Not wanting to read? We made a video as well! Watch it online<\/a>.<\/p>\n Read all our LCA content in our LCA Hub!<\/a><\/p>\n Most EPD programs stall because every new project starts from scratch. Learn how to build a scalable EPD system where variants are generated, not manually built \u2013 and non-experts can produce audit-ready EPDs with expert support if and<\/em> when needed. We’ll walk through how to structure your LCA data foundation and show a live demo of it in practice.<\/p>\n Watch now What environmental impact does one object have on the world?<\/strong><\/em><\/p>\n You probably asked yourself that question many times (sometimes without even knowing it). For example in the supermarket:<\/p>\n \u201cHow environmentally friendly were the products I just bought? Should I have bought the tomatoes from The Netherlands or from Spain?<\/span><\/a>\u201c<\/p><\/blockquote>\n This, in a nutshell, is the question that a Life Cycle Assessment tries to answer. An LCA measures the environmental impact of a product through every phase of its life \u2013 from production to waste (or recycling, etc.).<\/p>\n But LCA isn\u2019t simple \u2013 there are countless factors involved:<\/strong><\/p>\n With all these factors \u2013 it gets confusing quickly. This is why the Life Cycle Assessment provides a\u00a0framework<\/b>\u00a0for measuring the environmental impact<\/span><\/a> of, for example, a product.<\/p>\n The goal of an LCA is to not only create data but also to facilitate decisions.<\/strong> That\u2019s why it is always designed with a specific goal in mind. For example, to make a product more sustainable<\/a>.<\/p>\n In this guide, we go through the concept of a Life Cycle Assessment step-by-step. The structure:<\/p>\n Heads up: We dive into detail in this article \u2013 but we\u2019ve also got a 1-page quick guide to LCA. If you want to get the free PDF, click here (no signup required).<\/a><\/em><\/p>\n <\/p>\n<\/div>\n<\/div>\n Before we dive into how a Life Cycle Assessment works, let\u2019s break down who<\/i> needs it in the first place.<\/p>\n If you think about who might be interested in knowing more about the impact of your company, you could probably name everybody<\/i>.<\/p>\n For example, HR managers might argue that potential candidates find it interesting to know more about the environmental footprint of their future employer.<\/p>\n But LCA is a very specific analysis.\u00a0<\/b>It provides the groundwork for any sustainability or CSR strategy within a company. That\u2019s because you can only make decisions on things you\u2019ve actually measured before.<\/strong><\/p>\n According to our data, the following 4 departments in your company can take action based on an LCA right away.<\/p>\n There are two reasons why a Life Cycle Assessment can be interesting for product management.<\/p>\n Reason 1: Comply With Regulations<\/strong><\/p>\n Often, companies need to simply comply with regulations to continue doing business.<\/p>\n In some countries, there are standardized tenders for public projects. These tenders require companies to disclose the environmental data of their products \u2013 and you would have to conduct a Life Cycle Assessment for that.<\/p>\n A company that provides asphalt for a public road-building project might, for example, needs to provide the environmental footprint<\/span><\/a> of that product to take part in that tender. To comply with these regulations, or optimizing existing products so they comply in the future, can be important for the product department.<\/p>\n Reason 2: New Product Development<\/strong><\/p>\n New products should be as low in emissions as possible. This can be for many reasons \u2013 corporate policy, regulations, customer demand \u2013 but oftentimes, it simply means being more efficient with company resources.<\/p>\n One use case for an LCA might be that\u00a0R&D<\/a><\/span>\u00a0compares two different materials and how these different materials influence the environmental impact of the end product.<\/p>\n In many industries, the supply chain accounts for more than 80 % of the environmental impact<\/a>.<\/p>\n That means that sourcing from different suppliers can have a massive impact on your product footprint.