State of LCA in Denmark 2003

4 Practical advice

4.1 Choices in LCA - basic considerations

Fundamentally the choices to be made during the preparation of an LCA will deal with what this LCA is to be used for. However, it is not enough to determine the goal and the application. One also has to consider the complexity of the situation and the consequences of the decisions to be made. In reality also the experience available and the willingness to invest are relevant issues.

The goal and the application
In table 4.1 some typical applications of LCA are listed. This list does not claim to be complete, but aims primarily to present an overview and be a foundation of the advice to be given in the following sections.

It is always essential that the decision-maker has clearly defined to himself what the goal of the LCA to be undertaken is. And the goal should be defined as precisely as possible. Ideally the task is to answer the following questions:

  • Who are going to use the results?
  • For what purpose?
  • When?
  • Which consequences would follow from the decisions that will be made?

Integrated in these questions may be more sub-questions which are having an impact on the form of LCA that shall be undertaken and how. The following questions should be regarded as examples of such sub-questions:

  • Are we talking about a single product or a group of products? - This is influencing the definition of the functional unit (see section 3.2) and identification of alternatives.
  • What is the time perspective of the decisions that will be made? Are we only addressing matters within the next few years, or is it influencing or having an actual impact on the reality in 20-30 years from now? - This is determining whether a trend analysis should be made.
  • Is the study meant only for internal use, or will it also be used externally? - This is affecting the methodology to be applied and furthermore the requirements for documentation.

It is outside the framework of a guideline like this to list all the questions, which could be relevant to different applications. Therefore, this issue will here be summarized as follows: After definition of the study goal made by the decision-maker, the LCA-practician  - i.e. the person actually undertaking the study - is to return with proposals for functional unit, system boundaries, allocation principles and other basic choices of methodology. These proposal then have to be compared with the goal to assess, whether the goal will be accomplished.

Experience shows that in this process it is very important to clarify whether  LCA actually is the right tool for the problem that is addressed. One may e.g.  face problems which should be solved with a chemical assessment rather than an LCA.

The complexity of the situation
The situation that is being assessed in an LCA can be more or less complex. The matters making the situation complex will normally be related to:

  • Multi-product systems, i.e. that the manufacturing process is delivering 2 or more different products (e.g. a slaughterhouse may deliver both skins for leather, meat for consumption and waste to be used as feedstuff).
  • Recycling of materials for other purposes.
  • "Trade-offs", i.e. that due to changes in product design some environmental impacts increases while other decreases.

Complex situations may be difficult to assess, if a quantification is not carried out. In such cases it is in reality given that a reliable LCA must be carried out as a detailed LCA. Is the situation more simple, a simplified LCA and partly qualitative assessments may be completely adequate. The LCA levels  detailed and simplified are defined in section 2.3 and further discussed in section 4.2.

It is noted that for multi-product systems and in situations with recycling it will be necessary with special considerations on system expansion and allocation  (i.e. how are the common loads allocated to the different products - e.g. how is electricity consumption allocated in the slaughterhouse on skin, meat and waste). Such questions are discussed in section 4.2 in the subsection on system boundaries and allocation.

The consequence of the work undertaken
The consequence of the decisions made following an LCA may concern product design, selection of materials, investments etc. Completely depending on the actual situation the consequences may be deemed large or small.

It should be considered as common sense to assume that the higher the importance an LCA is ascribed, the more thorough the work must be done. This applies to LCA at society level as well as at company level and other applications.

Thoroughness in particular is a matter of being able to document and justify the choices made in the LCA and the conclusions made. The elements that must be documented concern the LCA methodology, system boundaries, the data utilised, sensitivity analysis, uncertainty assessments and similar matters.

Marketing is an application requiring careful consideration. A technology cannot in itself be clean or environmentally friendly. On the other  hand a technology can be cleaner or more environmentally friendly or less polluting than other technologies.

It is obvious to use LCA for comparative marketing. Also here one must be careful. Normally it is only possible to state that assessed by a specific methodology and specific criteria a product may be environmentally better than another.

Reference is made to the Consumer Ombudsman's guideline in environmental marketing [Forbrugerombudsmanden, 2004].

Experience available
It is a fact that screening typically requires more experience than detailed LCA. Many LCA tasks can be carried out as simplified LCA, if they are carried out by experienced personnel. Contrary to that, it may be easier for persons with little or no experience to obtain a reliable result by using  detailed LCA.

The experience that is available may therefore be a parameter that should be taken into account, when the approach is decided. In reality experience may be bought as e.g. consultancy assistance.

