Life Cycle Assessment (LCA): A Comprehensive Roadmap for Sustainable Success

Life Cycle Assessment (LCA) is a vital tool for understanding the environmental impacts of products and services across their entire life cycle. From raw material extraction to disposal, LCA provides a structured way to measure and evaluate these impacts. 

This guide offers a clear overview of LCA, its core stages, and how it supports better environmental decision-making. Whether your organisation is just beginning to explore LCA or looking to strengthen existing practices, these insights will help you navigate the key benefits and practical applications.

Key Takeaways 

• Immediate Relevance: Life Cycle Assessment (LCA) is a vital tool for organisations responding to climate change and broader environmental challenges. 
• Actionable Insights: Embedding circular economy principles and conducting LCA can significantly enhance environmental performance. 
• Strategic Positioning: LCA supports alignment with evolving standards, stakeholder expectations, and greenhouse gas reduction targets. 
• Future-Ready Approach: By identifying environmental impacts across the life cycle, LCA helps organisations prioritise strategic action. 

Understanding Life Cycle Assessment and Its Importance Defining LCA 

Life Cycle Assessment (LCA) is a scientific method used to evaluate the environmental impacts of a product, process or service across its entire life cycle.

This includes raw material extraction, production, use, and disposal. By examining each stage, organisations can identify environmental hotspots and make informed decisions to reduce their overall footprint. 

LCA is sometimes referred to as life cycle analysis or environmental life cycle analysis. While terminology may vary, the goal remains consistent: to understand and quantify the environmental impact across a product’s life span. 

Why It Matters: 

Environmental impacts go beyond just carbon emissions. Through LCA, organisations can assess their effects on: 

• Human health, including exposure to pollutants and toxic substances 
• Natural ecosystems, such as biodiversity loss and water pollution 
• Resource use, covering energy consumption, land use, and material depletion 

This comprehensive view helps businesses make decisions that genuinely improve sustainability outcomes. 

The Social Dimension of LCA 

While environmental factors are the core focus of LCA, social impacts are increasingly being considered through Social Life Cycle Assessment (S-LCA). This approach looks at how products or services affect people, including working conditions, health and safety, and supply chain equity. 

Common Misconceptions 

LCA is sometimes confused with related tools, but they each serve a different purpose: 

• Environmental Impact Assessments (EIAs) focus on project-specific impacts, often related to new developments or infrastructure 
• Environmental Product Declarations (EPDs) summarise LCA findings and are used to communicate performance to external stakeholders 
• Carbon footprinting addresses greenhouse gas emissions alone, while LCA includes multiple categories such as water use, toxicity, and energy consumption 

Clarifying these terms ensures organisations are using the right method for their goals. 

The Four Core Stages of a Life Cycle Assessment 

Understanding how an LCA is conducted helps demystify the process and shows where meaningful environmental insights can be generated. Each of the four core stages builds on the one before it, ensuring a comprehensive and transparent evaluation.

Stage 1: Goal and Scope Definition 

Every LCA begins with a clear definition of its purpose. This stage sets the direction for the entire assessment by establishing: 

• The functional unit — a quantified description of the product system’s function (e.g., one 1-litre bottle delivering 1 litre of liquid, transport of one person over 1 km) 
• System boundaries — which life cycle stages and processes are included or excluded (e.g. cradle to gate, cradle to grave) 

This phase also outlines how inputs and outputs will be measured and reported. Defining the scope carefully ensures alignment with the organisation’s strategic goals and allows for consistent comparisons between products or services. 

Stage 2: Life Cycle Inventory (LCI) 

The inventory phase involves collecting data on all the flows in and out of the system: 

• Inputs, such as raw materials, energy, and water 
• Outputs, such as products, co-products, emissions, and waste 

Data can be gathered from two main sources: 

• Primary data, which comes directly from the organisation’s operations 
• Secondary data, sourced from databases, literature, or industry averages 

LCA software tools play a crucial role in this stage, helping to automate data collection, improve accuracy, and handle complex supply chains.

Stage 3: Impact Assessment 

Once the inventory data is collected, the next step is to assess the environmental impacts. This involves linking the flows from the LCI to potential effects in different impact categories, such as: 

• Global warming potential (GWP) 
• Resource depletion 
• Eutrophication 
• Human toxicity and health impacts 

This stage integrates inventory results into recognised environmental impact categories , helping organisations benchmark and communicate performance effectively. 

