World Economic Forum and environmental metrics: why life cycle matters
In 2020, the World Economic Forum published a proposal for common metrics to support more consistent environmental, social and governance (ESG) reporting. Its “Planet” pillar recognised that organisational indicators matter, but do not fully describe the impacts associated with products and services.
Life Cycle Assessment (LCA) broadens the perspective by considering raw materials, manufacturing, transport, use and end of life, according to the study scope and rules. This helps identify burden shifting between life-cycle stages or impact categories — for example, lower emissions accompanied by higher water use or waste generation.
The 2020 report should be understood in its historical context. Sustainability reporting initiatives and standards have evolved since then. Its methodological message remains relevant: corporate metrics and life-cycle information are complementary, not interchangeable. LCA can help assess value-chain impacts and avoid conclusions based on a single indicator.