Introduction to Life Cycle Assessments

What is an LCA and why is it important?

In a world striving for a sustainable future, you might be looking for a way to evaluate the impact of your products. Life Cycle Assessments (LCAs) play a vital role here. But what exactly is an LCA, and how can it help your organization?

What is the purpose of an LCA?

LCAs are a standardized methodology for quantifying and evaluating the environmental impacts of a product, allowing for comparable comparisons between products or services. The methodology is based on a scientific approach and utilizes data collection, modeling, and impact assessment to gain a thorough understanding of a product's environmental impact.

What are the benefits of a Life Cycle Assessment?

Performing an LCA offers several benefits for organizations and stakeholders:

1. Reliability and transparency: Demonstrating that an LCA has been performed increases the reliability of the sustainable claims which are made about products and provide transparency to customers, investors and other stakeholders.
2. Enhanced credibilityPerforming an LCA increases confidence in the environmental claims being made. This can lead to increased consumer trust. Your customers know they're in good hands with you, which provides a competitive advantage.
3. Clear comparability: An LCA helps organizations make informed decisions and compare the environmental impact of different products or processes.

4 steps of the Life Cycle Assessment methodology:

1. Purpose and scope determination: In this phase, the purpose of the LCA is defined and the scope of the study is delineated. Companies often leave certain aspects out of scope, sometimes unjustly for their own gain. For example, a significant environmental impact of a product or service can be hidden during use, such as the energy consumption of electrical appliances, or cleaning and maintenance services during use. New Economy considers all elements, ensuring organizations are not faced with surprises. 

2. Life cycle inventory (LCI): Data are collected here on the inputs and outputs of each phase in the life cycle. This includes energy use, raw material consumption, emissions to air, water, and soil, and waste generation.

3. Impact assessmentIn this phase, the collected data is analyzed to assess the potential environmental impact. This includes determining the contribution to climate change, resource depletion and circularity, pollution, and other impact categories.

4. InterpretationThe LCA results are interpreted and reported, providing stakeholders with insight into the environmental impact and potential areas for improvement. In addition, strategic next steps are explored jointly: which new partners or material suppliers should be approached? How does our product compare to other similar products? And where are the greatest opportunities in the short term versus the long term?. 

Different types of LCAs

A Life Cycle Assessment (LCA) is a method that examines a product's impacts from raw material extraction to end-of-life. This method can be used for various purposes, such as for a PEF or an EPD. All abbreviations that New Economy is eager to embrace.

Product Environmental Footprint (PEF)

A PEF is part of the “Single Market for Green Products Initiative”", initiated by the European Commission. The initiative aims to make it easier for companies to bring sustainable products to the European market and for consumers to recognize them. An LCA resulting in a PEF can be easily compared with, for example, other product categories.

Environmental Product Declaration (EPD) 

An Environmental Product Declaration (EPD) is a document outlining the environmental impact of a product. The preparation of an EPD is standardized in ISO 14025. An EPD formally reports on the results of a life cycle assessment (LCA), meaning it has been validated by official verification as described above. An EPD is a validated document by an external LCA expert. The main difference with the PEF is that an EPD can consist of various scenarios, making it difficult to compare different EPDs. For example, one manufacturer may choose to include everything up to and including their own production site (cradle-to-gate), while others may consider the entire life cycle (cradle-to-grave), with naturally significant differences in outcomes.

Environmental Cost Indicator (ECI)

A measuring instrument that maps the environmental costs of a construction project or building.

The Environmental Impact Assessment (MKI) considers environmental impacts throughout the entire life cycle, including material selection, construction, use, and demolition. Different types of environmental impacts are weighed against each other based on environmental costs per unit. The result is an Environmental Profile that maps the total impact of a building (both infrastructure and the built environment). However, there may still be practical differences, such as the number of square meters of gross floor area (GFA) or the lifespan of a building. The MPG was developed to facilitate comparison on this basis.  

Environmental Performance of Buildings (MPG)

The MPG is designed using a calculation method that prescribes very specific rules for mapping the environmental impact of a building's material choices. It is an important tool for promoting sustainable construction and reducing the environmental impact of buildings. The MPG weighs all environmental impacts and summarizes them into a single figure, expressed in euros per square meter per year. The MPG has received considerable (justified) criticism because this methodology does not always consider short-term versus long-term climate impacts, which can disadvantage biobased materials such as wood in MPG calculations. 

Applications and examples of Life Cycle Assessments

Discover the practical applications of LCAs in various sectors and learn from inspiring case studies and examples.

Practical applications of LCAs in different sectors

LCAs are increasingly used as a valuable tool for evaluating the environmental impact of products, processes, and systems. Here are some practical applications of LCAs in various sectors:

1. ConcernBy conducting an LCA, we can clearly map out which healthcare institution can provide the best care with the least environmental impact! 
2. Build: How do we build the most beautiful building with the lowest possible, or even positive, impact on society and nature?.
3. AgricultureWhich practices, such as irrigation, fertilization, crop protection, and livestock farming, support sustainable agriculture? How do we produce food that also contributes to a healthy ecosystem?
4. TransportAn LCA compares the most different modes of transport, allowing us to reduce greenhouse gas emissions! 

LCA Example

Explore the example of LCAs carried out by New Economy in healthcare.

70% Co2 reduction in the healthcare sector with JOYinCARE As you consider the future of your business strategy, appreciate the added value of baseline measurement and LCA in creating positive change. 

Who provides an LCA?

Do you have questions about the applications of a life cycle assessment within your organization? Want to know the benefits or how an LCA can support a long-term strategy? Contact us today. Jonah and ask your questions!

Bold guy with glasses and a beard laughing into the camera
Jonah Link
Senior Impact & Data Analyst

jonah@neweconomy.eco

Jonah has extensive experience clarifying complex issues, including complex supply chains and sectors. He explains these matters clearly and concisely, effortlessly translating complex data into practical analysis models, from shadow costs to cost-benefit analyses. With his background in environmental science, sustainable business, and innovation, he provides organizations in virtually all sectors, from agriculture to manufacturing, with valuable insights and concrete steps to reduce their environmental impact and increase business value.

As an LCA specialist, Jonah helps organizations strategically prepare for the challenges and opportunities in this area. His approach offers practical tools for taking targeted action to reduce environmental impact while simultaneously increasing added value for the company.

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