Willingness to invest
It is obvious that the company only able or  willing to invest 1 week of manpower in an LCA has to choose another method and present other demands than the company able and willing to invest 6 months of manpower. In the first case the task may only be solved by assistance from a consultant. In the last case many options are available.

It is obvious that the ability and the will to invest in LCA may be so insignificant that the LCA that can be carried out will not be able to solve the problem in question. In this case, it has no meaning to initiate an LCA.

The ability and will to invest in LCA may be related to, whether we are dealing with a single LCA or a series for which large-scale advantages may apply. Large-scale advantages may be relevant to companies producing many products designed highly identical, like e.g. different models.

4.2 Choices in LCA - methodology elements and their use

In this section is presented a number of key elements in LCA, and it is discussed when it is relevant to use these elements and to what extent the decision-maker has a choice.

LCA level
The decision-maker has a choice between the following LCA levels:

  • Life-cycle thinking
  • Simplified LCA
  • Detailed LCA

These levels are described in section 2.3.  In table 4.1 is stated the applications for which the individual levels may be appropriate. As indicated in the table many applications may be carried out at several LCA levels.

Somewhat simplified and straightforward it may be said that:

  • Life-cycle thinking is for internal LCA work, which is not assumed published.
  • Simplified LCA is for simple problems with limited requirements on documentation. The result is typically very dependent on the practician's knowledge and experience. Simplified LCA should therefore not be used externally, if external quality control (critical review) has not been applied. Simplified LCA is also used as preparation for a detailed LCA and is here of value in the process of focusing the detailed LCA.
  • Detailed LCA is for complicated problems, for which extensive documentation is necessary.

It is emphasized that the choice of LCA level typically has determining influence on other choices of methodology.

System boundaries and allocation
System boundaries in LCA deals with, how to delimit the product system in focus from all other product systems bordering to it. Traditionally in LCA one has used special rules to delimit the essential from the non-essential. Such a rule could e.g. be to only include processes contributing with more than 1% of the total environmental impact for one or more impact categories.

In the guideline on Geographical, technological and temporal delimitation in LCA [Weidema 2004] a procedure to delimit the relevant processes that shall be included in the assessment, from non-relevant processes has, however, been presented. Thereby the traditional rules for delimitation are in principle superfluous.

The guideline is also giving advice on allocation and recommends that allocation is avoided and replaced by system expansion, which means that the product system is expanded until all relevant processes are included. This recommendation is also given in ISO standard 14041 [DS/EN ISO 14041, 1998].

Even if system expansion in the future shall be regarded as the rule, allocation may not always be avoided. It is possible that in some cases system expansion may lead to an unreasonably large product system, which may be difficult and time-consuming to deal with.

Practical reasons may thus still justify allocation and the use of traditional rules for system delimitation. It is emphasized that the recommended methodology for allocation according to the ISO standard is the principle known as allocation by the physical relationships [DS/EN ISO 14041, 1998].

It is the responsibility of the decision-maker to decide whether the principles and rules presented by the LCA practician to determine system boundaries and to allocate are appropriate.

In accordance with the recommendations in section 4.1 (the complexity of the situation) considerations on allocation will normally only be relevant in relation to detailed LCA.

The need for and collection of data
Data collection is normally the activity that requires the biggest input of man-hours in LCA. Data may be obtained from databases (e.g. the EDIP database), literature and direct contact to companies. Collection of data from databases and by direct contact to companies will normally only be relevant to detailed LCA.

The need for data collection is determined on the basis of whether the data available are satisfying for the assignment to be undertaken. That data are not satisfying means, that they are not adequately representative of the process that has to be described. Thereby the uncertainty of the conclusions can be unacceptably high. One cannot claim that data collection implies any methodology choice by the decision-maker, but the decision-maker naturally has a choice as to when the data quality - and thereby the uncertainty of the result - should be regarded as acceptable. Data collection should typically be carried out as iterative processes, in the way that one based on screening determines the processes that contribute the most to the total environmental impacts. Thereafter the data collection is focussed on these processes.

Trend analysis/technological forecasting
LCA may be used for purposes - e.g. product development - for which the decisions are influenced or will influence the technological development many years ahead. In these cases it will be necessary to assess the likely development of the product fields in question. As example may be mentioned that if an LCA deals with a new product with a project development period of 5 years and an in-service life of 20 years, which is anticipated to be produced the next 10 years, this LCA have to be able to consider those waste treatment technologies which will be used in about 35 years from now.  In table 4.1 is indicated those applications, for which a trend analysis  is assumed to be relevant. Whether a trend analysis is relevant in each case depends on the time perspectives. Trend analysis is generally relevant, if it is necessary to look more than 5 years ahead. In the guideline on Geographical, technological and temporal delimitation in LCA suggestions are made as to how such a trend analysis/technology forecasting is undertaken. Trend analysis/technology forecasting is relevant for all LCA levels.

