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Environmental Performance Measuring

In: Environmental, Social, and Governance (ESG) Investment and Reporting

Author

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  • Kullapa Soratana

    (Naresuan University)

Abstract

Environmental performance measurement is a key driver of sustainability in industries, and life cycle assessment (LCA) plays an important role in evaluating the environmental impacts of products and services throughout their life cycle. LCA consists of four primary steps—goal and scope definition, life cycle inventory analysis, life cycle impact assessment, and interpretation and improvement of the results—each contributing to identifying environmental hotspots, such as energy-intensive processes in the production of photovoltaic panels or the significant water usage in textile manufacturing. These steps help guide decision-making by highlighting areas where improvements can be made. While LCA provides transparency and comparability in assessing environmental impacts, it has limitations, particularly in capturing supply chain volatility, such as fluctuating material prices or the unpredictability of raw material availability. LCA often overlooks broader societal consequences, such as labor conditions or local community impacts, which are crucial for a comprehensive sustainability assessment. The integration of LCA into environmental, social, and governance (ESG) reporting frameworks, such as the Global Reporting Initiative (GRI) and the Sustainability Accounting Standards Board (SASB), allows organizations to disclose environmental performance in a structured manner. This enhances transparency, aligns with sustainability goals, and fosters informed decision-making, especially in areas like supply chain optimization or resource conservation. However, challenges remain, such as data gaps in emerging technologies or the need for cross-sector collaboration to standardize processes. Despite these challenges, innovations in technologies like AI and blockchain offer potential solutions, streamlining data collection and improving the accuracy of LCA results. By incorporating LCA into ESG reporting, organizations can make data-driven decisions that reduce environmental impacts and contribute to a more sustainable future.

Suggested Citation

  • Kullapa Soratana, 2025. "Environmental Performance Measuring," Springer Books, in: Michaela Bednárová & Kullapa Soratana (ed.), Environmental, Social, and Governance (ESG) Investment and Reporting, chapter 0, pages 43-75, Springer.
    • Handle: RePEc:spr:sprchp:978-3-031-84235-1_3
    DOI: 10.1007/978-3-031-84235-1_3
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