Reduce Carbon Emissions of Logistic Transportation Using Eight Steps Approach in Indonesian Automotive Industry

Abstract

The global competition encourages Indonesia to advance the economy, especially in manufacturing by implementing sustainable manufacturing. Companies must consider transportation costs and concern for the environment due to the large increase in greenhouse gas emissions and the increase in NOx, Particulate, and various other harmful pollutants. Emissions from transportation activities cause global climate change and damage air quality and human health in regional and urban areas. At the same time, the movement of empty containers can result in air pollution due to CO2 emissions which have a negative impact on sustainable development. This study aims to reduce carbon emissions in the logistics transportation chain in the Automotive Manufacturing Industry. The method used is the Eight Step Approach. The method used is systematic and structured from defining the problem to standardizing improvements. Analysis of the causes of the problem and proposed improvements are determined by Focus Group Discussion (FGD) with expert judgment. The source of the data obtained comes from field observations, FGD, company reports from 2019 to 2021. This research has proven that reducing carbon emissions has an impact on company profits. The largest decrease was contributed by improvements in transportation routes. The ratio of reducing carbon emissions by 2020 is 2.6% or an increase in efficiency compared to the previous year.