Impact categories
It is in principle the responsibility of the decision-maker to determine the impact categories, which should be used in the study. If the LCA in question is generally carried out in accordance with the EDIP methodology, it is recommended to accept the impact categories, which are used in this methodology.

The decision-maker, however, also has a responsibility to ensure that all significant environmental impacts are covered by the LCA in question. According to ISO standard 14042  [DS/EN ISO 14042, 2000] the impacts considered should together give a adequate picture of the total environmental load from the product or the system. This means that in case important impacts exists - e.g. noise or land use - which are not covered by the EDIP methodology, then these impacts should also be considered in the LCA in question, at least qualitatively. Land use may thus be relevant to consider for products which contains significant quantities of materials originating from forestry or agriculture.

It is emphasized that by the interpretation of results it may be allowed not to include a few impact categories, assuming that the results of these impact categories are deemed unreliable due to uncertain or missing data. It is, however, important that this is clearly stated.

Spatial characterisation
Spatial characterisation and its application are described in section 3.4. Spatial characterisation is a methodology element that in reality is only relevant to detailed LCA.

Normalisation and weighting
Normalisation and weighting are methodology elements, which normally are only used in detailed LCA. As stated in section 3.4 it is possible to choose between different sets of normalisation and weighting factors. The option should in practice be determined by the geographical location of those manufacturing processes, which are considered in the LCA in question.

It is emphasized that the decision-maker is free to develop and choose his own weighting factors. It is e.g. obvious that a county or region may recommend that the local companies are using special weighting factors for waste directed to landfilling or for eutrophication and other impact categories for which the county/region as environmental authority based on local conditions deems that special consideration is necessary. Lack of appropriate areas for landfills may e.g. be an argument for recommending specially high weighting factors for waste to be landfilled. Companies producing to a specific market may e.g. choose to assign high weight to the priorities among the customers in this market.

Sensitivity analysis and uncertainty assessment
Whether sensitivity analysis and uncertainty assessment shall be undertaken in the LCA is in reality the choice of the decision-maker. Sensitivity analysis should, however, be considered an integrated part of the data collection, and it should be designated as common sense always to include an uncertainty assessment as the basis of an evaluation of the reliability of the conclusions. This assessment may be based either on scenarios, in which important assumptions are changed, or on a real calculation of uncertainties. It is required by the ISO standards that these assessments are carried out (reference is made to e.g. ISO Standard 14043 [DS/EN ISO 14043, 2000]).

It can be expected that sensitivity analysis and uncertainty assessment will be integrated in the LCA computer programmes - at least in GaBi - which will be approved by the Danish LCA Center within the coming years (see section  2.4). It should therefore be possible and relatively simple to undertake sensitivity analysis and uncertainty assessment in detailed LCA.

Also related to life-cycle thinking and simplified LCA uncertainties should naturally be considered. However, no methodologies for doing this has so far been developed, and sensitivity analysis and uncertainty assessment in this context will to a significant extent have to be characterised as estimates.

Quality control/critical review
Quality control is in LCA known as critical review. This process is used to ensure that all delimitations, preconditions, assumptions, calculations and assessments are relevant and reliable.

It is the choice of the decision-maker to determine, whether a critical review should be carried out and in what way. The Danish EPA has issued a manual on critical review [Caspersen & Wenzel 2002]. As stated in this manual one may distinguish between:

  • Critical review undertaken by an internal expert
  • Critical review undertaken by an external expert
  • Critical review undertaken by a panel of stakeholders.

The type of critical review to be used in an LCA will depend on the application and the consequences of this LCA. To use a panel of stakeholders is relevant to LCAs, which compare different products or services with each other and is published. In table 4.1 is assessed, when it otherwise will be relevant to use independent external persons for critical review.

When an LCA is being planned, it is important to allocate financial resources for critical review and decide, how this review should be undertaken. For LCAs that are published and could be of interest in the public debate, it should be assumed, that the selection of persons for the task may influence the general accept of the result.

ISO standards
It is the choice of the decision-maker, whether the LCA should fulfil the  ISO standards. These standards are an offer and not a demand. However, the standards will beyond doubt have significance regarding the power of penetration of an LCA, i.e. that an LCA that fulfils the standard will be respected higher than an LCA that does not. Thus, this is a matter of the use of the LCA and the attitude of the decision-maker towards standards.

