 Environmental Performance MeasuringKullapa Soratana
Chapter Chapter 3 in Environmental, Social, and Governance (ESG) Investment and Reporting, 2025, pp 43-75 from Springer Abstract: Abstract Environmental performance measurement is a key driver of sustainability in industries, and life cycle assessment (LCA) plays an important role in evaluating the environmental impacts of products and services throughout their life cycle. LCA consists of four primary steps—goal and scope definition, life cycle inventory analysis, life cycle impact assessment, and interpretation and improvement of the results—each contributing to identifying environmental hotspots, such as energy-intensive processes in the production of photovoltaic panels or the significant water usage in textile manufacturing. These steps help guide decision-making by highlighting areas where improvements can be made. While LCA provides transparency and comparability in assessing environmental impacts, it has limitations, particularly in capturing supply chain volatility, such as fluctuating material prices or the unpredictability of raw material availability. LCA often overlooks broader societal consequences, such as labor conditions or local community impacts, which are crucial for a comprehensive sustainability assessment. The integration of LCA into environmental, social, and governance (ESG) reporting frameworks, such as the Global Reporting Initiative (GRI) and the Sustainability Accounting Standards Board (SASB), allows organizations to disclose environmental performance in a structured manner. This enhances transparency, aligns with sustainability goals, and fosters informed decision-making, especially in areas like supply chain optimization or resource conservation. However, challenges remain, such as data gaps in emerging technologies or the need for cross-sector collaboration to standardize processes. Despite these challenges, innovations in technologies like AI and blockchain offer potential solutions, streamlining data collection and improving the accuracy of LCA results. By incorporating LCA into ESG reporting, organizations can make data-driven decisions that reduce environmental impacts and contribute to a more sustainable future. Date: 2025 There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-031-84235-1_3 Ordering information: This item can be ordered from DOI: 10.1007/978-3-031-84235-1_3 Access Statistics for this chapter More chapters in Springer Books from Springer |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.