A method for calculating the carbon footprint at Volvo Logistics Corporation

Abstract: This thesis handles the need for Volvo Logistics (VLC) to calculate their total carbon footprint of purchased transportations, i.e. the total carbon dioxide emissions by all vehicles employed by VLC to transport the goods of their customers. The purpose of the thesis is therefore to determine a method with which VLC can calculate the total carbon footprint. To be able to decide upon one method that can fulfil the purpose, the authors searched for various methods, both in the academia and within the transportation sector, with which the emissions can be determined. Simultaneously the available input at VLC was studied to determine what type of method would be best suited to the current state of the company. After gathering several methods and determine what input was available and what was not available at VLC, an analysis of the found methods was done. First matching them with the available input to see which were usable as is, and then a more thorough Analytical Hierarchical Process analysis using three main-criterions; credibility, comparability, and simplicity, each with several sub-criterions. The weighting of these criterions was done in a workshop together with VLC employees, particularly the Environmental Manager and an Environmental Analyst, but also with two employees at the Global Logistics Development department at VLC. Using the weighting and the author’s comparisons of the methods within each of the criterions it was possible to obtain the methods with which further analysis should be done. After further analysis was conducted, considering VLC’s situation and possible development, the final methods was decided upon, one for each mode of transport; air, rail, road, and sea. These had to be adapted to better suit VLC and the input that was available; the distances, the weight, and the transport mode, factors which are incorporated in the methods recommended by the authors. The adaptation was then done using expertise at VLC to be able to determine what input VLC could affect as to be able to work towards lowering the total carbon footprint once it was calculated the first time. This also led to a revaluation of the method for sea transportation, forcing a change from the previously chosen one to a more suited method. This meant that three of the four modes; air, road, and sea, was covered by the NTM method, while rail used the Green Cargo method. While adapting the methods; to make them ready to use for VLC, certain changes required to obtain all the input needed was encountered and forwarded to the environmental department, letting them include it in the annual supplier survey. The thesis was concluded by four sets of instructions to be used to calculate the carbon footprint, one two tiered set for each mode of transportation. The instructions are presented in a step by step fashion of how to perform the calculations. The first part; First time usage, depicts those changes needed before the calculations can be attempted, the second part; Annual usage, cover those steps which has to be gone through every time the total carbon footprint for a period is to be calculated.