Carbon footprint or LCA: differences and complementarities

Bilan Carbone and LCA, two impact analysis methods.

Faced with the urgency of climate change, companies and organizations are increasingly aware of the importance of managing their environmental impact. Bilan Carbone and Life Cycle Assessment (LCA) are two methods for measuring the impact of a company's products, activities and services. These steps are essential for implementing an environmental impact reduction strategy.

While these two methods share the same mission, they differ in terms of approach, criteria and scope. In this article, we present the two approaches, their differences and complementarities.

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What is a Bilan Carbone?

Carbon footprinting, or GHG footprinting for short, is a methodology that lists all the greenhouse gas (GHG) emissions generated by a company's activities. These emissions are expressed in terms of the best-known indicator today: CO2 equivalent or CO2eq. A GHG balance can be more or less detailed, depending on the scopes studied:

• Scope 1: Only emissions linked to the direct consumption of carbon-based fuels by the company are taken into account.
• Scope 2: GHG emissions linked to the company's indirect energy consumption are taken into account. For example, electricity can be an indirect source of GHG emissions, as it requires the burning of coal to produce it.
• Scope 3: These include emissions not linked to the energy consumption of the company's activities. In particular, this concerns all emissions linked to the upstream and downstream activities of its supply chain: purchase of raw materials, transportation, etc.

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There are several methodologies for calculating a GHG balance, the best known of which is the Bilan Carbone methodology (initially developed by ADEME and now delegated to the Association Bilan Carbone). This explains why the term "Bilan Carbone" is frequently used in France for "Bilan GES".

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And why GHGs?

This is the indicator associated with global warming: quantifying GHG emissions means translating them into an increase or decrease in the earth's temperature. Since most agreements, such as the Paris agreement, are based on global warming scenarios, it makes sense to give priority to this indicator.

Today, it has the advantage of being known by all, making data comprehensible to decision-makers and enabling them to speak the same language to define a coherent international strategy.

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Definition and explanation of LCA

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LCA, or Life Cycle Assessment, is the preferred method for evaluating the environmental impact of a product, service or project throughout its life cycle. It is considered the most advanced and scientifically sound method for implementing an eco-design strategy.

During an LCA, the product's entire life cycle is taken into account. This cycle comprises 5 stages:

1. Raw materials: extraction, processing and supply.
2. Final product production: assembly, packaging, construction, etc.
3. Distribution: sales, delivery, etc.
4. Use: consumption, maintenance, etc.
5. End-of-life: recovery, routing, recycling, waste management, etc.

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What are the differences between carbon footprinting and LCA?

Carbon Footprinting and Life Cycle Assessment (LCA) are two essential methods for assessing environmental impact. Although they share common sustainability objectives, their approaches, criteria and scopes vary considerably.

Approach and scope of application of the two methods :

The Bilan Carbone focuses on a rapid, simplified approach, concentrating above all on the company's overall carbon footprint from an operational and organizational angle.

 LCA (Life Cycle Assessment) evaluates the environmental impact of a product or service throughout all its life phases. In other words, it focuses on the entire value chain, from raw material to recycling or end-of-life.

Criteria used for each method :

The Bilan Carbone method is based on a single criterion: greenhouse gas emissions (GHG).

LCA is multi-criteria. Not only does it consider CO2 emissions, it also assesses other elements such as water consumption or impact on soil.

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The benefits and limitations of carbon footprinting

The primary interest of a GHG balance sheet is to discover your "carbon expenditure" items. In fact, by having access to quantified data that can be grouped into different items, we can determine where to prioritize action to reduce these emissions. You can then put in place an action plan based on quantified indicators to reduce your GHG emissions: you'll be able to adopt an effective CSR strategy.

In France, all companies with at least one entity (subsidiary) with more than 500 employees are required to carry out a Scope 1 and 2 GHG assessment.

⚠️ Please note that most of the GHG emissions of companies in the consumer goods sector reside in scope 3 (generally between 80 and 95%): it is therefore strongly recommended to do so, and the law should evolve to make scope 3 mandatory.

There are two main limitations to the Bilan Carbone :

• It takes into account only one of many indicators. GHGs are only part of the environmental picture, and other indicators such as depletion of natural resources or impact on biodiversity are important to take into account to reflect a company's overall impact on its ecosystem.
• Finally, a company's carbon footprint is not related to its added value. A simple way of translating this problem is that a company, even one that is "virtuous" for the planet, will increase its carbon footprint as it grows. However, the growth of such a company will make it possible to substitute for more polluting solutions, and its growth is therefore virtuous. This is where we begin to see the value of measuring at product level.

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Carbon footprinting and Life Cycle Assessment: two complementary methods

In this way, LCA - see our article on LCA - complements the GHG balance sheet. We can go back down to the product level, firstly to reduce the impact of our products through eco-design, and secondly to communicate the environmental impact to the end consumer (and not just in CO2eq!).

At the same time, the GHG balance sheet provides global data for strategic decisions, and can be translated into a single indicator. If more granular information is required, for example on product lines, LCA data on several products can be brought together. The challenge will then be to bridge the gap between the environmental data derived from the LCA and that derived from the GHG balance sheet.

We have also seen that companies with more than 500 employees are required to carry out a GHG assessment. The trend towards LCA is towards environmental labelling (French by ADEME and European with PEF*), which uses this methodology to create a rating for products.

💡 French environmental labelling is already in the experimental phase for textiles and will be made mandatory in 2023. Furnishings are also in the experimental phase and will probably follow a year later. So it's a good idea to get a head start!
Read our article on environmental labelling here.

Finally, the work done on scope 3 of a carbon footprint will be useful for subsequent LCAs. In fact, the information gathered from your suppliers (secondary data) will be largely reusable for LCAs!

A carbon footprint is therefore often the first step in defining a CSR strategy, and LCA can then be used to consolidate the strategy, reduce the impact of products and communicate with consumers.

* PEF: Product Environmental Footprint

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