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How to conduct a Life Cycle Assessment
As an increasing number of companies embrace environmental responsibility, the term 'Life Cycle Assessment' (LCA) is becoming commonplace.
In a nutshell, an LCA is your go-to method for understanding and measuring the environmental impact of your company's product or service. But, what exactly does it involve? What is the most efficient method for carrying out a Life Cycle Assessment, and why is it essential? Well, don't worry, because Greenly is here to shed light on everything you need to know about Life Cycle Assessments.
👉 In this article, we'll explore what LCAs actually involve and what companies can do to carry out an effective one.
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What is a Life Cycle Assessment (LCA)?
A Life Cycle Assessment, also known as an LCA, Life Cycle Analysis, or a Life Cycle Impact Assessment, is a complete measurement of a particular product or service's environmental impact, across its entire life cycle (this is sometimes referred to as cradle-to-grave, but we'll get into that later). Although you can apply Life Cycle Assessments to services, it's typically used in the realm of products and manufacturing, so we'll refer to LCAs in this context throughout this article.
What is a life cycle?
Admittedly, it's a little bit odd to hear the term life applied to a non-living thing! However, the life cycle of a product or a service refers to all the interconnected stages it goes through from conception or creation to its final disposal. This spans from the extraction of natural resources required to make it to the release of toxins and materials into the environment when it is eventually discarded.
The life cycle of an average product or service will typically include the following stages:
A Life Cycle Assessment looks at each of these stages to identify and quantify the environmental impact associated with a product or service. This includes examining factors like energy usage, carbon emissions, waste production, etc.
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What does a Life Cycle Assessment measure?
As we've already touched on, a Life Cycle Assessment is a method for evaluating the environmental impacts of a product or service. Throughout a Life Cycle Assessment, all stages of a product's life cycle are accounted for, encompassing resource consumption, material processing, product fabrication, distribution, utilisation, and even disposal at the end of its life.
The International Organization for Standardization (ISO) has standardised Life Cycle Assessments via the ISO 14040 series, offering a universally accepted method for gauging how the lifecycle of a product or service influences a broad set of environmental indicators.
These indicators can be categorised into:
- Damage to human health: This covers aspects like particulate matter formation, climate change, human toxicity, and photochemical oxidant formation.
- Damage to ecosystem quality: This includes factors such as climate change, terrestrial acidification, terrestrial and marine ecotoxicity, freshwater and marine eutrophication, ozone depletion, agricultural and urban land occupation, natural land transformation, and ionizing radiation.
- Resource depletion: This refers to water, mineral, and fossil fuel depletion.
Utilising the standardised ISO framework allows for meaningful comparisons between products or services, answering questions like, which product has the least environmental impact, or which is less harmful to human health.
This evaluation empowers companies to enhance the environmental performance of their products. The results can be harnessed for marketing initiatives, or to drive research and development towards a more sustainable product offering.
Example of an LCA
To better visualise how an LCA works in a real-world scenario, let's take the example of a laptop. If you were a computer manufacturer planning to conduct an LCA on a new laptop series, here's what the analysis would divulge:
- The necessary raw materials (such as gold, copper, and aluminum) and the amounts needed for production;
- The energy usage, as well as waste and emissions generated during the manufacturing process;
- The materials needed for packaging the laptop;
- The emissions produced by the transport vehicles delivering the laptop to its final point of sale;
- The electricity consumption throughout the laptop's lifetime;
- The strategies for disposal or repurposing at the end of the laptop's lifespan.
By assessing these aspects, a Life Cycle Assessment provides a comprehensive overview of a laptop's environmental footprint from cradle to grave.
So, what does this actually mean for the company?
With this detailed knowledge, the company can identify areas for improvement and implement strategies to reduce the laptop's environmental impact at each stage of its life cycle. This can result in cost savings, improved public image, and greater market appeal for customers who are increasingly interested in sustainable products.
Furthermore, the insights from the Life Cycle Assessment can guide the company's research and development department in designing more eco-friendly future product lines. Ultimately, a Life Cycle Assessment is a powerful tool for paving the way toward a more sustainable and environmentally-conscious business model.
What are the different types of Life Cycle Assessments?
