6 Ways Life Cycle Assessment Helps You Meet ESG Goals

Blogs 12 may 2025

Construction professionals face growing pressure to meet Environmental, Social, and Governance (ESG) goals without compromising financial returns. One of the most effective ways to align your project with both is to integrate Life Cycle Assessment (LCA) into your strategy. LCA evaluates the environmental impact of materials and products throughout their lifecycle – from extraction to disposal – so you can make informed decisions that drive both sustainability and business value.

Here’s how LCA supports ESG performance across every phase of development:

1. Reduce carbon footprint and embodied emissions

The EU Commission’s new Omnibus Package outlines several changes to the CSRD, particularly focused on reducing the reporting burden on smaller cEmbodied emissions in materials like concrete and steel often go unnoticed, but they can account for over half of a building’s carbon footprint. LCA gives you clarity on which materials contribute most to emissions so you can target high-impact areas. Developers who analyze LCA results during early design phases can reduce embodied carbon significantly without compromising performance.

Example: A residential project team compares traditional materials to lower-carbon alternatives like recycled steel and low-impact insulation. The chosen materials help meet emissions targets and appeal to sustainability-focused investors.

Find out how to report on operational carbon using the CRREM feature.

2. Enhance circular economy strategies

Designing for reuse and minimizing waste are essential to circular construction. But identifying where and how to reuse materials isn’t always straightforward. Product EPDs help identify ways to extend material lifespan and reduce dependence on virgin resources. Whether you’re developing a new site or refurbishing an existing one, this insight leads to better reuse strategies and improved ESG performance.

Example: An asset owner planning an office renovation uses product LCAs to identify opportunities for reuse, refurbishment, and appropriate end-of-life scenarios for materials being removed. This helps lower renovation costs and keeps valuable materials – like steel beams and glazing – out of landfill, cutting waste and maximising resource efficiency.

Explore the building-level Life Cycle Assessment feature.

3. Meet regulatory and EU Taxonomy requirements

Sustainability regulations continue to evolve, and keeping up with them requires more than box-ticking. Real estate teams must demonstrate performance with clear, verifiable data. Building LCAs provide the technical evidence needed to align with frameworks like the EU Taxonomy and national green building codes, reducing compliance risk and opening doors to green finance.

Example: A commercial development team uses LCA to prove the project meets new carbon benchmarks under EU legislation. As a result, they secure green bond eligibility and increase investor confidence.

Learn how Madaster supports EU Taxonomy alignment

4. Maximize resource efficiency and operational cost savings

Inefficient use of resources can waste money, as well as weaken a project’s ESG materiality profile. Life Cycle Assessment (LCA) helps pinpoint where materials can be used more efficiently to conserve energy and water, reducing overall emissions. Teams use these insights to refine procurement and design strategies. Optimizing these decisions early reduces lifecycle costs and environmental impact, without compromising the project’s scope or ambition.

Example: A retail developer uses LCA data to choose a façade system with better thermal performance and lower embodied carbon. This decision lowers operational energy use and improves long-term returns.

Learn how to identify the most sustainable design options using the comparison tool

5. Build transparency in your asset supply chain

Investors increasingly demand transparency on ESG performance. Data-rich tools like LCA provide that transparency, offering granular insight into material sourcing, emissions, and lifecycle impact. Teams that integrate LCA into ESG reporting gain a competitive edge and build trust with forward-looking investors and clients.

Example: A property fund manager includes LCA metrics in investor reports for a new development. The data highlights reduced emissions and resource use, which strengthens the project’s ESG narrative and appeals to sustainable capital.

Discover ESG and CSRD reporting made simple

6. Strengthen sustainable procurement and supplier selection

Choosing suppliers based on cost alone can introduce long-term ESG risks. LCA helps you assess suppliers by their environmental footprint and manufacturing practices. Real estate teams that conduct LCA gain visibility into supply chain impacts, leading to more responsible material sourcing and stronger project performance.

Example: A development team compares multiple cladding suppliers. LCA results steer them toward a supplier offering recycled content and lower embodied emissions, aligning with their ESG policy and project goals.

Reporting made easier

For real estate investors and developers, integrating LCA into youir ESG and operational strategies can provide a competitive edge. Madaster’s platform supports data-driven decision-making by allowing you to track, optimize, and report on environmental impacts throughout the lifecycle of your assets. Madaster also helps you to easily visualize your carbon impact, by enabling you to store asset performance data as portfolios. With LCA, you gain transparency and the ability to make choices that benefit the bottom lines of both you and our planet.

Start leveraging LCA today to drive measurable progress towards your ESG goals, ensuring that your investments contribute to a more sustainable future.