The International Journal of Life Cycle Assessment (2021) 26:215–220

https://doi.org/10.1007/s11367-020-01856-z

LIFE CYCLE SUSTAINABILITY ASSESSMENT

Using life cycle assessment to achieve a circular economy

Claudia Peña1 · Bárbara Civit2 · Alejandro Gallego‑Schmid3 · Angela Druckman4 · Armando Caldeira‑ Pires5 ·
Bo Weidema6 · Eric Mieras7 · Feng Wang8 · Jim Fava9 · Llorenç Milà i Canals8 · Mauro Cordella10 · Peter Arbuckle11 ·
Sonia Valdivia12 · Sophie Fallaha13 · Wladmir Motta14

Received: 30 November 2020 / Accepted: 13 December 2020 / Published online: 25 January 2021
© The Author(s), under exclusive licence to Springer-Verlag GmbH, DE part of Springer Nature 2021

Abstract
The current global interest in circular economy (CE) opens an opportunity to make society’s consumption and production
patterns more resource efficient and sustainable. However, such growing interest calls for precaution as well, as there is yet
no harmonised method to assess whether a specific CE strategy contributes towards sustainable consumption and production.
Life cycle assessment (LCA) is very well suited to assess the sustainability impacts of CE strategies. This position paper of
the Life Cycle Initiative (hosted by UNEP) provides an LCA perspective on the development, adoption, and implementation
of CE, while pointing out strengths and challenges in LCA as an assessment methodology for CE strategies.

Keywords  Circular economy · Circularity · Life cycle assessment · Complementary methodologies

1 Background and 90% of the impacts associated with water consumption and
biodiversity are related to resource extraction and processing
According to the Global Resources Outlook, the use of natural (UNEP IRP 2019). A greater commitment by the private sector
resources has more than tripled since 1970 and continues to has been already encouraged back in the year 2000 (UN Global
grow; climate change and health impacts linked to extraction and Ministerial Environment Forum, Malmö) to strengthen the
production of metals doubled between the years 2000 and 2015, environmental accountability, and “this approach must be linked
with the development of cleaner and more resource-efficient
Communicated by Matthias Finkbeiner. technologies for a life-cycle economy.” UN (2012) recognises
“the importance of adopting a life cycle approach and of further
* Claudia Peña development and implementation of policies for resource
[email protected] efficiency and environmentally sound waste management,”
1
ADDERE Research & Technology, Santiago, Chile and we all need as society to step up our action and ambition
2
to influence decisions that shift human development to
National Technological University, Mendoza, Argentina
sustainability, faster, and more efficiently (LCI 2020).
3
University of Manchester,  Manchester, UK The circular economy (CE) concept was originally coined
4
University of Surrey, Guildford, UK and defined by Pearce and Turner (1990) as an economy where
5
University of Brasilia, Brasilia, Brazil wastes are recycled into resources, either through a technological
6
Aalborg University, Aalborg, Denmark feedback mechanism or through a natural ecosystem feedback
7
mechanism, so that the stock of resources is constant or
PRé, Amersfoort, The Netherlands
increasing over time. More recent usage stresses that this aim
8
UNEP, Paris, France might also be achieved by keeping products, components, and
9
Anthesis Group, Puntarenas, Costa Rica materials at their highest level of utility and value for as long
10
European Commission (JRC), Seville, Spain as possible, designing out waste and pollution and regenerating
11
USDA, Beltsville, MD, USA
natural systems (EMF 2012; UNEP 2020a). Being regenerative
12
by design, as opposed to the “take-make-dispose” linear model,
World Resource Forum, St. Gallen, Switzerland
CE strategies aim to preserve natural, manufactured, human, and
13
CIRAIG Polytechnique Montreal, Montréal, Canada social assets (EMF 2015). CE is gaining more and more attention
14
CEFET-RJ, Rio de Janeiro, Brazil

