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From Data to Decisions: How LCA Software Powers Sustainable Growth

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In today’s business landscape, sustainability is no longer a buzzword — it’s a necessity. Companies are increasingly under pressure from consumers, investors, and regulatory bodies to adopt more sustainable practices. One critical solution to this is Life Cycle Assessment (LCA) software, a tool that transforms complex data into actionable insights, driving sustainable growth and operational efficiency. Let’s explore how LCA software addresses common pain points and empowers businesses to make informed, sustainable decisions. 

Automating Life Cycle Assessments 

One of the primary challenges companies face is the labor-intensive nature of conducting life cycle assessments. Manual LCA processes involve collecting data from various sources, analyzing it, and then interpreting the results — a time-consuming and often error-prone undertaking. LCA software (as seen in Makersite’s work with Microsoft), however, automates these processes, significantly reducing the workload, accelerating the data assessment process and enhancing accuracy by minimizing human error. This allows businesses to conduct LCAs more frequently and efficiently, ensuring that sustainability is able to remain a continuous, integrated part of their operations. 

Example: 

A consumer goods manufacturer can use LCA software to automate the assessment of thousands of products across different regions. This not only speeds up the process but also provides more reliable data for making strategic decisions on product design and material sourcing. 

Enhancing Sustainability Reporting 

Sustainability reporting is critical for transparency and compliance with an ever-growing slate of regulations. However, compiling comprehensive and accurate reports manually can be daunting. LCA software simplifies sustainability reporting by providing a centralized platform for data collection and analysis. The software can automatically generate reports that comply with various standards and frameworks, not only saving time but also ensuring that reports are accurate and consistent, bolstering both the company’s credibility and compliance. 

Example: 

A large retailer can use LCA software to streamline its annual sustainability report, ensuring that data from all departments is consistent and compliant with international standards. This has the added benefit of enhancing the retailer’s reputation among environmentally conscious consumers and investors. 

Scaling Sustainable Business Practices 

For businesses looking to scale their sustainability efforts, LCA software is indispensable. As companies grow, so do the complexities of their supply chains and operations. Manual approaches to LCA are almost impossible to scale accurately, often leading to fragmented and inconsistent sustainability practices. LCA software, on the other hand, provides a scalable solution that can handle large volumes of data across multiple sites and products. This scalability ensures that sustainability efforts are uniform across the organization, facilitating broader and more impactful environmental initiatives. 

Example: 

An automotive company can use LCA software to evaluate the environmental impact of its product lineup across multiple markets. This allows the company to implement standardized sustainability practices globally, ensuring that all operations contribute to the company’s overall environmental goals. 

Making Sustainable Manufacturing More Efficient 

Manufacturing is a resource-intensive process (research shows that approximately 80% of a product’s environmental impact is determined during the design phase), and making it sustainable is a significant challenge.  

LCA software helps manufacturers identify inefficiencies and areas for improvement by providing detailed insights into the environmental impacts of their processes. By analyzing data on energy use, waste generation, and emissions, companies can implement targeted strategies to reduce their environmental footprint. This not only helps in achieving sustainability goals but also often results in cost savings through improved efficiency and resource management. 

Example: 

A packaging company can use LCA software to analyze the lifecycle of its products, identifying opportunities to reduce material waste and energy consumption in production. This leads to both cost savings and a reduced environmental footprint. 

Overcoming the Limitations of Manual LCA 

Manual life cycle assessments are fraught with limitations. They are time-consuming, prone to errors, and often lack the granularity needed for precise decision-making. Furthermore, different business units operating in siloes can lead to inconsistent data and fragmented sustainability efforts. LCA software addresses these issues by providing a unified platform for data integration and analysis. This ensures that all business units are aligned and working with the same accurate, up-to-date information. The result is a more cohesive and effective approach to sustainability. 

Example: 

A multinational corporation can use LCA software to integrate data from various departments, ensuring that sustainability metrics are consistent across all regions and product lines. This unified approach facilitates better strategic planning and resource allocation. 

Assisting with Scope 3 Calculations 

Scope 3 emissions, which include all indirect emissions that occur in the value chain of the reporting company, are notoriously difficult to measure and manage. Traditional methods of calculating these emissions are complex and often inaccurate due to the vast amount of data required. LCA software simplifies scope 3 calculations by automating data collection from suppliers and other value chain partners. This leads to more accurate and comprehensive assessments of a company’s total carbon footprint, enabling more effective strategies to reduce emissions. 

Example: 

A food and beverage company can use LCA software to track emissions across its supply chain, including agricultural practices, transportation, and packaging. This comprehensive view helps the company identify and target high-emission areas for improvement. 

Addressing Issues with Manual Data Processing 

Manually processing the vast amounts of data required for LCA is not only tedious but also increases the likelihood of errors. Data discrepancies, incomplete information, and the sheer volume of data can overwhelm sustainability teams. LCA software mitigates these issues by automating data processing, ensuring that data is accurate, complete, and consistent. This automation allows sustainability teams to focus on interpreting the data and making strategic decisions rather than getting sidelined by data entry and verification. 

Example: 

A technology company can use LCA software to automate the processing of data from its global supply chain, ensuring that all environmental impacts are accurately recorded and analyzed. This allows the company to quickly respond to sustainability challenges and opportunities. 

Scaling Accurate and Granular Data 

Accurate and granular data is crucial for effective sustainability initiatives. Without precise data, companies cannot accurately measure their environmental impacts or the effectiveness of their sustainability strategies. LCA software provides the tools needed to collect, process, and analyze detailed data on a large scale. This granularity enables companies to pinpoint specific areas for improvement and track the progress of their sustainability efforts with a high degree of accuracy. 

Example: 

A chemical company can use LCA software to gather detailed data on the environmental impacts of each stage of its product lifecycle, from raw material extraction to disposal. This level of detail enables the company to implement more precise and effective sustainability measures. 

