Application of LCA in reporting on ESG disclosures

Main Presenter: Suchira Sen 

Co-Authors: Harsha Murari Ananda Sekar Ashok Menon

In recent years, there is heightened engagement and disclosures linked to ESG (Environmental Social and Governance) aspects of companies. This is also linked to an increasing need for manufacturers to provide transparent information to various stakeholders including customers and general consumers. LCA data, more specifically data linked to carbon footprint that are used both for corporate level reporting such as Scope 3 as well as product centric assessment are an important and integral part of such information and disclosure needs. Within the LCA practice, various levels of standardization and maturity in practice have evolved over the years from standards to category rules to guidance documents such as PEF, EPDs etc., to bring consistency and comparability of data arising from LCA studies.

Further expansions and maturity driven evolutions in the field of LCA have also extended the broader offerings from traditional environmental LCA to newer developments such as Social LCA and Life cycle costing, Organizational LCA, etc., to name a few. It is important to map LCA driven data to various aspects of ESG considerations to understand any potential opportunities for improvement in how LCA can deliver value from ESG perspective. ESG landscape has also evolved in recent years and this has led to several reporting frameworks, to name a few: GRI, TCFD, SASB, WEF. This meta-analysis of the LCA linked frameworks and ESG frameworks will present the synergistic elements and identification of focus areas for further work to help enhance the value of LCA-driven information from a ESG context.

Keywords: ESG, LCA, LCC, S-LCA, environment

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