Implementing life cycle thinking and climate change indicators in small and medium size enterprises

The policy for a low emission society requires that companies measure their impact from a life cycle perspective for both products and corporate reporting. This work presents new climate performance indicators to evaluate business models (BM) based on life cycle assessment (LCA) and benchmarked with statistics for Sustainable Development Goal indicator 9.4.1. The research was conducted by action case studies involving 20 small and medium sized enterprises (SMEs) from various sectors. The SMEs did not have previous experience with LCA. Therefore, a work process called "LCA a<acute accent> la carte" was designed to gradually increase details and effort. The results of simplified indicators on the manufacturing SMEs showed that the direct emissions to value added are lower than industry average. However, when upstream emissions and value added were included, the emission intensities are about industry average. The full life cycle climate indicators are presented for a boat production company that experiment with new BMs. Use phase electrification was found to be the most effective measure (60 % lower emission intensity), while material recycling and boat rental each reduced the emission intensity with about 30 %. However, a combination of these new BMs gives best results and could be needed to reach future benchmarks. This study suggests LCA for BM as a combination of a work process, actors' perspectives, and performance indicators. The results highlight that the scope of activities included in the performance indicators is crucial. New reporting standards such as the European Sustainable Development Standard (ESRS) should review the emission intensity indicators to ensure consistency between the scopes of activities included.