Climate Risk and Dependencies

Every product affects the environment, and in turn, the environment affects the product. Resource availability and climate events play a direct role in operational risk. If your product relies on water-intensive extraction or manufacturing, your supply chain is exposed to increasing drought risk.

By mapping every stage of a product’s life cycle from raw material extraction to end-of-life and identifying where your biggest impacts are, the biggest vulnerabilities become visible as well. Every input in your life cycle assessment is a dependency, and these dependencies are increasingly vulnerable to climate impacts. Clear visibility over your supply chain is an essential preparation for escalating climate risks.

Coffee provides a clear example of this dynamic. Coffee production depends on stable temperatures, reliable rainfall, good quality soils, and access to water at multiple stages of the supply chain. At the same time, the environmental impacts associated with coffee such as high water use, land use change, and greenhouse gas emissions contribute to climate pressures that threaten those very conditions. As a result, the LCA impact categories for coffee do not only describe environmental damage; they also highlight where climate risk is embedded within the supply chain itself.

Research shows that failure to tackle climate-related risks in supply chains costs nearly three times more than the actions required to mitigate these risks. LCA provides the structure needed to identify and manage those risks before they turn into disruptions.

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Consumer and Investor Trust

Consumer trust is decreasing. Surveys show that 58% of global consumers are sceptical of green product claims, and with good reason. Over half of green claims give vague, misleading or unfounded information.

Earning that trust back requires evidence with real data. A leaf on a label is no longer enough. If you claim a product is eco-friendly, fair trade or recyclable: you must be able to prove it. This is not only about complying with regulations such as the Green Claims Directive or the Digital Product Passport; it is about meeting customer expectations. An LCA not only gives you a precise impact but also serves as proof for the improvements you might be doing in the design of your product.

Younger consumers in particular are paying attention: 73% of Gen Z shoppers are willing to pay more for sustainable products with 88% not believing ESG claims. The solution is not louder marketing, but better transparency.

That same expectation for transparency applies to investors. Under frameworks such as the EU Taxonomy, there is more pressure for sustainable investment. In fact, 79% of investors say they factor ESG risks and opportunities into their investment decisions. Demonstrating that you understand these risks and opportunities is crucial and requires an LCA.

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Competitive Advantage

Transparency has become a competitive advantage. It opens doors, strengthens relationships, and provides the basis for meaningful improvements.

Life Cycle Assessments allow companies to benchmark their environmental performance against competitors, industry standards, and best practices. This comparative insight equips businesses to stay competitive in an increasingly environmentally conscious market, turning sustainability into a strategic differentiator rather than just a compliance exercise.

This trend is clear: research by Sweep and Capgemini Invent, which surveyed 500 sustainability leaders across the US, UK, Germany, and France, found that 76% of businesses view sustainability as a way to grow, attract customers, and improve efficiency. Among the top reasons cited was the development of new products and services.

A leading example is Patagonia. In a highly competitive industry known for its environmental impact, Patagonia has differentiated itself through transparency. Since 2007, the company has offered Footprint Chronicles videos, detailing each step of its supply chain, from the farms to the sewing factories. What began as a response to customer demand has evolved into a defining feature of the brand, demonstrating how openness and holding itself accountable strengthens loyalty.

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Reducing Impact

Trying to reduce your environmental impact without an LCA is a bit like trying to steer a ship with a blindfold on. You may be moving, but you’re guessing the direction. LCA identifies real impact hotspots and reveals where action will make the biggest difference.

The stage that drives the most water use is often not the same one where there is the most carbon emissions. So depending on what you are targeting, you’ll have to prioritise different phases. There are always trade-offs, and LCA makes them visible.

The biggest surprises often come from places you don’t expect. For example:

- The most impactful phase of a pair of jeans is the use phase. Repeated washing and drying consume far more energy than production

- A simple sheet of aluminium foil usually outweighs the environmental impact of the food container it seals

(For more examples, keep an eye on our Impact Facts).

Even well-intentioned decisions can backfire. Switching from plastic to glass may feel sustainable, but glass is heavier to transport and highly energy-intensive to produce. If it is not reused, total emissions can increase. Without an LCA, these trade-offs remain hidden.

Your own supply chain will likely hold similar surprises. LCA should be the backbone of decision-making. By assessing the entire life cycle of a product, companies can spot where materials or energy are being wasted. This leads to lower environmental impacts and potential cost savings.

When viewed across the entire product journey, LCA turns sustainability from a reporting duty into a source of strategic intelligence. The next step isn’t just performing an assessment: it’s learning to use those insights effectively.

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Make LCA Work for Your Business

Pilario helps you turn complex life cycle data into clear actions, reducing risks, uncovering hidden efficiencies, and strengthening trust with customers and investors. With the right tools, LCA becomes less of a burden and more of a competitive advantage. Our platform simplifies the process and turns complex sustainability data into actionable insights.

Take the first step towards smarter, strategic sustainability.