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Organizations can create value by conducting Life Cycle Assessments (LCA) to analyze a number of sustainability metrics to better inform business decisions and activities, says a new Deloitte report.
Organizations can create value by conducting Life Cycle Assessments (LCA) to analyze a number of sustainability metrics to better inform business decisions and activities, says a new Deloitte report. LCA is designed to measure and quantify the end-to-end environmental and economic impacts of a product, process or service in alignment with specific sustainability goals.
“Enhancing the Value of Life Cycle Assessment,” outlines how LCA can be used to rigorously examine environmental impact across the entire product life cycle from development, sourcing and manufacturing through distribution, marketing, use and disposal. Many organizations have traditionally pursued value creation from sustainability by focusing on internal activities. However, some companies are realizing that the majority of their environmental impacts lie within the supply chain. Resource use and its associated wastes – such as inefficient consumption of energy, water or raw materials – represent real costs to suppliers and customers.
“LCA can be an effective data-driven way of uncovering surprising insights,” says Sanjay Agarwal, principal, Deloitte Consulting LLP. “This information may lead to opportunities to collaborate with supply chain partners to reduce cost and risk through a decrease in energy, water, waste and carbon consumption and to drive revenue growth through new product innovations.”
As part of the LCA process, organizations should spend ample time engaging cross-functional stakeholders to define their objectives and then leverage the appropriate LCA toolset that is right-sized to inform their business decision. This will help arm them with insight on environment benefits and specific areas for improvement to determine brand integrity and alignment with sustainability goals.
“Enhancing the Value of Life Cycle Assessment” provides examples of how customized LCA studies can support significant sustainability objectives, including the ability to:
To view the “Enhancing the Value of Life Cycle Assessment” report please visit : http://www.deloitte.com/us/sustainability/LCA.
About Deloitte’s Sustainability Services Group
Deloitte’s sustainability services group draws on the insights and experience of Deloitte’s four primary businesses – Consulting, Audit, Tax and Financial Advisory Services – and industry-specific practices across corporate strategy and operations, supply chain, mergers and acquisitions, human capital and enterprise risk management. The result is a broad set of capabilities to address a range of domestic and global business opportunities and risks related to energy supply, demand and efficiency, water and other resource scarcity, carbon and greenhouse gas regulation and demand for increased transparency and confirmation of non-financial performance. For more information, please visit: http://www.deloitte.com/us/sustainability
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Published May 31, 2012 6pm EDT / 3pm PDT / 11pm BST / 12am CEST