Life Cycle Assessment and Its Importance
Every product we use, be it a morning alarm or mobile phone, cup of coffee we drink, the bed we need to leave to start our day to the chair that we are heading for… all have environmental footprints. But are we aware of which stage of product life leads to more emissions and damage the environment?
Life Cycle Assessment (LCA) is a scientific tool that measures the environmental impact of a product, service, or process—from raw material extraction to manufacturing, use, and final disposal. It traces the entire journey from cradle (extraction of raw materials) to grave (final disposal or recycling), revealing emissions and impacts at every stage. For any business LCA is not only a sustainability requirement but it’s a powerful tool to cut costs, reduce carbon footprint and build customer trust. It is about making informed ecofriendly choices.
Life Cycle Assessment Works like diagnostic test for manufacturing process of a product
LCA is like a diagnostic test for products. Just as medical scans assess various parts of the body to detect hidden issues, LCA measures carbon emissions, water consumption, and waste generation to uncover gaps that may not be visible through technical or process checks in the product development cycle.
LCA follows internationally accepted standards ISO 14040 (Principles and Framework) and ISO 14044 (Requirement and Guidelines).Four Main Steps Required for LCA reporting (as per ISO 14040 & ISO 14044) are :-
A ) Goal and Scope definition – This part of LCA helps us identify “What needs to be analyzed?” For an example understanding about paper or plastic packaging, which one will be more sustainable?
B ) Life Cycle Inventory – This part is associated with the collection of all data related to inputs (material , water , energy) and outputs(emissions and waste) this includes raw material use, transportation method, energy consumed, waste and by product generated.
C ) Life Cycle Impact Assessment (LCIA)– It will help us to understand the impact of our process on Natural Resources, Water scarcity, Acidification , Eutrophication and other environment and human health including carbon emission and resource depletion. This translates data into real world ecological impacts.
D ) Interpretation & Action – The report analysis helps us to understand the current stage and give insight to redesign products, improve process or select better suppliers.
Digital tools like Simapro, Sphera (formerly GaBi) and Open LCA are platforms that make the whole process easier and accurate.
LCA: A Strategic Tool for Business investment
In today’s business landscape, sustainability is no longer a buzzword—it’s a strategic imperative. Life Cycle Assessment (LCA) plays a crucial role in this shift, offering measurable insights to support sustainable decision-making. Here’s why businesses are increasingly adopting LCA:
- Identify Emission Hotspots
LCA pinpoints the stages in a product’s life cycle with the highest environmental impact. For example, a beverage company may find that switching to recycled aluminium cans reduces more emissions than switching to electric logistics. - Enhance Brand, Investor, and Consumer Trust
Consumers and investors now demand transparency. LCA provides credible data to showcase green initiatives, helping businesses stand out in competitive markets. - Meet Regulatory Requirements
Frameworks like BRSR, GRI, TCFD and international regulations like EU’s CBAM, Product Environmental Footprint (PEF) and Environmental Product Declarations (EPDs) requires data related to sustainable practices. LCA-data driven reporting, is becoming a key part of ESG compliance. - Achieve Cost Savings
By identifying inefficiencies, LCA helps cut material, energy, and water consumption—resulting in long-term cost savings.
Sustainability today is data-driven, not just marketing. EPDs turns LCA into market asset as it communicates the environmental performance of a product. LCA enables businesses to map out a low-emission transition strategy and crucial for achieving net zero and Science based targets (SBTs) which establishes a base for future-proof operations. Industries such as Manufacturing, Food &Beverages, Automotive, Chemicals, Real Estate, Electronics, and Public Transport are already leveraging it.
Adopting LCA means building a future-ready brand—reducing environmental and financial risks while meeting evolving stakeholder expectations.
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