The demand for transparency about the environmental impact of products is growing rapidly. Companies are increasingly being asked to share concrete information about their environmental performance, whether by customers, contracting authorities or suppliers. Three concepts that are central to this are the Life Cycle Assessment (LCA), the Environmental Product Declaration (EPD) and the Product Environmental Footprint (PEF). But what exactly are these tools, what is the difference between them, and when are they useful for your organization?
What is a life cycle assessment (LCA)?
A life cycle analysis, abbreviated as LCA (Life Cycle Assessment), is a systematic method for mapping the total environmental impact of a product, process or service. Here you look at the entire life cycle: from raw material extraction and production to use and waste disposal. Also called a cradle to grave analysis.
An LCA gives you insight into the environmental impact of your product during all phases. Think of energy consumption, CO2 emissions, water consumption, use of raw materials and emissions of harmful substances. This information helps you determine where in the chain the greatest environmental impact is and where opportunities for improvement lie.
The four phases of an LCA
An LCA goes through four main phases according to the international ISO 14040 and ISO 14044 standards:
1. Determine purpose and scope
Here you establish why you are conducting the LCA, for whom the results are intended and what parts of the life cycle you are including.
2. Inventory Phase (LCI)
In this phase you collect data on all incoming and outgoing flows: raw materials, energy, transportation, emissions to air, water and soil.
3. Impact Analysis (LCIA)
Translate the collected data into concrete environmental impacts, expressed in different categories such as climate change, acidification or resource depletion.
4. Interpretation
The final stage revolves around drawing conclusions. Where are the biggest environmental problems (hotspots)? What opportunities for improvement are there?
Different types of LCAs
Depending on your goal, there are different types:
- Cradle-to-grave – The full life cycle, from raw material extraction to end-of-life, including waste disposal or recycling.
- Cradle-to-gate (cradle to factory gate) – Only the production phase, from raw material extraction to the time the product leaves the factory. This type is often used for EPDs of building materials.
- Cradle-to-cradle – Focuses on product designs that reuse materials at the end of their useful life. This suits organizations working toward a circular economy.
Why conduct an LCA?
An LCA provides valuable insights in several areas:
Product development and improvement
By seeing where in the chain there is the greatest impact, you can make targeted improvements. Perhaps it turns out that the use of the product far outweighs the production, or vice versa.
Substantiation of sustainability claims
With an LCA, you have objective, scientifically based figures in your hands. This prevents accusations of greenwashing and strengthens stakeholder confidence.
Purchasing and Procurement
Many contracting authorities today ask for environmental data. With an LCA, you can demonstrate the environmental performance of your product.
Complying with legislation
Various regulations require LCA data. Think of the CSRD for sustainability reports or the Environmental Performance of Buildings (MPG) in the construction sector. Digital Product Passports (DPP), which will become mandatory in the EU in phases starting in 2027, also require environmental data coming from an LCA.
From LCA to SPD: transparent communication
An LCA can be seen as the method of finding out the environmental impact of a product. The is often a voluminous, technical report containing sensitive business information. But how do you then share the results with customers, suppliers or other stakeholders? That’s where the Environmental Product Declaration (EPD) comes in.
What is an SPD?
An EPD is a standardized, independently third-party verified document that reflects the environmental performance of a product or service. It is based on an LCA, but presents the information in an accessible, comparable way without sharing confidential company data.
An SPD follows the ISO 14025 standard and typically includes:
- A brief description of the company and product
- Key LCA results by environmental impact category
- Information about the methodology used
- Verification by an independent expert
The major advantage of EPDs is that they are comparable. By using product category rules (PCRs), consumers or buyers can compare EPDs of similar products side by side.
What are EHRs used for?
Construction and Infrastructure
The construction industry is leading the way in the use of EPDs. In the Netherlands, building products entered in the National Environmental Database (NMD) must meet strict requirements through the Environmental Performance of Buildings (MPG) legislation.
