More and more companies are finding themselves required to provide environmental data on their products. EPD certifications, the CPR Regulation, Ecodesign, Green Public Procurement, and client requests are making Life Cycle Assessment (LCA) an increasingly important tool in the market.

But what exactly is LCA? How does it work, and what benefits can it offer businesses?

In this guide, you’ll learn how Life Cycle Assessment allows you to measure environmental impacts throughout a product’s entire life cycle and why it is becoming a key factor in competitiveness, innovation, and regulatory compliance.

What is Life Cycle Assessment (LCA?

LCA, which stands for Life Cycle Assessment, is a methodology used to evaluate the environmental impact of a product, service, or process throughout all stages of its life cycle, according to the so-called “cradle-to-grave” approach.

Life Cycle Assessment (LCA) is therefore a method of analysis that considers the entire life cycle of a product: from the extraction of the raw materials needed to manufacture it, through production, transportation, and use, to end-of-life management.

It is a rigorous and analytical methodology based on international standards such as ISO 14040 and ISO 14044. It is considered one of the most authoritative tools for calculating and assessing the environmental footprint of products and services.

The definition of Life Cycle Assessment is provided in ISO 14040, which describes LCA as:

The compilation and assessment of a product or service’s interactions with the environment throughout its entire life cycle, from the raw material extraction phase through end-of-life treatment

Which life cycle stages are analyzed in an LCA?

To better understand the LCA method in practice, let’s imagine we need to assess the environmental impact of an insulation panel over its life cycle. To do so, we would need to answer a series of questions, such as:

• How much energy was used to extract the raw materials that make up the panel?
• What emissions were generated during the production of the raw materials?
• Where do the raw materials come from, and what environmental impacts have resulted from their transport to the production facility?
• How much electricity, natural gas, or other energy sources are consumed during production?
• How much waste is generated during the production process, and how is it managed?
• What are the environmental impacts associated with the packaging used?
• What emissions are generated when transporting the product to the construction site?
• Does the panel help reduce the building’s energy consumption over its useful life? To what extent?
• At the end of its useful life, can it be reused or recycled?
• What environmental impacts result from demolition, recovery, or disposal operations?

The goal of an LCA assessment is to gather all this information to create an overview of all the environmental impacts generated throughout the life cycle. This makes it possible to identify where the most significant impacts are concentrated (environmental hotspots). The philosophy underlying this method is called Life Cycle Thinking (LCT).

In our experience, many LCA analyses conducted in collaboration with clients have often revealed that the greatest environmental impacts were not concentrated where initially thought. In some cases, the main hotspot was related to raw materials; in others, to energy consumption or the product’s use phase.

What does a life cycle assessment (LCA) measure?

Life cycle assessment (LCA) measures the environmental impacts of a product, service, or process across various impact categories. The main ones are:

• Climate change, expressed in CO₂ equivalent emissions (kg CO₂eq). This category alone constitutes the product’s carbon footprint;
• Consumption of natural resources, such as water, minerals, and fossil fuels;
• Energy consumption, distinguishing between renewable and non-renewable sources;
• Water Use, or the Water Footprint;
• Acidification, or the factors that contribute to acid rain;
• Eutrophication, linked to water and soil pollution caused by an excess of nutrients;
• Ozone layer depletion;
• Formation of photochemical smog;
• Human toxicity and ecotoxicity, that is, the effects on human health and ecosystems;
• Waste generation.

The best-known impact category is climate change, expressed in CO₂ equivalent emissions (kg CO₂eq). It is precisely this category that forms the basis for the Product Carbon Footprint (CFP)is based on this category, and it can be considered a subset of LCA analysis. However, limiting the analysis to greenhouse gas emissions alone does not always capture all the environmental impacts associated with a product. In fact, LCA allows the analysis to be expanded to other impact categories, providing a more comprehensive view and reducing the risk of shifting impacts from one environmental aspect to another.

There are various LCA assessment methodologies, such asIPCC 2021, the EU PEF (Product Environmental Footprint) standard, ReCiPe 2016, and CML 2001. The choice of methodology depends on the objective of the analysis and the product or service being analyzed.

Why is LCA analysis useful for companies?

Many companies turn to LCA analysis because they need to respond to a specific market demand or a new regulatory requirement. However, the applications of LCA are much broader and encompass strategic, commercial, and technical aspects.

In practice, the main reasons that lead a company to conduct an LCA study are:

• obtain EPD certification for their products;
• comply with the new environmental requirements set forth in regulations such as the CPR Regulation, the Ecodesign Regulation (ESPR ), and the EPBD IV Directive;
• participate in public tenders and demonstrate compliance with Green Public Procurement
• provide environmental data requested by clients or large industrial groups;
• identify opportunities for EcoDesign and product improvement;
• compare alternative materials, technologies, or production scenarios;
• support strategies for decarbonization and reducing environmental impacts;
• contribute to earning credits toward LEED and BREEAM certifications.

Consequently, LCA is increasingly being conducted not only to measure environmental impact, but also to support design, business, and regulatory compliance decisions based on objective data.

