When companies start preparing for the Corporate Sustainability Reporting Directive (CSRD), the focus often begins with ESRS E1: Climate Change. However, the CSRD requires more than focusing on greenhouse gases. The environmental pillar of the CSRD includes four other standards as well: ESRS E2 to E5. To fulfil these additional requirements, a more comprehensive, evidence-based approach is needed. This is where Life Cycle Assessment (LCA) comes into the picture. Read more about it in this article.
Context: avoid carbon tunnel vision in your CSRD journey
The European Sustainability Reporting Standards (ESRS) are the standard framework of the Corporate Sustainability Reporting Directive (CSRD), developed by EFRAG. These standards define what companies need to report on when it comes to sustainability.
EFRAG (European Financial Reporting Advisory Group) is the advisory body that develops and provides technical advice to the European Commission on sustainability and financial reporting standards, including the ESRS.
When companies start preparing for them, the focus often lies on ESRS E1: Climate Change. That’s understandable—greenhouse gas (GHG) emissions are the most widely recognised and quantified environmental metric, and many organisations already have an initial carbon footprint in place or a general understanding of their GHG emissions.
Do you want to know more about carbon footprint and CSRD compliance? Read our article The link between carbon accounting & CSRD compliance.
However, sustainability reporting under CSRD is much broader. The environmental standards extend beyond climate to include pollution (ESRS E2), water and marine resources (ESRS E3), biodiversity and ecosystems (ESRS E4), and resource use and circular economy (ESRS E5).
Together, these standards require companies to report on impacts, risks and opportunities (IROs) across their operations and value chain. But how can these be assessed and quantified beyond carbon? This is where LCA’s play a crucial role.
Life Cycle Assessments: a broader lens on environmental impact
To truly understand your organisation’s environmental impact —and to meet the requirements of ESRS E2–E5—a more comprehensive, evidence-based approach is needed: Life Cycle Assessments (LCA)
LCA is a widely recognised method for assessing the environmental impacts of a product or process throughout its entire life cycle, from raw material extraction to end-of-life. The specific impact categories analysed depend on the selected methodology (e.g., ReCiPe, PEF). By providing quantified data across multiple environmental indicators, LCA’s align with CSRD requirements of each ESRS.
Why LCA is valuable for CSRD reporting
LCA’s are product-specific, data-driven, and transparent, aligning with the direction of CSRD. While a carbon footprint provides a useful high-level metric, LCA’s go deeper and offer the detail needed to:
- Confidently report on multiple ESRS-categories.
- Substantiate claims about eco-design and circularity.
- Build a credible, holistic and future-proof sustainability strategy.
- Avoid underreporting key IROs and only relying on generic reports and benchmarks.
Ready to go beyond CO2?
If your organisation is ready to take the next step in its CSRD journey, don’t stop at carbon emissions. An LCA-based approach will help you understand your broader impact, make smarter design and sourcing decisions, and report with integrity.
Our team can help you explore the value of LCA’s—whether it’s for one key product line or a portfolio-wide strategy.
Do you want to know more? Get in touch with us.
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