There are three different types of LCAs you can perform, depending on the level of detail required. For instance, an LCA for internal reporting on product impact might not require as much detail. However, if the LCA is intended for external use, such as for marketing purposes or regulatory compliance, a more detailed analysis may be necessary.
The three types of LCAs are:
Conceptual Life Cycle Assessment (Life Cycle Thinking)
Conceptual LCAs are the most basic form of life cycle assessments. They offer a preliminary evaluation of a product or service's environmental impact based on limited data, providing a broad overview rather than detailed insight.
Results from a Conceptual Life Cycle Assessment are usually expressed as succinct statements or simple graphics. These highlight the processes or materials that contribute most to the environmental impact, thereby helping to quickly convey key environmental information to stakeholders.
Simplified Life Cycle Assessment
Simplified LCAs are a step up from the basic Conceptual Life Cycle Assessments, offering a more detailed evaluation of a product or service's environmental impact. They utilise generic data and standardised modules to estimate the environmental consequences associated with a product or service.
This method involves a semi-quantitative assessment that relies on pre-existing databases and industry standards. These resources provide general figures about the environmental effects of certain processes or materials, which are then applied to the product or service being assessed.
While Simplified LCAs are more comprehensive than Conceptual LCAs, they still lack the specificity of full LCAs, as they don't consider the unique characteristics of each individual product or service. However, they can offer a useful balance between detail and complexity, making them a popular choice for initial environmental impact assessments.
Detailed Life Cycle Assessment
Detailed Life Cycle Assessments represent the most comprehensive form of life cycle assessments. These involve custom investigations and data collection tailored to the specific product or service in question. They encompass thorough analysis and categorisation of impact, followed by an in-depth interpretation of the results.
Furthermore, the focus of LCAs can vary based on your objectives. A Social LCA, for example, quantifies the social impact of a product, considering factors like labor conditions and community development. On the other hand, an Environmental LCA specifically evaluates a product's environmental impact, focusing on elements such as energy use and waste generation. Each approach offers unique insights, contributing to a holistic understanding of a product or service's impact.
Life Cycle Assessment standards
Life Cycle Assessments (LCAs) benefit from worldwide standardisation. This uniformity is largely due to the standards set by the International Organization for Standardization (ISO), specifically ISO 14040 and ISO 14044, which outline the four principal stages of an LCA.
These standards provide a consistent framework for conducting LCAs, making it easier to deliver transparent, verifiable data about a company's environmental footprint. Additionally, global standardisation enables reliable comparisons of data across different organisations and industries.
Key Life Cycle Assessment standards:
Life Cycle Assessment alternatives
When considering your product's life cycle, several approaches offer insights into its impact, but none match the rigor and quantitative depth of a comprehensive life cycle assessment (LCA). Among the alternatives are:
- Cradle to gate - This approach assesses the product's impact from production until it leaves the factory gates, simplifying the Life Cycle Assessment and accelerating the process.
- Gate to gate - A mini-LCA focusing on a single process in your production chain, providing insights into specific areas of your product's life cycle quickly.
- Cradle to cradle - A concept rooted in the circular economy, this method emphasises recycling waste to become new raw materials for other products or industries.
- Well to wheel - Tailored to fuels, this LCA covers the life cycle from raw extraction to emissions during usage.
- Environmental Product Declarations (EPD) - Standardised (ISO 14025) and independently verified certifications that measure a product's environmental impact; they are typically used to compare the impact of products in a similar category.
- Environmental Impact Assessment - Evaluate the potential environmental impact of proposed construction projects.
- Economic Input-Output Life Cycle Assessment (EIO-LCA) - Utilises averages to estimate materials, energy, and emissions within specific sectors of the economy.
While these approaches offer valuable insights, a full-blown LCA remains the most comprehensive and robust method to holistically understand your product's environmental impact and make informed decisions.
The 4 stages of a Life Cycle Assessment
The International Organization for Standardization (ISO) defines four principal stages of a Life Cycle Assessment within the guidelines of ISO 14040 and 14044. These are:
- Establishing goals and scope
- Conducting inventory analysis
- Assessing impact
- Interpreting the results
Each phase of the Life Cycle Assessment is interconnected, providing a framework that you can adjust and refine throughout the process. This systematic approach ensures a comprehensive and adaptive assessment, allowing for continuous improvement and optimisation.