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216 The International Journal of Life Cycle Assessment (2021) 26:215–220

worldwide as a way to advance efficiently towards sustainable and may lead to structural changes in the economy, which in turn
consumption and production patterns (UNEA 4/Res.1) and may impact on trade flows of primary and secondary resources
contribute to achieving the sustainable development goals SDGs (OECD 2018).
(UNIDO 2017a). However, most definitions of CE highlight LCA and LCSA provide a comprehensive and systematic
economic prosperity as their primary objective, followed by basis for ensuring that the impacts of both the upstream primary
environmental quality, and its impact on social equity and future resources, which are often linked to emerging economies
generations is rarely mentioned (Kirchherr et al. 2017). (UNIDO 2017b), and the downstream components of value
Life cycle assessment (LCA) is a standardised (ISO chains are truly integrated into the CE analysis. Overall,
14,040–14,044:2006) and science-based methodology for LCA allows to understand and evaluate whether the claimed
assessing the impacts associated with the life cycle of a product environmental benefits of CE solutions can be achieved and
or service, which can help understand the environmental to what extent, and which are the most critical processes and
implications of CE strategies. When applying a comprehensive aspects that needs to be properly managed.
set of impact categories, the LCA can also bring a holistic
perspective into decision-making not only focusing on the 2 Purpose of this position paper
biophysical environment but also the social and economic
environment affected by a decision. The methodological This paper aims to clarify the potentialities of LCA and the need
developments associated to LCA allow addressing the product of its coherent application in the development, adoption, and
system by analysing its many elements and interactions through an implementation of CE worldwide to advance more effectively
interdisciplinary approach (Zamagni et al. 2013). A good example and efficiently towards environmental sustainability.
of this are the guidelines published by the Life Cycle Initiative This paper defines the conceptual relationship between CE
such as the Guidelines on social LCA (S-LCA) in 2009 (UNEP and LCA and recommends further steps. Finally, it also points
2009), which are currently being updated. Also, the concept of out the limitations of LCA in the context of CE and lists issues
the Life Cycle Sustainability Assessment (LCSA) (Kloepffer to be addressed in order to better support the implementation
2008; Finkbeiner et al. 2010) finally led to the publication of the of CE with LCA information, models, and results.
Framework on LCSA (UNEP 2011; Valdivia et al. 2013).
3 Circular economy
Complementing Material Circularity Indicators (MCI) with LCA:

Managing tire end of life is a complex problem because tires are heavy, The rapid increase in interest for CE calls for precaution, as
bulky, and partially made of non-renewable resources, primarily black carbon there is as yet no harmonised methodology or framework to
and steel. Tires accumulated in garbage piles or landfills can pose fire-related assess whether a specific CE strategy fulfils the requirement of
problems and health risks. The tire industry has been looking for recovery reducing environmental and social impacts. Furthermore, socio-
outlets for tire materials. One of the strategies in a circular frame management economic impacts are not always adequately considered in CE
is to recycle tires in a closed loop system to ensure the sustainability of the projects. Some CE strategies could lead to significant spill over
tire industry. Michelin carried out a study in two settings: the Brazilian and
effects between the social and environmental aspects.
the EU context. The authors applied LCA and MCI to assess the potential of
Also, there is a growing concern among CE practitioners
used tire management strategies to (1) avoid burden shifting, and (2) improve
regarding the definition and implementation of concepts and
material circularity. The results of both case studies provide a good insight for
methods—for example regarding CE indicators and assessing
material efficiency aspects, such as durability, reparability,
tire manufacturers on how to manage used tires to better contribute to the CE

recyclability, and dissipative use of materials. Consequently,

objective. The study reveals that MCI is relevant to support circular design to
preserve the specific materials that make up the product. But LCA provides a
CE strategies must be designed and implemented with a view
complementary perspective on a broader scope in terms of system boundaries
to potential upstream and downstream impacts, as well as trade-
and complementary indicators needed to measure the pressure on pollution–
offs of impacts from one resource or impact area to another.
thus helping to avoid burden shifting. (Lonca et al, 2018).
Without such vigilance, CE strategies could lead to less efficient
or inappropriate solutions.
LCSA refers to the evaluation of all environmental, social Currently, different metrics can be found in the literature
and economic negative impacts and benefits in decision-making describing overall product circularity (Moraga et al. 2019).
processes towards more sustainable products throughout their life They are all quite different from being demanding or simple with
cycle (UNEP 2011). This broad approach is especially valuable regard to calculation complexity and subjective or objective with
as a complementary analysis for CE. Thus, LCA can support regard to evaluation. There is an urgent need to find common
evaluating and comparing the most promising CE strategies ground for practical use in circularity.
and options for improving the environmental performance of In this context, a new ISO Technical Committee (TC323)
society’s consumption and production patterns. Furthermore, on CE has been established, with the objective to develop
the transition to the CE has direct linkages to international trade requirements, structure, and guidelines and to support tools