Common Problems Faced Without the Right LCA Software 

Businesses that do not use the right LCA software often face a myriad of challenges. As discussed above, these include inefficient and error-prone manual processes, inconsistent data across different business units, difficulty in scaling sustainability efforts, and challenges in meeting regulatory compliance. Without LCA software, companies struggle to conduct comprehensive and accurate life cycle assessments, leading to missed opportunities for improvement and potential reputational damage. 

Let’s recap the most common problems: 

Inefficient Manual Processes 

Manual LCA processes are labor-intensive and slow, often resulting in delays and increased costs. The time and resources required to collect and analyze data manually can be prohibitive, especially for large companies with complex supply chains. 

Inconsistent Data 

Different business units operating in siloes often lead to inconsistent data collection and reporting. This fragmentation hampers the ability to get a clear, unified view of the company’s overall environmental impact, making it difficult to implement cohesive sustainability strategies. 

Difficulty in Scaling 

As businesses grow, so do the complexities of their operations. Without the right LCA software, scaling sustainability efforts becomes challenging. Manual processes simply cannot keep up with the increased data volume and complexity, leading to inefficiencies and gaps in sustainability initiatives that will only increase and become harder to tackle effectively with time. 

Regulatory Compliance Challenges 

Meeting regulatory requirements for sustainability reporting is critical but can be difficult without the right tools. Manual processes increase the risk of errors and non-compliance, potentially resulting in fines and reputational damage. LCA software ensures that all data is accurately collected and reported, helping companies stay compliant with environmental regulations. 

Missed Opportunities for Improvement 

Without accurate and comprehensive data, companies may miss opportunities to improve their sustainability practices. LCA software provides the detailed insights needed to identify inefficiencies and areas for improvement, enabling more effective and impactful sustainability strategies. 

Driving Growth Through Sustainable Practices 

LCA software is not just a tool for compliance; it’s a strategic asset that drives growth through sustainable practices. By providing detailed insights into every aspect of the product lifecycle, LCA software helps businesses innovate and improve their products and processes. This leads to the development of more sustainable products that meet consumer demand and regulatory standards, opening new market opportunities and enhancing brand reputation. 

Innovation and Product Development 

LCA software enables companies to explore different materials and production methods, assessing their environmental impacts before implementation. This fosters innovation in product development, leading to more sustainable products that can attract eco-conscious consumers and differentiate the company in the market. 

Market Differentiation 

Companies that can demonstrate their commitment to sustainability through rigorous LCA practices can differentiate themselves in the marketplace. This not only attracts environmentally conscious consumers but also appeals to investors looking for responsible and future-oriented businesses. 

Cost Savings and Efficiency 

Sustainable practices often lead to cost savings through improved resource efficiency and waste reduction. LCA software helps identify these opportunities, ensuring that sustainability initiatives are also financially beneficial. 

Regulatory and Compliance Benefits 

Proactively managing sustainability through LCA software helps companies stay ahead of regulatory changes and avoid potential fines or sanctions. It also enhances the company’s reputation with regulators and stakeholders. 

Conclusion 

LCA software is a powerful tool that transforms data into actionable insights, driving sustainable growth and enhancing operational efficiency. By automating life cycle assessments, better facilitating sustainability reporting, and enabling the scaling of sustainable business practices, LCA software addresses many of the common pain points faced by companies today.  

It makes sustainable manufacturing more efficient, assists with scope 3 calculations, and ensures accurate and granular data processing. In an era where sustainability is paramount, investing in the right LCA software is essential for businesses looking to thrive while minimizing their environmental impact. 

The right LCA software not only simplifies and streamlines sustainability efforts but also provides a competitive edge by enabling companies to operate more efficiently and transparently. As the demand for sustainable practices continues to grow, leveraging LCA software will be crucial in helping businesses make informed decisions that benefit both the planet and their bottom line. 

Examining the new Ecodesign Regulation

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In recent years, legislators have passed down a glut of regulations that organizations have had to figure out how to deal with. While all have their merits, it’s almost a given that some get a little lost in the noise. However, every now and then a regulatory development occurs that has the power to change the design and manufacturing landscape as we know it, and for good. 

That happened on 23rd April 2024. The European Parliament approved a new Ecodesign Regulation to make products sold in the EU more reusable, repairable, upgradeable, and recyclable. 

Let’s take a look at what it means, who it will impact, and the actions you need to take. 

What is the new Ecodesign Regulation? 

After a somewhat tumultuous journey through the legislative corridors of the European Parliament, the version of the Ecodesign Regulation for Sustainable Products (ESPR) that passed on 23rd April was both final and unanimously agreed upon. It is a framework that will significantly alter how goods are introduced and sold in the EU. 

The intention behind it is clear. As Italian lawmaker Alessandra Moretti said, it is “time to put an end to the ‘take, make, throw away’ model that is so harmful to our planet, our health and our economy”. 

The new rules will update the current 2009 directive, which exclusively concerned energy-related products, in terms of efficiency and circularity. They call on the Commission to give priority to resource-intensive sectors such as iron, steel, aluminium, textiles, furniture, tyres, detergents, paints, lubricants, and chemicals. It’ll also enforce a Digital Product Passport to aid informed consumer choices. 

A key element of the Green Deal, ESPR is part of the broader circular economy package, which aims for the EU to use and reuse materials far more efficiently. The package also contributes towards the EU’s goal of having net zero greenhouse gas emissions by 2050 and should reduce harm to the environment. 

As Moretti summarized: “Sustainable products will become the norm, allowing consumers to save energy, repair and make smart environmental choices when they are shopping.” 

The text now needs the final approval from national governments to enter into EU law. 

Monique Goyens, director general of BEUC, the European consumer organisation, concluded that “the framework needs to be implemented quickly. It is essential that the European Commission and member state market surveillance authorities allocate resources to the development and application of the new rules.” 

What happens next? 

