Life Cycle Assessment Integration to Improve ESG Reporting: A Path to Sustainable Decision-Making and Stakeholder Confidence

Abstract

Companies are increasingly adding Environmental, Social, and Governance (ESG) measures to their reporting procedures as sustainability and climate change issues continue to receive attention on a global scale.ESG reporting can be significantly improved by using the Life Cycle Assessment (LCA), a tool that assesses the environmental effects of goods and services from conception to disposal. This is because LCA provides comprehensive and transparent data on companies’s environmental performance. This article initially reviews the literature on the concepts of LCA and ESG, then explores the synergy between LCA and ESG, highlights the benefits of integrating LCA into ESG reporting, and proposes a methodology for doing so. Key advantages include improved decision-making processes, better identification and management of environmental risks, and increased stakeholder confidence. By incorporating LCA into ESG reporting, companies can demonstrate a strong commitment to sustainability, strengthen their brand image, and potentially access new market opportunities.