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The International Journal of Life Cycle Assessment (2021) 26:215–220 217

related to the implementation of CE strategies. ISO TC323 the environment, as well as resource depletion, drinking
highlights that particular aspects of CE are already covered by water coverage, sanitation coverage, minimum wage per
existing standards of the ISO TC207, such as LCA and especially month, among other social and economic impacts (Wulf
eco-design. However, explicit and clear guidance has not yet been et al. 2018).
established on how LCA and LCA-based methodologies can • Moving to local production, which involves working with
provide a holistic view and a consistent methodological basis for near providers and using less transport to bring materials
assessing the sustainability of CE solutions. to the facilities, needs to consider how it would affect the
quality and impacts of key products from local sources,
4 Assessment needs in circular economy as well as the socio-economic impacts on the original
supplier countries.
The CE is both a new challenge and an opportunity to
continue industrialisation in a sustainable way, through 5 Underpinning of circular economy
inclusive CE strategies for global transition considering strategies through LCA
the needs of all economies involved (developing,
emerging, developed). LCA-based tools can ensure the LCA is a crucial assessment methodology to inform and
inclusion of the environmental, social and economic improve CE strategies by comparing them in terms of
impacts of different CE strategies, which will often sustainable performance. Even if the methodology is
involve different consequences in emerging vis-à-vis standardised (ISO 14,040–14,044: 2006), further requirements
developed economies. Ignoring such holistic perspective must be set to ensure comparability between LCA studies.
and differences could lead to negative outcomes in The same strict principles must apply to compare CE
different parts of the global value chains. strategies based on LCA. A concrete example of this is
On the other hand, at local and national levels, some the CE strategy of the energy company Enel (EU 2019),
emerging economies already circulate material and which uses LCA to measure the circularity of products
resources more than within many developed economies, and their environmental impacts, and to engage suppliers
since materials and resources are less available or less in improving their performance, to then communicating
abundant in supply, and therefore used for a longer it through environmental product declarations.
amount of time. The importance of the informal reuse
and recycling sectors illustrates that behaviour. LCA
Using LCA to measure products’ circularity and engaging suppliers
and LCA-based methodologies can help emerging
in improving their performance:
economies as well as developed countries to advance
Enel defined a set of parameters and indicators used to quantify the
towards sustainable circular economies, where circularity
circularity of products and projects, based on the benefits of reducing
provides wealth in a resource efficient manner without
virgin materials consumption. Its target is to objectively quantify, certify
rerouting via a linear economy.
and communicate impact over the whole supply life cycle (water
Decision-making on CE strategies often asks questions
that can be answered by application of LCA and its consumption, CO2 emissions, impact on soil, etc.). This allowed Enel to

related methodologies, providing insight into trade-offs measure the impact of its own business on the world's natural resources

of impacts between for instance water use, energy, carbon, and then mitigate it, and it also allowed suppliers to be involved in an

material use, and recycled content and also considering activity that checks the eco-efficiency of the production cycle and have

social and economic impacts. Here are a few examples: references for establishing improvement actions. In 2018 the company
launched the CE Initiative for Supplier Engagement, for which suppliers

• Planning to move towards a goal of 100% recycled con- are requested to conduct LCA of relevant products and certify their

tent in a product needs to consider the impacts of energy, results through an Environmental Product Declaration (EPD: ISO 14025)
water and material use of obtaining and using the recy- to support decision-making. The project aims to quantify, evaluate and
cled materials in a safe way (i.e. free from toxic sub- validate environmental KPIs deriving from the manufacturing cycle of
stances built-up from previous cycles). the product. In a first wave the CE Initiative involved five main products
• Banning the use of single-use plastic products should of its supply chain, and in a second wave will add seven products more.
simultaneously consider the economic, environmental Enel seeks in this way to be able to measure and evaluate its own
and social impacts of alternatives (such as paper, cotton sustainability performance and identify opportunities for co-innovation
or durable plastic bags), throughout the life cycle of with its suppliers, to improve circularity throughout the supply chain in
products (UNEP 2020b). The sustainability impact what represents more than 60% of the acquisition of assets of the
assessment needs to cover all major environmental company.
impact categories such as climate change, water
footprint, land-use and biodiversity impacts from litter in