ESPR is due to be published in the Official Journal of the EU and enter into force by July 2024. The first delegated acts spelling out specific ecodesign requirements may not come into force until the second half of 2025. The first ecodesign requirements are expected to apply to textiles and steel, and are likely to enter into force by mid-2027.   

In addition, the EU is expected to publish a three-year working plan prioritising ecodesign requirements per product in March 2025, providing further guidance as to when products will come under increased scrutiny. 

However, given design and production cycles, manufacturers of products, especially those on the European Commission’s priority list, should begin to familiarise themselves with the ESPR’s requirements now and assess what needs to be done to ensure their products are compliant. If they don’t, they could risk losing access to the EU market as well as losing significant ground to better prepared competitors. 

Without doubt, these requirements represent a pivotal moment for the manufacturing industry, challenging stakeholders across businesses to rethink their production methods. Those companies who are able to adopt a proactive approach to ecodesign will be ahead of the curve. Companies who leave it leave to the last minute – those who lack urgency until the regulation is live – will find it hard to catch up. 

Indeed, at Makersite, we’re already seeing mature companies like Microsoft taking the necessary steps. For the last two years they’ve worked to rebuild and refine their Surface Pro 10, using Makersite’s automated LCA models to identify and evaluate hotspots in their supply chain. In doing so, they reduced its carbon footprints by up to 28% within a 24-month timespan. 

This is the gold standard. It is what all businesses should be aiming for. It takes a long time to get to where you need to be. If we look back at similar regulatory developments that went on to facilitate a sea change in manufacturing approaches and consumer awareness (like nutrition labels in the early 1970s, for example), it’s obvious that it won’t take long for something like ESPR to reach critical mass.  

Within a decade, it’s extremely likely that it will have reached mass adoption in Europe. It’s a plan as ambitious as it is comprehensive. And it’s one where a forward-thinking approach – utilizing a solution where environmental impacts can be determined in just minutes – will make all the difference. 

What actions should you take – and when? 

Now is not the time to hold back. Those organizations who wait for final approval will find themselves firmly on the back foot. Businesses who seek to get their houses in order immediately will reap the rewards further down the line. 

The impact of ESPR on companies’ core operations will be significant. Beyond specific traceability elements, the requirements will directly affect products at all stages in the value chain, including recyclability, the use of recycled contents, and durability. 

ESPR will require that companies look at products and their value chains, create transparency and evaluate impacts at that level, and report on that – all on a regular basis. It’s not something that can be done one product at a time. It needs a different approach. 

Today, most organizations are not set up to deal with reporting on that scale. But in order to succeed, they need to equip their engineers and designers with tools that offer instantaneous feedback on the environmental impact of design alterations in order for them to ensure that sustainable products not only adhere to the new regulations but become the norm. 

In order to comply with the regulation, businesses now need to take the proper steps to collect realistic data and create the necessary infrastructure to drive innovation, all while obtaining real-time insights into the impact of changes on the environmental impact of products.

In order align with ESPR and reduce a product’s environmental impact quickly, organizations need to be able to immediately see how material, manufacturing processes or supplier changes impact a product’s sustainability. Outdated methods – like manually conducted LCAs – will invariably fall short of providing those essential real-time insights which are critical when it comes to making efficient and significant progress in product sustainability.

As we stated earlier, ESPR aims to improve products by emphasising durability, energy efficiency, recyclability, and more. With access to immediate insights, design teams can align their efforts with ESPR objectives, in turn enabling them to test and discover a significantly higher number of possible solutions to improve their products. Those who do so are likely to dramatically outpace peers yet to embrace a new approach, with those lagging behind likely to find themselves waiting weeks or even months to find out if their new ideas positively affect their products’ environmental impact.

The journey to sustainable product design is paved with challenges, but each obstacle is an opportunity to innovate. Whilst new regulations might seem daunting, time consuming and even frustrating they also represent a chance to make meaningful change and to take alead over competitors not ready or aware enough to act quickly.  

Don’t let poor data, slow LCA execution speeds and external dependencies stop you from discovering the most sustainable version of your product.

Solving the Scope 3 challenge

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Makersite CEO Neil D’Souza recently sat down with The Scope 3 Podcast’s Tom Idle and Oliver Hurrey to discuss the key supply chain challenges facing organizations today – and how Makersite can help to solve them. You can listen to the full episode below or using the link here.

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Five key takeaways on product sustainability and scope 3

The real impact comes from products

It might sound simple, but when it comes to Scope 3 we need to take things back to the source. As Neil notes, “100 % of the impact that we see in the world today comes from the products we make and use. If you really think about it, whether you’re a service company and you’re flying around, well, it’s the plane that’s creating the impact, right? If you’re on your desk, then it’s the laptop and the electricity you use to run it.”

Just reporting isn’t enough. If you truly want to fix something and resolve the problem of the impact that’s being created, then you need to do your homework and properly understand the implications of designing a product in a certain way – from the raw materials you use to where you source them from to the end of life of that product.

Sustainability isn’t about ‘being green’

It’s all very well for a company to want to flex its green credentials. But if you want to properly affect the product you make, then you need to go deeper. “Out of 250 odd projects that I’ve worked on,” Neil says, “there is not a single project that was implemented just because it was green.”

So what is it about? Business is about making trade-offs. It’s about asking yourself the right questions. “What will I get if I were to reduce its impact by 30%? What will I get in terms of, ‘will I be able to sell more in more jurisdictions?’ Would it address a different market? What would be the cost implication of it? Would I still be able to sell it given compliance problems that I may have? Would it still be safe?”

The design must be separated from the implication or the understanding of the implication.

Facilitating the demand for better products

Now more than ever, manufacturers in a variety of markets are facing an increasing pressure to make better, more sustainable products. But not only is there a greater demand from consumers and stakeholders for this approach – there’s also a greater propensity to pay higher premiums for better design.

However, these markets (from building and construction to automotive to chemicals) generally have very complex supply chains and products, and traditional tools and traditional approaches can’t solve the hurdles they need to overcome in order to meet those demands.

