Unlocking the Social Promise of Industry 5.0: Harnessing Data-Driven Social Life Cycle Assessment for Corporate Sustainability

Abstract

In the contemporary era of Industry 5.0, characterized by the integration of digital technologies and human-centered approaches, the assessment of social sustainability remains a critical challenge. Corporate responsibility and Environmental, Social, and Governance compliance are being reshaped by these developments. This paper aims to address the gap between industrial development and social impact by exploring the transformative potential of Social Life Cycle Assessment within the stakeholder framework established by the United Nations Environment Program. The proposed methodology is both standardized and data-driven, employing advanced techniques such as Principal Component Analysis and sigmoid normalization to minimize subjectivity and enhance comparability. It is validated through a case study in the Italian ceramic industry, utilizing internal organizational data aligned with Social Organizational Life Cycle Assessment guidelines. The findings highlight the urgent need for reliable, data-driven social impact assessments to support regulatory compliance, strengthen Environmental, Social, and Governance strategies, and foster long-term corporate sustainability. Furthermore, the results demonstrate how integrating Social Organizational Life Cycle Assessment into Industry 5.0 frameworks can improve stakeholder engagement, drive social innovation, and contribute to sustainable business practices.