You might think as a small or medium-sized enterprise (SME) manager that knowing your products' environmental impact is something for large corporations with huge budgets. However, what if there was a practical way to analyse your product's true environmental footprint that could also uncover cost savings and give you a competitive edge? This is exactly what a Life Cycle Assessment (LCA) for SMEs can offer. It is a simplified version of a full LCA in which you focus on the most significant impact areas to make it cost effective, pragmatic but effective. In this article we give you an introduction.
What is a Life Cycle Assessment (LCA) and why is it important?
A Life Cycle Assessment (LCA) is a method for evaluating the environmental impact of a product throughout its entire “life”. This is often called a "cradle-to-grave" or “cradle-to-gate” analysis. It looks beyond your factory doors to include everything from raw material extraction, manufacturing, transportation, and customer use, all the way to its final disposal or recycling. For a small business, understanding this full picture is more important than ever. It helps you answer questions from customers, stand out from competitors, and make smarter, more sustainable decisions. For a more detailed explanation, you can read our ultimate guide to LCA.
The benefits of conducting an LCA for your business
Beyond just "being green," an LCA provides tangible benefits for your business. It’s a strategic tool that can future-proof your operations.
- Strengthen your brand and market position: Today’s consumers and business partners value transparency. Being able to back up your sustainability claims with solid data from an LCA builds trust and enhances your brand’s reputation. It can be a powerful differentiator in a crowded market.
- Prepare for future regulations: Environmental regulations are constantly evolving. The EU's Green Deal and initiatives like the Digital Product Passport mean that providing product impact data will soon become standard. An LCA helps you get ahead of these requirements.
- Identify cost savings and inefficiencies: An LCA forces you to look closely at every stage of your product's life. This process often reveals hidden inefficiencies in your energy use, material consumption, or waste management, presenting clear opportunities to cut costs.
- Drive product innovation: Understanding the environmental hotspots in your product's lifecycle is a fantastic driver for innovation. It can inspire you to explore new materials, redesign your product for easier recycling, or find more efficient production methods.
A good example of the latter comes from our client who made textile pigments from invasive plants:
“…from a strategy perspective, the researcher had the choice between two different chemicals. Through the LCA, she earned a better understanding of [the impact of] the two options. The LCA helped her to put “numbers” on the different strategies she had. Now she can present different scenarios and actually have real numbers to back them up with.”
Read the full client case here: client cases.
The 4 stages of a simplified Life Cycle Assessment
Let´t take a closer look at the process of making an LCA. A full LCA is a detailed process governed by international standards ISO 14040 and 14044 , but we can simplify it into four main stages. Compared to a full LCA in the simplified version we focus on the most significant impact categories. Secondly, instead of a full report you are provided with a practical one pager explaining the results. Here's how to do a Life Cycle Assessment from a high-level perspective.
1. Goal and scope definition
This is the planning stage. You decide what you want to study (your product), why you are doing the study (your goal), and what the boundaries will be. For example, are you looking at the full cradle-to-grave impact, or just from "cradle-to-gate" (up to the point it leaves your factory)?
2. Life Cycle Inventory (LCI) analysis
This is the data collection phase. You gather all the data on the inputs (energy, water, raw materials) and outputs (emissions, waste) for each stage defined in your scope. This is often the most time-intensive part of the process.
3. Life Cycle Impact Assessment (LCIA)
In this stage, the data from the LCI is translated into environmental impacts. The raw data (e.g., kilograms of CO2, cubic meters of water) is converted into different impact categories like "carbon footprint," "water scarcity," or "acidification."
4. Interpretation
The final stage is about making sense of the results. You identify the most significant impacts (the "hotspots"), draw conclusions, and make recommendations for improvement. This is where the real value lies, as it informs your business strategy.
Getting started with simplified tools and support
The idea of a full, certified Life Cycle Assessment (LCA) for SMEs can seem daunting, but you don't have to do everything at once. An LCA for small business can start with a simplified or streamlined assessment that focuses on the most significant impact areas.
There are various LCA tools for small business available, from free open-source databases to more user-friendly software platforms. However, navigating the data and methodology can be complex. For many SMEs, the most effective approach is to partner with experts. A consultant can guide you through the process, help you identify the right scope for your budget, and ensure the results are accurate and actionable. This approach saves you time and provides you with credible insights you can use immediately.
Ready to uncover the hidden opportunities in your product's lifecycle? Hedgehog offers Life Cycle Assessment (LCA) consulting for start-ups and SMEs. Contact us to learn how a pragmatic LCA can deliver real value for your business.
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