Stage 4: Interpretation 

The interpretation phase involves analysing the results to draw meaningful conclusions and recommendations. This includes: 

• Identifying significant contributors to environmental impact (e.g. energy use, material extraction) 
• Performing sensitivity analysis to test the robustness of results 
• Translating technical findings into practical insights for business strategy, product design, or compliance reporting 

Interpretation is not a one-off step — it occurs throughout the process to guide decisions and ensure relevance. 

An effective LCA is not a static report but a tool for ongoing improvement: 

• Revisiting the goal and scope as products evolve or markets change 
• Integrating feedback into sustainability programs or product development pipelines 
• Exploring more advanced boundaries like cradle to cradle assessments, which include product reuse and recycling strategies 

Mapping the Product’s Life Cycle from Cradle to Cradle 

A robust LCA considers not just how a product is made, but how it lives and ends. Understanding these life cycle phases is critical for organisations looking to reduce their environmental impacts and transition towards more circular models. 

Cradle to Gate vs Cradle to Cradle 

• Cradle to gate assessments focus on the stages from raw material extraction through to the point the product leaves the factory gate. This approach is useful for understanding upstream impacts and is often used when downstream data (e.g. use and disposal) is difficult to obtain. 
• Cradle to cradle takes a more comprehensive view by including all life cycle stages. From resource extraction to use, end-of-life, and potential for reuse or recycling. This model promotes closed-loop systems where waste becomes input for new products, aligning strongly with circular economy principles. 

Choosing between these depends on your goals. If you're focused on reducing manufacturing emissions, cradle to gate may suffice. But if you're aiming for full environmental transparency or product stewardship, cradle to cradle is more appropriate. 

Extending the Product’s Life 

One of the most impactful strategies in life cycle thinking is extending the useful life of a product. This includes: 

• Designing for durability and repairability 
• Incorporating recyclable or compostable materials 
• Enabling reuse through take-back schemes or product-as-a-service models 
• Implementing energy recovery strategies where materials cannot be reused directly 

These approaches help to reduce the need for virgin material extraction, limit emissions, and keep products circulating in the economy for longer. 

Setting System Boundaries for Comprehensive Analysis 

Before you can fully understand the environmental impacts of a product or service, you need to be clear on what exactly you’re assessing. That’s where system boundaries come in. They define which parts of a product’s life cycle are included in the assessment, and just as importantly, which are not. 

Why System Boundaries Matter: 

System boundaries help determine the scope of your LCA. By deciding whether to include only raw material extraction and manufacturing or to also account for distribution, use, and end-of-life stages, you're setting the parameters for how environmental performance is measured. 

A clearly defined system ensures consistency, reduces the risk of double-counting, and allows comparisons between products or services to be meaningful. 

For example, if you’re comparing two packaging options but one assessment includes end-of-life emissions and the other does not, the comparison will not reflect the full picture. 

Reference Flow & Functional Unit: 

To make comparisons between different products or systems valid, you need a consistent reference point. That is where the functional unit and reference flow come in. 

• The functional unit defines what exactly is being assessed in a way that reflects the product's purpose, for example, "one square metre of flooring with a 10-year lifespan." 
• The reference flow refers to the amount of product needed to fulfil that function. 

These elements make sure you are comparing apples with apples. They also ensure that the rest of the data, from inventory inputs to impact categories, can be meaningfully interpreted. 

Integrating LCA into Environmental Management Standards 

Life Cycle Assessment does not exist in isolation. It fits within broader environmental management frameworks and international standards that guide how organisations measure and improve their sustainability performance. 

International Standards Guiding LCA 

The most widely recognised standards for LCA are outlined in the ISO 14040 series. 

These standards set out the principles, framework, and requirements for conducting a transparent and consistent life cycle assessment. Adhering to these guidelines helps ensure that your LCA results are robust, comparable, and credible. 

You can find more about these standards on the official ISO website here.

Environmental Labels & Declarations 

Environmental Product Declarations (EPDs) are a key way to communicate LCA results transparently to customers and stakeholders. An EPD summarises the environmental impact of a product based on a verified LCA method, providing a standardised and comparable report.

For more information about EPD frameworks, visit the European Commission’s page on environmental declarations. 

Building an Environmental Management System:  

Incorporating LCA into your EMS goes beyond just conducting assessments. It means embedding life cycle thinking into policies, procurement decisions, product design, and reporting.

For a closer look at how LCA credits integrate within sustainability frameworks, explore our Green Star LCA Credit article. 

