A new whitepaper by Deloitte explores the business implications of assessing the lifecycle environmental impacts of products and services.
Deloitte’s Enterprise Sustainability group said it developed the paper in light of Wal-Mart’s (NYSE: WMT) recent announcement to begin work on a universal Sustainable Product Index.
Walmart, the world’s largest retailer said it will require suppliers to provide more transparency on their sustainability performance throughout their entire supply chains. While still in the early stages of adoption, the index is the first step of a collaborative effort involving dozens of retailers, suppliers, academics, non-governmental organization (NGOs) and other partners that aims to create a global set of standards for measuring and communicating the sustainability impact of products. The collaboration aims to eventually create a common database of product lifecycle data.
Deloitte writes that lifecycle assessment (LCA) can be time consuming and technically challenging, but can deliver real benefits when used appropriately.
According to a recent Deloitte survey, fully 95% of shoppers “would buy green” if they had the right information and an otherwise satisfactory product. But as the market for environmentally friendly products grows, so does frustration with unverifiable “green” claims.
From cost efficiency through an improved network of locations or more informed materials selection to growth opportunities stemming from product innovation and improved branding, LCA can enable financial results through better visibility, the report states. But it must be nested within a broader sustainability management approach in order to deliver the desired results.
The paper gives an overview of LCA including applications, company benefits, challenges and how businesses can get started. It is available as a pdf at the link below.
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