Is Life Cycle Assessment ever mandatory?

To date, there is no legislation establishing an explicit and general obligation to conduct a product LCA. However, various European and national regulations are introducing environmental disclosure and reporting requirements that, in practice, necessitate the use of the LCA methodology in order to be properly met. Among the main examples are:

1. Building materials: The new Construction Products Regulation(CPR) introduces phased requirements for declaring the environmental performance of construction products based on life cycle assessment (LCA), starting with the “climate change” impact category and providing for gradual expansion to other environmental categories over time.
2. Products subject to the Ecodesign Regulation (ESPR): The new Ecodesign Regulation calls for the introduction of the Digital Product Passport (DPP), which will include environmental information based on the product’s life cycle.
3. New Buildings: The EPBD IV Directive requires the calculation of the Global Warming Potential (GWP) over the life cycle of new buildings, promoting the use of the LCA methodology applied to buildings.

In practice, LCA is rarely required as a standalone study these days, but it is increasingly necessary to demonstrate compliance with regulations, certifications, and market requirements.

How to Manage LCA for Catalogs with Many Products

When a company has a very extensive product catalog, conducting a separate LCA study for each product can become complex, costly, and difficult to keep up to date over time. This is especially true in industries where there are many similar variants of the same product—for example, in terms of dimensions, materials, thicknesses, sizes, or technical configurations.

In such cases, it may be useful to develop a parametric calculation model based on the LCA methodology, which allows for the analysis of entire product families based on shared rules, data, and assumptions.

This approach helps reduce time and costs, ensure greater consistency across studies, and make it easier to update results when raw materials, suppliers, energy consumption, or production processes change.

LCA and EPD Certification: Setting the Record Straight

In some cases, conducting an in-house LCA is not sufficient. Clients, public agencies, certification schemes, and technical specifications may, in fact, require environmental data verified by an independent third party.

In these cases, the LCA study must undergo a verification process conducted by a third-party organization. The term “LCA certification” is often used, albeit incorrectly. In reality, the correct name for the certification is EPD.

The application of the LCA methodology in the context of EPDs is now one of the most common approaches for certifying and communicating results. Learn all the details about this process in our guide to EPD certifications.

How does the LCA methodology work?

The LCA methodology follows a structured process based on the ISO 14040 and ISO 14044 standards. Although each project has its own specific characteristics, an LCA study typically consists of four main phases.

1. Definition of the Objective and Scope

The first step is to definethe objective of the study and the scope of the analysis ( see the following section on system boundaries). In this step, it is determined why the LCA is being conducted, which product is being analyzed, which life cycle stages are being considered, and what the functional unit of reference is.

The functional unit is the parameter used to calculate environmental impacts. It can be, for example, 1 kg of product, 1 m² of material, a package, or a specific period of use.

2. Life Cycle Inventory: LCI

The second phase involves compiling the life cycle inventory, also known as LCI ( Life Cycle Inventory). In this phase, all the quantitative data needed to describe the material and energy flows entering and leaving the system under analysis are collected.

Information is therefore collected on the materials used, energy consumption, transportation, production processes, packaging, product use, waste generated, and end-of-life management.

In our experience, many companies are undertaking such a structured data collection effort for the first time. For this very reason, this activity is not only a necessary step in the LCA assessment but also an important opportunity to gain greater insight into their own processes. During the data collection process, information frequently comes to light that was not previously monitored systematically, such as specific energy consumption, production waste, material losses, or logistical inefficiencies.

3. Environmental Impact Assessment: LCIA, Life Cycle Impact Assessment

Once the inventory has been compiled, the collected data is processed using LCA software, mathematical models, and scientific databases. This phase is known as LCIA, or Life Cycle Impact Assessment.

The goal is to transform inventory data into measurable environmental indicators, broken down by impact categories: climate change, resource consumption, water use, acidification, eutrophication, toxicity, waste generation, and other relevant categories.

4. Interpretation of the Results

The final step involves interpreting the results. During this step, environmental hotspots are identified—that is, the stages, materials, or processes that contribute most significantly to the overall impacts.

Interpretation is the step that transforms an LCA study into a useful tool for the company: the results can support EcoDesign strategies, production optimization, waste reduction, decarbonization, comparisons of alternative materials, or preparation for environmental certification processes.

The Scope of the System: Cradle-to-Gate, Cradle-to-Grave, and Other Types of LCA

When conducting an LCA study, it is essential to define the boundaries of the analysis —that is, the boundaries of the product system. This means determining which life cycle stages are included in the study.

Defining the scope is necessary because not all LCA studies have the same objectives. In some cases, it is important to assess the entire life cycle of the product, from the extraction of raw materials to final disposal; in others, however, it may be sufficient to analyze only a part of the system, such as the production process or the stages leading up to the product leaving the factory.

Among the most common models are the Cradle-to-Gate, Cradle-to-Grave, Gate-to-Gate, and Cradle-to-Cradle approaches.

Cradle-to-Gate LCA

The ” Cradle to Gate ” approach includes in the LCA analysis the stages ranging from the extraction of raw materials to the finished product leaving the production facility (the “gate”).

