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Life Cycle Impact Assessment: ESG Key and Competitive Advantage

Updated on
March 27, 2025

Life cycle impact assessment. Just like that, no soft introductions, because this is no longer an optional topic or something “interesting to explore later.”

More and more companies are taking the next step: measuring the impact of their products from cradle to grave.

Why? Because if we don’t do it, we won’t understand where the real problem is or how to improve.

Can we relax? Not really. Regulations demand it, customers value it, and the competition is already moving.

In this article, we’ll dig deep: what life cycle means, why we should understand it, and how to turn it into a real advantage for our company.

Why Life Cycle Impact Assessment matters more than ever

Every product we manufacture, use, or sell leaves a footprint.

If we don’t know what it is, we’re acting blindly.

Life Cycle Assessment (LCA) gives us the complete map.

We’re not just talking about emissions, but understanding where and how we generate impact at every stage of the product.

The market, regulations, and our own goals demand it. It’s not a trend, it’s a necessity if we want to remain competitive.

What is Life Cycle Impact Assessment (LCA)

LCA is a methodology that analyzes the environmental impact of a product from the moment it is manufactured to the end of its use.

We’re talking about the full cycle: raw materials, manufacturing, transport, use, and end of life. No step is left out.

This allows us to clearly see which phases generate more impact and where we can act wisely.

Evaluate to act: how LCA becomes a strategic lever

Measuring without acting is pointless. The true value of LCA lies in what we do with the data.

It allows us to improve processes, cut costs, and comply with regulations. But above all, it positions us as a company that makes decisions based on real data.

LCA is becoming a key to accessing clients and contracts that demand environmental responsibility.

Data is the heart of the process: what you need to measure and why

Without reliable data, there’s no possible assessment. A “general idea” isn’t good enough. We need concrete figures.

What do we measure?

Energy consumption, material use, transport, waste, emissions... everything that influences the product’s impact.

Why does it matter?

Because this data allows us to comply with any ESG use case: EINF, CSRD, Taxonomy, SBTi, ISOs, or whatever is on the table.

At Dcycle, we’re clear on this: collect, centralize, and turn data into decisions. That’s how we help companies move ahead.

5 key benefits of applying Life Cycle Assessment in your organization

1. Continuous improvement based on data

This isn’t about making a pretty report, it’s about knowing where we stand and how to move forward.

LCA turns data into decisions. It helps us identify bottlenecks, cut costs, and adjust processes with purpose.

The best part? It’s a living process: we measure, act, and measure again. That’s how real improvement happens.

2. Better regulatory compliance with less effort

This isn’t about chasing after every new regulation.

With LCA, we already have the foundation required by all ESG regulations: CSRD, SBTi, Taxonomy, ISOs... whatever comes up.

The result? Fewer headaches and greater peace of mind. Compliance becomes part of your workflow, not a separate burden.

3. More informed business decisions

Without data, we’re making blind decisions. With LCA, every decision has a solid foundation: from which materials to use to which supplier to choose.

Is it worth changing logistics and transport? Will switching packaging reduce emissions? The answers lie in the data.

4. Competitive advantage in demanding markets

Who enters new markets first? Those who show they have their impact under control. LCA is becoming a ticket to enter tenders, contracts, and clients who don’t accept excuses.

Standing out is no longer just marketing, it’s about having clear, verified numbers.

5. Real transparency for all your stakeholders

Nice words don’t convince. Showing data does. LCA allows you to say: “this is what we generate, and this is what we’re doing to improve.”

You can use this with clients, investors, regulators, and anyone who asks for explanations.

3 main challenges when implementing a Life Cycle Assessment

1. Complexity in data collection

Gathering reliable data is not easy. Sometimes it’s scattered, in silos, or simply doesn’t exist.

We solve this by digitizing the process and centralizing the information. That way, we avoid relying on endless spreadsheets or manual processes.

2. Lack of methodological standardization

There’s no single way to do LCA, which can raise doubts. ISO, PAS 2050, GHG Protocol... each has its nuances.

Choosing the right methodology depends on your goals, industry, and market demands.

3. Difficulties scaling the analysis to the organizational level

It’s one thing to assess one product. Another to assess a hundred.

Scaling the assessment without chaos is one of the big challenges.

The key is automation, data integration, and solutions that adapt to your company’s reality,without adding more complexity.

The role of Life Cycle Assessment in major ESG frameworks

Why do all ESG regulations talk about life cycle?
Because without that complete view, the analysis falls short.

From CSRD to SBTi, including the European Taxonomy, EINF, or the ISOs, they all demand the same: reliable and traceable data.