<\/p>\n For\u00a0Supply Chain Managers, choosing the right supplier is often a hard decision, where far more factors than just price play a role. A Life Cycle Assessment can give anyone working in Supply Chain Management or\u00a0Procurement\u00a0actionable insights into which company they should source from.<\/p>\n Today, more than 81 % of consumers feel that companies should help improve the environment<\/a>.<\/span><\/p>\n For\u00a0marketing and sales<\/span><\/a>, this means understanding how sustainable your products are \u2013 and how to communicate this to your customers.<\/p>\n A Life Cycle Assessment is the most vital step on that journey. Based on the generated insights<\/a><\/span>, you can see where you already have an edge over your competitors \u2013 and where your company can use opportunities to become more sustainable.<\/p>\n Chief Sustainability Officers are still a relatively new position. But more and more companies understand sustainability isn\u2019t a topic to be solved with simple greenwashing.<\/p>\n To make\u00a0strategic decisions<\/span><\/a>\u00a0on how a company can have a more positive impact on the environment, buy-in from the highest level is important. This is why every LCA should transport actionable insights to the top management level.<\/p>\n An LCA looks at products from a broader point of view and analyses more than just carbon impact. That\u2019s why it usually creates insights that another analysis might lose out on \u2013 an enormous chance for the entire company.<\/p>\n Product Management \/ Research & Development: Supply Chain Management & Procurement<\/strong> Marketing & Sales<\/strong> Executive Level & Strategic Management<\/strong> Sidenote: Sustainability<\/i> often sounds like an abstract construct. In reality, being more sustainable<\/i> can simply mean using less energy, recycling materials, or streamlining processes. All actions can save large amounts of money, immediately increase the bottom line, and make a company less dependent.<\/p>\n Before we dive into the process of an LCA, let us define what the product life cycle actually is.<\/p>\n If we want to assess the life cycle of a product, we have to first define what that lifecycle actually consists of.<\/p>\n We will talk about different concepts of the product life cycle in just a moment, but generally, the product life cycle consists of five phases:<\/p>\n The 5 Steps of a Product Life Cycle (Cradle to Grave)<\/p>\n \n<\/li>\n<\/ol>\n<\/div>\n Practical sessions on EPDs, PCFs, CPR, Scope 3 and more \u2013 upcoming and on-demand.<\/p>\n<\/div>\n View webinars \u2192<\/a><\/p>\n<\/div>\n Based on the stages you\u2019re interested in or have data available on, you can choose to leave in or take out phases. There are usually 4 product life cycle models you can choose for your LCA.<\/p>\n Cradle-to-grave<\/strong><\/p>\n When you analyze a product\u2019s impact along the 5 product lifecycle steps \u2013 this is called cradle-to-grave<\/i><\/a>. Cradle<\/i> being the inception of the product with the sourcing of the raw materials, grave<\/i> being the disposal of the product. Transportation is mentioned as step 3, but can, in reality, occur in between all steps.<\/p>\n Cradle-to-gate<\/a> only assesses a product until it leaves the factory gates before it is transported to the consumer.<\/p>\n This means cutting out the use and disposal phase. Cradle-to-gate<\/i> analysis can significantly reduce the complexity of an LCA and thus create insights faster, especially about internal processes. Cradle-to-gate assessments are often used for environmental product declarations (EPD)<\/span><\/a>.<\/p>\n Environmental Product Declarations<\/span><\/a> are standardized certifications of a life cycle assessment, used mostly to verify\u00a0impact data<\/span><\/a>\u00a0from business to business.<\/p>\n Cradle-to-cradle<\/span><\/a><\/i> is a concept often referred to within the Circular Economy<\/span><\/a><\/i>. It is a variation of cradle-to-grave<\/i>, exchanging the waste<\/i> stage with a recycling process that makes it reusable for another product, essentially \u201cclosing the loop\u201d. This is why it is also referred to as closed-loop recycling<\/i>.<\/p>\n Gate-to-gate<\/i> is sometimes used in product life cycles with many value-adding processes in the middle.<\/p>\n To reduce complexity in the assessment, only one value-added process in the production chain is assessed. These assessments can later be linked together to complete a larger level Life Cycle Assessment.