Carbon Footprint Management within a Supply Chain – A Case Study

Purpose: The aim of this paper is to analyze the carbon footprint in a supply chain with the focus on distribution operations. We use the primary data from a case study conducted in the apparel industry. Design/Methodology/Approach: Comparative studies of the results of two existing CO2 measuring standards are presented for the same supply chain. We have chosen the apparel industry due to the fact that the returns in the apparel industry reach up to 40% and they contribute to the total level of CO2 emissions from distribution operations. Findings: In practice the level of the CO2 emissions depend on the logistics parameters, like distance, load factor and transshipment schedule. The methods for the measuring of the carbon footprint do not fully reflect the real life needs. The reported level of CO2 emissions depends on the used method for calculation. Thus, the choice of the calculation method should be carefully justified by a company. Practical Implications: The case study method allows the application of US EPA and UK DEFRA carbon footprint calculation methods in real-world conditions . Originality/Value: The papers on the CO2 emissions in a supply chain management focus mainly on the manufacturing and sourcing operations. The studies on the Carbon footprint, which are related to the distribution operations are very limited. We contribute to this gap, by providing the empirical results.