Makersite powers the systems used by the people (from engineers to procurement) in organizations who can make the difference – the CAD tools, the PLM tools, the ERP tools, the procurement tools.

With that help, they can ensure that the product that is being designed follows the rules of the region in which they’re trying to sell it.

2030 is too soon

Many companies have positioned ambitious Scope 3 and Net Zero targets for 2030. But, says Neil, that’s not giving anyone enough time. “In reality, if you think of this from an engineering standpoint, an average technical product takes five to seven years to go to market. 2030 is six, seven years away. You’ll be able to make one product change. That’s about it. There’s not a lot you can do with one product iteration.”

For Makersite, it’s about the bigger picture. The longer term. And it’s about stopping the same mistakes being made over and over again: “What we want to do is every iteration from now until 2050, every iteration of every product that is new, that is innovative runs through Makersite. If we do that, then we’re not making the mistakes that we’ve continuously made over time.”

The tools we have now are smart – but not smart enough

In order to properly service the market and the demand from consumers, the tools we have now need to be refined. They are good, but they could be better.

Neil D’Souza: “The first is engineering tools. Engineering tools need to become smarter in order that we make the right decisions during design. The second is procurement tools. Procurement tools themselves also need to become smarter. We need to be able to not just quantify what are the impacts of the products that we’re buying, but identify where are the low carbon products that we can buy. And the connection of these two tools is important for that to happen.”

Ultimately, if organizations want to decarbonize, then they must provide their procurement teams with the flexibility to look at the market for low carbon solutions, as well as the level of information to not buy the wrong thing. This is a connection that can only happen when you connect product development tools with procurement tools.

With that, there will then be an understanding of the material constraints and the production constraints that you need to have to make that product successfully.

50 shades of carbon and compliance 

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Carbon Compliance Timeline


In today’s fast-paced corporate landscape, the harmony between sustainability and regulatory compliance is paramount, with an intricate web of regulations and sustainability reports creating an unprecedented imperative for enterprises to align their operational models. Leaping into the heart of these challenges, analyzing a data driven perspective is crucial for supply chain leaders and sustainability champions. It’s time to truly understand the collage of complexity emerging within the regulatory and sustainability spheres and harness this understanding to steer our enterprises toward a greener, more compliant future.

The current state – and what could be 

The trajectory of manufacturing organization’s capabilities in environmental sustainability and lifecycle assessment (LCA) showcases a profound evolution. Currently, in 2024, most processes are labor-intensive, with approximately two weeks required for conducting a simple LCA, and up to 50-man days for more complex assessments. This inefficiency spans across hundreds of thousands of products, involving millions of unique components annually. The absence of ecodesign capabilities and the challenge of managing Scope 3 data accuracy are the most common gaps in present-day manufacturing enterprises. However, the outlook for the future of sustainable product manufacturing is promising and positions enterprises on the cusp of a sustainable innovation breakthrough.  

The automated LCA process heralds a revolution, transforming a cumbersome task into an instantaneous, automated, and scalable operation. This leap has facilitated the assessment of an expanded portfolio of more than 500,000 products with over a million unique components, just in Makersite’s realm, shifting the frequency of Environmental Product Declarations (EPD) and Product Carbon Footprints (PCF) from an annual to an ongoing (and on demand) basis. The integration of digitized, granular data is the centerpiece of this transformation, significantly accelerating ecodesign capabilities through the precision and accessibility of the data we are able to harness.  

However, pushing the start button of this transition for any enterprise can be daunting, with scattered process, strategies, and stakeholders. Nevertheless, standardizing and automating data collection, analysis, reporting, and unifying fragmented systems and data silos is a little less intimidating to take on with the right data solution.  

The challenge of environmental data compliance and the competitive advantage 

Today, businesses function in a global market increasingly focused on sustainability and the environmental impact of products. Those businesses must operate within a complex landscape of regulations and frameworks that demand detailed environmental data. With growing complexities in the regulatory landscape surrounding sustainability reporting, there is a clear need for the better governance of upstream environmental data, which currently faces challenges such as incomplete Bills of Materials (BOMs), unidentified sources for supplier and factory data, and the daunting task of aligning data for energy consumption calculations. 

The significance of these challenges cannot be overstated, as failure to comply carries the risk of substantial penalties. However, the demand for meticulous environmental data is not just a matter of regulatory adherence — it’s also a crucial driver for achieving ambitious sustainability targets to which many businesses are now committed. Consumers, partners, and the broader market are more informed and more concerned about the environmental impact of their consumption than ever before. They require comprehensive environmental data to evaluate the sustainability attributes of products. This data empowers them to make informed choices, differentiate products, and ultimately promote environmentally friendly options over their less sustainable counterparts. The visibility of environmental credentials has become a key factor in purchasing decisions, thereby influencing sales and brand loyalty.  

Additionally, market leaders and competitors are not sitting idle. There is a palpable acceleration towards the integration of sustainability data into products and corporate value propositions. This trend underscores a shift in how sustainability data is perceived — from a regulatory requirement to a strategic asset that enhances competitive advantage. Companies that successfully incorporate high-quality environmental data into their products not only meet regulatory demands but also position themselves as leaders in the transition to a greener economy. 

“Product design and sourcing leaders respond to external demands by prioritizing sustainability in product development. Changing customer expectations, an emphasis on the circular economy, and supply chain transparency drive their organization’s product initiatives. Product design and sourcing leaders are addressing the intersection of sustainability, resilience, and business performance; they’re prioritizing initiatives like enhancing sustainability reporting for compliance and to support sales or optimizing reliability and efficiency when sourcing materials.” 

