Conference Agenda

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Session Overview
Session
T-C-03: Emission and Decarbonization
Time:
Thursday, 26/Sept/2024:
1:30pm - 2:40pm

Session Chair: Eberhard Schmid
Location: A-0.18

TUHH, Building A, Ground Level, 32 places

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Presentations

Emission Data Sharing and SMEs: A Perspective from Transport and Logistics

Lasse Bo Ladewig, Wolfgang Kersten

TUHH, Germany

Increasing CO2 reduction and reporting obligations as well as rising customer demands for sustainability-related data increase the need for accurate calculation and reporting of transport-related CO2 emissions. Currently, the widespread use of standard emission factors is leading to a lack of accuracy, preventing effective management of CO2 emissions and the visibility of CO2 reduction measures taken. To increase the accuracy of determining transport-related CO2 emissions, the importance of primary data is growing which in turn requires the exchange of sustainability- and transport-related data. In general, small and medium-sized companies (SMEs) are at a disadvantage in adopting green practices due to their limited resources. Nevertheless, there is a lack of research focusing on transport SMEs, which often act as subcontractors for larger logistics service providers, although they are responsible for carrying out most of the environmentally damaging activities. Therefore, this study investigates the role of transport SMEs regarding carbon disclosure and the influence of proactive environmental behavior on emission data sharing and competitiveness. The purpose of this study is to explore the effects that a company`s environmental strategy and its shipper-carrier relationship can have on the sharing of CO2 emission data.

A qualitative study based on semi-structured interviews (n = 30) with different stakeholders from the logistics industry is conducted. The interview sample focuses on SMEs carrying out transport to investigate their behavior. The interview data is analyzed by using qualitative content analysis following Mayring (2015). Afterwards, we conduct a quantitative study in form of a survey to confirm and validate results, as well as testing a series of hypotheses derived from literature and results of the interviews. The data were collected through a web-based survey sent to shippers, LSPs, and carriers. Studying a sample of 107 responses, the conceptual model is tested using the partial least squares structural equation modeling (PLS-SEM) method.

This paper shows that companies with a proactive environmental strategy tend to have a closer relationship with their business partners. Furthermore, a better shipper-carrier relationship increases the level of emission information sharing between these companies. Furthermore, transport SMEs perceive the exchange of emission data as a competitive advantage.

This study provides important insights into the role of sharing emission data focussing on the perspective of transport SMEs. The study demonstrates that collaboration and a long-term relationship between shippers and carriers can be an essential pillar and enabler to remain competitive and pursue a successful sustainability strategy. Therefore, companies should be encouraged to close cooperation between clients and customers increasing the mutual exchange of information.

This paper contributes a new perspective on the role of sharing emission data through the lens of an SME and its behavior in preparing for future sustainability reporting obligations.



Multi-modal transportation networks for Carbon Capture and Storage in Germany

Lisa Herlicka, Frank Meisel

Kiel University, Germany

The transition to renewable energy and alternative fuels is already a key strategy to achieve the agreed-upon climate target of limiting global temperature rise to 2 degrees Celsius. However, sectors such as cement production, which are difficult to decarbonize, require additional solutions like Carbon Capture and Storage (CCS) to reduce CO2 emissions further. CCS involves capturing CO2 directly at the emission source and then permanently storing the greenhouse gas in underground geological formations. Often, the locations of CO2 sources are not close to storage sites, necessitating the development of a new supply chain that can connect these points through various transportation modes and capacities. While pipelines and maritime transport are extensively studied for their capacity to move large volumes of CO2, vehicle transport, like trucks or trains, presents a viable alternative for the initial phase of CCS deployment or for smaller-scale emissions. This research focuses on the characteristics of emission sources, transportation modes, and the transshipment between them as well as permanent storage sites within the CCS supply chain. To achieve a viable and cost-effective supply chain that can scale with increasing sizes, we formulate the problem as a mixed-integer linear program aimed at minimizing the net present value over a specified planning horizon. The model accounts for both investment and operational costs of various components of the supply chain, including intermediate storage facilities for switching between pipeline and vehicle transportation modes, as well as facilities for altering the conditions of CO2. The size of the supply chain is constrained by an annual emission capture target, in alignment with CO2 reduction goals. For a case study, the model is solved using the IBM Solver CPLEX, and preliminary findings are presented. The results are analyzed in terms of cost per ton of captured CO2 and the selection of transportation modes over different periods within the planning horizon.



Future Research Opportunities in Supply Chain Decarbonization

André Fadiga1, Luís Miguel D. F. Ferreira2, João F. Bigotte3

1University of Coimbra, Department of Mechanical Engineering, Coimbra, Portugal; 2University of Coimbra, CEMMPRE, ARISE, Department of Mechanical Engineering, Coimbra, Portugal; 3University of Coimbra, CITTA - Research Centre for Territory, Transports and Environment, Department of Civil Engineering, Coimbra, Portugal

On a global scale, organizations are not just passively observing but actively developing responses to address the multifaceted challenges of climate change. Decarbonization strategies and net zero commitments are not just emerging but becoming crucial steps for climate change mitigation and adaptation. This underscores the urgent need for sustainable development, balancing economic growth with environmental preservation and social well-being. The urgency of this issue cannot be overstated, and organizations must act swiftly and decisively to decarbonize their supply chains. Despite these efforts, significant gaps remain in developing and adopting supply chain decarbonization strategies.

Through a literature review, this study aims to identify research opportunities to understand how organizations implement decarbonization strategies by focusing on the practices that precede their implementation, and the factors influencing the adoption of supply chain decarbonization strategies. However, studies on net zero in operations management are still short, with many opportunities for further research. This research focuses on the research gaps around supply chain decarbonization to assist in the transition toward neutrality.

Research must explore which practices are antecedents of decarbonization strategies and what decisions are made regarding supply chain decarbonization strategies. The literature recognizes the need to identify critical determinants in a net zero supply chain context to achieve a competitive advantage (Balci and Ali, 2024). Decarbonization responses rarely consider multiple initiatives in integrated actions. Identifying the ‘best’ strategy is challenging once it varies over time, carbon intensity, and firm-level characteristics (Berger-Schmitz et al., 2023). Thus, it is necessary to examine under what conditions commitments are being translated into emissions reductions and how organizations are developing their supply chain decarbonization strategies to achieve competitive advantages. Operations management scholars need to contribute to understanding how achieving neutrality might affect interactions among all three dimensions of environmental, social, and economic performance (Zhang et al., 2024).

This review supports researchers and practitioners in deepening their knowledge of supply chain decarbonization and its role in achieving broader environmental and organizational sustainability goals. Developing a portfolio of decarbonization measures, understanding the business benefits of net zero strategies, and identifying key factors influencing the adoption of supply chain decarbonization strategies are critical steps for organizations to address climate change. The study provides a foundation for future research that can drive meaningful progress toward a sustainable future.

References

Balci, G., and Ali, S. I. (2024), "The relationship between information processing capabilities, Net-Zero capability and supply chain performance", Supply Chain Management, 29(2), 351-370, https://doi.org/10.1108/SCM-06-2023-0320

Berger-Schmitz, Z., George, D., Hindal, C., Perkins, R., & Travaille, M. (2023), “What explains firms' net zero adoption, strategy and response?”, Business Strategy and the Environment, 32(8), 5583–5601, https://doi.org/10.1002/bse.3437

Zhang, Q., Wong, C. W. Y., & Klassen, R. (2024), “Carbon neutrality: Operations management research opportunities”, Journal of Operations Management, 70(3), 344–354, https://doi.org/10.1002/joom.1303



 
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