Generally can be assumed that detailed LCA following the EDIP methodology will fulfil the ISO standards, while simplified LCA and life-cycle thinking will not fulfil the standards.

In the cases, in which the decision-maker in his report chooses to state that the LCA fulfils the ISO standards, this statement should naturally be checked by the critical review.

Documentation and reporting
It is the responsibility of the decision-maker to determine the extent of documentation and reporting to be carried out.

Documentation and  reporting is in particular relevant to LCAs that will be published and used externally. In this context it is a must that the choices made in the LCA and the conclusions made can be documented and justified. The elements that shall be documented concern the LCA methodology, system boundaries, data utilised, other preconditions, sensitivity and uncertainty assessments, interpretation and similar matters. Only LCAs that are documented can expect to be respected.

Documentation and reporting is, however, certainly also relevant to LCAs, which are only going to be used internally. In this case the need for documentation is linked to the need of being able to analyse the background for conclusions obtained and furthermore to be able to control, adjust and improve the LCA at a later stage.

A general requirement to documentation is that it must be open and transparent. This may however raise conflicts with respect to confidential information. An acceptable solution of this problem is normally that the persons responsible for  the critical review, will also have access to the confidential information and thereby can confirm that this information is used in an acceptable and responsible way.

ISO Standard 14040 [DS/EN ISO 14040, 1997] also contains requirements on  documentation and reporting.

Table 4.1
In table 4.1 some central elements in LCA are listed, and it is stated when they may relevant to use. It is emphasized that the table only lists elements where a choice exists that somehow is related to the field of application. Methodology elements not listed in the table, like

  • system boundaries and allocation
  • data requirements and data collection
  • impact categories
  • normalisation and weighting
  • sensitivity analysis and uncertainty assessment
  • ISO standards
  • documentation/reporting.

may be relevant to all fields of application and that the choice of whether they should be applied, therefore, depends more on the actual task than on the field of application. Reference is made to section 4.2.

Related to table 4.1 please note the following comments:

General knowledge development by companies addresses the need of being prepared, e.g. for sudden demands of documented information on environmental issues from key customers. General knowledge development is, however, also important to companies that generally are integrating environmental issues in their planning. Even if  general knowledge development may be based on simplified LCA, detailed LCA will typically be more appropriate.

Strategic environmental assessment deals with the issue of assessing the company's choice of materials and products in the light of rather long-term trends in the market, e.g. supply reliability, productivity improvements, legislation initiatives and environmental trends in general. This is typically an internal activity in companies.

Concerning marketing and environmental product declarations, spatial characterisation has for ethical reasons  (reference is made to section 3.4) not been listed as a relevant option.

As to ecolabels, the ecolabel criteria are often based on detailed LCA of generalized products, and these LCAs are normally subject to external hearing among professional and industrial bodies, which in this context should be assumed to correspond to external critical review.

Both for social action plans and for environmentally-economic analyses - especially cost-benefit analyses - it can be relevant with a detailed assessment of the environmental impacts. Reliable assessments of this type must necessarily consider the local conditions and thus imply spatial characterisation.

Table 4.1 Central elements in LCA and when to use them

Field of application LCA level Trend analysis Spatial characterisation Critical review/ external
Life-cycle thinking Simplified Detailed
Companies            
General development of knowledge   (X) X X X  
Investments and system choices X X X X X (X)
Product development X X X X X (X)
Strategic environmental assessment X X X X X  
Marketing - Offensive   (X) X     X
Marketing - Defensive   X X     (X)
Environmental product declarations   X X     (X)
             
Public authorities            
Investments and system choices (X) X X X (X) X
Green procurement/environmental labelling (X) X (X)     (X)
Societal action plans   X X X (X) X
Environmental cost assessments   X X X (X) X
Duties/incentive arrangements     X   (X) (X)

X:  Relevant; (X): Partly relevant

4.3 Start with the simple and easy

An important rule that cannot be repeated too often says:

"Start with the simple and easy"

The meaning is that it is common sense to start the LCA work as simple and easy as possible and expand it when the need for extra and more detailed information is recognised.

Start with life-cycle thinking and simplified LCA and expand it to detailed LCA only when it is deemed necessary.

Start with available data from literature and databases, and do not start collecting your own data until it is deemed necessary.

And  - perhaps the most important message - be critical and honest with respect to what the results can be used for.

 



Version 1.0 October 2007, © Danish Environmental Protection Agency