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Operational Life Cycle Sustainability Assessment Methodology Supporting Decisions Towards a Circular Economy

Periodic Reporting for period 1 - ORIENTING (Operational Life Cycle Sustainability Assessment Methodology Supporting Decisions Towards a Circular Economy)

Reporting period: 2020-11-01 to 2022-04-30

The large adoption of linear take-use-dispose production and consumption systems has led over time to societal challenges, such as climate change and the sustainable management of natural resources. More sustainable business models are needed that can bring demonstrable benefits. Life cycle approaches have been developed for assessing impacts and benefits of products (goods and services) and business systems. However, an established sustainability assessment method for products is still missing that coherently integrates all pillars of sustainability (environmental, economic and social impacts), also addressing material- and product-related aspects of relevance for the circular economy. Life cycle sustainability assessment (LCSA) provides a comprehensive framework, but its operationalisation is not yet practical, especially for Small and Medium Enterprises (SMEs).

Against this background, the main objective of ORIENTING (“Operational Life Cycle Sustainability Assessment Methodology Supporting Decisions Towards a Circular Economy”) is to develop a robust and operational LCSA methodology to assess, help improve, and communicate the sustainability performance of products. The methodology builds on (and informs) other initiatives developed at international level, such as the UNEP/SETAC LCSA framework and PEF, and considers environmental, social and economic impacts, as well as product circularity and material criticality aspects, in a consistent and integrated way. The main objective described above can be broken down into more specific objectives that include:
1. To select and combine fit-for-purpose approaches, models and indicators.
2. To develop novel models and indicators for addressing current sustainability and circular economy challenges and policy priorities.
3. To develop a robust methodological approach for the integration and interpretation of information.
4. To develop new tools that enable the application of the LCSA methodology.
5. To demonstrate the usefulness of the ORIENTING LCSA methodology in decision making processes.
6. To favour the uptake of the ORIENTING LCSA methodology and work towards a future Product Sustainability Footprint, and related category rules.
7. To create a business case around the ORIENTING LCSA methodology.
Main activities in the 1st reporting period, and related results, are summarised hereinafter.

WP1 (M1-M10) evaluated approaches, models and indicators to consider in LCSA. The analysis, described in D1.1-to-D1.6 concerned environmental LCA (with a focus on land-use impacts), social LCA (S-LCA), assessment of life cycle costs/benefits (LCC), product circularity and material criticality, and integration of different topics.

WP2 (M6-M35) has been developing the ORIENTING LCSA methodology. Principles of LCSA were prepared in M12. A 1st consolidated version of the methodology (D2.3) was developed in M19, sent to public consultation (WP5) and to be tested in case studies (WP4). A key feature is the proposition of a multi-level approach to support the broader adoption of the methodology by users presenting different levels of expertise.

WP3 (M9-M35) started working on digital solutions to support LCSA. The following results have been achieved: preliminary definition of ontology and data specifications (MS4) and software requirements (MS5). Furthermore, WP3 has started developing a web-tool to integrate LCSA results, as well as ORIENTING input and output formats (OIF/OOF) to facilitate the exchange and inter-operability of data.

In WP4 (M10-M32), research and industry partners have worked together in the screening of the LCSA methodology, to better understand and reflect industry experience and needs, and to ensure its applicability. Goal and scope have been defined for five case studies. Data collection has started in M19, after completing D2.3.

WP5 (M1-M36) has (i) built the project website and engaged stakeholders, (ii) organised a workshop to discuss users’ needs (MS2), a consultation process to obtain feedback from stakeholders about the LCSA methodology and webinars to further engage stakeholders (M19), (iii) prepared 2 press releases, 2 newsletters and 1 video, and (iv) communicated activities and results of ORIENTING on social media (Twitter and LinkedIn).

WP6 (M1-M36) has analysed barriers and drivers for mainstreaming LCSA, and key actors involved in LCSA. This set the basis for further work aimed at the analysis of relevant business scenarios. Furthermore, WP6 has coordinated dissemination activities: 2 scientific papers and 6 contributions for conferences.

WP7 (M1-M36) has developed a Quality Assurance Plan, a Project Management Plan, and a Data Management Plan. WP7 established close communication with partners and Project Officer to maintain all involved actors informed and address specific needs. WP7 ensured the project was on track and a high-quality level of outputs.
The project:

1. Builds on existing approaches and methods, in particular
a. The UNEP/SETAC LCSA framework, according to which LCSA is the combination of environmental LCA, S-LCA and LCC.
b. The Product Environmental Footprint method, recommended by the European Commission.
c. Product Social Impact Assessment Handbook and UNEP Guidelines for S-LCA.

2. Has been focusing on those aspects in need of greater development
a. Improved characterisation of land use impacts (including impacts on biodiversity), updating the LANCA model used in PEF.
b. Development of an operational approach and indicators for S-LCA based on reference scales.
c. Definition of a life cycle approach for economic assessment (LCC) that takes different stakeholder perspectives into account and is aligned with LCA.
d. Definition of operational indicators and approaches for assessing product circularity and criticality of materials.
e. Integration and interpretation of LCSA results.

3. Has been developing solutions for operationalising LCSA:
a. A multi-level approach to facilitate less experienced users to familiarise with life cycle thinking before moving towards the full LCSA methodology.
b. Tools supporting data collection and implementation of LCSA (e.g. data formats, harmonised topics and indicators for S-LCA, integration tool).
c. Methodological guidance for further development of training material.

The project aims to achieve the following impacts:
1. Enable robust early-stage evaluations and increased consistency across sectors and through value chains.
2. Improve understanding, visualisation and communication of impacts for better informed investment decision-making.
3. Support EU policies and initiatives addressing sustainability of products (e.g. Ecodesign for Sustainable Product Regulation, Safe and Sustainable by Design, sustainability reporting).
4. Create new business opportunities and increased competitiveness for EU industries, and support SMEs in the transition to a circular and sustainable economy.
5. Improve product investment decisions for industry.
6. Contribute to a future LCSA-based certification of products in the EU.
7. Improve innovation capacity and integration of knowledge at EU level.

Furthermore, ORIENTING will contribute to improve the sustainability performance of five industrial activities operating in key sectors (agri-food, chemicals, construction, pulp and paper, textiles). ORIENTING also supports spreading the application of the methodology to other companies/sectors, scaling-up its impacts.
Structure of the LCSA methodology of ORIENTING