sustainability assessment
Pressure: Sustainability Requirements
In recent years, there has been an unprecedented escalation in the pressure on companies to integrate sustainability into their product development processes. This increasing demand stems from a confluence of environmental, social, and regulatory factors that are reshaping the business landscape:
Legislation: 50k+ companies will be forced to disclose their environmental performance by a new EU directive (CSRD).
Financial Markets: $3.5 trillion expected annual spending on low-emission assets, will disadvantage non sustainable-businesses.
Customer Demands: 72% of B2B buyers base their purchasing decisions on significant sustainability requirements.
Method: Life Cycle Assessment (LCA)
Life Cycle Assessment (LCA) is the most common method used to evaluate the environmental impacts of a product, service, or process from cradle to grave. This comprehensive approach considers every stage of a product's life cycle, including raw material extraction, manufacturing, distribution, use, and end-of-life disposal or recycling.
By quantifying the ecological footprint across these stages, LCA provides critical insights into the total environmental impact of a product. This can include measuring carbon emissions, energy use, water consumption, and waste generation, among other factors.
The power of LCA lies in its ability to identify sustainability hotspots and opportunities for improvement, guiding businesses in making more environmentally responsible choices. Whether it's redesigning a product for better efficiency, choosing more sustainable materials, or optimizing supply chains, LCA is an indispensable tool for informed decision-making in sustainable product development.
Problem: Challenges of LCA in Product Development
Life Cycle Assessment (LCA) is the cornerstone of sustainability assessment in product development, offering a comprehensive method for measuring the environmental impacts of a product from cradle to grave. It's the go-to methodology for businesses aiming to understand and mitigate their ecological footprint. However, effectively implementing LCA poses significant challenges:
Demand for Expertise: Conducting an LCA requires specialized knowledge in sustainability and environmental science. Many companies must rely on internal or external experts to execute these assessments accurately. This dependence on specialized expertise can be a substantial barrier, particularly for businesses without dedicated sustainability teams.
High Costs: For many companies the cost of conducting an LCA can be prohibitively expensive. External LCA providers can charge upwards of 100.000€ per assessment, making it a substantial financial undertaking. This high cost limits the accessibility of comprehensive sustainability assessments to a wider range of companies.
Time Constraints: The process of completing an LCA is notoriously time-consuming. It can take upwards of six months or more, depending on the complexity of the product and the depth of the assessment required. This duration can significantly slow down the product development process, posing a challenge in fast-paced market environments.
Complexity: The LCA process itself is intricate, involving extensive data collection, analysis, and interpretation. It requires a thorough understanding of every aspect of the product’s life cycle, including raw material sourcing, manufacturing, distribution, use, and end-of-life disposal. Managing this complexity, especially for products with extensive or global supply chains, can be daunting.
Solution
orbit addresses these challenges head-on, streamlining the LCA process with advanced AI technology. Our platform reduces the need for specialized expertise by simplifying the complexity of LCA, making it more accessible and manageable. We significantly cut down the cost and time required for LCA, enabling businesses to conduct these essential assessments more efficiently and affordably. With orbit, companies can integrate comprehensive sustainability assessments into their product development process, overcoming the traditional barriers of resources, cost, and time.
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