One of the most widely acknowledged policies, which is also strongly promoted by legislation and government officials globally, is sustainable development. Since the introduction of the term and the development of its content, the movement for sustainable development has been accepted by all business sectors as a set of principles that have to be incorporated into standard practice. Particularly in the case of business sectors such as construction that have been identified as the largest consumers of raw materials and energy there has been considerable pressure to optimize processes in terms of sustainability, with particular emphasis on the environmental impact caused. Steel structures constitute a construction technology which holds significant potential in terms of sustainability. The purpose of the current research is to quantify this potential by calculating the environmental impact caused throughout the life cycle of a steel-framed residential building. A life cycle assessment is conducted, taking into account issues such as raw material acquisition, construction and waste management. The results obtained are used to draw conclusions regarding the application of the life cycle assessment methodology to steel buildings and the environmental data required. Furthermore, observations regarding the quantification of the environmental impact caused by the steel-framed residential building and the identification of the most environmentally damaging processes in regard to the life cycle of the building are also made.