Measuring a carbon footprint and environmental practice: the case of Hyundai Motors Co. (HMC)

Abstract

Purpose - The purpose of this paper is to explore and investigate the measurement of a carbon footprint and environmental program in supply chain management. Design/methodology/approach - The study uses a case study methodology and employs the qualitative methods of interviews and document analysis to collect data on Hyundai Motors Co. (HMC) and its key first-tier supplier, referred to here as Supplier A, in the Korean automobile industry. Findings - The results of the study show that a key strategic action to implement carbon management is to identify and measure the carbon footprint of products and processes within the supply chain. A carbon footprint measurement framework and different levels of CO2 adoption categories developed at HMC are presented. By monitoring and evaluating suppliers' CO2 emissions performance, a focal company may avoid carbon-related risk and retain competitiveness based on its supply chain. Practical implications - Developing a carbon footprint measurement and evaluation program in the supply chain provides a track record to improve carbon and energy efficiency. This may lead companies to develop and exploit greater energy efficiency to tackle carbon emission challenges in the supply chain. Originality/value - This paper provides academics and managers with a new approach to consider carbon management and green supply chain management.