In a world of growing environmental scrutiny and shifting regulations, understanding the true impact of your product or service is a critical step for businesses looking to reduce risk and build resilience. One of the most widely recognised ways to evaluate that impact is through a Life Cycle Assessment (LCA).
An LCA provides a data-driven framework for analysing environmental effects at every stage of a product’s lifecycle, from raw material extraction to end-of-life disposal. But how exactly does it work in practice? And how can businesses start applying it? Below, we walk through the LCA process step by step, unpacking the methodology and tools that you can incorporate into your business sustainability strategies for effective environmental decision-making.Â
What is a Life Cycle Assessment (LCA)?Â
A Life Cycle Assessment (or Life Cycle Analysis) is a systematic method used to quantify the environmental impacts associated with all stages of a product or service’s lifecycle. From resource extraction, manufacturing, distribution, and use, to disposal or recycling, LCA examines the complete picture.
The goal is to identify hotspots where environmental harm occurs and provide a foundation for making more sustainable choices.
Common areas assessed in an LCA include:
- Greenhouse gas emissions (carbon footprint)
- Energy and water consumption
- Resource depletion
- Waste generation
- Ecosystem and human health impacts
An LCA helps businesses understand trade-offs, benchmark performance, and comply with reporting expectations. It’s also increasingly used to support eco-design, circular economy strategies, and sustainability claims.
The 4 stages of Life Cycle Assessment
LCA is governed by ISO 14040 and 14044 standards and follows a four-stage process. Each step builds a clearer view of the environmental consequences tied to a product’s lifecycle.
1. Goal and scope definition
This first stage outlines the purpose of the LCA and sets boundaries. Are you comparing two packaging types? Redesigning a product? Seeking carbon reduction opportunities?
Key decisions here include:
- Functional unit (e.g. 1kg of product, one use cycle)
- System boundaries (e.g. cradle-to-grave vs. cradle-to-gate)
- Intended use (internal optimisation, eco-labelling, reporting)
Clarity here ensures that the rest of the LCA delivers relevant and actionable insights.
2. Life Cycle Inventory (LCI)
This is the data collection phase, where all material and energy inputs, outputs, and emissions are recorded. That includes:
- Raw materials used
- Transportation distances
- Energy consumption
- Emissions to air, water, and land
- Waste generated
Accurate data is crucial, and often the most resource-intensive part of the process. Many businesses use life cycle assessment tools or databases (more on that below) to support this stage.
3. Life Cycle Impact Assessment (LCIA)
In this stage, raw inventory data is translated into environmental impact categories. For example:
- CO₂ emissions → Climate change impact
- Water withdrawals → Water scarcity
- Toxic outputs → Human/ecosystem toxicity
This phase helps visualise where the most significant impacts occur across the product’s lifecycle, often revealing hidden or upstream risks.
4. Interpretation
Finally, the results are analysed and translated into insights. Interpretation involves:
- Identifying significant impact drivers
- Testing data quality and assumptions
- Making improvement recommendations
- Communicating results clearly (internally or externally)
LCA results can be used to inform product redesign, supplier decisions, sustainability reports, or even customer engagement.
Equip your teams with the skills needed to assess environmental impact across the full product life cycle
Tools and software for conducting an LCAÂ
Conducting an LCA manually is complex and time-consuming. Thankfully, a number of LCA software tools are available to support data collection, modelling, and reporting.
Popular options include:
- SimaPro – Widely used for academic and commercial LCAs
- OpenLCA – An open-source tool with flexible modelling
- GaBi – Comprehensive software with robust databases
- Ecoinvent – A key life cycle inventory database often used alongside tools
Some tools include industry-specific templates or enable integration with supply chain platforms, helping businesses streamline the process and improve accuracy.
Is LCA certification necessary?Â
While LCA certification is not mandatory, it can significantly enhance credibility, especially if results are used for public claims, ecolabels, or regulatory compliance.
LCA studies can be:
- ISO-compliant (aligned with ISO 14040/44 standards)
- Third-party reviewed (independent verification of scope, data, and methods)
- Used to support Environmental Product Declarations (EPDs) or labels like Carbon Trust or EU PEF (Product Environmental Footprint)
For companies aiming to embed LCAs into procurement or product development decisions, building internal capability through structured corporate sustainability training can be more valuable than relying solely on third parties.
Final thoughts
Life Cycle Assessment is more than a reporting tool; it’s a decision-making framework that supports smarter, more sustainable business strategies. Whether you’re just starting out or looking to scale your approach, understanding the steps, tools, and certifications involved is the first step toward embedding environmental insight into product and process innovation.
Our sustainability courses UK are designed to equip professionals with the confidence and technical knowledge to implement LCAs effectively and drive informed sustainability action across the business.
Build your team’s capability to apply Life Cycle Assessment across products and processes
The post How to conduct an LCA: A step-by-step walkthrough appeared first on Institute of Sustainability Studies.