<\/p>\n Life Cycle Models in LCA \u2013 Ecochain<\/p>\n There are three other LCA concepts that are used for special requirements.<\/p>\n Well-to-wheel<\/i>\u00a0is used for the Life Cycle Assessment of transport fuels and vehicles. Because there are a lot of steps in between \u2013 the \u201cWell-to-tank\u201d and \u201cTank-to-wheels\u201d, this approach is more precise in calculating and assigning greenhouse gas emissions<\/span><\/a> and energy usage for the different stages.<\/p>\n The EIOLCA aggregates industry data with the goal to create impact data<\/a><\/span> for specific sectors within the economy. These averages are sometimes used when no exact data is available. They don\u2019t provide an exact picture of the impact but help to fill blanks. However, an EIOLCA is not precise enough to make decisions on a product level.<\/p>\n Environmental Impact Assessment<\/a> is an analysis that is often conducted in the public sector, to look at the potential impact of a new construction project.<\/p>\n Now that we understand the differences between LCA models, we dive deeper into the actual phases of an LCA. The phases of a Life Cycle Assessment are defined in the ISO standards 14040 and 14044<\/a>.<\/p>\n But as you can see in the graphic below, the different steps depend on each other.<\/p>\n Moreover, the interpretation of the LCA doesn\u2019t always have to depend on the actual assessment being completely finished.<\/p>\n Especially when a Life Cycle Assessment becomes more complex, continuously interpreting the results helps optimize the analysis as it goes further down the process.<\/p>\n <\/p>\n In the first phase of our Life Cycle Assessment, we define what exactly we want to analyze \u2013 and how deep<\/i> we want to go with our analysis.<\/p>\n Defining our goal and scope serves three very important functions:<\/p>\n Will it be a product? If so, how much of the product will we be assessing (functional unit)?<\/p>\n This defines our product life cycle, as well as the implications we will be analyzing. Also, we have to decide which Impact Categories<\/span><\/a><\/b> we want to focus our assessment on.<\/p>\n We might, for example, want to generate an\u00a0Environmental<\/span><\/a>\u00a0Product Declaration<\/span><\/a> for one of our products. If that is the goal, we have to build our assessment around the methods required by the political bodies, for example, the ministry of construction.<\/p>\n The value chain can go very deep.<\/p>\n However, a certain depth might not be interesting for our analysis. We might, for example, decide, that we won\u2019t analyze the details of the pre-forms of our raw materials in-depth. Also, the social implications of the unit we are assessing might not be completely relevant.<\/p>\n This is an extremely important step. Because an analysis can \u2013 in theory \u2013 never be fully finished. If we analyze a certain raw material, will we also examine the implications it has on the family of the worker who harvested it?<\/p>\n Defining the goal & scope of an LCA means defining what we want to analyze, how we want to analyze it, and how far we want to go with our analysis.<\/p>\n To show how an LCA can look in practice, we use the example of a simple T-Shirt. A T-Shirt by itself is a relatively simple product. However, you still need to take a number of things into account to create a proper Life Cycle Assessment. We modeled our T-Shirt LCA in\u00a0our own easy Product Footprint tool<\/a>.<\/span><\/p>\n Summary of the goal and scope of the analysis of a T-Shirt:<\/strong><\/p>\n In this video<\/a>, we model a simple product LCA of a T-Shirt in Ecochain<\/a> LCA automation software.<\/p>\n The Life Cycle Inventory Analysis (LCI) looks at the environmental inputs and outputs of a product or service. It is essentially the data collection phase of our LCA.<\/p>\n Look at it as buckets:<\/b><\/p>\n In phase 1, we defined the buckets we want to put our data in, in phase 2 we fill the buckets.<\/p>\n The goal is to quantify the environmental inputs and outputs \u2013 this means we measure everything<\/b> that flows in and out of the system we defined in phase 1.