Session: Corporate Use of LCA

Quantifying and Benchmarking Environmental Performance of Companies: LCA for Socially Responsible Investments
Damien Friot,   University of Geneva, Applied economics
Josef Kaenzig,   University of St-Gallen
Myriam Saadé,   Ecointesys-Life Cycle Systems
Manuele Margni,   CIRAIG-Ecole Polytechnique de Montreal
Olivier Jolliet,^*   University of Michigan, School of Public Health

Interest for socially responsible investment is growing. Social and environmental performances assessments are becoming additional requirements for a growing number of mutual funds. There is however a large gap between the financial side of the selection process, where complex valuation procedures are usual and the sustainable side, mostly relying on qualitative and heterogeneous information. Thanks to the number of companies publishing environmental data (energy and water use, CO₂ emissions), it becomes possible to evaluate the feasibility of a quantitative approach. First studies at EPFL have however shown that the data published in environmental reports are currently not adequate for a proper benchmarking with obvious mistakes in units, lack of homogeneity or incomplete geographical coverage. A quantitative approach requires therefore to establish verification strategies and data completion with other sources. In addition to these data issues, some conceptual issues have to be taken into consideration: environmental reports are describing direct emissions, on site, but do not consider induced emissions, either upstream (suppliers) or downstream (customers). It seems therefore clear that direct emission need to be complemented by evaluating emissions in a life cycle perspective. Selecting the best environmental performers within a sector is therefore only possible, on a quantitative basis, within an overall integrated approach including suppliers and customers. Finally a case study in the automobile sector shows how life cycle thinking and associated approaches (Life Cycle Assessment, Impact Assessment, extended Input-Output Analysis) provide help to define an appropriate to benchmark key impacts.

---