The Evolution and Commoditization of (Life Cycle Assessment) LCA in the Built Environment: A Deep Dive

How does one conduct an LCA in the built environment?

1. Manual Calculation: Traditionally, LCAs were performed manually, requiring extensive domain knowledge and human effort (ISO 14040).
2. Software Solutions: Tools like One Click LCA and Cerclos offer streamlined LCA calculations and have been in the market for years.
3. Consultancies: Both specialized consultancies as well as larger existing consultancies (e.g ARUP and WSP) have begun to offer services around LCA in the built environment, often as part of a broader package (ARUP, 2021; WSP, 2021). Lately, LCAs are sometimes performed by quantity surveyors whose work has several similarities to that of an LCA consultant.
4. Integrated Systems: Innovative companies with strong digital teams are disrupting the status quo by integrating LCA data directly into design and project management software through APIs like the one offered by 2050 Materials.

The increasing adoption of LCA int he built environment has paved the way for commoditization for several reasons:

1. Scalability: As demand for LCAs grows, scalable solutions are needed (McKinsey, 2020).
2. Regulatory Pressure: Increasing governmental regulations make LCAs increasingly mandatory (EU Directive 2018/844).
3. Cost Efficiency: As with any commoditized service, cost-effectiveness becomes a key driver (Lepawsky, 2015).
4. Standardization: The development of standardized metrics and methodologies by industry organizations has enabled a more uniform approach to LCAs (EPD, 2020).
5. Data-Driven Decision Making: The rise of Big Data and AI allows for more real-time, accurate LCAs (KPMG, 2021).

LCAs are poised to become even more integrated into the digital infrastructure of the AEC sector. The future might see real-time, automated LCAs seamlessly integrated into Building Information Modelling (BIM) systems, especially as the integration of APIs and data becomes more common in the industry.

Moreover, with the growth of machine learning and AI technologies, predictive LCA in the built environment could soon become a reality (IBM, 2022).

As LCA in the built environment becomes more commoditized, the focus inevitably shifts to the quality and reliability of the data used. Commoditization risks diluting the complexity of the LCA process, making the role of accurate, insightful data even more crucial (Data & Society, 2019). Companies that can navigate this challenge will not only survive but shape the future of sustainable construction.

In a data-driven world, LCAs stand at a critical juncture. They have the potential to act as either a catalyst or a crutch for sustainable construction practices. The future of the built environment hinges not just on the data we gather but on the integrity and insightfulness of that data. This is the defining challenge and opportunity that lies ahead for the AEC sector.

Artificial Intelligence (AI) holds the promise of revolutionizing the Life Cycle Assessment (LCA) space in multiple ways. One of the most immediate impacts could be the automation of data collection and analysis, much like the work done at 2050 Materials today.

Right now, gathering the plethora of information needed for a comprehensive LCA in the built environment is time-consuming and often error-prone. AI algorithms can scrape, sort, and analyze massive sets of data in real-time, thereby not only speeding up the LCA process but also improving its accuracy. With machine learning, these algorithms could become increasingly sophisticated over time, learning from each LCA to make the next one more precise.

Beyond automation, AI could usher in the era of predictive LCAs. Instead of merely analyzing the sustainability of building materials and construction methods based on existing data, AI could forecast future impacts based on a wide array of variables like projected changes in energy costs, availability of raw materials, and even climate change scenarios. This would offer architects, engineers, and policymakers a more dynamic tool for sustainable decision-making. By enabling what could be termed “future-proof sustainability,” AI has the potential to make LCAs an even more integral part of the AEC industry’s toolkit for combating climate change and resource depletion.

LCA in the built environment is a powerful tool to address the climate change impacts of the industry. To date, it has been a time-consuming process which traditionally was reserved to specialists in the industry. However, things are changing, as LCA processes are being embedded within several processes of a construction project. Designers are considering LCA data during their planning and specification phases, multiple BIM plugins and tools are being released to include LCA data, and there are a number of specialized software companies building specific LCA tools that address pain points of the industry.

While all of these are good news, we risk inaccurate and even false information being embedded within critical construction projects if the data behind all the LCA tools is not common. Hopefully, the integration of open databases like the one by 2050 Materials through the use of APIs offers a possibility to avoid that.