Set up a carbon simulator as a tool for sourcing decision - ADVANCED

Cost
LOW
Cost
MEDIUM
Cost
HIGH
EFFORT
low
EFFORT
medium
EFFORT
HIGH
IMPACT
low
IMPACT
MEDIUM
IMPACT
HIGH

Having a carbon simulator for procurement means having a carbon footprint per product.

To achieve this objective, 3 steps are recommended:

  1. Make a detailed analysis of the product’s life cycle
  2. Identify the activity data for each process
  3. Finally, multiply the activity data by the emission factors


The Procurement Carbon Footprint Simulator serves as a decision-making tool, focusing on gathering activity data (e.g., kg, km, kWh) for the key carbon drivers during significant phases of the product life cycle, such as raw materials, production, transport, and packaging. The resulting CO2 emission value is determined using an internal price per tonne of carbon chosen by the company.

This simulator aids the company in making informed sourcing decisions, emphasizing the optimisation of the carbon impact-to-cost ratio as a criterion for reorienting the sourcing strategy. For instance, the buyer may need to consider various options, such as choosing recycled packaging over cardboard packaging or selecting a supplier closer to the factory with road freight versus a supplier farther away but reachable via railway.

more than 80%

of the environmental impact comes from the supply chain in many industries.
(ecochain)

ADDITIONAL RESOURCES