Carbon intensity

Definition

Carbon intensity refers to the amount of carbon dioxide (CO2) emissions produced per unit of economic activity or energy consumed, typically expressed in grams of CO2 per kilowatt-hour (gCO2/kWh) or similar metrics. It serves as a critical measure for understanding the environmental impact of energy production and consumption, helping to identify opportunities for reducing greenhouse gas emissions in various sectors, including supply chains and supplier selection processes.

5 Must Know Facts For Your Next Test

1. Carbon intensity is a vital metric for organizations aiming to measure and reduce their greenhouse gas emissions throughout their supply chains.
2. Lowering carbon intensity can enhance a company's reputation and competitiveness in markets that prioritize sustainability.
3. Different energy sources have varying carbon intensities; for example, coal has a higher carbon intensity compared to natural gas or renewable energy sources.
4. Assessing suppliers based on their carbon intensity can lead to more sustainable supplier selection and partnerships focused on emission reductions.
5. Strategies for lowering carbon intensity include increasing energy efficiency, utilizing cleaner energy sources, and implementing carbon capture technologies.

Review Questions

• How does carbon intensity influence sustainable supplier selection criteria?
  • Carbon intensity plays a crucial role in sustainable supplier selection by allowing companies to evaluate suppliers based on their emissions performance. Suppliers with lower carbon intensity are often preferred as they contribute to overall emissions reduction goals within the supply chain. By considering carbon intensity, organizations can foster partnerships that align with their sustainability objectives and promote environmentally responsible practices throughout their supply networks.
• In what ways can strategies aimed at reducing carbon intensity in supply chains lead to improved environmental outcomes?
  • Strategies aimed at reducing carbon intensity can lead to improved environmental outcomes by minimizing greenhouse gas emissions associated with production and distribution activities. This includes adopting energy-efficient technologies, transitioning to renewable energy sources, and optimizing logistics to decrease fuel consumption. By implementing these strategies, companies can significantly lower their overall carbon footprint while enhancing operational efficiencies and meeting regulatory compliance requirements.
• Evaluate the long-term implications of high carbon intensity for companies that fail to address this issue within their supply chains.
  • Companies that do not address high carbon intensity within their supply chains may face severe long-term implications, such as regulatory penalties and increased operational costs due to reliance on fossil fuels. Additionally, as consumers increasingly demand sustainable practices, firms could suffer reputational damage and loss of market share. In the broader context of global climate change initiatives, neglecting carbon intensity can also hinder a company's ability to innovate and adapt to evolving industry standards aimed at reducing greenhouse gas emissions.

Related terms

carbon footprint: The total amount of greenhouse gases, including CO2, emitted directly or indirectly by an individual, organization, event, or product, usually measured in equivalent tons of CO2.

renewable energy: Energy derived from natural processes that are replenished constantly, such as solar, wind, and hydroelectric power, which have lower carbon intensity compared to fossil fuels.

life cycle assessment: A systematic analysis of the environmental impacts associated with all stages of a product's life, from raw material extraction through production, use, and disposal, often used to assess carbon intensity.