The Role of Life Cycle Assessment (LCA) in Validating Green Claims

As consumers and regulators demand more transparency on sustainability, companies are under pressure to substantiate their environmental claims.

With the risk of greenwashing—misleading consumers about environmental benefits—becoming increasingly prevalent, businesses need credible, scientific methods to prove their sustainability commitments.

Life Cycle Assessment (LCA) provides this foundation, offering companies transparent, verifiable data to support their environmental claims. This scientific backing not only bolsters credibility but also sets companies apart in a market where genuine sustainability practices are key to a competitive edge.

Why is LCA the Gold Standard for Environmental Claims?

LCA is a comprehensive method for assessing the environmental impacts of products, processes, or services throughout their entire life cycle—from raw material extraction to disposal. It evaluates multiple impact categories, including carbon emissions, resource depletion, water use, toxicity, and ecosystem degradation, offering a holistic view of a product’s environmental footprint.

The Role of LCA in the Regulatory Landscape

While not always mandatory, LCA is increasingly recognised and incorporated into regulatory frameworks and standards globally. This trend highlights the growing importance of rigorous environmental impact assessments in corporate reporting and product development.

• Australian Competition and Consumer Commission (ACCC): The ACCC has released guidance for businesses making environmental and sustainability claims, aimed at reducing greenwashing. Although LCA is not explicitly required, the guidance advises businesses to consider the entire life cycle impact of products or services in environmental claims.
• Australian Association of National Advertisers (AANA): The AANA’s Green Code encourages businesses to make responsible and transparent environmental claims, emphasising the need for substantiated, verifiable data.
• Proposed EU Green Claims Directive: The directive mandates companies to adopt a life cycle approach, substantiating claims with robust scientific evidence. As a standardised, scientifically rigorous method, LCA provides essential data to support these claims.
• EU Corporate Sustainability Reporting Directive (CSRD): Effective from early 2024, the CSRD requires large companies operating in the EU to disclose detailed information about the environmental impacts of their products and services across the entire life cycle.

The integration of LCA principles into regulatory frameworks signifies a shift towards more comprehensive and scientifically rigorous approaches to environmental impact assessment and reporting. As global efforts to combat climate change and promote sustainability intensify, LCA will play a central role in regulatory compliance and corporate sustainability strategies.

Making Credible Environmental Claims with LCA

With sustainability expectations at an all-time high, companies frequently make claims about their environmental credentials. To avoid accusations of greenwashing, companies should ensure their claims are based on credible, defensible data. By adopting robust methodologies like LCA, businesses can stand out as genuinely committed to transparency and environmental integrity.

As experts in the full spectrum of sustainability topics, we are here to guide you through the complexity. We combine global expertise with the knowledge and experience of the local Aotearoa NZ context. Our team includes specialists from across the globe; from strategists to economists, engineers to creatives. Since 2008, we have been helping businesses, organisations, industries and societies make transformation happen.

Our areas of expertise are focussed around the following areas:

Leadership and Transformation
ESG and Strategy
Decarbonisation and Climate Resilience
Circular Economy and Lifecycle Thinking
Procurement and Supply Chain
Built Environment
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Brand, Communications and Creative