What kinds of environmental impacts can a product or service have?
In a single sentence, LCA answers that question. Directly translated, LCA is "life cycle assessment." Put another way, LCA is a detailed analysis of the full environmental impact of a product's life, from raw material acquisition through waste disposal. The assessment starts at the raw material stage and presents every environmental impact of the product through disposal within a defined framework.
In this article, we'll explore LCA across four main sections:
- A Product's Life Cycle. A product's full life consists of five main stages. Clearly understanding these stages is critical for the LCA process.
- How Is an LCA Prepared? An LCA is prepared in four phases. These phases are defined by ISO standards and play a critical role in making this complex process more reliable and consistent.
- LCA and Its Benefits. LCA analyses offer companies a range of advantages, chief among them reputation and regulatory compliance.
- What to Watch Out For in the LCA Process. Because of its complexity, an LCA needs to be planned well to ensure both process integrity and efficient use of resources.
A Product's Life Cycle
Before analyzing a product's life cycle, we need to understand what "a product's life cycle" means. The concept of a life cycle covers every stage a product goes through from "cradle to grave." These stages are examined under five main headings.
The five stages of a product's life cycle:
- Raw material acquisition
- Production and processing
- Transport and logistics
- Use
- Waste disposal and recycling
Different Life Cycle Models
Companies can choose different life cycle models based on the data they have or the life cycle stage they want to declare. While many models exist depending on goals and scope, three are most commonly used in LCA:
Cradle to Grave
When you analyze all five stages of a product's life cycle, you include every stage from its birth to its death in the process. This model, which spans the full life cycle, is referred to as "Cradle to Grave."
Cradle to Gate
This model covers only the first two stages of the life cycle — essentially just the production stage. It is called "Cradle to Gate" in the sense of covering raw material acquisition through the factory gate.
Cradle to Cradle
This model, as its name suggests, reflects a circular economy. If we replace the 'waste disposal' step normally found in the fifth stage of a product's life with 'recycling and returning to resource,' we end up with the "Cradle to Cradle" life cycle model.
What Is LCA? How Is It Prepared?
LCA should really be described as a concept. But to be reported to stakeholders and authorities, it must comply with international standards. The standards that must be followed for LCA are ISO 14040 and ISO 14044. In other words, ISO 14044 can be called the 'LCA rulebook.'
ISO standards list four steps for a reliable and accurate LCA:
- Goal and Scope Definition
- Inventory Analysis (LCI - Life Cycle Inventory)
- Impact Assessment (LCIA - Life Cycle Impact Assessment)
- Interpretation
Although the process is typically presented in sequence, the 'interpretation' phase doesn't need to come at the very end of an LCA. As the scope expands and deepens, continuously interpreting the outputs and findings can produce more reliable and efficient results.
- Goal and Scope Definition
As the name suggests, this is the stage where the project's goal and progress strategy are defined. The product or service to be analyzed is specified here. It is then decided which parts of the product and which stages of its life cycle will be covered.
One of the most critical aspects of this stage is deciding what will not be analyzed in addition to what will. Given LCA's complexity, the process can easily go very deep. Without clear boundaries, the project can become far more complex than necessary.
Another important part of this stage is defining the "Impact Category."
LCA Environmental Impact Categories
The analysis is conducted in a specific category based on which area of environmental impact you want to evaluate. For example, if you want to analyze your product's impact on global warming, you can categorize your data in CO2-e.
While there are more than 10 impact categories, three are most commonly used.
- Global warming potential (carbon footprint)
- Toxicity to human health
- Ecotoxicity
2. Inventory Analysis (LCI)
This is the data collection and cataloging stage. After deciding in the previous stage what data will be collected, the data is gathered and cataloged here.
This cataloging is done in what is known as a 'resource flow' format. Every stage a product passes through in its life is listed as a flow and broken down in detail.
During this analysis, inputs such as raw materials, energy, and water use are collected, along with outputs such as emissions or solid, liquid, and gaseous waste.
Because this is the most complex and error-prone part of the process, companies often choose to use a platform or work with a consultant at this stage.
3. Impact Assessment (LCIA)
In stage 1, what needed to be learned and how was determined. In stage 2, data was collected and cataloged in a specific structure. At this stage, the data is classified according to the pre-defined impact category, and the metrics are converted into units that match that category's requirements.
For example, if we are analyzing the 'global warming potential' category we mentioned earlier, we need to convert our data to CO2-e and classify accordingly.
4. Interpretation
As mentioned earlier, interpretation should ideally happen in parallel with every stage rather than only at the very end. That said, describing this stage as a simple 'summary' would be a mistake. At this point, the methods used in every previous stage are rechecked, and all the data used is validated.
At this point, the ISO 14044 standards require the sources of all data used in stages 2 and 3 to be included in the study. Additionally, this section must also include a fully objective review of the study itself.
LCA and Its Benefits
With sustainability now playing a key role in every area of corporate life, LCA projects offer companies significant advantages across multiple fronts. Taking all areas together, we can highlight four core benefits.
Product Development
LCA studies are mandatory in some regions for specific product categories. For this reason, carrying out an LCA is important for regulatory compliance. Additionally, working to reduce a product's emissions can lower resource use and, in turn, costs.
Supply Chain and Procurement
In most industries, supply chain emissions — captured under Scope 3 in ISO 14064 — account for more than 65% of total emissions. Conducting an LCA can be a reason for a supplier to be chosen over competitors.
Sales and Marketing
Today, both B2B and B2C customers are paying more attention to the environmental impact of the products they buy and use. Carrying out an LCA for a product or service can deliver strong benefits for marketing.
Management
LCA studies significantly contribute to a company's sustainability maturity. Although sustainability officers are still not widely found in C-level positions, LCA can be a powerful dataset to share with stakeholders.
What to Watch Out For in the LCA Process
LCA studies are typically carried out by certified consultants, but certification is not mandatory to conduct an LCA. In many companies, employees from a range of disciplines may take on this work. However, without being a certified consultant, you may not have enough expertise to perform an LCA. At this point, using a platform can help.
Ultimately, whether you use a platform or work with a consultant, the key factor is full compliance with all standards in the ISO 14000 family and with ISO 50001. If you work with a consultant or platform that does not meet these standards, the international credibility of your LCA studies will drop, and they may be considered invalid.
CarbonSmart and LCA
Although LCA studies are not yet as popular as corporate carbon footprinting or CBAM, they will indisputably play a critical role in the sustainability world of the future.
CarbonSmart is with you throughout this complex journey with LCA advisory. Run your LCA studies with our expert consultants. Strengthen your brand's reputation while preparing ahead of time for upcoming regulations.
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