Stage 1: Establishing goals and scope
In the first stage of a Life Cycle Assessment, it's crucial to establish your objectives (i.e. the reasons for conducting the assessment). This will guide you in defining the breadth and depth of your study (how simple or detailed you'd like your Life Cycle Assessment to be).
Essentially, this stage is the kick-off of the project, where you determine the study's scope, decide on the data to gather, and plan your approach. In short, this phase is all about deciding what you want to look into and how deep you're willing to dig. Also, this is the point where you'll decide the main aim of your assessment based on your concerns about the product or your plans for the future.
Common goals might include:
- Finding ways to reduce environmental impact;
- Sharing your green credentials with customers;
- Guiding policy-making and strategic choices.
There are lots of impact categories out there, so trying to cover all of them in one assessment isn't realistic. To set the boundaries for your Life Cycle Assessment, ask yourself:
- How much of the product are you examining?
- Which impact do you want to reduce?
- What areas will you not assess?
The goals and scope you set will also give you a rough idea of how long your assessment will take, and what you'll need to do at each stage.
Stage 2: Life Cycle inventory analysis
The inventory analysis, or Stage 2, encompasses all the environmental inputs and outputs tied to your product, commonly referred to as your product's material flows. Inputs might be raw materials and energy, while outputs could include waste and pollutants. Essentially, this stage helps you understand what you extract from and contribute back to the environment.
- To undertake your inventory analysis, start by identifying the data you need (as defined in Stage 1).
- Next, outline your product's energy flows and gather the inputs and processes you wish to measure. This could cover raw materials, energy usage, supplier data - essentially, anything that flows in or out of the system you're examining. Gathering this data is usually complex, making Stage 2 a potentially time-intensive process.
You'll have to amass comprehensive data for each activity within your scope. Consider this as your data-gathering phase. You may need to carry out both qualitative and quantitative research to gather the necessary information. This might involve expert interviews, literature reviews, and surveys. In certain situations, even after all these efforts, you might not have sufficient data and might have to depend on industry estimates.
After collating your input and output data, it's vital to carefully analyse and evaluate it to pinpoint potential risks and opportunities. Organise it clearly to gain a holistic understanding. Flow models are often recommended for the final part of this phase, which will then pave the way for Stage 3.
Stage 3: Assessing impact
During Stage 1, you decided on the impact categories you wanted to delve into - perhaps you opted to focus on carbon emissions, water usage, or some other environmental factors. Now, in Stage 3, it's time to assess those specific impacts.
Your impact assessment will involve transforming raw data into measurable impacts. To do this, you'll need to consult life cycle databases and scientific research to better understand the implications of your life cycle inventory (a product of Stage 2).
In this phase, you'll dive into each of your product's impacts and sort them into predefined categories such as global warming or human health. You'll then consolidate these impacts to get a clearer picture of each category. The final step involves determining which of these impacts matters the most to your company.
Stage 4: Interpreting the results
Interpreting the results of your LCA involves validating the conclusions you reached in Stage 3, and ensuring that they align with the ISO 14044 standard. This standard offers a series of 'checks' that help confirm whether your conclusions are substantiated by the collected data and employed methodologies. The fourth stage unfolds in five steps:
- A completeness check;
- A consistency check;
- A sensitivity check;
- Identification of significant issues;
- Conclusions, limitations, and recommendations.
Upon the completion of Stage 4, the ball is in your court to utilise these findings as a foundation for implementing informed adjustments to your product or conveying recommendations to the key decision-makers within your company. You could even leverage your Life Cycle Assessment findings to shape policies and governance within the business.
Benefits of a Life Cycle Assessment
Assessing the impact of your products through a Life Cycle Assessment is one of the most trusted ways to measure and disclose the environmental impact of your company and your products. Life Cycle Assessments are unique because they are so rigorous and are firmly grounded in data. Other systems for measuring the impact of your products do exist, but none are as quantitative or comprehensive as a Life Cycle Assessment.
