Life Cycle Assessment (LCA) and its Applications
The Walmart, Target and CJCHT Example of Cultivating Loyalty in supply chain for Sustainability.
by Raymond Wang, SSBTi.org 2024.4.25
Introduction to LCA
Comprehensive Evaluation
LCA assesses environmental impacts across a product's entire lifecycle.
Avoid "missing" link and "cheating".
ISO Standards, CBAM and PEF
LCA is standardized in ISO 14040 series, marking its broad acceptance to ISO 14064/14067.
CBAM and PEF is also "LCA inside".
Quantitative Analysis
LCA quantifies resource use and emissions at each lifecycle stage.
Carbon Accounting becomes achievable!
Informed Decisions
LCA supports sustainable product design and supply chain optimization.
Scope 3 included and Net Zero goal visible.
The CJCHT Example of Cultivating Loyalty in supply chain for Sustainability
After 20 years, CJCHT rolled out something most loyal supply chain companies can appreciate.
LCA Insiders - an all-inclusive digital solution.
Simple is almost always better - You no longer need multiple certifications or reports.
A sustainability program should feel "sustainable".
Your most important job is to know your best suppliers.
LCA Methodology (Supply Chain)
1
Data Collection
Gather primary data from enterprises and secondary data from databases.
2
Model Building
Construct a comprehensive product lifecycle model in LCA software.
3
Impact Analysis
Calculate environmental footprints like carbon, water, and more.
How to do a LCA analysis?
When we want to carry out LCA work, it is a data survey/collection process from enterprises to supply chains.
We use the collected data with the LCA software to build a product model like the right drawing; one part is the green ones we have investigated (we call it “primary data”), the other parts are the blue ones (aggregated datasets of components) and the yellow ones (core data of raw materials) that are our database (we call it “secondary data”).
In this way, we build a whole process model of the life cycle, and then we can do the calculation in the software to get the desired LCA results (like carbon footprint, water footprint or other environmental footprints).
Fig. LCA Product Model
LCA to Footprints
1
Categorization
LCA organizes diverse environmental impacts into standardized categories.
2
Characterization
Equivalence factors convert different substances into comparable units.
3
Calculation
Emissions are multiplied by characterization factors and summed up.
4
Carbon Footprint
Results expressed as CO₂ equivalents (CO₂eq) for standardized comparison.
The carbon footprint calculation exemplifies LCA methodology in action. One kilogram of methane equals 30kg CO₂eq, while CFCs can exceed 10,000kg CO₂eq.
This standardized approach enables meaningful comparisons across different products and processes throughout their entire lifecycle.
LCA Standards and Guidelines
ISO 14040 Series
LCA standards established in the late 1990s.
EPD/PCR
Environmental Product Declarations and Product Category Rules, 2006.
Carbon Footprint, Product
ISO 14067 standard for product carbon footprint, 2008-2013.
GHG quantification, Corporate
ISO 14064, organizational level, 2006, 2018
It is for corporate level disclosure for GHG on yearly basis. There is also GHG protocol announced for corporate level GHG disclosure, to be used in CDP data entry or SBTi goal.
EU’s PEF law
‘Carbon footprint' (CF) is expressed as carbon dioxide equivalents and based on Product Environmental Footprint (PEF) study using the single impact category of climate change.
For the first time in the world, the carbon footprint of a product is mandatory! Marking a new stage of development for carbon Footprint /LCA/PEF!
Turn-key service for Corporate Footprint accountings, integrated with professional LCA platforms and supported by top-tier professors.
database→software→supply chain
Core Databases
from sources of Ecoinvent, IDEA, GABI, CLCD to provide essential LCA data.
LCA Software
Tools like SimaPro and eFootprint to enable rigorous analysis.
Supply Chain Data
Primary data collection from enterprises along supply chain.
Critical to the practice of LCA are specialized software and databases such as Gabi, IDEA, Ecoinvent, and CLCD (four major core and more complete databases in the world), which provide essential data and analytical capabilities. These tools are indispensable for practitioners to conduct rigorous environmental assessments and support decision-making processes.
Practical LCA Applications
Corporate Sustainability
LCA integrates with carbon accounting to improve environmental footprint.
Market Transparency
LCA enables Environmental Product Declarations (EPDs) and carbon footprint labeling.
Competitive Advantage
LCA optimizes product design and supply chain decisions.
Global LCA Regulatory Frameworks
1
EU Product Environmental Footprint (PEF)
Mandatory carbon footprint disclosure for products by 2024.
2
ISO and GHG Protocol Standards
LCA Guidelines for corporate-level greenhouse gas accounting and reporting.
3
Border Tax CBAM
Compliance and Differentiation
LCA enables companies to meet regulations and gain market advantage.
Recommendations
LCA Tools and Databases
Essential for companies to comply with emerging regulations.
LCA Training
Educate supply chain partners on LCA methodology and applications.
Consolidated LCA Data
Develop shared LCA datasets to improve disclosure quality.
Achieve Net Zero
LCA supports systematic sustainability efforts across the supply chain.