Corporate responsibility work can sometimes feel too high-level just giving vision statements without reasoning, especially when these topics are communicated outside the company. In fact, all parts of the sustainability strategy should be measurable so that they can be use to drive business and to convince various stakeholders such as suppliers, investors and customers.
What is LCA?
LCA = Life Cycle Assessment is a method to estimate the environmental impacts of a product, service or process throughout its entire life cycle helping companies to assess that which stage of the product’s life cycle the environmental impact is greatest and how it could be reduced.
What areas are included in LCA?
LCA analyses the life cycle of a product or service in four parts:
- Raw material procurement – Where do the materials come from and how? How much natural resources are used for this?
- Manufacturing and production – How much energy is consumed and does it create emissions or waste?
- Use of the product – How long is the estimated lifetime of the product? Does it require maintenance or energy?
- End of Life and Disposal – Is the product sent directly to landfill or can it be recycled, reused or composted?
The analysis makes it possible to determine for example the product’s carbon footprint (CO2 emissions), water footprint, energy consumption, the impact of waste and emissions, and the possibilities for recyclability and reuse.
Who needs a life cycle assessment?
Life cycle assessment is an important tool for many different stakeholders. Companies in the manufacturing industry as well as the energy and transport sectors use LCA to develop sustainability strategies and to deliver ecologically sustainable products. Authorities and legislators use LCA to support environmental regulations and regulations. LCA methods are also developed in different fields by consultants and researchers, and this requires data and experience from organisations. Certification organizations can also use LCA in sustainability assessments such as EcoVadis, LEED and BREEAM.
Benefits of LCA in sustainable business
Life Cycle Analysis is a key tool for reliable and transparent communication about company’s responsibility. It helps to identify and minimize the environmental impacts of products and services throughout their entire life cycle; from raw materials to production and use to recycling and disposal. It strongly supports companies’ Scope 3 emissions reporting and delivers data for end customers Scope 1&2 reporting. In other words, a true win-win situation.
“Beyond just measuring carbon emissions, LCA evaluates impacts on biodiversity, ecosystems, water scarcity, natural resources, and even human health. Depending on the chosen method, it can cover 15-20 different environmental impact categories.”
Poul Lindqvist
Co-founder and Managing Director
Environmental Impacts Academy
Data-driven decision-making
Companies can design more sustainable products and processes when they have precise knowledge of their environmental impacts.
Regulatory compliance
LCA contributes to sustainability directives and certificates like CSRD, EU-taxonomy and EcoVadis. Exactly the same data can be used in multiple different reports and assessments.
Cost savings and resource efficiency
By mapping environmental impacts in production and logistics, businesses can find energy efficient and resource-smart solutions that can directly contribute to your profit margins.
Competitive advantage and brand strengthening
Sustainable products and responsible operations attract customers, investors and other stakeholders as it also indicates their sustainability. With transparent data you can safely communicate about your products sustainability navigating smoothly through green claims.
Innovation driver
LCA fosters the development of new, environmentally friendly products and business models. It provides you the ability to see your own operations through a new lens that delivers you the opportunity to customize your workflows and find ways to support the environment as well as your employees well-being.
When you integrate LCA into the business strategy, sustainability becomes a competitive advantage. With transparent data you can communicate more effectively and increase your company’s attractiveness towards the industry, investors and new employees.
How to start?
We collaborate with Environmental Impacts Academy who trains companies how to do life cycle analysis. They hold long-term expertise on the subject and the analysis also supports ISO 14040 LCA certificate if your organization has ambitious towards that.
Easiest way to get started is to take their Leaders’ LCA online course, which gives you the basic information. It’s intended for managers, consultants and anyone who wants to learn more about the basics of life cycle analysis.
Through us, you can get a 10% discount on the course price by submitting your contact details in the form below.
