Life Cycle Assessment (LCA) is an internationally recognized methodology for quantitatively assessing the environmental impact of a product across all stages of its life cycle, from raw material extraction, through production and usage, to disposal or recycling. In the context of greenhouse gas emissions, LCA enables the calculation of the total carbon footprint of a product, expressed in tonnes or kilograms of CO2 equivalent (CO2e).
The method is based on ISO 14040 and ISO 14044 standards, and the data used in LCA analyses are often sourced from specialized databases such as Ecoinvent, GaBi, or ELCD.
For manufacturing companies, carbon footprint analysis at the product level is becoming not only a regulatory requirement but also a strategic advantage and a means of managing operational risk. Key benefits include:
An increasing number of corporate clients and public institutions require carbon footprint data as a prerequisite for inclusion in supply chains or participation in tenders, particularly in industries such as construction, food, and automotive.
LCA helps identify the most emission-intensive areas within a product’s material composition or logistics chain. This facilitates supplier optimization, the selection of alternative materials, and improvements in energy efficiency, all of which can translate into cost savings.
LCA forms the basis for developing Environmental Product Declarations (EPDs) and for meeting regulatory requirements, such as the Ecodesign for Sustainable Products Regulation (ESPR) and the Corporate Sustainability Reporting Directive (CSRD).
Reliable LCA results enable fact-based environmental communication, helping to prevent greenwashing. LCA data can be used on climate labels, in marketing materials, or in discussions with investors.
It is important to distinguish product-level LCA from the GHG Protocol, which is a global standard for reporting greenhouse gas emissions at the organizational level.
Main differences:
| Criterion | Product LCA | GHG Protocol (Organization) |
| Scope | Single product over its entire life cycle | Entire company (operations, suppliers) |
| Calculation Method | ISO 14040/44, often with EPD | Scopes 1, 2, and 3 per GHG Protocol |
| Unit of Analysis | kg/tonnes CO2e per unit of product | t CO2e annually for a company or business unit |
| Purpose | Evaluation and optimization of a specific product | Climate strategy and ESG reporting |
| Audience | Customers, designers, industry investors | Executives, investors, regulators |
These methods are complementary. The GHG Protocol offers a high-level overview of an organization’s environmental impact, while LCA enables actionable emission reduction at the product level – the ultimate source of emissions in the sales cycle. It’s worth noting that LCA addresses not only greenhouse gas emissions but also other environmental factors such as water and energy use.
Product-level LCA is now an essential tool for companies committed to both environmental and business responsibility. When combined with the GHG Protocol, it offers a complete picture of a company’s carbon footprint – from strategic (organizational) to operational (product) levels. By implementing LCA, companies can access increasingly demanding markets, enhance efficiency, ensure regulatory readiness, and strengthen their appeal to investment partners.
At the Climate&Strategy Foundation, we support businesses with both types of analysis: organizational carbon footprinting (per GHG Protocol) and product-level LCA.
