Life cycle analysis (LCA) is a methodology that examines the environmental impacts of a product from the raw materials extracted to make the product through to final disposal after the product has finished its useful life. Although the idea has been around since the 1960′s, its popularity as a business tool has increased over the last decade. Also known as cradle to grave, the purpose of an LCA is to develop a complete picture of a product and its interaction with the environment providing key information for decision makers.
The LCA methodology is mostly used by manufacturing firms who use it as a tool to both reduce their environmental impact and show clients detailed environmental information about their products. An LCA of a product can provide important information for retailers who require information on the impacts of the products they sell. An LCA assessment can also be important in determining a company’s liabilities, for example for carbon emissions or use of freshwater, which are becoming more and more regulated.
The LCA methodology can be applied in different ways. Some analysis is very detailed and considers every aspect of the product from the raw materials that are required in the beginning through to the manufacture of the product and its distribution, use and disposal. Other forms of LCA methodology involve a more simplistic approach considering only the main inputs and outputs of a product. Currently the most rigorous standard on LCA is the International Standards Organisation 14040:2006 and 14044:2006 and adherence to these standards can be required for an LCA to be accepted by other organisations. Under the ISO standard four components need to be present for an analysis to be considered an LCA: goal definition and scoping, inventory analysis, impact assessment and interpretation.
The value of LCA is in how the company uses the results. A detailed LCA will be beneficial in considering supply chain improvements or aiming for carbon neutral certification, however this can require large amounts of data which may or may not be readily available. However even a basic consideration of the life cycle of a product which considers the main inputs and outputs can help a company in its sustainability decisions. Although this sort of analysis may not meet the requirements to be considered an LCA it can be a valuable first step for a company in determining its impact on the environment. Whatever analysis is undertaken it is vital that the scope and purpose of the analysis is clearly defined for the results to be useful in decision making.
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