<\/p>\n \u2013 Raw materials or resources<\/p>\n \u2013 Different types of energy<\/p>\n \u2013 Water<\/p>\n \u2013 Emissions to air, land, or water by substance<\/p>\n This analysis can be extremely complex. Because production processes and supply chains can be complex constructs.<\/p>\n That\u2019s why the Life Cycle Inventory phase of the Life Cycle Assessment usually takes the most work and time in your LCA.<\/p>\n Life Cycle Assessments today are conducted by professionals who are extensively trained in the norms and standards that define how an LCA should look like<\/a>. We look deeper into these standards later in this guide. However, with software solutions like our product footprint tool, everybody can perform an LCA.<\/p>\n A lot of the data for the LCA is already available \u2013 for example in your electricity or water bills. But of course, that\u2019s not all the data we need.<\/p>\n Therefore, at Ecochain we collect data through data collection sheets at this stage. These sheets gather quantitative data on a company level, process- and product level. If we need qualitative data, we use questionnaires. The data sheets get filled out by the stakeholders in the company who have access to the data.<\/p>\n Sometimes, industry averages have to be used. This is called secondary data. You can read more about the different kinds of data in our blog<\/span><\/a> (primary vs secondary data).<\/p>\n One method for that would be the Economic input-output life cycle assessment we described earlier, which can give us data to fill in some blanks. Other times, the averages could be aggregated data gathered by branch organizations, financial institutes, NGOs, or market research organizations.<\/p>\n Collecting the input and output data within a list or table would quickly lead to confusion. Moreover, it would also lead to important contexts going missing.<\/p>\n That is why the Life Cycle Inventory is typically illustrated with a flow model (image below).<\/p>\n The flow model clearly shows the system and unit we are analyzing, and the inputs & outputs. The data within the model needs to be collected for all activities within the scope of our Life Cycle Assessment.<\/p>\n A T-Shirt consists of fabric that is sewn together for the end product. The fabric itself also goes through different treatment processes. This is how the above flow model looks like in Ecochain (you can access the full model for free by signing up for the 7-day free trial<\/a><\/span>). Click to expand the picture!<\/p>\n \u00a0<\/a><\/p>\n And when we look at it in a structural tree diagram, this is what the life cycle inventory of a T-Shirt looks like.<\/p>\n The LCI is the data collection phase of a Life Cycle Assessment. We collect the data and model it into input-output flows.<\/p>\n Now that we have collected the data, it\u2019s time to assign it in the next phase \u2013 the Life Cycle Impact Assessment (LCIA).<\/p>\n Until now, we defined what we want to measure and collect in phase 1. Then we collected and structured the data in phase 2.<\/p>\n In phase 3, we evaluate how significant the impacts are. This is based on our Life Cycle Inventory flows from phase 2.<\/p>\n There are 3 key tasks in this step.<\/p>\n In phase 1 of our LCA, we defined our Impact Categories<\/span><\/a><\/b> based on our goals. <\/b>Impact Categories<\/a> are what you want to measure your impact in. For example, you might want to measure the impact of your products on climate change in CO\u2082-equivalent.<\/p>\n Now, we define these impact categories<\/span><\/a> more precisely.<\/p>\n There are many impact categories to choose from (15+). Depending on the goal and scope of your analysis, different categories might apply. The following are the most commonly used:<\/p>\n Some impact categories<\/a><\/span> are measured in equivalents<\/i>, often seen as a lowercase e<\/i> or eq<\/em>, for example, CO\u2082-e<\/i> for CO\u2082-equivalent<\/span><\/a>.<\/p>\n This is because several emissions contribute to the same impact category.<\/strong> For example, climate change or global warming potential (GWP) is measured in CO\u2082-equivalents. This doesn\u2019t mean only CO\u2082 contributes to global warming, because, for example, also methane and nitrous oxide play a role there.<\/p>\n But to consolidate all gases into one indicator, all other gases are transposed into CO\u2082 equivalents.