What is a common method companies use to assess their environmental impact?

Life Cycle Assessment (LCA) is a well-established method that companies use to evaluate their environmental impacts throughout the entire life cycle of a product, from raw material extraction to disposal. This approach provides a comprehensive view of how a product affects the environment, considering factors such as energy use, resource depletion, emissions, and waste generation at each stage.

By employing LCA, companies can identify hotspots where environmental impacts are greatest, allowing them to make informed decisions on how to mitigate negative effects effectively. This analytical tool not only helps in making sustainability-oriented improvements but also supports regulatory compliance and enhances corporate transparency regarding environmental performance.

In contrast, customer surveys are primarily focused on gathering consumer feedback and preferences rather than assessing environmental impacts. Benchmarking against competitors can provide insights into industry standards or practices but does not directly measure a company's own environmental footprint. Annual profit analysis typically revolves around financial performance metrics, which do not address environmental impact assessments. Therefore, LCA is distinctly positioned as the most appropriate and common method for companies aiming to systematically understand and manage their environmental impacts.