifecycle.
This includes:
The materials used
The weight and composition of the product
How and where it is produced
Transport and end-of-life
To calculate this, Pickler (and LCA in general) uses real-world data and standardized datasets, not assumptions or claims.
How Pickler models energy
Since collecting detailed energy data per product is often not feasible, Pickler uses the IDEMAT database to model environmental impact.
IDEMAT provides:
Average energy mixes per country or region
Including fossil, nuclear, and renewable sources
With all upstream emissions and infrastructure impacts included
Energy in Pickler is based on realistic, location-specific datasets, ensuring consistent and comparable results.
Why ony location based energy data is valid to use in Pickler (LCA)
If you have more detailed data, you can improve accuracy by adding primary energy data. This data has to be location based for accurate calculations.
Location based energy is energy that was physically consumed at the production site. This ensures the data reflects what actually powers production.
Valid location based energy data sources
Solar panels on the factory roof
On-site wind or hydro
Local district heating or biomass systems
A hydroelectric dam in the same valley
A local biomass heat network
Types of documents where to find this data
Document | Found in | Provided by |
Energy bills / utility invoices |
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Metering data |
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Internal energy reports |
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On-site generation data |
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Do not use: Market-Based Energy Data
Market-based energy data (such as certificates or green energy contracts) represents a fundamentally different approach than location-based data. Instead of reflecting the energy that is physically consumed at the production site, it is based on contractual ownership of renewable energy on paper.
In this system, renewable energy is “assigned” to a company through instruments like Guarantees of Origin (GOs) or RECs, without changing the actual electricity flowing to the facility. The production site remains connected to the local grid, which may still include fossil sources.
Because of this, market-based data does not represent real production conditions. Using it in LCA would artificially lower the calculated impact, reduce comparability between products, and lead to results that no longer reflect what actually happens in the supply chain.
For this reason, market-based energy data is not used in LCA calculations.
Examples of market based energy sources
Energy data from green electricity contracts or GOs — these only shift ownership on paper.
Claiming “100% renewable” electricity based on certificates while the local grid still uses coal, gas, or oil.
Electricity from Power Purchase Agreements (PPAs) that are not physically connected to your site.
Offset credits or virtual power agreements that do not change the real electricity supply.
Documents to avoid
| Example | Problem |
Energy certificates Renewable Energy Certificates (RECs) | “100% renewable electricity certificate” | These confirm renewable energy was purchased, but do not reflect the physical electricity used at the site |
Green energy contracts | “Green electricity” supply agreements
Supplier declarations of renewable sourcing | They change the claim, not the physical grid mix |
Power Purchase Agreements (PPAs) | Especially virtual or off-site PPAs | the energy is physically delivered to the site, it should not be used |
Offset or compensation documents | Carbon offset certificates
“Carbon neutral production” claims | These compensate emissions but do not reduce actual energy impact in LCA |
When market-based energy data is relevant
Market-based energy data (such as certificates and green energy contracts) is still valuable — but for a different purpose.
It is commonly used in:
Corporate reporting (e.g. CSRD)
GHG Protocol Scope 2 (market-based method)
Sustainability communication and claims
These frameworks measure:
organizational emissions
and the impact of purchasing decisions
Why this differs from LCA
LCA (and Pickler) measures something else:
the physical impact of a product
based on what actually happens in the supply chain
This means:
Use case | Approach |
Product impact (LCA / Pickler) | Location-based |
Company reporting (CSRD / GHG) | Market-based allowed |
In short
Use location-based energy data because it reflects the energy that is actually consumed at the production site
Do not use market-based energy data in LCA, as it reflects contractual claims rather than physical reality
Location-based data ensures your results are:
accurate
comparable
aligned with how LCA models real-world impact
Market-based data is still useful for reporting and communication (e.g. CSRD or GHG Scope 2), but should not be used in product-level LCA calculations, as it can distort results.