Publicising your Life Cycle Assessment results not only keeps consumers in the loop but also enhances your brand reputation and outlines a roadmap to reduce the environmental impact of your products by pinpointing critical areas for improvement.
Given the versatility of a Life Cycle Assessment and its repeated usability, it presents a valuable investment for companies genuinely committed to minimising their environmental footprint.
While a variety of individuals may show interest in your LCA results, certain departments within a company typically request and utilise these insights more frequently. These include:
- Management and executive teams;
- Marketing and sales departments;
- Supply chain or procurement teams;
- Product and R&D units.
Let's take a closer look at some of the benefits of an LCA:
Visualise your environmental impact
LCAs help you visualise and quantify the total impact of a product. You'll learn about the materials that construct your product, the carbon emissions generated as a by-product, and the potential environmental harm caused by your product's waste.
Identify carbon reduction starting points
These days, many businesses are interested in reducing their carbon footprint, mitigating their environmental impact, and becoming eco-friendly. Conducting an LCA enables companies to trace the most significant sources of carbon emissions throughout the life cycle of their products or services. This detailed insight identifies the precise stages where carbon reduction efforts can be most effectively applied.
Manage your supply chain impact
The GHG Protocol's Scope 3 addresses emissions within the supply chain, which for many businesses, are the primary source of their environmental impact. By conducting an LCA, you can gain an in-depth understanding of which segments of your supply chain contribute most to emissions. This awareness will empower you to effectively pinpoint areas for potential improvement and start exploring viable alternatives for a more sustainable operation.
Enable comparisons
The standardised nature of an LCA simplifies the process of comparing the environmental impacts of different products or product categories within your business. Furthermore, it even allows for a transparent comparison between your products and those of your competitors. This comparative analysis can provide crucial insights and help guide strategic decisions regarding product development and sustainability efforts.
Improve brand image
Life Cycle Assessments inspire trust and connection between brands and consumers. In today's market, consumers are more informed than ever before - and also much more conscientious.
In fact, 75% of millennial consumers consider a product or brand's sustainability before making a purchase, which means that figuring out - and communicating - the environmental impact of your products is crucial to standing out in the market and attracting a new generation of consumers.
Carrying out LCAs not only showcases your commitment to transparency but also enhances your ecological reputation. This can attract environmentally conscious consumers looking for sustainable products and simultaneously strengthen loyalty among your current customers, who value your dedication to environmental responsibility.
Motivate employees
An increasing number of employees are seeking employment with companies that prioritise their environmental footprint and uphold strong values. Embarking on a Life Cycle Assessment is a commendable first step in fostering a business environment that respects and nurtures our planet, thereby attracting such motivated and conscientious talent.
👉 Studies have shown that 67% of those looking for employment are more likely to apply for jobs at an environmentally sustainable company.
New opportunities
When you cater to other businesses, making the results of your Life Cycle Assessment transparent can be a strategic move. By showcasing the environmental responsibility of your products and processes, you position yourself as a desirable partner for businesses actively striving to minimise the environmental footprint of their supply chains. This transparency not only provides valuable insights into your operations but also opens doors to new business opportunities, as you align with the growing demand for sustainable sourcing and responsible procurement.
Regulation compliance
Sometimes, government regulations may mandate your business to conduct a Life Cycle Assessment. While it's true that not all companies around the world are required to do so at present, a future where LCAs become a legal obligation might not be too far off. Therefore, seizing the initiative now and familiarising yourself with the LCA process could prove to be a strategic move, putting you ahead of the curve when regulations inevitably tighten.
Product development
In our increasingly eco-conscious world, it's important that new products are designed with their environmental impact in mind. LCAs can help R&D teams compare the environmental repercussions of various materials, suppliers, and processes. This valuable information can guide the development of new, more sustainable product lines.
Streamline operations
LCAs serve as an illuminating tool that shines a spotlight on various aspects of your production chain. This robust examination often uncovers not just environmental impacts, but also operational inefficiencies and potential areas for optimisation within your existing processes.
Improve strategic planning
Life Cycle Assessments (LCAs) provide crucial data, insights, and recommendations to key decision-makers within your company, enabling informed strategies and policies that drive meaningful changes to its environmental footprint. By comprehensively tracking the environmental impact throughout the entire life cycle of products or processes, from extraction to disposal or recycling, LCAs uncover potential areas for improvement and ensure that no aspect is overlooked. Armed with this knowledge, your company can implement targeted measures to reduce emissions, minimise resource consumption, and optimise waste management, fostering a more sustainable future.
