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Pallet C e nt ral • July -Aug u st 2 0 25 31 H ere's some exciting news for the wooden pallet industry: a newly updated Product Category Rule (PCR) for wood pallets has just been published, and while that may sound technical, it's a big win for all of us. Whether you're building, buying, or selling pallets, this new rulebook helps our industry speak the language of sustainability in a way that decision-makers across the supply chain understand. But what exactly is a PCR, and why should you care? Let's break it down. What's A PCR (And Why Is Everyone Talking About It)? ink of a PCR as the official rulebook for measuring a product's environmental impact. It tells companies how to calculate carbon footprint, energy use, and recyclability based on standardized, globally accepted guidelines. is is what makes an Environmental Product Declaration (EPD) possible. An EPD is like a nutrition label for sustainability. But instead of calories and vitamins, it shows data like greenhouse gas emissions, water use, and end-of-life outcomes. Buyers, regulators, and customers use EPDs to compare products and make more informed, eco- conscious decisions. "For our industry, this PCR gives us a stronger foundation for how we calculate and communicate environmental performance," said Brad Gething, PhD, Vice President of Science & Technology at NWPCA. Since its first publication in 2019, a few significant updates have been made to improve clarity and accuracy. "One major change is how we consider environmental impacts, from tree harvest to pallet lumber production," Gething explained. "Previously, it was assumed every product from a tree claimed 100% of the impact from harvest. Now, we're only accounting for the portion of the wood used in pallets, not the entire tree that's cut. at's a much more realistic and fair reflection of our footprint, and the wood product industry overall." Another key improvement? e introduction of a new reporting baseline. "We added a 'declared unit' as 'one manufactured pallet,'" said Gething. "is change is more understandable for the general audience, as impacts can now be compared on a per-pallet basis." Together, these changes align the PCR with today's best practices and make it easier for pallet companies to use in real-world conversations. e updated PCR provides a modern, science- based framework for the wood pallet industry to communicate on environmental performance with credibility. "It's a foundational step that opens the door to broader recognition of wood as a renewable, sustainable material in supply chains," adds Gething. What It Means For Your Business is updated PCR matters because sustainability has become a core part of doing business. More customers ask, "What's your product's environmental footprint?" e PCR and the resulting EPD take out the guesswork and prove the impact and value of wood pallets as a renewable, recyclable, and carbon-storing solution. e updated version strengthens the wood pallet industry's ability to tell its sustainability story. For example, while a pallet PCR could be developed for alternative materials (such as plastic or corrugated), core technical requirements must first align with ISO (International Organization for Standardization) and the rules set by a recognized program operator if apples-to-apples comparisons of pallet materials are to be made. Without a PCR, an EPD would lack consistency, and companies could choose different methods to calculate environmental impacts, making any comparison unreliable. Gething adds, "e bottom line is that the EPD gives the industry the best chance to ensure that everyone plays by the same rules and minimizes the opportunity for making misleading environmental claims." It's Good For Your Business Access to verified environmental data is a way to stand out as more customers require sustainability documentation in their RFPs and procurement standards. "We're giving pallet manufacturers and users the tools to meet growing demands for environmental transparency," says Gething. "Companies can back up sustainability claims with real data—and that's becoming a key differentiator in the marketplace. e PCR is the critical first step." Collabora ng For Credibility e updated PCR was made possible by months of collaboration between technical experts, NWPCA committee volunteers, and sustainability professionals. With the PRC in place, the next step is collecting data for the Life Cycle Assessment (LCA) survey that will feed into the industry's next EPD.

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