What is a life cycle assessment (LCA)?

A life cycle assessment (LCA) is a systematic analytical tool used to evaluate the environmental impacts associated with all the stages of a product's life, from raw material extraction through production, use, and disposal or recycling. This assessment encompasses the full life cycle of a product, including the extraction of raw materials, manufacturing processes, distribution, use phase, and end-of-life options.

By examining each stage, an LCA helps identify opportunities to reduce energy consumption, mitigate waste, minimize emissions, and enhance overall sustainability. This technique is crucial for businesses aiming to improve their environmental performance and align their operations with sustainable practices. Additionally, LCA can inform product design, influence consumer choices, and support regulatory compliance.

The other choices focus on different areas: assessing employee satisfaction is related to human resources; financial reporting tools are designed for tracking company finances; and strategies for enhancing market competitiveness might involve marketing and overall business strategy. None of these options capture the comprehensive environmental focus that characterizes an LCA.