From: Makersite and Forrester’s ‘Transform Product Sustainability into Performance Initiatives with Product Lifecycle Intelligence’ [Download] 

The challenge of granular visibility in supply chains 

In the wake of escalating demands for sustainability and compliance, Original Equipment Manufacturers (OEMs) and Tier 1 suppliers are at a crucial juncture. The imperative to empower a specialized team of cross-functional experts has never been more pressing. Their mission? To achieve real-time visibility into the labyrinth of their intricate supply chains. A monumental shift — from annual to monthly to real-time reporting — is required. However, this demands a seismic change in strategy and execution. With portfolios encompassing hundreds of thousands of unique products and millions of unique component parts, the scale of this challenge cannot be overstated. The objective for many is clear: to automate, scale, and future-proof the capabilities of OEMs and Tier 1 suppliers, enabling them to adeptly respond to an exponentially growing number of demands. It is conceptually simple, but operationally complex. 

Furthermore, these demands are coming multiple angles: customers, industry standards, and regulatory bodies, each requiring detailed attention at the product level. The key to navigating this lies in successfully implementing an integrated data layer that not only streamlines operations but also injects carbon management and other critical upstream environmental data across various domains. By bridging the chasm between engineering, compliance, sustainability, and procurement, this strategic integration shatters longstanding data and organizational silos, paving the way for fluid decision-making processes inclusive of and informed by both data-driven insights and human expertise. Fostering this connectivity consequently positions OEMs and Tier 1 suppliers at the cutting edge of competitive advantage, fortifying their standing for the decade ahead.  

Progressing towards a more integrated and responsive framework is not just about survival; it’s about seizing the opportunity to lead in the realm of sustainability and regulatory compliance. Through this visionary approach, OEMs and Tier 1 suppliers are not only adhering to the current landscape of expectations but are also shaping the future of environmental stewardship within the industry. At first glance, the proposed transformation may appear overly optimistic and deceptively simple; however, it’s important to acknowledge the complexity of the undertaking for the organization. For many, a multi-faceted strategy is essential when addressing intricate challenges in order to ensure success in sustainability endeavors, but the question remains: is extensive, manual effort truly necessary? Could there be a more streamlined approach? 

The challenge of quality environmental product data  

While the demand for sustainability and compliance to merge into a single force very much still exists, the Request for Proposal (RFX) process so much of the industry grapples with is undergoing a significant transformation. This change is spurred by the necessity for quality environmental product data to future-proof carbon decision-making initiatives. However, the integration of sustainability within compliance frameworks is no longer optional. With 64 countries and 12 U.S. states now imposing mandatory carbon pricing and planning, the landscape of Environmental, Social, and Governance (ESG) reporting is expected to see a 527% upsurge in Key Performance Indicators (KPIs). These developments underscore evolving global compliance dynamics, with stringent regulations on substances and materials spanning multiple continents. The consequences of non-compliance are severe, ranging from stop-orders to hefty fines — a reality many businesses are scrambling to avoid.  

In sectors like electronics, automotive, and oil & gas, ecodesign is not just a trend — it’s a requirement. The push for greater transparency, especially in Scope 3 Category 1 emissions, is compelling Tier 1 suppliers to adopt a more transparent approach in the RFX process. OEMs are demanding a deeper insight across the value chain, necessitating a shift from spend-based assessments to a hybrid model fortified with defensible data from suppliers. The high-quality emissions and sustainability data needed from suppliers would be pivotal for enhancing Life Cycle Assessments (LCAs), Product Carbon Footprints (PCFs), and Environmental Product Declarations (EPDs), thereby enabling informed ecodesign decisions. 

The challenge of an aging, siloed and unintegrated tech stack

OEMs and Tier 1 suppliers face three primary challenges in leveraging market opportunities effectively: the need for data aggregation, harmonization, and contextualization; reliance on obsolete digital architectures, outdated tools and processes; and the poorly governed business use cases for integrated carbon decision-making. Both OEM & Tier 1 suppliers have invested in legacy tech stacks creeping upwards of dozens to hundreds of unique tools and systems over 25-plus years.  

On top of the market evolving rapidly and demanding new flexibility for ever changing requirements on data granularity and availability, and without the right tech stack set up to respond to the demand for integrated carbon decision making, market leadership and winning business is at risk. Overcoming these obstacles is not just crucial for meeting current demands but is instrumental in shaping the future of responsible manufacturing and sustainable industry practices. Companies at the forefront of prioritizing data quality, overcoming technological limitations, and mastering integrated carbon decision-making will not only align with global compliance and sustainability mandates but will also secure a leading position in the green economy of tomorrow. In the absence of that option, what alternative course of action should we pursue? 

“Cross-functional collaboration, and a single source of truth is critical in enhancing product design and sourcing as well as gaining a competitive edge. Respondents agree that adopting product lifecycle intelligence drives sustainability improvements by enhancing data quality and supporting collaboration among stakeholders. They expect the solution’s business value to be reflected in a faster time to market, higher profits, and operational enhancements.”
 

From: Makersite and Forrester’s ‘Transform Product Sustainability into Performance Initiatives with Product Lifecycle Intelligence’ [Download] 

Aggregate. Contextualize. Harmonize.

The process requires a deep understanding and application of essential steps to harness environmental data effectively by ways of data aggregation, contextualization, and harmonization. The foundation of robust carbon decision-making lies in the meticulous collection and consolidation of upstream data. This crucial first step is about securing a diverse stream of data inputs that are integral to understanding the environmental impact of products or services. The variability and complexity of these data sources necessitate a systematic approach to ensure accuracy and relevance. Companies looking to optimize their carbon footprint calculations must prioritize this data collection as a critical input to their sustainability efforts. 

Once the upstream data is collected, it’s time to translate this information into actionable environmental data for products. This stage is where the carbon, cost, and compliance figures are derived. However, it’s not just about gathering data; it’s about making sense of it in a way that aligns with business goals and sustainability objectives. By aggregating upstream data effectively, companies can shed light on the environmental footprint of their offerings, enabling informed decision-making. In the digital age, the value of data is greatly enhanced by its accessibility. Focusing on the digitization and publication of consolidated environmental data involves pushing the data to platforms and repositories where it can be easily accessed by customers and stakeholders. Such transparency is not only a marker of a company’s commitment to sustainability but also serves as a differentiator in the marketplace, showcasing the environmental credentials of their products. 

