--- title: Life Cycle Assessment (LCA) | Definition, Phases, Uses, & Example description: Find out what a life cycle assessment (LCA) is, how it works, the benefits of using LCAs in business, and more, in this comprehensive guide to LCAs. image: https://www.carboncollectiveinvesting.com/hubfs/Life_Cycle_Assessment_(LCA).png --- [![Carbon collective](https://www.carboncollectiveinvesting.com/hubfs/raw_assets/public/CarbonCollective_August2021%20copy/images/carbon-collective-green-investing-logo-white.4f6047d4.svg "Carbon collective")](https://www.carboncollectiveinvesting.com/) - About - Employers - [Sustainable 401(k)](https://www.carboncollectiveinvesting.com/401k) - [401(k) Comparison Tool](https://www.carboncollectiveinvesting.com/401k/plan-comparison-tool) - Individuals - [FAQ](https://www.carboncollective.co/en/knowledge/faqs) - [ETF](https://www.carboncollectivefunds.com/) - Learn - [Sustainable Investing](https://www.carboncollective.co/sustainable-investing) - [Investing Basics](https://www.carboncollective.co/sustainable-investing/investing-basics) - [Blog](https://blog.carboncollective.co/) - [Tools](https://tools.carboncollective.co/calculator/) - Log in - [Carbon Collective](https://app.carboncollective.co) - [Altruist](https://app.altruist.com) [Talk to a human](https://ask.carboncollective.co/f4o5dylkg) [Sign up](https://app.carboncollective.co/sign-up) [Log In](http://app.carboncollective.co/) [![Carbon collective](https://www.carboncollectiveinvesting.com/hubfs/raw_assets/public/CarbonCollective_August2021%20copy/images/carbon-collective-green-investing-logo.53b28bee.svg "Carbon collective")](https://www.carboncollectiveinvesting.com/) - About - Employers - [Sustainable 401(k)](https://www.carboncollectiveinvesting.com/401k) - [401(k) Comparison Tool](https://www.carboncollectiveinvesting.com/401k/plan-comparison-tool) - Individuals - [FAQ](https://www.carboncollective.co/en/knowledge/faqs) - [ETF](https://www.carboncollectivefunds.com/) - Learn - [Sustainable Investing](https://www.carboncollective.co/sustainable-investing) - [Investing Basics](https://www.carboncollective.co/sustainable-investing/investing-basics) - [Blog](https://blog.carboncollective.co/) - [Tools](https://tools.carboncollective.co/calculator/) - Log in - [Carbon Collective](https://app.carboncollective.co) - [Altruist](https://app.altruist.com) [Talk to a human](https://ask.carboncollective.co/f4o5dylkg) [Sign up](https://app.carboncollective.co/sign-up) [Log In](http://app.carboncollective.co/) **[Home](https://www.carboncollectiveinvesting.com/) > [Sustainable Investing](https://www.carboncollectiveinvesting.com/sustainable-investing) >** Life Cycle Assessment (LCA) # Life Cycle Assessment (LCA) ![](https://www.carboncollectiveinvesting.com/hubfs/zach-stein.jpeg) Written by Zach Stein | Reviewed by [Subject Matter Experts](https://www.carboncollectiveinvesting.com/subject-matter-experts) Updated on October 1, 2024 Fact Checked Why Trust Carbon Collective? ### Table of Contents ## **What Is a Life Cycle Assessment (LCA)?** A life cycle assessment (LCA) is a comprehensive method of measuring environmental impacts associated with a product's life cycle ([cradle-to-grave analysis](https://www.eea.europa.eu/help/glossary/eea-glossary/cradle-to-grave)). These impacts can include energy consumption, [greenhouse gas emissions](https://ourworldindata.org/greenhouse-gas-emissions), water usage, and waste generation. It assesses potential impact by: - Organizing a list of relevant inputs and outputs - Evaluating the environmental effects with the inputs and outputs - Interpreting the results of the inventory and evaluation ## **Phases of a Life Cycle Assessment** There are four phases of a life cycle assessment: ### **![Phases_of_a_Life_Cycle_Assessment-1](https://www.carboncollectiveinvesting.com/hs-fs/hubfs/Phases_of_a_Life_Cycle_Assessment-1.png?width=1391&name=Phases_of_a_Life_Cycle_Assessment-1.png)** ### **Goal & Scope** The goal and scope phase is where the objectives and parameters of the assessment are determined. This includes specifying which environmental impacts will be considered and what products or life cycle stages will be studied. This step goes from describing the scope of the parts that will be assessed all the way to what results from the assessment will be used. ### **Life Cycle Inventory (LCI)** The [life cycle inventory](https://www.nrel.gov/lci/) phase gathers the data for the assessment. This includes documenting the inputs and outputs of materials and energy flows for each product's life cycle. Specifically, it defines the flows' interaction with the environment, raw materials consumed, and emissions. ### **Life Cycle Impact Assessment (LCIA)** The life cycle impact assessment phase analyzes the environmental