Climate change mitigation efforts will require a portfolio of solutions, including improvements to energy storage technologies in electric vehicles and renewable energy sources, such as the high‐energy‐density lithium‐oxygen battery (LOB). However, if LOB technology will contribute to addressing climate change, improvements to LOB performance must not come at the cost of disproportionate increases in global warming potential (GWP) or cumulative energy demand (CED) over their lifecycle. Here, oxygen‐functionalized multi‐walled carbon nanotube (O‐MWCNT) cathodes were produced and assessed for their initial discharge capacities and cyclability. Contrary to previous findings, the discharge capacity of O‐MWCNT cathodes increased with the ratio of carbonyl/carboxyl moieties, outperforming pristine MWCNTs. However, increased oxygen concentrations decreased LOB cyclability, while high‐temperature annealing increased both discharge capacity and cyclability. Improved performance resulting from MWCNT post‐processing came at the cost of increased GWP and CED, which in some cases was disproportionately higher than the level of improved performance. Based on the findings presented here, there is a need to simultaneously advance research in improving LOB performance while minimizing or mitigating the environmental impacts of LOB production.