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218 The International Journal of Life Cycle Assessment (2021) 26:215–220

LCA helps to evaluate different strategies related to material related to the use of materials and resources but on all
efficiency to advance in the transition towards a circular those impacts that can be relevant for a product category.
economy (Cordella et al. 2020). It can highlight situations where CE strategies often assume that it is always good to keep
CE projects may be too narrowly focussed on the “circularity” of individual resources within the economy, either in use for as long
a specific resource, and not appear as the best choice in a broader as possible, or through cycling loops in technical or biological
assessment. In the context of product lifetime extension policies, cycles. On the other hand, LCA and related approaches do
LCA could also help determine the best options. For instance, in not advocate for any specific strategy, but simply provide an
the case of intensive energy-using products, identifying the good assessment framework to understand the environmental, social,
balance between the desired lifetime extension and the pace of and economic implications of different options to deliver a
technological improvement in the area of energy efficiency function or service. In this way, LCA and its related approaches
(Gallego-Schmid et al. 2016). may serve as the science-based methodology to assess the
benefits or otherwise of specific CE strategies, and also the
occasions where keeping the resources within the economy for
6 Bridging perspectives on resources longer may actually be counter-productive (e.g. due to the costs
and impacts of removing toxic substances contaminating such resources).

In broad terms, it can be highlighted that:

7 Conclusion: position
•  CE prioritizes the continued use of resources. This implies and recommendations of the Life Cycle
maintaining the highest level of utility of materials through Initiative
recycling, either within the economy, typically through
a network of industrial sectors, or in natural ecosystem The Life Cycle Initiative promotes the use of LCA and
processes, and may involve extending the lifetime of related approaches as a methodology and framework to
products to minimize the need for wasteful recycling build more consistent and robust CE strategies that consider
activities. potential upstream and downstream impacts and encompass
• Methodologies and frameworks for the CE and the all relevant resources and impact categories, leading to better
circularity assessment indicators are in development decisions for sustainability.
and aim mainly at augmenting the perceived value The current global interest in CE opens an opportunity
by increasing the utility value of resources within the to make society’s consumption and production patterns
economy. more resource-efficient. Assessing CE strategies requires
• LCA can be used to measure and assess the environmental addressing the technical and scientific challenges involved
and social performance of a defined system in a circular across the life cycle of such strategies, as well as the broader
economy, to ensure the optimal decision-making. implications for the sustainability of both emerging and
• LCA is a well established and standardized methodology developed economies.
adopted by industry worldwide, which allows The Life Cycle Initiative encourages LCA professionals
characterizing the environmental performance of product to address the technical and scientific shortcomings involved
system, not only in relation to impact associated to in the assessment of CE projects, notably:
resource use, but to the whole range of impact categories
relevant through the life cycle of the product. • Consistent accounting for changes in stocks of resources
that respect mass balance principles.
CE focuses on maint aining (preser ving and • Consistent modelling of open recycling loops.
increasing) resource values for the economy. In doing • The inclusion of all relevant resources and impacts, i.e.
that CE considers also different levels of application: a full environmental, social and economy-wide (LCSA)
at the macro level, it focuses on material exchanges perspective.
between the economy and the environment, and also • Transparency of assumptions, reliability of data, and
internationally; at the structural or meso level, the critical interpretation of results and trade-offs between
emphasis is on material flows in industrial systems, a globally agreed number of impact categories, e.g.
distinguishing not only categories of materials but also through valuation, as suggested in ISO 14,008.
sectors and industrial branches; at the micro or business
level, it focus on firms and their products. LCA focuses Specifically, the Life Cycle Initiative aims to contribute
mainly on product level and on all the impacts associated to:
to the product life cycle, i.e. not only on the impacts

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Zamagni A, Pesonen HL, Swarr T (2013) From LCA to Life Cycle Publisher’s Note Springer Nature remains neutral with regard to
Sustainability Assessment: concept, practice and future directions. jurisdictional claims in published maps and institutional affiliations.
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