Addressing Global Warming and Climate Change Through LCA 

Climate change is one of the most pressing challenges facing businesses today. Life Cycle Assessment provides a powerful lens to identify and reduce the environmental impacts that contribute to global warming. 

Carbon Footprint Calculations 

A key application of LCA is measuring a product’s carbon footprint, capturing greenhouse gas (GHG) emissions from cradle to grave. These emissions are typically reported as Global Warming Potential (GWP) in kilograms of CO₂-equivalent.

Supply Chain Considerations 

Many emissions occur not within an organisation’s operations, but across its supply chain. LCA helps identify which stages—from raw material extraction to transportation and end-of-life—are the most carbon intensive.

Human Health & Community Effects: 

Climate change has widespread implications beyond ecosystems. LCA can account for impact categories such as human toxicity, particulate matter formation, and water scarcity, helping organisations assess how environmental damage translates to real-world effects on people and communities. 

By capturing these broader impacts, LCA becomes a tool not only for climate action but also for supporting social responsibility and community wellbeing. 

Practical Applications: From Product Innovation to Strategic Planning 

Life Cycle Assessment (LCA) is more than a reporting tool. It’s a practical framework that supports innovation, and informs strategic business decisions. 

New Product Development 

In the early design stages, LCA helps teams evaluate material choices, production methods, and packaging options. Understanding the environmental footprint of different scenarios enables organisations to design with sustainability in mind from the outset.  

Corporate Strategy 

LCA insights can be integrated into broader sustainability strategies and ESG frameworks, aligning environmental improvements with long-term business goals.

With climate and nature-related reporting on the rise, embedding LCA into strategic planning enables businesses to stay ahead of regulatory and stakeholder expectations. 

Case Studies 

Across Australia and New Zealand, organisations are leveraging Life Cycle Assessment (LCA) to identify environmental hotspots, reduce waste, and drive sustainable innovation. 

Tyre Stewardship Australia (TSA) partnered with Edge Impact to evaluate the environmental impacts of various tyre-derived products (TDPs) produced from end-of-life tyres. This comprehensive analysis identified eight scenarios that quantified greenhouse gas emissions and benefits associated with the use of TDPs. The study highlighted the importance of selecting suitable end markets for TDPs to maximise environmental benefits. 

Read the full case study here. 

From Insight to Implementation: Urgent Next Steps 

A Life Cycle Assessment (LCA) only delivers value when it’s followed by action. Once insights are in hand, the next step is to embed them into decision-making and build momentum across the organisation. 

Immediate Actions 

For organisations just beginning their LCA journey, start by identifying a product or process where environmental data is already available or relatively easy to gather. Focus on: 

• Mapping the product life cycle stages 
• Collecting initial input and output data 
• Identifying potential environmental hotspots 

LCA tools and frameworks, like those outlined in ISO 14040 and ISO 14044, can help structure this process, even at an entry level. 

Building Internal Champions 

Cross-functional collaboration is key to a successful LCA program. Engage teams across product design, procurement, operations, and sustainability to build shared understanding and ownership. 

Consider running internal workshops to introduce life cycle thinking and align teams on circular economy principles. When people across the business understand the purpose and power of LCA, implementation becomes faster and more effective. 

Ongoing Refinement 

LCA is not a one-off exercise. Products evolve, markets shift, and new data becomes available. Regularly revisiting your assessment helps you stay aligned with current best practice and uncover new opportunities for impact reduction. 

You may also consider expanding from cradle to gate studies to full cradle to cradle assessments, or incorporating social LCA methods to capture human and community impacts. 

By embedding a continuous improvement mindset, organisations can move from one-time insights to long-term transformation.

Embrace Life Cycle Assessment for a Sustainable Edge 

Life Cycle Assessment (LCA) is more than a compliance tool — it’s a strategic lever for innovation, risk management, and environmental leadership. By taking a whole-of-life approach to measuring impacts, LCA helps organisations improve performance, respond to stakeholder expectations, and reduce their contribution to climate change. 

Edge Impact’s Expertise 

Edge Impact has conducted hundreds of LCAs across sectors — from infrastructure and consumer goods to energy, manufacturing, and government. Our team includes some of the region’s most experienced specialists in LCA, Environmental Product Declarations (EPDs), and circular economy strategy. 

We work closely with clients to ensure every assessment is technically robust, aligned with international standards like ISO 14040/44, and tailored to strategic goals. Whether you’re starting your first LCA or looking to embed it more deeply across your organisation, we’re here to support you. 

You can explore some of our work here or reach out to our team to learn more.