Last updated on: March 6, 2025

What is Life Cycle Assessment? A plain guide for business leaders

Did you know that cement production alone contributes to nearly 8% of global carbon dioxide emissions each year? This striking fact illustrates why Life Cycle Assessment has become essential for businesses aiming to understand their environmental impact.

Life Cycle Assessment systematically analyzes environmental effects across every stage of a product — from raw material extraction through production, packaging, distribution, use, and disposal. Through this comprehensive analysis, we can identify specific areas where products have significant environmental impacts and make targeted improvements.

In this blog post, we will walk you through everything about Life Cycle Assessment — main phases, practical applications, and ways to implement this approach in your organization.

 

Understanding Life Cycle Assessment

Life Cycle Assessment (LCA) measures environmental impacts of products and services throughout their entire existence — from raw material extraction to final disposal. Unlike traditional environmental assessments that focus on a single aspect, LCA provides a comprehensive analysis of multiple environmental dimensions.

What is Life Cycle Assessment?

Life Cycle Assessment quantifies environmental inputs and outputs across every phase of a product’s journey. This systematic approach follows ISO standards 14040 and 14044, which define the core phases of assessment. The analysis examines everything flowing in and out of the defined system, including energy consumption, water usage, and resource depletion.

Additionally, LCA considers both upstream processes like raw material sourcing and downstream activities such as waste management. This thorough evaluation helps identify specific areas where environmental improvements will have the most significant impact.

Why do businesses use LCA?

Organizations implement Life Cycle Assessment to pinpoint environmental hotspots and optimize their operations. As practical examples, Supply Chain Managers use LCA data to select environmentally responsible suppliers, whereas Process Engineers apply insights to create sustainable products.

Furthermore, LCA helps businesses to measure carbon footprint and other environmental impacts accurately, meet evolving regulatory requirements, support sustainability claims with concrete data, and optimize resource efficiency across operations.

What are the benefits from LCA?

The practical advantages of implementing Life Cycle Assessment extend across multiple business areas. First, it enables resource optimization and waste reduction by analyzing material flows throughout product lifecycles. Through detailed assessment, companies can identify opportunities to conserve materials and energy, leading to measurable cost savings.

Moreover, LCA strengthens supply chain sustainability by evaluating environmental impacts of suppliers and partners. This comprehensive view allows businesses to collaborate effectively with suppliers on reducing environmental impacts.

Life Cycle Assessment additionally supports sustainable product design by evaluating alternatives during early development stages. This proactive approach helps companies create products that minimize environmental impact without compromising performance.

Beyond environmental benefits, LCA enhances corporate credibility. By providing transparent environmental data, companies can demonstrate their commitment to sustainability to stakeholders. Furthermore, results from Life Cycle Assessment reporting guide technological innovation, positioning companies at the forefront of sustainable practices.

Most importantly, LCA prevents burden-shifting between different environmental impacts or lifecycle stages. For instance, when making product improvements, companies can verify that reducing one environmental impact doesn’t inadvertently increase another. This holistic perspective ensures genuine environmental improvements rather than simply moving problems elsewhere.

 

Getting started with Life Cycle Assessment

Starting a Life Cycle Assessment might seem daunting at first. Still, breaking down the process into manageable steps makes it straightforward.

The implementation of LCA follows a structured path that aligns with international standards. Before diving into specific steps, understanding that LCA requires careful planning, accurate data collection, and systematic analysis helps set realistic expectations.

life cycle assessment

Step 1: Setting clear goals

First, define specific objectives for your LCA project by asking:

  • What environmental impacts do you want to measure?
  • Which products or processes need evaluation?
  • How will you use the results?

These questions shape the scope of your assessment, determining what data you’ll need and how detailed your analysis should be.

Step 2: Collecting data

Data collection forms the foundation of any successful LCA. Focus on gathering:

  • Energy consumption figures
  • Material input quantities
  • Production process details
  • Transportation records
  • Waste management data

Remember to document data sources and collection methods thoroughly — this ensures transparency and reproducibility of your results.

