Analyzing the environmental impacts of products and processes has evolved into a standard practice through the utilization of Life Cycle Assessment (LCA). However, assessments of carbon footprints frequently encompass uncertainties stemming from challenges in accurately measuring emission factors and obtaining dependable data, processes which can be both intricate and time-consuming. In today’s highly competitive market, the rise of Industry 4.0 has brought forth a range of new technologies that companies can use to track, combine, and follow processes through digital systems. These technologies gather and analyze manufacturing information by utilizing a combination of sensors and control systems. This thesis endeavors to expound upon the architecture and integration of LCA tailored for Small and Medium-sized Enterprises (SMEs) operating within manufacturing environments, leveraging the capabilities of Internet of Things (IoT) technologies harmonized with Enterprise Resource Planning (ERP). The study is underpinned by a case analysis conducted at a steel pin fastener manufacturing company situated in Järna, Sweden.

Conducting an exhaustive Systematic Literature Review (SLR), we delved into incentives, advantages, and obstacles inherent in integrating LCA and ERP systems. The primary objective was to explore the viability of employing IoT technologies to facilitate LCA. The insights gleaned from this comprehensive review serve as the cornerstone for our recommendations tailored to SMEs. Within this thesis, we put forth a comprehensive framework that enables the fusion of IoT-driven LCA and ERP systems. This framework facilitates the digitized aggregation of data, which is pivotal for executing environmental life cycle evaluations within manufacturing entities, with a particular focus on SMEs. By leveraging accurate data, the framework significantly enhances a company's operational efficiency by precise calculation of emissions. It is noteworthy that the proposed framework was meticulously designed around a single process, specifically oriented towards energy consumption, and holds the potential to be effectively adapted across diverse operational capacities within various facilities.