ReCiPe is a life cycle impact assessment (LCIA) method developed by PRé Sustainability in collaboration with institutions like the Dutch National Institute for Public Health and the Environment (RIVM), Radboud University Nijmegen, and others. It was initially created in 2008 and updated in 2016.

The tool helps translate life cycle inventory data into a limited number of indicator scores, reflecting the environmental impact across 18 midpoint and 3 endpoint indicators. These indicators assess environmental impact from different perspectives: individualist (short-term, tech optimism), hierarchist (scientific consensus), and egalitarian (precautionary, long-term thinking).

ReCiPe’s strength lies in its broad set of impact categories and its global perspective. Unlike other methods, it does not include speculative future impacts but focuses on those already considered in inventory analysis. This makes it a comprehensive tool for evaluating environmental risks and strategies across industries.

Targeted at businesses, especially those involved in product development and environmental sustainability, ReCiPe is valuable for finance professionals focused on sustainable finance. It aids decision-making by providing a standardised method for assessing and quantifying the environmental impact of products and processes, essential for responsible investing and risk management in sustainability.

By integrating this tool, finance professionals can enhance their understanding of the environmental footprint of investments, contributing to more informed decisions that align with sustainability goals.