Circular Economy: The Bridge Between Life Cycle Assessment and Competitive Advantages

Companies that fail to priorities sustainability may encounter several hazards that have significant implications for their long-term viability. On the other hand, prioritizing sustainability may provide organizations with a competitive advantage. The objective of our study is to investigate the link between life cycle assessment (LCA) and competitive advantages. The present study employs a qualitative approach to evaluate scientific resources, including specialized internet databases like Web of Science, Scopus, and Google Scholar. The primary aims of this study are to conduct a comprehensive analysis of scholarly literature pertaining to key sustainability concepts, including life cycle assessment, design for environment, design for sustainability, and design for circularity. The output of this research is a diagram, which graphically represents the connections between all relevant topics that are based on the core concept of LCA and generate competitive advantages. Life Cycle Assessment (LCA) in facilitates the development of ecologically responsible goods. However, it is important to note that achieving genuine sustainability requires consideration of social factors in addition to environmental considerations. Additionally, the adoption of circular economy concepts highlights the significance of comprehensive design, which seeks to create goods that not only reduce ecological harm but also take into account their end-of-life circumstances. The circular economy is characterized by the emergence of innovation and cooperation, which serve as a mean to get a competitive edge. Therefore, Circular Economy establishes a connection between Life Cycle Assessment (LCA) and competitive advantages.