One of the most comprehensive methods for assessing a company's environmental performance, perhaps even the ultimate, is an Organisational Life Cycle Assessment (OLCA). But how does OLCA differ from the Corporate Carbon Footprint (CCF)? And when is ISO 14072 or the Organisational Environmental Footprint (OEF) advisable?
OLCA is based on the international standards ISO 14040/14044, which define specific requirements for conducting an LCA. The following graphic shows how an OLCA relates to a product LCA, as well as a CCF and PCF:
The main advantage of an OLCA over the CCF according to the GHG Protocol lies in its holistic approach, which takes into account not only CO2 but also other environmental indicators such as the water footprint, raw material use and impacts on human health. This avoids so-called "burden shifting" – i.e. CO2 savings at the expense of other environmental categories. The following table shows a distinction between the two environmental assessment methods:
| Criterion | OLCA (ISO 14072 / OEF) |
CCF according to GHG Protocol |
| Focus | Holistic environmental assessment | Climate-relevant greenhouse gas emissions |
| System boundary | All relevant environmental aspects (energy, water, resources, emissions, etc.) | CO2 emissions along the value chain |
| Method | Life Cycle Assessment (LCA) | CO2 accounting according to scopes 1, 2 and 3 |
| Scope | Entire company, including the product portfolio | Entire company, including the product portfolio |
| Result | Environmental profile across multiple indicators | CO2e emissions as a key indicator |
In addition to ISO 14072, there is a second important methodology for environmental assessment at the organisational level: the Organisation Environmental Footprint (OEF) of the European Commission. The OEF was developed to present the environmental impacts of organisations in a standardised and comparable way. While ISO 14072 allows relatively broad scope for accounting, the OEF methodology provides specific guidelines. Some of these are very explicit – for example, secondary data such as energy consumption for storage or transport distances are specified if no primary data is available. This generally serves to improve the comparability of OEF studies. In addition, the European Commission aims to publish so-called benchmark companies for each industry in the Organisation Environmental Footprint Sector Rules (OEFSR), against which reporting companies can measure their environmental impact.
| Criterion | ISO 14072 | OEF (EU method) |
| Normative framework | International ISO norm (ISO 14072) | EU-specific methodology |
| Objective | Environmental assessment for internal and external purposes | Comparability and harmonisation at EU level |
| Level of detail | Flexible, adaptable to organisations | More strictly defined with sector-specific rules (OEFSRs) |
| Regulatory relevance | CSRD compatible, but not explicitly required | Part of the EU sustainability strategy |
| Accounting differences |
Capital goods (buildings, machinery, etc.) should be depreciated over their useful life. Allocation for reuse and recycling can be selected according to open-loop or closed-loop recycling (ISO 14044). |
Capital goods (buildings, machinery, etc.) should generally not be included in the balance sheet. For reuse and recycling: application of the Circular Footprint Formula (CFF) is required. |
| Assessment method |
The assessment method and impact categories can be freely selected. |
EF 3.1 (as of 2025) should be used. The individual results of all 16 impact categories, as well as normalised, weighted and EF single scores, should be reported. |
A detailed examination of all environmental aspects allows hotspots to be identified where resource consumption or emissions are particularly high. This provides a basis for targeted and effective optimisation measures.
More and more investors, customers and regulatory authorities are demanding transparent information about environmental impacts. OLCA provides reliable data for sustainability reports and regulatory requirements such as the CSRD.
By analysing the entire value chain, companies can identify potential savings in energy, water or materials and optimise their cost structure.
Companies that systematically analyse their environmental impact can develop sustainable products in a targeted manner and position themselves as pioneers in their industry.
OLCA can help companies efficiently meet tomorrow's legal requirements today. For example, it also calculates the water footprint, a metric that is becoming increasingly important alongside the carbon footprint.
Organisational Life Cycle Assessment (OLCA) offers a holistic and data-based method for assessing the environmental impact of companies. Compared to the Corporate Carbon Footprint (CCF) according to the GHG Protocol, OLCA considers not only CO2 emissions but also other environmental aspects.
Choosing the right standard for Organisational Life Cycle Assessment depends on the specific requirements of your company. If your company operates globally and wants a comprehensive environmental analysis with greater scope for action, ISO 14072 may be the better choice. On the other hand, if you operate in the EU and want to analyse your environmental footprint in accordance with EU requirements, want to be prepared today for possible future EU requirements for the publication of environmental indicators, and want to compare yourself with other European companies in your industry, the EU's OEF is the appropriate option.
Regardless of which standard you choose, an OLCA provides you with valuable information to increase the sustainability of your company, protect the environment and position yourself as a responsible market player.
Have we sparked your interest? Contact us today for a free initial consultation.
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