Applying social life cycle assessment in the informal recycling sector: Understanding challenges and limitations

Abstract

The transition towards Circular Economy (CE) is a promising approach to sustainable development that may cause significant social impacts. Despite the benefits of CE initiatives, key players such as informal recyclers face serious social issues such as poverty, lack of social security, and discrimination. Although evaluating social impacts remains a considerable challenge, Social Life Cycle Assessment (SLCA) is recognized as a suitable methodology with a life cycle perspective. While most SLCA experiences are conducted in the formal sector, it is important to consider the informal sector, which plays a crucial role in developing countries. This article presents an analysis of SLCA studies in informal recycling settings in order to identify the challenges and adjustments required for informal settings. The analysis is based on a literature review and a documentary review of a pilot application of SLCA in the informal recycling system in Cuenca, Ecuador. The results show that SLCA requires adaptation to be applied in informal settings. There are particular challenges in delineating boundaries due to the fuzzy nature and variability of informal activities. Tasks such as establishing specific indicators, developing reference scales and data collection, require careful planning and active stakeholder participation. For instance, indicators regarding Fair Salary or Working hours were adapted based on best practices. Furthermore, tasks such as verifying and disseminating results should be included in interpretation phases to generate long-term impacts and influence behaviors. The study underscores SLCA's multidimensional view but highlights the need for further standardization and adaptation for informal sectors.