Life Cycle Assessment (LCA) is the tool that allows us to connect emissions, consumption, and waste with real business decisions.

This way, you can both comply with regulations and gain efficiency.

CSRD, European Taxonomy, EINF, ISOs, SBTi and more

It’s not about choosing one standard or another.
Today, the most common scenario is having to comply with several at the same time.

And LCA is the common thread that runs through all of them.

What do they all have in common?

They all require the same thing: that we measure, justify, and reduce.

And that can only be achieved through a complete evaluation of the product’s life cycle.

How Dcycle helps you integrate Life Cycle Assessment into your ESG management

Do we have to do all of this alone? No. At Dcycle, our job is to make it easy for you.

We gather your ESG data, organize it, and turn it into what you need: reports, calculations, analysis, and decision-making tools.

Need to report under CSRD? Perfect. Need an analysis for SBTi or EINF? That too.

We integrate Life Cycle Assessment into your entire ESG management system without multiplying your workload.

Why Dcycle is your best ally to advance sustainability through data

We are an ESG solution designed for any use case.

It doesn’t matter your industry, the size of your company, or the standard you need to meet: we work with real data, not estimates.

What do we offer?

A way of working that simplifies measurement, analysis, and reporting. So you can focus on making decisions, not chasing data across the company.

Measuring the life cycle shouldn’t be a mess. With Dcycle, it’s not.

Frequently Asked Questions (FAQs)

What’s the difference between carbon footprint and Life Cycle Assessment?

The carbon footprint measures only greenhouse gas emissions.

Life Cycle Assessment (LCA) goes further: it analyzes the entire environmental impact of a product, from its origin to the end of its useful life.

Do they exclude each other? Not at all.
The carbon footprint is part of the LCA, but it doesn’t cover everything.

Do I need to do a full LCA or can I start with just some stages?

Ideally, you would conduct a complete analysis, but we understand that it’s not always possible from the start.

We can begin with the key life cycle stages, those with the most impact or where more data is currently available.

What matters? Starting with what we have and building from there. Every step counts.

What digital tools exist to facilitate this analysis?

Today, it makes no sense to do an LCA manually. We’d lose time, accuracy, and patience.

With platforms like Dcycle, we automate data collection, calculation, and analysis, and connect it with your reporting needs.

The goal? For sustainability not to become an operational burden.

Is Life Cycle Assessment mandatory under current legislation?

It depends on the sector and the market. Some regulations require it directly, others include it as part of broader ESG obligations.

What’s clear is that more and more regulations are incorporating it as a requirement or as a criteria to access certain regulatory or commercial advantages.

How much time and resources are needed to implement an LCA?

Without help, it can be a slow and complex process. It requires data, time, and cross-team coordination.

But with solutions like Dcycle, we accelerate the process, reduce errors, and integrate it into your daily operations.

The result? You do more with less effort, and with the confidence that you’re fully compliant.

Take control of your ESG data today.
Take control of your ESG data today.
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Cristina Alcalá-Zamora
CSRD Specialist | Content Creator

Frequently Asked Questions (FAQs)

How Can You Calculate a Product’s Carbon Footprint?

Carbon footprint calculation analyzes all emissions generated throughout a product’s life cycle, including raw material extraction, production, transportation, usage, and disposal.

The most recognized methodologies are:

  • Life Cycle Assessment (LCA)
  • ISO 14067
  • PAS 2050

Digital tools like Dcycle simplify the process, providing accurate and actionable insights.

What Are the Most Recognized Certifications?
  • ISO 14067 – Defines carbon footprint measurement for products.
  • EPD (Environmental Product Declaration) – Environmental impact based on LCA.
  • Cradle to Cradle (C2C) – Evaluates sustainability and circularity.
  • LEED & BREEAM – Certifications for sustainable buildings.
Which Industries Have the Highest Carbon Footprint?
  • Construction – High emissions from cement and steel.
  • Textile – Intense water usage and fiber production emissions.
  • Food Industry – Large-scale agriculture and transportation impact.
  • Transportation – Fossil fuel dependency in vehicles and aviation.
How Can Companies Reduce Product Carbon Footprints?
  • Use recycled or low-emission materials.
  • Optimize production processes to cut energy use.
  • Shift to renewable energy sources.
  • Improve transportation and logistics to reduce emissions.
Is Carbon Reduction Expensive?

Some strategies require initial investment, but long-term benefits outweigh costs.

  • Energy efficiency lowers operational expenses.
  • Material reuse and recycling reduces procurement costs.
  • Sustainability certifications open new business opportunities.

Investing in carbon reduction is not just an environmental action, it’s a smart business strategy.