Review of PEF compliant dataset for Wool

The PEF (Product Environmental Footprint) scheme is an initiative of the European Commission (EC) designed to provide a common means of assessing and communicating the sustainability and environmental credentials of products (and organisations). After almost one decade in development, it is expected to become operational in the marketplace, resulting in environmental labels on garments, which pose a substantial risk for wool. AWI has been progressively collecting LCA data over the last decade, and intends to become a global provider of LCA data for wool's supply chain. There is significant demand for this data from many stakeholders, including the EU and the Sustainable Apparel Coalition for their textile rating schemes, as well as brands that may sign up to initiatives like the SBTi Net Zero Standard (Science Based Targets Initiative) In early 2023, AWI commissioned project OF-649, which aimed to address the urgent need to update the Commission's PEF dataset for wool. The EU's dataset was found to inflate wool's environmental footprint by multiples above it's true impact, due to poor source data and euro-centric methodology. It showed the on-farm impacts to be more than 4 times higher than AWI's research and It was subsequently found that the EC commissioned dataset was adapted from a NZ lamb study and many assumptions could not be supported by the consultants who developed it. The inclusion of more accurate source data resulted in a ~75% reduction in wool's reported impact. There is now a requirement for the updated EF-compliant dataset to be independently reviewed prior to submission to the EU for inclusion in PEF. This project addresses a broader AWI strategic priority to grow the value and international demand for wool.