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Reasons to do Life Cycle Costing

Combining LCA and Life Cycle Costing gives you additional decision support metrics.

August 03, 2012

Combining environmental and economic data can give important information, such as

 

  • Insights in the cost structure of a product and it's alternatives: where is the (shift in) cost burden? You can use this information to convince your clients that a higher product price can still give lower Total Cost of Ownership (TCO), while making significant savings in the environmental burden of a product.

 

  • Improvements in the environmental performance per Dollar or Euro investment to show all kinds of eco-efficiency indicators. This Return on Investment (ROI) or Cost Benefit Analysis metric will help you build the case for sustainable investments.  

 

Are you implementing a Life Cycle Management (LCM) system in your company? This UNEP report (PDF) has an interesting chapter on the role of Life Cycle Costing in LCM.

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