From Theory to Practice: A Comprehensive Guide to Life Cycle Assessment (LCA)

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The LCA methodology encompasses all stages, from raw material extraction to end-of-life management. In the webinar from 3Bee's Oasis on the LCA methodology guide, from theory to practice, management professor Fabio Iraldo, at the Scuola Superiore Sant'Anna, explains the LCA methodology for impact calculation. LCA or environmental footprint is an innovative method that, although it has ancient origins, today presents itself as an extremely topical tool of interest to all companies. It is a methodology with mainly technical value and is used by many EU member states and the European Commission itself as it can guide policy priorities; help overcome certain market failures and can stimulate demand for green products.

The environmental footprint represents a new regulation that will mark the immediate future of many companies, especially in stimulating both the production of green products and demand in the market. Even the smallest companies have realised that sustainability can be a useful tool. The LCA methodology can support strategies that bring benefits both from a management point of view and through day-to-day environmental improvement. The environmental footprint of a product is a measure, based on a multi-criteria assessment, of the environmental performance of a good or service throughout its life cycle. The LCA is calculated primarily with the aim of reducing the environmental impacts of that good or service, considering all activities in the supply chain (supply chain): from the extraction of raw materials, through production and use, to end-of-life management.

The LCA methodology continues to be innovative in 2024, as it has revolutionised the scenario of environmental assessment. It focuses on every single environmental aspect, focusing on industrial and production processes. LCA provides a clear picture of what happens at each stage of a product's life cycle, from birth to final consumption. It allows one to be able to quantify the environmental impact based on where the electricity is produced. For example, if a product is made in Italy, we know that each kilowatt-hour, following the national energy mix, produces a certain amount of greenhouse gas, which is then transformed into kilogram CO2 equivalents. This quantity must be added to all other greenhouse gas emissions generated at each stage of the product life cycle. This approach applies to all inputs, such as water consumption and associated emissions.

The LCA study is divided into four phases: 1. The definition of objectives and scope in a life cycle analysis (LCA) is essential to describe the product system, establishing the boundaries, purpose and functional unit. 2. Inventory analysis consists of the collection and calculation of data to quantify the inputs and outputs of a product system, thus generating the life cycle inventory (LCI). This analysis includes a sequence of activities related to the production, use and disposal of the product. 3. Life Cycle Impact Assessment (LCIA) The main objective of the Life Cycle Impact Assessment (LCI) is to describe and assess the environmental impacts resulting from the loads quantified in the inventory analysis. 4. Interpretation of results allows for the formulation of sound conclusions and recommendations that are useful for developing communication strategies and eco-de

Data collection is a complex task, not so much conceptually as practically. It is necessary to collect a large amount of information for each stage and for each input and output. This process makes it possible to create a detailed map of the product's environmental impact. Data collection must include information on each raw material, energy source and water consumption. It is important to consider not only the waste produced in the process but also that generated by consumption. A current example is food waste: products taken home but not consumed generate unnecessary and harmful environmental impact. All types of waste must be considered in the impact calculation.

The companies' approach does not necessarily involve measuring every piece of data at every stage of the life cycle. In many cases, direct measurements are not possible, e.g. raw material extractions in countries outside Europe. The methodology is flexible and allows the use of secondary data, such as datasets and databases, to replace the absence of primary data. However, it is essential that these data are of high quality and representative of the product and its life cycle. Furthermore, they must be recent, relevant to current technology and production practices, and cover all factories involved in production. The European Commission, for example, has developed methods such as the Product Environmental Footprint (PEF), which place a high emphasis on the quality and robustness of the data used. Lastly, we have developed methods to convert raw data (such as water quantities or gas emissions) into usable environmental indicators.

Companies that have applied LCA report significant advantages, especially in competitive terms. This methodology allows better management of materials and inputs/outputs, also contributing to economic efficiency. It also improves the company's communication capacity, supporting green marketing strategies and helping to improve the company's image and reputation. However, attention must be paid to the phenomenon of greenwashing. Communicating without adequate information can lead to misunderstandings. The LCA helps to provide concrete and relevant data on the environmental impact of the product.

There are several difficulties to be faced by companies using the LCA methodology. Specifically, they can be summarised in three stages: 1. Data collection: involving suppliers in this process can be complex and requires time and strong relationships; 2. Communication: the data collected can be difficult to interpret for those outside the company; 3. Methodological validity: it is essential to ensure that the data collected is accurate and reliable, thus avoiding distorted representations of environmental impact. The application of LCA presents significant challenges, but also offers valuable opportunities for companies wishing to improve their sustainability and environmental communication. 3Bee can help support companies in gathering concrete data with customised assessment, regeneration and training solutions, compliant with ESRS E-4 and GRI 101 standards, integrating biodiversity into corporate strategy with ease.