To elevate the integrity and market value of products, it is crucial to not only generate but also consolidate product environmental data and rigorously validate sustainability claims. This consolidation involves synthesizing collected and upstream data into coherent, actionable insights that accurately represent a product’s environmental footprint. By doing so, businesses can ensure that their sustainability claims are not merely aspirational but are firmly rooted in empirical data.  

But how do we validate? Validation should be conducted through third-party audits or by employing recognized sustainability frameworks and standards. This thorough vetting process not only fortifies the credibility of a company’s sustainability assertions but also amplifies consumer trust. In aligning closely with the data-driven methodologies outlined previously, businesses can assert their sustainability claims with confidence, offering tangible proof of their commitment to environmental stewardship. This not only meets the growing demand for transparency in the green market but also positions companies at the forefront of sustainable innovation, distinguishing them in a competitive landscape. 

With the strategic use of Life Cycle Assessment (LCA) methodologies, businesses are able to calculate and understand the comprehensive environmental impact of their products, from CO2 emissions to broader sustainability metrics. The digital era demands that this rich environmental data be made accessible through digitization and publication, enhancing transparency, and distinguishing a company’s products in the competitive marketplace by their environmental credentials. 

A meaningful, holistic approach 

Generating compliance data is not just about avoiding penalties but also about upholding a commitment to environmental stewardship. This extends to leveraging Life Cycle Assessment (LCA) methodologies to calculate the impact of products on the environment comprehensively. By employing LCA, organizations can generate CO2 emissions data and other quantitative indicators that offer insights into the overall environmental footprint of their products or services. The implications for the EHS&S professionals are manifold, involving an enhanced capacity for instant automated LCA calculation, on-demand automation and scalability for assessing the environmental impact of vast product portfolios, and the fast-tracking of ecodesign driven by accurate, digitized, and granular data.  

Enterprises pursuing a holistic approach encompassing compliance with environmental regulations, the adoption of ecodesign principles to minimize lifecycle impacts, and the pursuit of decarbonization efforts to reduce greenhouse gas emissions meaningfully can enhance their market value proposition through clear communication of their product’s environmental credentials. These objectives will serve as guiding principles for utilizing environmental data to support decisive action across the spectrum of sustainability practices, empowering businesses to not just participate in the green economy, but to lead and innovate within it.

A new era of product design: How engineers can lead the way

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We live in a culture defined by the concept of “take, make and waste”. We find ourselves battling against rapid product development and poor-quality products, which add little to no value to our lives and contribute to unsustainable growth. This, in turn, has led to over-commercialism – a concept defined by low costs, over-supply and a lax attitude towards sustainability.

So how can change be enacted? By empowering and enabling the right people. Product engineers want to create great, well-functioning products that have a low environmental impact. But they have historically lacked the required tools and support from the organisations they work for.

To achieve the sustainability goals businesses, consumers and regulators have put before us, the focus should be on making it better rather than making it faster. But to do that, the negative environmental impacts from the design and production process have to be removed.

The solution? New machinery. A tool that enables engineers to see the impact of material choices during the design phase of a product – a phase where, currently, some 80 per cent of the ecological impact of a product happens. A tool that enables speed, experience, performance and costs to be optimised and environmental impact to be removed. A tool that enables faster, smarter, greener decisions powered by the deepest understanding of your supply chain. A tool 50 times faster than traditional methods. That tool is a new piece of software – Product Lifecycle Intelligence, or PLI for short.

Product design led by an informed consideration of materials and the environmental footprint of our choices is a logical progression. This places the engineer in the spotlight. They not only understand the intricacies of design and manufacturing but also the broader ecological and socio-economic context in which they operate. However, there are challenges to overcome.

With projections indicating that the sustainability market could be worth $2 billion by 2030, there’s an evident rush among companies to gather necessary ESG and sustainability data and to meet regulatory benchmarks. But this often leads to a short-sightedness, with a disproportionate focus on reporting and little tangible improvement in actual practices.

We find ourselves at a moment where sustainability has crossed the chasm from afterthought to imperative. But in five years’ time, reporting will mean very little if no actual action is taken. Product development teams will be measured and held accountable for the changes they are able to systematically implement to drive the transition to a sustainable economy. To succeed, there needs to be a way to power this transformation at scale.

As it stands, the current machinery for product design is inherently rigid and not fit for purpose. Siloed data systems, an array of disconnected experts, a reliance on legacy systems, slow information exchange and a lack of proper strategy or understanding at board and executive level all result in poor product choices where the negative cost and supply chain impacts are not understood until it’s too late.

Far from facilitating rapid innovation, this situation inhibits inter-departmental collaboration and access to critical, real-time data – ultimately hindering informed decision-making.

However, we are standing on the edge of something new. Companies that embrace this new approach to product development will have a significant advantage over others. Adaptability is essential. The future belongs to an ecosystem of integrated systems that allow a seamless flow of data and an outcome where all relevant information is gathered in one place, informing decisions and enabling rapid course corrections.

If we present engineers with the data they need, they will use it – and use it well. No one wants to make a “bad” product, but “good” products can only be made with the right decisions informed by the right data. That is what will make the difference.

By placing engineers and product developers at the core of a data-centric approach, organisations can ensure that the products they design not only meet market demands but are also firmly anchored in sustainability. Combined with AI, a harmonised approach to data will provide full visibility into the manufacturing process, materials and supply chain during the design phase, enabling speed, experience, performance and costs to be optimised and negative environmental impacts to be limited.

But the product engineer cannot operate in isolation. Their perspective must be comprehensive, encompassing environmental, socio-economic and commercial considerations. To succeed in this mission, teams – from procurement and sustainability to supply chain management – must align.