Step 3: Measuring impact

Once data is collected, analyze it according to established environmental impact categories. This step involves:

  • Organizing raw data into meaningful categories
  • Converting measurements into standardized units
  • Applying appropriate calculation methods
  • Validating results through peer review

Step 4: Making improvements

After measuring impacts, identify areas where changes will yield the most significant environmental benefits. Consider:

  • Short-term improvements that require minimal investment
  • Medium-term changes involving process modifications
  • Long-term strategic shifts in product design or material selection

The goal isn’t perfection immediately — instead, focus on continuous improvement based on solid data. Start with changes that offer the best balance of environmental benefit and implementation feasibility.

Throughout this process, maintain clear communication with stakeholders about progress and challenges. Document decisions, assumptions, and methodologies used — this information becomes valuable as your LCA program matures.

 

Understanding environmental impact categories

Environmental impact categories translate complex emissions data into meaningful insights about a product’s effects on our planet. These categories help measure specific environmental pressures across different areas.

Life Cycle Assessment unites various environmental impacts into actionable metrics. Through systematic recording, LCA examines effects like greenhouse gas emissions, water consumption, and resource usage throughout a product’s existence.

Product carbon footprint

The product carbon footprint measures direct and indirect greenhouse gas emissions linked to activities across a product’s life cycle. This assessment considers three distinct scopes:

  • Scope 1: Direct emissions from company-owned sources like boilers and vehicles
  • Scope 2: Indirect emissions from purchased electricity and heat
  • Scope 3: Other indirect emissions from purchased materials, transportation, and product use

The Greenhouse Gas Protocol provides businesses with internationally accepted methods to measure and report these emissions. This framework helps identify reduction opportunities across operations.

Water usage

Water footprint analysis examines both direct consumption and quality degradation. This assessment considers total water use across operations, water consumption where it’s no longer available in the watershed, and water quality impacts from emissions to air, soil, and water.

The assessment follows ISO 14046 standards, focusing specifically on water availability and degradation. Consequently, businesses can identify areas where water conservation efforts will yield maximum benefits.

Resource depletion

Resource depletion analysis tracks both renewable and nonrenewable materials throughout product lifecycles. Renewable resources include forest products and water, whereas nonrenewable resources encompass mineral ores and fossil fuels. The assessment examines raw material extraction impacts, land use changes affecting biodiversity, and soil degradation effects.

Political interest in resource availability has increased recently, particularly regarding key raw materials. Through LCA, organizations can evaluate resource efficiency and identify opportunities for more sustainable material use.

Impact assessment methods continue evolving to address emerging sustainability challenges. Presently, biotic resources and their renewal rates receive growing attention within LCA frameworks. Similarly, debates around critical raw materials highlight the need for expanded assessment methods that consider both environmental and economic factors.

 

Exploring real examples of LCA use cases

Real-world applications demonstrate how Life Cycle Assessment shapes business practices and environmental outcomes. Businesses across sectors use LCA to evaluate their environmental footprint and optimize operations. Through systematic analysis, organizations identify opportunities for reducing emissions, conserving resources, and improving efficiency.

p6 technologies

Let’s examine how different industries apply LCA to achieve measurable improvements.

Life Cycle Assessment for Biogas

EnviTec Biogas, a German company, showcases impressive results through LCA implementation. Their biogas systems achieved a 92% reduction in CO2-equivalent emissions compared to natural gas. Likewise, Greenlane Renewables‘ biogas upgrading systems demonstrated up to 96% methane recovery rates. Moreover, Bright Biomethane also uses LCA methodologies to assess biomethane production lifecycles, covering feedstock sourcing, biogas production processes, distribution systems, and end-use applications.

