Integrating carbon footprint into supply chain management: the case of Hyundai Motor Company (HMC) in the automobile industry

Abstract

The purpose of this paper is to improve our understanding of carbon footprint within the context of automobile supply chain management. The case study approach is employed as a research method. Primary data were collected through site visits and extensive interviews with HMC’s corporate and plant management. First, identification and measurement of direct and indirect carbon footprint is critical for mitigating supply chain risks. Second, setting the system boundary of measurement is another important issue to integrate the issue of carbon footprint into supply chain management. Third, developing a map of product carbon footprint facilitates identification and measurement of carbon emissions across the supply chain. Companies today operate in a carbon-constrained world. In particular, the automobile industry is under pressure to take a close look at its product carbon footprint. Managing the downstream consequences of the use of its products and inputs from upstream suppliers is critical for developing carbon risk-mitigated supply chain management. This paper is of benefit to academics and managers by providing a new way to integrate carbon emissions in supply chain management. Since climate change and carbon footprint present challenges to many industries, increasing our understanding of how to integrate carbon footprint in supply chain management is necessary, but has seen little research in the automobile industry.