<\/p>\n 1kg CO\u2082 = 1kg CO\u2082-equivalent<\/p>\n 1kg Methane (CH4) = 25kg CO\u2082-equivalent<\/p>\n 1kg Nitrous oxide (N2O) = 298kg CO\u2082-equivalent<\/p>\n By assigning an equivalent, we can compare all these inputs to each other. Much like if you want to compare different currencies to each other.<\/p>\n However, the calculation of the equivalents doesn\u2019t happen until step 3 in our impact assessment. First, we have to choose from the impact categories that are relevant to our overall assessment.<\/p>\n In this step of our Life Cycle Impact Assessment, we are sorting our Life Cycle Inventory and assigning it to our defined impact categories<\/a><\/span>.<\/p>\n In the last step of our impact assessment, we finally calculate all our equivalents. We sum them up in overall impact category totals.<\/p>\n Category Totals can look like this:<\/b><\/p>\nHow to build a scalable EPD system to win tenders<\/h3>\n
\n\u2192<\/span>
\n<\/a><\/p>\n<\/div>\n<\/div>\nWhat is a Life Cycle Assessment (LCA)?<\/h2>\n
\n
A clear framework for measuring environmental impact<\/h3>\n
\n
The Quick Guide to LCA<\/h3>\n
![\"LCA](\"https:\/\/ecochain.com\/wp-content\/uploads\/2023\/05\/LCA-quick-guide.png\")
<\/figure>\n<\/div>\n<\/div>\n<\/a>1. Who needs an LCA? And why?<\/h2>\n
Sustainability \u2013 Relevant For Everybody?<\/h3>\n
![\"Target](\"https:\/\/ecochain.com\/wp-content\/uploads\/2023\/05\/LCA_Positions.jpg\")
<\/a><\/figure>\nProduct Management \/ Research & Development (R&D)<\/h3>\n
Supply Chain Management \/ Procurement<\/h3>\n
Marketing & Sales<\/h3>\n
Executive Level & Strategic Management<\/h3>\n
Recap: Who is an LCA interesting for?<\/h3>\n
\n<\/strong>1. Comply with regulations,\u00a0 2. Develop new sustainable products<\/p>\n
\nFind better suppliers<\/p>\n
\nAct on customer demand for sustainability<\/p>\n
\nIncorporate sustainability in the entire business<\/p>\n<\/a>2. The Product Life Cycle in LCA<\/h2>\n
5 Steps of a product life cycle: From Cradle To Grave<\/b><\/h3>\n
\n
![\"Product](\"https:\/\/ecochain.com\/wp-content\/uploads\/2023\/05\/ProductLifecycle-1-1024x819-1.jpg\")
<\/figure>\nGet up to speed on product footprinting<\/h4>\n
Different Life cycle models<\/h3>\n
Cradle-to-gate<\/b><\/h4>\n
Environmental Product Declarations (EPD)<\/b><\/h5>\n
Cradle-to-cradle<\/b><\/h4>\n
Gate-to-gate<\/b><\/h4>\n
![\"Life](\"http:\/\/ecochain.com\/wp-content\/uploads\/2023\/05\/Life-Cycle-Models_LCA_Ecochain-300x240-1.png\")
<\/figure>\nWell-To-Wheel<\/b><\/h4>\n
Economic Input-Output Life Cycle Assessment<\/b><\/h4>\n
Environmental Impact Assessment<\/h4>\n
<\/a>3. The 4 Phases of a Life Cycle Assessment<\/h2>\n
A Life Cycle Assessment Consists Of 4 Phases:<\/h3>\n
\n
![\"4](\"https:\/\/ecochain.com\/wp-content\/uploads\/2023\/05\/LCA-Process_01.jpg\")
<\/a><\/figure>\nPhase 1: Definition of Goal and Scope<\/h3>\n
1. What will we be assessing?<\/strong><\/h4>\n
2. What system will we be assessing in?<\/h4>\n
3. What Will We Not Be Assessing?<\/h4>\n
Recap: 1. Step of an LCA \u2013 Goal & Scope<\/h4>\n
![\"Life](\"https:\/\/ecochain.com\/wp-content\/uploads\/2023\/05\/LCA_GoalandScope.jpg\")
<\/figure>\nLife Cycle Assessment Example: Goal & Scope<\/h3>\n
\n
Phase 2: Life Cycle Inventory (LCI)<\/h3>\n
![\"\"](\"https:\/\/ecochain.com\/wp-content\/uploads\/2023\/05\/LCA_Process_LCI-Phase.jpg\")
<\/figure>\nWhat could these inputs and outputs be?<\/b><\/h4>\n
How is the data for the Life Cycle Inventory collected?<\/b><\/h4>\n
Modeling the LCI: Inventory Flow Models<\/b><\/h4>\n
![\"Life](\"http:\/\/ecochain.com\/wp-content\/uploads\/2023\/05\/LCI-1024x819-1.jpg\")
<\/figure>\nLife Cycle Assessment Example: Flow Model<\/h3>\n
![\"Mobius](\"https:\/\/ecochain.com\/wp-content\/uploads\/2023\/05\/mobius_process.jpg\")
<\/a><\/figure>\n![\"LCI](\"https:\/\/ecochain.com\/wp-content\/uploads\/2023\/05\/lcitreeview.jpg\")
<\/figure>\nRecap: Phase 2 of an LCA: Life Cycle Inventory<\/h4>\n
Phase 3: Life Cycle Impact Assessment<\/h3>\n
![\"LCA](\"https:\/\/ecochain.com\/wp-content\/uploads\/2023\/05\/LCA_Phase3.jpg\")
<\/figure>\nTask 1: Selection of indicators and models<\/b><\/h4>\n
Common Impact Categories<\/b><\/h5>\n
\n
Why are some impact categories measured in \u201cequivalents\u201d?<\/strong><\/h5>\n
Example<\/strong><\/h6>\n
Task 2: Classification<\/b><\/h4>\n
Task 3: Impact Measurement<\/b><\/h4>\n