Interest in intrinsically low-energy construction materials is becoming mainstream, and bio-based materials form a key part of that group of materials. The goal of this study was to analyse the environmental impact of applying a sol-gel coating on hemp shiv, in order to improve the durability of this innovative bio-based material, using a regionalised LCA model, taking into account regional specific peculiarities. This study analysed the environmental performance of using bio-based materials in the building envelope compared with traditional synthetic construction materials, and compared the impact of a regionalised approach with a global approach. The carbon footprint of treated hemp shiv in a wall with a U-value of 0.15 W/m.K was compared to untreated hempcrete and a reference cavity wall with the same U-value. Considering the environmental damage caused by the production of hemp shiv, nitrogen fertiliser was the hotspot. The LCA results showed that, using innovative bio-based materials in construction, treated hemp shiv with sol-gel can decrease the carbon footprint of a building envelope through carbon sequestration. Using the more accurate site-specific information in life cycle inventory and impact assessment methods will result in more consistent and site-appropriate environmental results for decision-making.