impacts of the data gathered in the life cycle inventory phase. This includes quantifying the impacts of emissions and assessing the potential ecological and human health impacts of each stage of the product's life cycle. It is evaluated through [normalization and weighting](https://iopscience.iop.org/article/10.1088/1757-899X/670/1/012016/pdf). ### **Interpretation** The interpretation phase summarizes the life cycle impact assessment findings and makes recommendations for reducing environmental impacts. ## **Steps of a Product Life Cycle** The product life cycle steps are: ### **![Steps_of_a_Product_Life_Cycle](https://www.carboncollectiveinvesting.com/hs-fs/hubfs/Steps_of_a_Product_Life_Cycle.png?width=1393&name=Steps_of_a_Product_Life_Cycle.png)** ### **Raw Material Extraction** This phase extracts and processes the raw materials needed to make the product. This can consist of mining, drilling, and logging. ### **Manufacturing & Processing** This phase includes the manufacturing and processing of a product. This can consist of chemical processing, metalworking, and textile production. ### **Transportation** This phase includes transporting the product from the manufacturing plant to retailers or customers. ### **Usage & Retail** This phase includes using and disposing of the product. This can consist of using the product at home or work and recycling or landfilling the product when it is no longer usable. ### **Waste Disposal** This phase includes the disposal of waste from the product. This can consist of emissions from incineration or landfill leaching. ## **Life Cycle Assessment Uses** There are a number of different uses for life cycle assessment: ### **Product Development & Research** LCA can help identify environmental impacts and potential areas for improvement. Moreover, it can help develop new products and research the environmental impacts of different materials and manufacturing processes. ### **Supply Chain Management & Procurement** LCA can be used in [supply chain management](https://www.anaplan.com/blog/what-is-supply-chain-management/) and [procurement](https://www.netsuite.com/portal/resource/articles/accounting/procurement.shtml) to identify more environmentally-friendly suppliers and products. Additionally, it can evaluate the environmental performance of suppliers and identify opportunities for reducing environmental impacts throughout the supply chain. ### **Marketing & Sales** LCA data can be used in marketing and sales to generate environmental product certifications, such as the Environmental Protection Agency's (EPA) [Energy Star certification](https://www.energystar.gov/). It can demonstrate the ecological benefits of a product. ### **Executive Level & Strategic Management** Executives and strategic managers can use LCA data to make decisions about reducing environmental impacts. It can also make resolutions for products and operations that impact the environment. ## **Example of Life Cycle Assessment** An example of a life cycle assessment is the Environmental Protection Agency's (EPA) [Greenhouse Gas Equivalencies Calculator](https://www.epa.gov/energy/greenhouse-gas-equivalencies-calculator). This calculator allows businesses to input data about their products and then compare products’ greenhouse gas emissions. Another example is the EPA's [Waste Reduction Model (WARM)](https://www.epa.gov/warm). This model allows businesses to input data about their waste production and management and then estimate the environmental benefits of reducing or recycling that waste. ## **Final Thoughts** LCA is a complex and comprehensive tool used to measure and reduce the environmental impacts of products throughout their life cycle. Several different software programs and tools available can help with life cycle assessment. When using LCA, it is essential to employ accurate and consistent data collection. ## **FAQs** ### 1. What is life cycle assessment (LCA)? Life cycle assessment is a comprehensive tool used to measure and reduce the environmental impacts of products throughout their life cycle. ### 2. What are the phases of a life cycle assessment? The phases of a life cycle assessment are raw material extraction, manufacturing and processing, transportation, usage and retail, waste disposal, and uses of life cycle assessment. ### 3. What are some of the uses of life cycle assessment? Life cycle assessment uses include product development and research, supply chain management and procurement, marketing and sales, and executive-level and strategic management. ### 4. What is an example of a life cycle assessment? An example of a life cycle assessment is the Environmental Protection Agency's (EPA) Greenhouse Gas Equivalencies Calculator. 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