Emerging platforms will play a pivotal role here. New solutions like PLI act as bridges that span knowledge gaps, fostering a culture of collaborative innovation and allowing easy access for all. PLI is a tool that not only helps the business to adhere to its core principles, but ensures visibility and transparency at every step, leading to better design choices and the creation of products that will stand the test of time.

Organisations need to rally their diverse teams – be they procurement, sustainability, engineering, or IT – under a shared, compelling vision, bringing about a dynamic ecosystem that is agile, adaptable and geared toward ethical, criteria-driven innovation.

The market is ready and waiting for a better approach. Some may argue that this is wishful thinking or is not worth the effort. However, a Bain & Company study found that, while only 40 per cent of businesses are on track to meet their sustainability goals, companies have an increasingly conscious and proactive base of consumers willing to pay 11 per cent more for sustainable products and employees that will help.

It’s not just blue-sky thinking for a greener future either. The most significant driver for companies to do anything has always been growing revenue. A 2022 report, the Sustainable Market Share Index by NYU Stern’s Center for Sustainable Business, examined what actually happened in the past decade. It found that the share of CPG products marketed as sustainable grew twice as fast as conventional products and accounted for one-third of the total revenue growth in the industry. Customers paid 27 per cent more for those products.

With a massive demographic shift bringing more environmentally conscious buyers into the market already well underway, the time never has been better to build better products.

This article first appeared on Business Reporter.

The end of the entrepreneur: Why engineers are the makers of the future

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Every hero needs a villain. It’s a narrative as old as time. And our story is no different.

In my previous article, I outlined our “take, make, waste” culture and the figureheads—our villains—who fuel it. I also spoke about how our future will be defined by collaboration, not individualism, where it’s still possible to be profitable, but success is not just measured by money or the value of shares.

We have irrevocably damaged our planet; however, there’s still time to reclaim our world and retool it for a better future. History has repeatedly shown us that by working together, we can achieve more than we ever could by working alone.

Lessons from the moon landing

July 1969 was a big month—as in “one giant leap” big. It was the month we went to the moon. Walter Cronkite described it as the “greatest adventure in which man has ever embarked.” It might have been more than half a century ago, but there’s still a lot we can learn from the Apollo 11 lunar landing.

While it exhibits the miracles of science and engineering and the drive and commitment of NASA, it also teaches us about teamwork, leadership and the importance of new ideas. About the importance of working together for a greater goal, of giving our engineers and innovators the support to succeed in their aims.

It takes a village. We’ve all heard that before. But in the case of the Apollo 11 landings, it was a very big village. Spanning government, private industry, astronauts and the American public—estimates have put the entire Apollo team at around 300,000 people. From planning to building to launch, millions of components were involved. Success was only possible because there was a collective realization and understanding that everyone involved had a duty to solve the problems and challenges they faced—and they knew they could only do that by working together.

Today—when it comes to fixing our planet and ending our culture of waste—the same thinking must apply.

Grand achievements aren’t built on the shoulders of a single person or by an unrelenting drive for profit. They’re built on encouragement of ingenuity and creativity, outstanding levels of commitment and an understanding that mistakes aren’t problems but lessons to learn from. After all, the great success of Apollo 11 was made possible in large part by the tragic failure of Apollo 1.

What engineers need today

So, how do we prevent our own “tragic failure” from happening? This is where our hero comes into the story. Research shows that approximately 80% of a product’s environmental impact is determined during the design phase. Empowered with the right tools and best practices to make better products faster, engineers can provide the solutions needed to collaborate and take the actions that will make a difference. Products can be more sustainable, more efficient and more cost-effective while still making money and ensuring a profitable, healthy business. However, we must give engineers a foundation to work from first.

“Build it and they will come.” Shoeless Joe Jackson might have been talking about a baseball field rather than product engineers, but the message resonates here. If we present engineers with the data they need, they will use it – and use it well. No one wants to make a ‘bad’ product, but ‘good’ products can only be made with the the right decisions informed by the right data. That is what will make the difference. Not so much “build it and they will come”, but rather “give them what they need and let them build it.”

With data and a goal, the engineer can fly. But the benefits don’t stop there. The market is ready and waiting for a better approach. Some may argue that this is wishful thinking or is not worth the effort. However, a Bain & Company study found that while only 40% of businesses are on track to meet their sustainability goals, companies have an increasingly conscious and proactive base of consumers willing to pay 11% more for sustainable products and employees that will help.

A recent IBM report also noted that organizations that embed sustainability in their product design processes experience a 16% higher rate of revenue growth. They’re 52% more likely to outperform their peers on profitability. And they’re two times more likely to attribute great improvement in operating costs to sustainability efforts.

It’s not just blue-sky thinking for a greener future either. The most significant driver for companies to do anything has always been growing revenue. A 2022 report – the Sustainable Market Share Index – by NYU Stern’s Center for Sustainable Business examined what actually happened in the last decade and found that the share of CPG products marketed as being sustainable grew twice as fast as conventional products and accounted for one-third of the total revenue growth in the industry. Customers paid 27% more for those products.

With a massive demographic shift bringing more environmentally conscious buyers into the market already well underway, the time never has been better to build better products.

Accordingly, there must be a stronger push for change. We are not there yet, but there are green shoots rising from the soil. Early adopters and innovators striving to make a difference. Schneider. Siemens. Estée Lauder. IKEA. Companies like these understand what’s at stake. They might remain the early majority, but they show us we are not hopeless.

The old tools and processes were defined by siloed data systems and slow information exchange. Now, we find ourselves in a new era defined by real-time data that facilitates inter-departmental visibility and collaboration, in turn leading to more informed—and more sustainable—decision-making.

We are shifting from “make it faster” to “make it better”, where product design is led by an informed consideration of materials and the environmental footprint of our choices. Now, more than ever, the spotlight turns to the engineer who not only understands the intricacies of design and manufacturing but also the broader ecological and socioeconomic context.

