Life-Cycle Data for Carbon Disclosure: Aligning Assessment with Reporting Standards

Abstract

Globally, increasing regulatory pressure, stakeholder expectations, and societal awareness of climate change have intensified demands on corporations to disclose their environmental impacts and demonstrate accountability for reducing greenhouse gas emissions. In this context, carbon disclosure has become a central component of corporate sustainability reporting. Life-Cycle Assessment (LCA), which evaluates environmental impacts across the entire product life cycle i.e. from raw material extraction and production to distribution, use, and end-of-life disposal which offers a comprehensive and systematic approach for measuring and managing corporate carbon footprints.

This research examines the extent to which LCA is integrated into corporate carbon disclosure practices by conducting a thorough secondary data analysis of sustainability and climate-related reports published by multinational corporations across diverse industries. The study evaluates the quality, consistency, and transparency of LCA-based carbon reporting, with particular attention to methodological choices, system boundaries, data sources, and alignment with established reporting frameworks and standards. In addition, it identifies prevailing trends in LCA adoption, explores sector-specific differences, and investigates the practical challenges companies face when implementing LCA within their disclosure strategies.

The findings indicate that while the use of LCA in corporate carbon reporting is steadily increasing, its potential to support strategic decision-making and effective stakeholder communication remains constrained. Key limitations include inconsistent application of LCA methodologies, limited disclosure of Scope 3 emissions, data availability and reliability issues, and a lack of standardisation across reporting practices. Based on these insights, the study offers practical recommendations for improving the robustness and comparability of LCA-based disclosures, enhancing transparency, and strengthening the role of LCA as a strategic tool for advancing corporate sustainability and climate mitigation efforts.