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

The purpose of this paper is to explore and investigate the measurement of a carbon footprint and environmental program in supply chain management.

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.

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.

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.

This paper provides academics and managers with a new approach to consider carbon management and green supply chain management.