Life Cycle Assessment for Transportation Fuels

Alternative fuel assessments reveal significant variations in environmental impacts across different stages. In fact, all production phases except hydrogen use show measurable environmental effects. The analysis considers raw material selection, production processes, distribution methods, vehicle emissions, and end-of-life disposal.

Recent studies highlight emission hotspots varying by fuel type and production method. These findings help companies target specific areas for improvement. Through detailed lifecycle analysis, businesses can compare different fuel options and optimize their environmental performance.

Life Cycle Assessment for Renewable Chemicals

The Renewable Chemicals sector demonstrates how LCA guides sustainable production methods by analyzing multiple aspects, such as feedstock selection impacts, chemical synthesis processes, end-of-life considerations, and carbon emission reductions.

TÜV Rheinland‘s analysis shows that LCA helps optimize production methods by examining energy demand, raw material consumption, and emissions across air, water, and soil. This comprehensive approach enabled the company to document sustainability metrics, identify optimization opportunities, improve energy efficiency, and reduce greenhouse gas emissions.

 

Overcoming common LCA mistakes

Even seasoned professionals can encounter challenges when conducting a Life Cycle Assessment. Recognizing and understanding these common pitfalls is key to preventing costly errors and ensuring accurate, reliable results. The quality of the data used and the consistency of the methodology are crucial factors in producing meaningful outcomes, making it essential to approach each step with care and attention.

Here are the most common mistakes faced when conducting LCAs:

Collecting wrong data

Poor data quality undermines LCA credibility in several ways, for example, using outdated or geographically irrelevant datasets, relying on incomplete information, and failing to document data sources properly.

Missing important steps

Skipping essential LCA phases leads to incomplete or misleading conclusions. Some frequently overlooked elements include sanity checks to verify unexpected results, sensitivity analysis to understand data uncertainties, and proper interpretation of findings.

Overlooking supply chain impacts

A comprehensive LCA must consider environmental effects throughout the entire supply chain, including raw material extraction impacts, transportation between facilities, energy consumption at each stage, and waste management practices.

Not knowing the source of materials

One significant challenge involves tracing materials to their source — sometimes suppliers themselves don’t know the origin of raw materials like cotton. This uncertainty affects result accuracy and highlights areas needing improved supply chain transparency.

To minimize these mistakes, businesses should document all assumptions clearly, involve colleagues in review processes, conduct regular data quality assessments, and update analyzes as new information becomes available.

 

Navigating through the essential LCA tools

Organizations need standardized methods and specialized software to conduct thorough environmental assessments. These tools help analyze complex data and generate consistent results across different products and industries. Let’s examine the essential frameworks and software that make LCA practical and reliable.

LCA standards

Navigating the complexities of Life Cycle Assessment (LCA) can be daunting, particularly when it comes to understanding the standards that define best practices. The International Organization for Standardization (ISO) provides foundational guidelines through several key standards:

  • ISO 14040 outlines LCA principles and framework
  • ISO 14044 specifies requirements for conducting assessments
  • ISO 14067 focuses on carbon footprint quantification

Beyond ISO standards, other frameworks guide specific applications, such as:

LCA software

For organizations to gain accurate insights into the environmental impact of their products, LCA software has become indispensable. These tools turn complex data into clear, actionable results, making sustainability assessments more accessible and reliable. But why are they so essential, and what makes the right software stand out?

A software for Life Cycle Assessment allows users to input detailed product information, model different environmental impacts across each stage of a product’s lifecycle, and compare various product options. Without such tools, conducting an LCA would be a highly manual, error-prone, and time-consuming process.

Take for example a company trying to assess the carbon footprint of a product. Manually calculating emissions from raw material extraction, transportation, manufacturing, use, and disposal is no easy feat. With LCA software, these steps are streamlined into an organized, traceable process — helping to identify hotspots and opportunities for improvement. This saves both time and resources, offering a more comprehensive look at the product’s overall sustainability.

