Sustainability 2.0: The shift to industry-compliant LCAs and the critical role of data

At Pilario, we are witnessing a new, next-level phase in sustainability firsthand. Companies and manufacturers are leading the way in sustainability reporting, setting themselves apart from the competition, largely by gathering data from their supply chains. 

We see how federations play a crucial role in creating industry-specific LCA models, establishing the foundation for eco-scoring solutions. 

And how we as Pilario are here to support and guide you through this important transition.

Let’s have a closer look at this transformation.

The evolution of sustainability metrics from scope 3 carbon footprint to full LCA management

Scope 3 emissions: the importance of data 

By now, we all know that when it comes to sustainability: analyzing, improving, and reducing your company’s environmental impact requires a comprehensive view of your full carbon footprint. That’s why the Greenhouse Gas (GHG) protocol serves as a vital framework for organizations to measure and report their greenhouse gas emissions. 

Essentially, it breaks down emissions into three categories, or scopes. Scope 1 and scope 2 cover emissions directly linked to the company’s own operations and are required for reporting. 

Scope 3, however, extends to the entire lifecycle of the company’s products and is still voluntary. 

This category is often considered the most challenging to track, yet it can make up more than 90% of an organization’s total carbon footprint (global supply chain record, 2020), making it crucial for carbon accounting – but very hard to collect that necessary data throughout the entire supply chain. 

Why LCA management is the next step for organizations

Those few manufacturers and companies that have actually gathered data across their supply chains to calculate scope 3 emissions – let’s call them the first movers or innovators – are setting the stage for broader industry change, much like Rogers’ diffusion of innovation theory. These businesses gain a significant advantage over others by leading the way in sustainable practices.

In the next phase, these first movers can leverage their collected Scope 3 carbon footprint data for comprehensive Life Cycle Assessment (LCA) management. With an easy-to-use LCA platform, they can internalize all processes and conduct LCAs. 

However, before starting an LCA analysis, it’s essential to have a reliable LCA model in place.

The role of industry collaboration in achieving homogeneity of LCAs

Remember, your organization is not the only one in the industry struggling to find the right model for performing an LCA analysis. Others in your industry are facing the same challenges – with an overall struggle to find industry-compliant standardized LCA models.

We need homogeneity of LCAs within the industries. That’s why we, as Pilario, are working closely with federations such as PETCORE EUROPE, NMWE, UNESDA, Brewers of Europe and many more. 

We assist in creating a compliant, standardized LCA model and make it accessible to members through a special federation license.

Federations can share industry-compliant validated LCA models, such as PEFCR mineral waters and PEFCR beer, with their members. And offer access to Pilario for using those models

Providing their members numerous benefits:

• No need for investment (time and money) in creating their own LCA model.
• LCA results are compliant within the industry, because the same methodology is used

Above all, many of our current federation clients are sharing their LCA models exclusively within the Pilario platform, offering an even greater advantage to members who are part of multiple federations.

Industry syndication of LCAs: standardized eco-score

Syndicating those LCAs within the same industry is the first step to success in achieving the overall goal of creating an eco-scoring method. 

When companies in a specific industry align on a compliant LCA model and a standard reference product, they set the foundation for an effective environmental eco-scoring system. 

A single-result system provides a weighted and normalized outcome, making comparisons easier and more meaningful.

This approach benefits everyone. Customers can make informed choices by opting for more environmentally friendly products, while companies can easily showcase the environmental impacts of their products. Additionally, standardization enhances industry credibility and builds consumer trust.

To give you a real-life example, this is precisely what the  EcoBeautyScore (EBS) consortium is setting out to do, supported by Pilario.

The EcoBeautyScore Consortium has developed an environmental impact assessment and scoring system for cosmetic products. This sets the benchmark for sustainability standards across industries, all powered by our SaaS solution, Pilario. The consortium counts over 70 big players within the cosmetic industry. 

EBS is raising the bar, helping consumers make more sustainable choices. Together, we’re making the cosmetic industry more sustainable, transparent, and impactful. 

Curious about how these industry-wide sustainability shifts impact your business? Discover how Pilario’s advanced LCA management can transform your business. 

Get in touch with our experts today and start leading your industry in sustainability. Don’t miss out on industry insights—follow us on LinkedIn to stay updated.