The challenges of conducting a Life Cycle Assessment
Conducting a Life Cycle Assessment presents numerous challenges that can affect its usefulness. To ensure your LCA is genuinely valuable, it must align with the goals set in Stage 1 and be scoped appropriately to support those objectives. Here are the key challenges and considerations to make your LCA effective:
Defining clear goals
- Challenge: Without clear goals, an LCA can become unfocused and unmanageable. Defining precise objectives helps determine the scope, data needs, and methodology of your assessment.
- Solution: Establish the purpose of the LCA from the outset. Are you aiming to reduce environmental impact, meet regulatory requirements, or improve product design? Understanding your motivation provides a solid foundation for a valuable LCA.
Setting the right scope
- Challenge: Setting an appropriate scope is critical. Too broad, and the LCA can become overwhelming and lack depth; too narrow, and it may miss significant impacts.
- Solution: Balance the scope to cover essential stages and impacts without overcomplicating the study. Clearly define what will be included and excluded to ensure the LCA is manageable and focused on relevant areas.
Data collection
- Challenge: Gathering accurate and comprehensive data is one of the most time-consuming and difficult aspects of an LCA. Data gaps and uncertainties can compromise the assessment’s reliability.
- Solution: Plan your data collection strategy carefully. Use a mix of primary and secondary data, and consider the availability and quality of data from suppliers and other sources. Tools like flow models can help organise and visualise data effectively.
Balancing detail
- Challenge: Striking the right level of detail is crucial. An overly simplistic LCA might not provide actionable insights, while an excessively detailed one can become confusing and resource-intensive.
- Solution: Determine the appropriate level of detail based on your goals. Detailed LCAs are suitable for external reporting and regulatory compliance, while simplified LCAs might be sufficient for internal assessments and initial screenings.
Impact assessment
- Challenge: Translating inventory data into meaningful impact assessments can be complex. Different impact categories and methodologies can yield varying results.
- Solution: Choose impact categories and assessment methods that align with your goals. Consider using standardised methods like those provided by ISO 14040 and ISO 14044 to ensure consistency and comparability.
Interpretation of results
- Challenge: Interpreting LCA results to make informed decisions requires expertise and a clear understanding of the data.
- Solution: Conduct thorough checks to validate your conclusions. Use sensitivity analysis to identify significant issues and areas for improvement. Ensure your findings are actionable and aligned with your initial goals.
Taking action
- Challenge: Simply measuring impacts is not enough. To make a difference, the insights gained from an LCA must be translated into tangible actions.
- Solution: Use the results to inform strategic decisions and implement improvements. Engage stakeholders across the organisation to drive changes based on LCA findings. Continuous improvement should be a core part of your sustainability strategy.
👉 By addressing these challenges and following a structured approach, you can ensure your LCA is not only useful but also a powerful tool for driving sustainability and reducing environmental impacts in your organisation.
How Greenly can help with LCAs
We won't sugarcoat it, conducting an LCA is a complex task, particularly for first-timers. The process demands a significant commitment of time, resources, and specialised knowledge that may not be readily available within your organisation. That's where companies like Greenly come in.
💡 At Greenly, we're equipped to assist your company in executing a thorough life cycle assessment of your product or service. Leveraging our team of climate experts and innovative technology, we aim to streamline the process, making it as efficient and straightforward as possible.
Unveil your product’s full impact
Performing an LCA with Greenly allows you to gain a complete understanding of your product’s environmental footprint. This transparency is not just a regulatory requirement but a testament to the credibility of your environmental commitment.
With 71% of consumers willing to spend more on brands that demonstrate a real commitment to sustainability and 80% of major investors prioritising sustainability, integrating LCA into your operations is a strategic move.
Make the LCA your own with Greenly
Greenly’s LCA services are designed to be flexible and tailored to meet your specific needs. Here’s how we can help:
Customised assessments: Greenly’s LCA can be personalised to fit your exact needs and is adaptable to various situations. We follow key industry standards like ISO 14040 and ISO 14044 to ensure accuracy and reliability.