Therefore, it does not include the use phase or final disposal.

This approach is often used for intermediate products intended for further processing or when reliable data on subsequent stages of the life cycle are not available. Furthermore, it forms the basis for many EPDs in the construction sector, as required by the EN 15804 standard.

Gate-to-Gate LCA

The “Gate-to-Gate” approach focuses on a single production phase or a specific industrial process. In this case, the analysis does not include the extraction of raw materials, nor the use or end-of-life of the product.

This type of study is used primarily when the goal is to analyze the environmental performance of a facility or a specific process, identifying opportunities for energy efficiency, waste reduction, and process optimization.

Well-to-Wheel LCA

The “well-to-wheel” approach is used primarily in the transportation and fuel sectors.

The analysis takes into account the emissions and energy consumption associated with the extraction of the energy source, its conversion and distribution, all the way through to its final use in the vehicle.

This approach is particularly common when comparing different propulsion technologies, such as electric, diesel, gasoline, biofuel, or hydrogen vehicles.

Cradle-to-Grave LCA

The “Cradle to Grave” approach covers the entire product life cycle and therefore constitutes a comprehensive LCA. The life cycle stages considered are:

1. Extraction of raw materials (cradle)
2. Production and Processing
3. Distribution and Transportation
4. Usage
5. Final Disposal (Grave)

The Cradle-to-Grave LCA is the most widely used because it provides a comprehensive view of environmental impacts, especially in preparation for EPD certification.

Technical Overview: Recycling, Cut-Off, and the Scope of the LCA Study

When applying the Cradle-to-Grave approach, one of the most challenging aspects involves modeling the end-of-life phase of the product. Specifically, it is necessary to determine how to address recycled materials, reuse, recovery, and disposal within the scope of the study.

This choice is important because the circular economy blurs the line between the end of one product’s life cycle and the beginning of another’s. If a material is recycled and used to make a new product, where does the first system end and the next one begin?

To address this issue, specific allocation rules are used in LCA studies. One of the most widely used is the Cut-Off method, which is also adopted by Ecoinvent, one of the most widely used LCA databases internationally.

According to this approach, a product’s life cycle ends when the material is sent for recycling or disposal. From that point on, the recycled material becomes an input for a new product system, which may be the subject of a new LCA analysis.

The choice of allocation method is not a minor detail: it can influence how the environmental impacts and benefits associated with recycling are attributed. For this reason, in an LCA study, it is essential to clearly state the system boundaries, the assumptions made, and the methodological rules used.

In a business context, this step is particularly important when LCA is used to compare alternative materials, highlight recycled content, develop eco-design strategies, or prepare for EPD certification. Inconsistent end-of-life modeling can, in fact, lead to results that are difficult to compare or technically unsound.

Cradle to Cradle and the Circular Approach

We’re hearing more and more about Cradle to Cradle, an approach inspired by the principles of the circular economy. Unlike Cradle to Gate or Cradle to Grave, Cradle to Cradle does not represent a strict boundary for LCA analysis, but rather a design model in which products are conceived to enable the continuous recovery and reuse of materials.

It is, therefore, a philosophy of eco-design and circularity, which forms the basis of the Cradle to Cradle® certification.

LCA in the Construction Industry: Building Materials, Buildings, and New Requirements

The application of LCA methodology is becoming increasingly important in the construction sector, both for individual construction products and for the environmental assessment of buildings as a whole.

LCA of Construction Products

For manufacturers of building materials, LCA analysis is an increasingly important tool for meeting the demands of the market, public procurement, and European regulations. Green Public Procurement in the EU promotes the use of products with documented environmental performance, while the new Construction Products Regulation (CPR 2024/3110) introduces phased requirements for declaring the environmental performance of construction products.

In this context, the LCA study serves as the technical basis for measuring a product’s environmental impacts and, when necessary, obtaining an EPD certification that is useful for competitive bids, specifications, designers, and the construction supply chain.

Mandatory life cycle stages in an LCA study according to EN 15804

The EN 15804 standard, which applies specifically to construction products and is closely linked to EPDs in the construction sector, requires that LCA analyses include specific life cycle modules divided into:

• Module A (Manufacturing and Construction)
• Module B (Use and Maintenance)
• Form C (End of Life)
• Module D (Benefits and Costs Beyond the System’s Boundaries)

Life Cycle Assessment (LCA) of a Building

The LCA methodology can also be applied to an entire building, not just a single product. In this case, the analysis takes into account the environmental impacts generated throughout the building’s life cycle: material production, transportation, construction, use, maintenance, replacement, and end-of-life.

The primary methodological reference is the UNI EN 15978:2011 standard. A building’s LCA can contribute to the scoring criteria of the Green Public Procurement standards, to earning credits under the LEED and BREEAM protocols, and, in the coming years, will become increasingly important for calculating the GWP of buildings as required by the EPBD IV Directive.

This change will also increase the demand for construction products with verified environmental data, such as EPDs, because designers and developers will need reliable information to calculate the overall environmental impact of buildings.