Life Cycle Assessment in SMEs: Barriers, Maturity and Moving Towards Pragmatic Solutions

Main Presenter:    Sebastian Geier 

Co-Authors:   Anubhav Ambooken                                               

Micro, small and medium-sized enterprises (SMEs) form the majority of the German economy and contribute significantly to it. Despite their economic importance, significant environmental emissions are also caused by SMEs, and this scenario must also be taken into consideration. Increasing regulatory and supply chain requirements, particularly with regard to Scope 1–3 emissions, are exerting pressure on SMEs to improve their sustainability practices. This study investigates the barriers and needs of SMEs in the manufacturing sector when implementing Life Cycle Assessment (LCA). It aims to assess SMEs’ current engagement with sustainability, their awareness and understanding of LCA, and the specific tools and support required by SMEs to perform LCA. It further aims to analyse how organisational learning and knowledge transfer can facilitate LCA adoption and to evaluate the maturity level of both SMEs and non-SMEs in the LCA adoption process. LCA is a key tool for evaluating the
environmental impact of products or services throughout their lifecycle. The study used qualitative content analysis method by Philipp Mayring which allows a qualitative analysis of the content through categorization and grouping. The study conducted 11 semi structured interviews with both SMEs and non-SMEs and were recorded, transcribed and analysed in detail. The results highlighted limited expertise, lack of time and financial resources, high software costs, and poor data availability as key barriers of SMEs in choosing LCA. Considerable variation was also observed in how companies approach sustainability, with SMEs generally applying LCA reactively rather than strategically and often relying on simplified assessments such as carbon footprints. The maturity model categorised companies into three levels—basic, developing, and advanced—with most companies positioned at the basic level, indicating a low level of LCA knowledge and application. The results underline the need for improved
knowledge transfer, simplified and cost-effective LCA tools, accessible data, and practical guidance. This preliminary study, conducted within the LCA4All project, highlights significant barriers and maturity level of SMEs regarding adopting LCA effectively. It underscores the importance of tailored support mechanisms and provides the conceptual groundwork for developing an interactive, user-friendly digital LCA platform designed specifically to meet SMEs’ needs. The insights of this research are limited due to its qualitative approach, a further validation of the study is possible by a quantitative evaluation of SMEs and use of LCA based on the observations from the current study.

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