Comparative analysis: We provide baseline product impact information across different phases, allowing you to compare and contrast various products. This helps demonstrate that your product is more sustainable than alternatives, thereby increasing your market value.
Supplier engagement: Encourage your suppliers to reduce their own carbon emissions by conducting LCAs. This collaborative approach helps in building a more sustainable supply chain.
How does an LCA with Greenly work?
Input data and analyse: Enter data for a variety of products, modifiable at each stage. You can duplicate an existing product and change certain variables to see the difference in impact, making the process highly flexible and insightful.
Evaluate and compare: Conduct multiple assessments of products to identify the more eco-friendly alternatives. This helps in making informed decisions about product development and sustainability strategies.
Share and export: Share the results in a customisable and visually appealing format to show to your stakeholders. This transparency enhances your brand reputation and trust among consumers and investors.
Integrate into your GHG report: Use the LCA results as an Emissions Factor to get a more accurate GHG report. This integration helps in creating a comprehensive sustainability report that reflects your company’s environmental impact accurately.
👉 Greenly’s expertise and innovative technology make the LCA process efficient and straightforward. By partnering with us, you can confidently navigate the complexities of LCAs, enhance your environmental performance, and communicate your sustainability efforts effectively to all stakeholders. Embrace the future of sustainability with Greenly and take the first step towards reducing your carbon footprint today.
Life Cycle Assessments in the UK
In the UK, several regulations and standards guide the implementation and integration of Life Cycle Assessments (LCAs) across various industries. One of the primary regulatory bodies is the UK Environment Agency, which sets stringent guidelines to ensure that environmental assessments, including LCAs, are thorough and effective.
BREEAM (Building Research Establishment Environmental Assessment Method): BREEAM is a leading sustainability assessment method for master planning projects, infrastructure, and buildings. It integrates LCA requirements to evaluate the environmental performance of buildings. BREEAM assessments cover a wide range of sustainability issues, from energy and water use to the health and well-being of the building's occupants. The use of LCAs within BREEAM helps in identifying the most sustainable options for building materials and construction practices.
BS EN 15978: This standard provides a methodology for assessing the environmental performance of buildings by calculating their environmental impacts using LCAs. It ensures that the environmental aspects of a building are considered throughout its lifecycle, from raw material extraction to demolition and disposal.
Beyond Life Cycle Assessments: How Greenly can help with sustainability
While Greenly excels in assisting companies with Life Cycle Assessments (LCAs), our services extend far beyond this. We offer a comprehensive suite of sustainability solutions designed to help your business lead in environmental stewardship.
Carbon management
Greenly offers a range of services to help you effectively manage your carbon footprint:
- Measurement of GHG Emissions: Track Scope 1, 2, and 3 greenhouse gas emissions using advanced technology for a comprehensive understanding of your greenhouse gas footprint. Our detailed measurement processes provide a clear picture of your emissions across all operations.
- Custom Action Plans: Develop tailored strategies with our climate experts. We focus on key areas for improvement, helping you implement effective changes that significantly reduce your carbon footprint. Our action plans are designed to meet your specific needs and drive substantial environmental benefits.
Decarbonising your supply chain
Engaging suppliers and transitioning to low-carbon options is crucial for managing Scope 3 emissions. Greenly helps you achieve greater transparency and efficiency in your supply chain. Our sustainable sourcing initiatives foster greener partnerships, reduce emissions, and promote sustainability throughout your supply chain.
Intuitive and seamless platform
Greenly’s user-friendly platform simplifies the process of calculating and monitoring your carbon footprint. Our intuitive system ensures that managing your environmental impact is streamlined and efficient. With Greenly, your business can effortlessly integrate sustainability practices, meet ESG goals, and enhance overall environmental performance.
Why choose Greenly?
Greenly offers comprehensive support for your sustainability journey, from carbon measurement and custom action plans to supply chain decarbonisation and seamless platform integration. Our holistic approach ensures that your business can significantly reduce its environmental impact and achieve lasting sustainability.
Contact Greenly today to start leading the way in sustainability and build a greener future for your company.
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