As the American engineer and educator James Kip Finch is credited with saying: “The engineer has been, and is, a maker of history.” With the right support and technology, and in a world where the balance between money and purpose is equal, the future is theirs to define.

 

A version of this article appeared on Forbes.com. You can also read the first part in the series here.

The end of the entrepreneur: Why ‘take, make, waste’ culture must end

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2 hours, 11 minutes, 53 seconds. That was how long it took Ethiopia’s Tigist Assefa to complete the Berlin Marathon in September 2023. She smashed the women’s marathon world record. Beat it by more than 2 minutes. But it wasn’t Assefa who made the headlines afterwards. It was her shoes. 

On her feet were the Adidas Adios Pro Evo 1. They weight just 138 grams. They have a 39-millimetre heel. They cost $500. And they’re only meant to last for one race. A feat of design and engineering? Absolutely. A revolution in running technology? Of course. But at what cost? 

Despite their public proclamations to the contrary – their stated commitments to ‘people, product and planet’ – Adidas, Nike (who also have a foot in the single-use shoe game) and their contemporaries seem to value column inches over reducing GHG emissions, instant (but fleeting) acclaim over a sustainable and more efficient future.  

Yes, they’ll tell you they’re only producing these shoes in very limited numbers and that it’s the lowest carbon emissions performance running shoe they have ever created. But that’s not the point. In its promotion of such a high-profile single-use product, Adidas are creating a new normal.  A continuing acceptance that increased consumption and rapid wastage is fine. Our global climate crisis is driven by over-consumption, an overreliance on oil-derived materials, huge energy usage in production and shipping and a general disregard for our environment. The Adidas Adios Pro Evo 1 represents everything that is bad in microcosm. 

But this isn’t an article written to call out Adidas. Their approach is simply emblematic of a bigger problem that we’re facing. A problem that, in our approach to solving it, will define us. We live in a world weighed down by commercialism and individualism. We venerate waste and consumption. We exist in a place and a time where ‘take, make and waste’ has become the norm. 

It didn’t have to be this way. Today, most products are made with a singular goal in mind: to sell as much as possible. If our leading companies were not blinded by greed and an unerring focus on the bottom line, they might be able to see that there is another way forward. A future where single-use products aren’t seen as little more than a tool to increase brand power and drive visibility, where sustainability and consideration of the environment aren’t sacrificed at the altar of the dollar. We are a long way from where we need to be. 

Our focus on wealth and immediacy is damaging us. A culture and an economy underpinned by the ‘get rich quick’ mantra is no good for anyone. The people at the helm of our biggest organizations are leaving us with a legacy of poor-quality products that add little to no value. Commercialism, consumption and immediate availability come at a price – and are all concepts defined by low costs, oversupply and a lax attitude towards sustainability and the health of our planet. 

Our culture of consumption has been orchestrated by a very specific type of business person. A person who started out with good intentions but either found themselves at the head of a hydra they could no longer control, or who simply lost their purpose – their duty to people and planet – as soon as money became the primary goal.  

They were no longer the makers and innovators that set out to change entrenched systems. Great ideas, without enough support to hold off commercial imperatives, meant that these people simply became a part of the system themselves. They fell in love with the ‘celebrity’ of the entrepreneur and the financial rewards that come with it. They take actions first and ask questions later. We are left with a scenario where the masses are in awe of the product but don’t consider what goes into creating it. And by the time the curtain falls and the negative cost and supply chain impacts of such rapid consumerism become clearer, it’s already too late. The damage has been done. 

These disruptors of old have become something else. Ideals corrupted by wealth and greed. A symptom of our problems rather than a cure for them. Douglas Rushkoff recently wrote about the “unbearable hubris” of Musk, Bezos and the rest, about their “increasingly outlandish and imperial” behaviour towards the world around them. He’s not wrong. These are men – and they’re almost always men – who cast contemptuous glances at anyone without a similar vision, who view rules and regulations as little more than minor impediments on their quest for growth. 

Unlike the titans of the past – Rockefeller, Carnegie, Vanderbilt, Morgan – it is harder to track the impact of today’s billionaires. Unlike their forebears, they are not capped by the limits of the material world. But that does not mean their operations do not have an impact. As Rushkoff notes, we can still see the consequences of their undertakings in the form of “externalised harm.” 

“Digital businesses,’ he writes, “depend on mineral slavery in Africa, dump toxic waste in China, facilitate the undermining of democracy across the globe and spread destabilising disinformation for profit – all from the sociopathic remove afforded by remote administration.” This represents a new frontier. The imperiousness of this new billionaire class is unprecedented, their “disregard for people and places” without comparison. 

Today’s entrepreneurial leaders are essentially unlimited in the broadness of their reach – holders of what Rushkoff terms “horizontal power.” They donate from their own organisations, often in the form of their own stock, and make their own decisions about how the money is spent. They exist in an impenetrable bubble whilst the world – remade in their own interests – collapses around them. 

But there is still hope. Still time to make a change. Damage has been done, but it is not yet irreversible. We don’t require a complete realignment. It is time, says Rushkoff, to “get on with reclaiming the world from this new generation of robber barons rather than continuing to fund their fantasies.” But how, and when? 

I think now is the moment for a new thought process. A future defined by collaboration, not individualism. Working together for the greater good. Not ‘make it faster’ but ‘make it better’. But in order to create the better world that so many of us want, we have to give our innovators the right platform to succeed. We need to create an environment where success isn’t judged on how many extra zeroes there are on the balance sheet, but on how we build for the future we want and how we protect our planet in the process. 

I’m done with radical promises. I’m finished with sceptics and non-believers. I’m putting my faith in product engineers being able to lead us to a new, better future where they drive strategic transformation underpinned by a shared, compelling vision, financial support based on more than just commercial imperatives and a dynamic ecosystem that is agile, efficient and geared toward ethical, criteria-driven innovation. 

And how do we get there? That’s something we’ll talk about next time.

 

An edited version of this article also appeared on Forbes.com.