A life-cycle assessment (LCA), also called a life cycle assessment, is a standardised method that maps the environmental impact of a product or service across its full life cycle, from raw material extraction to end of life. It makes the environmental effects of products measurable and comparable on the basis of scientific data collection, modelling and impact assessment. An LCA supports substantiated sustainability claims and better design and material choices.

What is the purpose of an LCA?

An LCA quantifies and evaluates the environmental effects of a product, making equivalent comparison between products or services possible. The method is scientifically grounded and uses data collection, modelling and impact assessment to create a thorough understanding of environmental impact.

What are the benefits of an LCA?

• Reliability and transparency — a demonstrable LCA strengthens the credibility of green claims and provides transparency for customers, investors and other stakeholders.
• Stronger credibility — it increases confidence in environmental claims and can support consumer trust and competitive positioning.
• Clear comparability — it helps organisations make informed decisions and compare the environmental impact of products or processes.

The four steps of an LCA

1. Goal and scope definition — define the purpose and boundaries of the study. Impact is sometimes incorrectly left outside the scope, such as energy use during operation or maintenance. New Economy includes all relevant elements to prevent later surprises.
2. Life-cycle inventory (LCI) — collect data on inputs and outputs for every phase: energy use, raw materials, emissions to air, water and soil, and waste.
3. Impact assessment — analyse the data to determine potential environmental impact, such as contribution to climate change, resource depletion, circularity and pollution.
4. Interpretation — interpret and report the results, with insight into improvement points and strategic next steps: materials, suppliers, product performance compared with alternatives, and the main short- and long-term opportunities.

Different types of LCA outputs

An LCA examines the impact of a product from raw material extraction to end of life. The method can be used for different purposes, including a Product Environmental Footprint (PEF), an Environmental Product Declaration (EPD), a Dutch Environmental Cost Indicator (MKI) or the Dutch Environmental Performance of Buildings score (MPG).

Product Environmental Footprint (PEF)

A Product Environmental Footprint (PEF) is part of the European Commission’s Single Market for Green Products Initiative. Its purpose is to make it easier for companies to bring sustainable products to the European market and for consumers to recognise them. An LCA that results in a PEF is highly comparable with other product categories.

Environmental Product Declaration (EPD)

An Environmental Product Declaration (EPD) is a standardised document under ISO 14025 that presents the environmental effects of a product, formally communicates the results of an LCA and is validated by an external LCA expert. The main difference with a PEF is that an EPD can be built from different scenarios. One producer may include everything up to the production site (cradle-to-gate), while another covers the full life cycle (cradle-to-grave), resulting in large differences and more difficult comparison between EPDs.

Dutch Environmental Cost Indicator (MKI)

The Dutch Environmental Cost Indicator (MKI) maps the environmental costs of a construction project or building across the full life cycle, including material choice, construction, use and demolition. Different environmental effects are weighted against each other based on environmental costs per unit. The result is an environmental profile of the structure. Practical differences, such as gross floor area or service life, make comparison difficult; for that reason the Dutch MPG method was developed.

Dutch Environmental Performance of Buildings (MPG)

The Dutch Environmental Performance of Buildings score (MPG) uses a calculation method with specific rules for mapping the environmental effects of material choices in buildings. It is an important instrument for stimulating sustainable construction. The MPG summarises all environmental effects in one figure, expressed in euros per square metre per year. There is justified criticism: the method does not always account properly for short-term versus long-term climate effects, which can disadvantage biobased materials such as wood.

Applications and examples

LCAs are used in an increasing number of sectors to evaluate the environmental impact of products, processes and systems:

• Healthcare — mapping which healthcare provider delivers the best care with the lowest environmental impact.
• Construction — building with the lowest possible, or even positive, impact on society and nature.
• Agriculture — assessing which practices, such as irrigation, fertilisation, crop protection and livestock farming, support sustainable agriculture and healthy ecosystems.
• Transport — comparing transport modes to reduce greenhouse gas emissions.

See an example of LCAs carried out by New Economy in healthcare: 70% CO₂ reduction in healthcare with JOYinCARE.

LCA, MKBA and regenerative design

A life-cycle assessment maps the environmental impact of a product. A social cost-benefit analysis (MKBA) weighs the broader societal costs and benefits of a project or policy in euros. The two methods complement each other. At New Economy, an LCA is not a compliance checklist, but an instrument for regenerative product development: the insights guide better material and design choices, towards net positive impact. See Product Footprint / LCA.

Frequently asked questions about LCA