When selecting software, consider factors beyond features alone. Data quality, user training requirements, and integration capabilities affect successful implementation. Additionally, some tools offer specialized features for specific industries or applications, enabling more accurate analysis within particular sectors.

 

Getting your team ready for LCA

Building a skilled Life Cycle Assessment team demands careful planning and specialized expertise. From internal training to external consultants, organizations need a structured approach to develop LCA capabilities.

Successful LCA implementation requires professionals who understand both environmental science and business operations. As sustainability becomes central to corporate strategy, organizations must develop robust internal capabilities for conducting thorough assessments.

Required skills

Conducting Life Cycle Assessments (LCA) is no small feat. To ensure accurate analyses, LCA practitioners must possess a diverse range of skills, each contributing to the reliability and effectiveness of the findings.

  • Data collection and processing: LCAs require large amounts of data, often coming from various sources. Practitioners must be adept at gathering this data, whether from internal systems, industry reports, or third-party databases, and transforming it into usable formats.
  • Understanding of environmental impact categories: LCA involves assessing various impacts—such as carbon emissions, water usage, or resource depletion. A practitioner needs to know not only how to quantify these impacts but also how to interpret their significance within the broader context of sustainability goals.
  • Experience with lifecycle thinking principles: LCA is all about understanding the interconnectedness of processes. Practitioners must be able to think critically about how decisions in one part of the lifecycle might affect other stages.
  • Analytical and quantitative skills: Whether it’s running complex models or comparing impact reduction scenarios, practitioners need to be comfortable with numbers and be  able to analyze data, identify patterns, and calculate potential environmental outcomes.

LCA training

As organizations increasingly recognize the value of LCAs, the demand for skilled practitioners continues to grow. However, it’s not always feasible to hire external experts for every project. That’s where training programs come in — helping organizations build in-house LCA expertise through structured learning.

Training should cover foundational topics like:

  • Goal definition and scope planning
  • Data collection methodologies
  • Impact assessment techniques
  • Results interpretation
  • Software tool mastery

Cross-functional teams often achieve better results when learning together, accelerating the adoption of sustainable manufacturing practices. Training programs should align with ISO 14040 series standards and incorporate practical examples from relevant industries.

LCA Consultants

Many organizations benefit from working with LCA consultants who bring specialized expertise by analyzing product lifecycles to uncover inefficiencies, guiding sustainable design innovations, leading sustainability workshops, and collaborating with procurement teams.

LCA Consultants typically serve medium and large enterprises with complex international supply chains. Their involvement strengthens risk management by identifying supply chain vulnerabilities and supporting strategic planning, and the return on investment from hiring LCA consultants often proves substantial through cost savings from efficiency improvements and increased market differentiation.

Ultimately, whether developing internal capabilities or partnering with consultants, organizations should focus on building teams that can drive meaningful environmental improvements while maintaining business competitiveness.

 

What is Life Cycle Assessment?

Life Cycle Assessment stands as a powerful method for businesses to understand and reduce their environmental footprint. Through systematic analysis of product lifecycles, companies can spot opportunities for meaningful improvements.

Many organizations start small, focusing on specific products or processes before expanding their assessment scope. This practical approach allows teams to build expertise while delivering measurable results.

Success with LCA depends on careful planning, accurate data collection, and proper tool selection. While mistakes happen, especially when starting out, following established standards and learning from others’ experiences helps avoid common pitfalls.

Remember that Life Cycle Assessment represents an ongoing journey rather than a one-time project. As your organization gains experience, you’ll discover new ways to minimize environmental impacts while improving operational efficiency. Start with clear goals, build the right team capabilities, and maintain focus on continuous improvement — the environmental and business benefits will follow.

If you want to keep diving deeper into the world of LCA, the ultimate Life Cycle Assessment expert guide will give you the insights, tools, and strategies needed to excel.

News

Subscribe to the P6 newsletter

Stay tuned and get in-depth information about Life Cycle Assessment directly in your inbox

    Related content