CO2 Modeling

Greenhouse Gas Background

• A greenhouse gas (GHG) is any gas in the

atmosphere which absorbs and re‐emits
heat, and thereby keeps the planet’s
atmosphere warmer than it otherwise
would be.

• The main GHGs in the Earth’s atmosphere

are water vapor, carbon dioxide (CO2),
methane (CH4), nitrous oxide (N2O) and
ozone.
Greenhouse Gas Background
Carbon dioxide equivalent (CO2e)

Chart from IPCC Fourth Assessment Report: Climate Change 2007

CO2 equivalents = global warming potential

 Concepts

• A Carbon footprint is the total amount

of greenhouse gases (including carbon
dioxide and methane) that are generated
by our actions.

• A Carbon offset is a way to compensate

for your emissions by funding an
equivalent carbon dioxide saving
elsewhere

Sources:
• https://www.nature.org/
• https://www.carbonfootprint.com/
• https://www.unep.org/

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Potential Use Cases

Calculate/estimate CO2 emissions from production & transportation activities in the

network

Compare different network designs based on total carbon emission and carbon cost

Evaluate cost impact of applying green technologies (transportation assets/ low CO2
emission production lines)

Re - evaluate supply chain capabilities under new environmental regulations

Visualize CO2 emissions in upstream/downstream activities (GHG protocol Scope 3)

What Companies Have Done

2015 Sustainability Report

2014 Corporate Citizenship Report

How Do I Get CO2 Numbers?
Company Reporting
Sustainability teams or other departments may have numbers

Vendors, 3PLs, 4PLs, & Suppliers

Often your supply base & vendors will track it as a selling point

Online tools
Lots of great, free material on the web

Supply Chain Guru Transportation Factors

Field guru has many preloaded “factors” or emissions multipliers
based on weight-distance &mode
Online Resources
Full Scale Tools:

Greenhouse Gas Protocol (how to create a carbon inventory for your company)

Transportation Specific Tools:

US Dept. of Energy, Argonne National Laboratory’s GREET tool

AFLEET Tool (can get a gram/mile amount from background data)

Equivalency Calculators:

EPA

Other Info:

Carbon Disclosure Project’s Supply Chain Report

Standard Emission Factors:

UK Defra Emission Factors

US EPA Emission Factors

Model Building
GHG Modeling in Supply Chain

Production Transportation Advanced

NO • Sites • Sites • Greenhouse Gases

• Production Policies • Modes • Sequential Objectives
• Greenhouse Gases • Transportation Policies

TO
• Transportation Assets
GHG In Transportation Optimization
Input Table – Transportation Assets

• You can enter a value of CO2

produced or

• Select transportation method to

populate the value
GHG In Transportation Optimization
Input Table – Transportation Assets

• Select the CO2 basis

• When a transportation method is
selected, the CO2 Basis is set to "T-MI".
GHG In Transportation Optimization
CO2 Output

Table Column Description

Route CO2 Emission Displays the total CO2 emission incurred on the route. This is the sum of the CO2 emissions
Summary calculated for all the segments on the route

Segments CO2 Emission Displays the CO2 emission incurred on the segment. The emission is calculated as:

((Tare weight of vehicle + weight of shipments onboard) * CO2 factor) * Distance traveled

The CO2 factor is defined on the Transportation Assets table

GHG In Network Optimization

• Production
• Transportation
• Advanced Modelling
GHG In Production
Input Table - Sites

• The fixed CO2 field allows a user to

specify levels of CO2 output based on
the sites throughput.
• You can enter an absolute value and
select weight UOM LB or KG or
• Create a step cost and select it.
GHG In Production
Input Table – Step Costs

Define step cost for CO2

Enter step costs

GHG In Production
Input Table –Greenhouse Gases

Provide the conversion between

carbon cost and emission weight
GHG In Production
Input Table – Production Policies

You can enter a value of CO2 produced in weight for each unit
of production (Variable Production CO2 )
GHG In Production
CO2 Output

Table Column Description

Production CO2, CO2 The carbon emissions emanating from the CO2 as defined in the Production Policies
Flows Cost table and corresponding cost

Network Site Total CO2 , The carbon emissions emanating from the CO2 as defined in the Production Policies
Summary Total CO2 table and the Fixed CO2 as defined in the Sites table and corresponding cost
Cost
GHG In Transportation
Input Table – Transportation Policies

• You can enter a value of CO2 produced

or select transportation method to
populate the value
• If the transportation method is
selected, then CO2 Basis is set to "T-
MI".
GHG In Transportation
Input Table – Modes

Enter the CO2 &CO2 basis at mode

level.
GHG In Transportation
CO2 Output

Table Column Description

InterSite Flows CO2, CO2 Cost (Product Weight * Distance * CO2 from TP) * Flow Units

Customer CO2 , CO2 (Product Weight * Distance * CO2 from TP) * Flow Units
Flows Cost
GHG In SCGX
Input Table – Greenhouse Gases

Column Description
Maximum Carbon Defines the maximum carbon footprint allowed in any model run
Footprint

Enforce Max Carbon Defines the maximum carbon footprint allowed in any model run
Footprint
Carbon Cost Represents cost per unit of CO2 in the model. This field is used to model carbon taxation and
other penalties for carbon emissions

Total Carbon Cost =Total CO2 (Customer Flows.CO2 + Interfacility Flows.CO2 + Productions.CO2 +
Facility Summary.CO2) *Carbon Cost
GHG In SCGX
Input Table – Greenhouse Gases
Column Description
Carbon Offset Price Cost per unit of carbon offsets that can be purchased. In the real world, this price is the equivalent to the
cost of a carbon credit or could represent a cost for voluntary carbon offsetting.

Optimize Carbon Defines whether the number of carbon offsets needed for purchase should be included in the objective
Offset function of the network design optimization. (Yes/No)
Initial Carbon Offsets The initial number of units of carbon offsets included in the model. The number of additional carbon
offsets needed in the model is calculated by subtracting the initial quantity of carbon offsets from the total
number of carbon offsets needed to meet the necessary requirements of the supply chain network.

Minimum Carbon The minimum number of carbon offsets that must be purchased.
Offsets
Maximum Carbon The maximum number of carbon offsets that can be purchased for the network design.
Offsets

If CO2 emission > Max Carbon Footprint, extra Carbon Offset Cost will occur as penalty cost which contributes to
Total Network Cost
Carbon Offset Cost = Carbon Offset Price * Max(Carbon Offset Minimum, Total network CO2 - Max Carbon Footprint)
GHG In SCGX
Input Table – Sequential Objectives

Objective Description
Total CO2 The total amount of CO2 emission in kilograms for
Emission transportation and production.

Carbon Deviation from the maximum allowable carbon footprint from

Footprint the Greenhouse Gases table based on Max Carbon Footprint

Carbon Deviation from the maximum allowable carbon footprint from

Offset the Greenhouse Gases table based on Carbon Offset
Maximum Maximum

Carbon Deviation from the maximum allowable carbon footprint from

Offset the Greenhouse Gases table based on Carbon Offset
Minimum Minimum
Selecting Sequential Optimization
Challenges

• CO2 emission related to

indirect activities are not in
scope
• Assume indirect emission
is small so can be scope
out from model
• standard unit emission vs.
device specific unit
emission