How LCA Supports CSRD Reporting
%20(7).png)
The Corporate Sustainability Reporting Directive (CSRD) sets clear rules for how companies in the EU and EEA must report on their sustainability practices, impacts, and risks. What began as a major paradigm shift in corporate sustainability has quickly become a standard. The CSRD is now a widely adopted framework that positions companies ahead of the competition among customers, employees, and stakeholders.
In the CSRD realm, the Life Cycle Assessment (LCA) emerges as a pivotal tool to quantify environmental data and report more accurately. This method is used to evaluate the environmental impacts of a product, process, or service across its entire life cycle. This includes raw material extraction, production, distribution, use, disposal, and recycling. LCA analyses energy consumption, resource use, emissions, and waste generation throughout these phases, to provide the full environmental footprint of a product. This approach helps organisations identify opportunities for improvement and make more sustainable design and production decisions.
So how does LCA fit into producing a CSRD report, and why does it matter? This article explores this link, showing where lifecycle data becomes especially useful and how it strengthens the reporting process.
A Recap on the CSRD
The CSRD requires reporting under the European Sustainability Reporting Standards (ESRS), bringing a standardised format for reporting ESG data. This set of common rules covers environmental, social and governance issues, including climate change, affected communities and business conduct. Companies assess which topics are material to their business and provide both qualitative and quantitative data accordingly.
Within the environmental standards, five key areas are defined:
- ESRS E1 – Climate change
- ESRS E2 – Pollution
- ESRS E3 – Water and marine resources
- ESRS E4 – Biodiversity and ecosystems
- ESRS E5 – Resource use and circular economy
These standards require quantitative, science-based data. Companies must report on their impacts, dependencies, risks, and opportunities, requiring metrics for greenhouse gas emissions, resource efficiency, waste generation, and product life cycles.
%20(Square%20Pillow).png)
A Recap on LCA
The LCA is a trusted and scientifically grounded methodology that provides reliable insights. It follows a standardized methodology developed by the International Organization for Standardization (ISO) in the ISO 14040 and 14044 series. These standards describe the four main phases of an LCA:
1. Goal and scope definition: the purpose, system boundaries, and functional unit of the study are established
2. Inventory analysis: data is compiled on all inputs and outputs, such as energy, materials, and emissions, throughout the product’s life cycle
3. Impact assessment: data is translated into potential environmental impacts, like global warming or resource depletion
4. Interpretation: results are evaluated to draw conclusions and guide decision-making
LCA’s standardised approach ensures consistency and credibility, making results valuable for a wide range of sustainability applications.
How LCA solidifies CSRD reports
Companies can use LCA results to provide quantifiable data on environmental impacts, supporting the requirements of ESRSs. Integrating an LCA into sustainability reporting allows companies to provide detailed, transparent, and standardised information on their environmental impact, supporting broader sustainability goals and regulatory compliance within the EU.
ESRS E1- Climate Change
LCA is useful in supporting ESRS E1, which requires companies to report on greenhouse gas emissions across Scope 1, Scope 2, and Scope 3. Through the Global Warming Potential indicator, LCA quantifies emissions of key gases such as carbon dioxide, methane, nitrous oxide. These data allow organisations to understand and compare the climate impact of their products and services throughout the value chain. Standardised methodologies, such as ISO 14067, ensure consistency in calculating and communicating carbon footprints.
ESRS E2 – Pollution
ESRS E2 addresses emissions to air, water, and soil and LCA provides essential insights into pollutant flows and their environmental consequences. LCA quantifies the release of substances such as nitrogen oxides, volatile organic compounds and sulfur dioxide, which contribute to issues like acidification, smog formation, and particulate matter pollution. LCA methodologies follow frameworks such as ISO 14040/44 and translate these emissions into measurable environmental impacts including photochemical ozone creation, acidification, and eutrophication potentials. This assessment provides a detailed foundation for pollution-related reporting under the CSRD.
ESRS E3 – Water and Marine Resources
For ESRS E3, which focuses on water usage and impacts on marine ecosystems, LCA delivers a comprehensive view of water flows and their sources, covering groundwater, surface water, lakes, and rivers. LCA also assesses the potential consequences of water use, such as depletion of local resources and ecological impacts on aquatic environments. By applying established methodologies like ISO 14046 and EN 15804, companies can quantify water consumption and evaluate its influence on regional water scarcity. These metrics enable robust and comparable disclosures in line with CSRD expectations for water management and marine ecosystem protection.
ESRS E4 – Biodiversity and Ecosystems
LCA supports ESRS E4 by evaluating the land use and ecosystem impacts associated with products and processes. The approach tracks activities such as deforestation, land occupation for agriculture, and other land transformations that can harm biodiversity and natural habitats. LCA methodologies assess land use change and biodiversity loss potential through tools such as LANCA and SALCA indicators, allowing companies to measure how their operations affect ecosystems. These insights help businesses identify and mitigate biodiversity risks, contributing to accutate reporting on ecosystem dependencies and degradation.
ESRS E5 – Resource Use and Circular Economy
Finally, in relation to ESRS E5, LCA provides essential data on resource efficiency and waste management, both of which are central to circular economy reporting. LCA quantifies the use of renewable and non-renewable materials and assesses waste generation, treatment, and recycling processes. Standards such as EN 15804 and ISO 21930 guide these evaluations, helping companies calculate material circularity and resource depletion indicators. By integrating these LCA results, organisations can demonstrate their progress toward sustainable resource use, material recovery, and waste reduction.
LCA is not mandatory for CSRD compliance, nor is it enough to meet all climate-related ESRS requirements on its own. However, it is the difference between a report built on assumptions and one grounded in real, measurable data. While some companies may settle for ticking boxes, those committed to transparency, credibility, and real impact will find that LCA turns sustainability reporting into something far more powerful: evidence-based proof of environmental responsibility.
Pilario - Your partner in compliance
Make sustainability reporting simple with Pilario’s easy LCA software. Quickly measure the impact of any product and generate exportable results that streamline your CSRD compliance.
Let us guide you on your path to sustainability.