Procurement
More and more governments and companies are asking for SPDs in their procurement processes. An SPD can help you as a supplier stand out.
Certifications and labels
Green building certifications such as BREEAM and LEED award credits to products with an EPD.
Transparency towards customers
An EPD shows that you are willing to be open about your environmental performance. That creates trust with customers who themselves have reporting obligations.
The difference between LCA and EPD
| Aspect | LCA | EPD |
| Purpose | Analyze and improve | Communicate and compare |
| Target audience | Internal use | External, B2B and sometimes B2C |
| Size | Comprehensive technical report | Short, standardized document |
| Mandatory verification | Not always | Yes, by independent third party |
| Confidentiality | Often contains sensitive info | Public information only |
| Comparability | Can be tricky | Standardized, more comparable (within same PCR) |
In short, an LCA is the in-depth analysis; an SPD is the transparent summary for external use. You always need an LCA before you can prepare an SPD.
PEF: the EU harmonization method
In addition to LCA and EPD, the Product Environmental Footprint (PEF) is playing an increasingly important role, especially within the European Union. PEF is an LCA method developed by the European Commission that aims to determine the environmental performance of products in the EU in a uniform manner.
Whereas a traditional LCA still leaves room for interpretation, PEF is much more strictly defined. The method works with Product Environmental Footprint Category Rules (PEFCRs), which prescribe exactly how calculations should be performed for specific product categories. This ensures better comparability between products within the same category.
Why is PEF relevant?
The European Commission has been developing PEF since 2010 and it is expected that this method will be linked to future EU legislation. Think of the Green Claims Directive (which aims to combat greenwashing) and the further development of digital product passports. For the construction sector, PEF has already led to adjustments in the EN 15804+A2 standard.
PEF covers 16 impact categories (including acidification, ecotoxicity and resource use), making it more comprehensive than a standard carbon footprint calculation. For organizations operating in the European market, it is wise to keep an eye on PEF, especially if PEFCRs are already available for your product category.
Specific situation in the Netherlands
In the Netherlands, there are additional requirements for LCAs and EPDs, especially in the construction sector. The National Environmental Database (NMD) sets requirements in addition to the European EN 15804 standard. For example, the Environmental Cost Indicator (MKI) must be used in the Netherlands.
Therefore, a foreign EPD is not always directly usable in the Netherlands. Adjustments are often needed to meet Dutch data quality requirements. The advantage: an LCA or EPD that complies with the Dutch Determination Method automatically also complies with European EN 15804.
When does an LCA or EPD make sense for your organization?
In a number of situations, it is highly recommended:
- You supply products to construction or infrastructure in the Netherlands
- Customers or buyers ask for objective environmental data
- You want to participate in tenders where sustainability plays a role
- You must comply with the
ESPRSand need product specific data - You want to improve your products in a science-based way
- Your value chain is complex and you want to know where the biggest impact is
Practical tips for getting started
- Start with a clear goal – What exactly do you want to know? Who are the results intended for? A sharply stated goal defines the rest of the process.
- Define the scope – What phases of the life cycle do you include? Too broad a scope leads to high costs, too narrow a scope to limited usability.
- Get good data – The quality of your LCA hinges on the quality of your data. Primary data (from your own processes) are the most accurate. Of course, it is also possible to work with secondary data using the already existing databases.
- Work with experts – Conducting an LCA requires specialized knowledge. Working with experienced LCA specialists increases the reliability of your results and can help when primary data is not available…
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In conclusion
LCAs and EPDs are valuable tools for understanding the environmental impact of products and improving on that basis. For organizations supplying products to construction, government or other companies with sustainability requirements, these analyses are increasingly a prerequisite for participation.
The investment in a good LCA or EPD pays off in better products, stronger market positions and more transparent communication. It starts with collecting the right data and making conscious choices about where to focus your sustainability efforts.