Life cycle analysis of waste management of a brake pad manufacturing company

Industrial waste management significantly impacts greenhouse gas (GHG) emissions, yet methodological inconsistencies challenge standardized quantification. This study applies a life cycle assessment (LCA) to evaluate waste management practices at a brake pad manufacturing SME in Mexico, using the IPCC Emission Factor Database (EFDB), the U.S. EPA’s WARM model, and the UK government’s conversion factors. While results show major discrepancies across tools, all agree on the climate benefits of recycling, reporting net reductions of –175.65 MTCO₂e for mixed metals and –24.77 MTCO₂e for corrugated containers. However, current models fail to fully integrate avoided emissions into official inventories, underestimating the role of circular strategies. To address this, the study proposes a hybrid methodology that combines scenario-based LCA with standardized emission factors, offering a context-adapted framework for emissions accounting in Mexico’s automotive sector. The research also highlights the importance of digital transformation (DT) and market orientation (MO) in shaping strategic responses among SMEs. While DT is often framed around technological adoption, this study underscores that market-driven strategies can enhance the effectiveness of environmental decision-making. By aligning MO with DT initiatives, firms can better adapt to regulatory pressures and sustainability targets. This integrated approach supports more consistent GHG accounting, promotes circular economy principles, and provides practical guidance for SMEs navigating digital and environmental transitions simultaneously contributing to both emissions mitigation and long-term competitiveness.