A hypothetical manufacturing company aims to reduce CO2 emissions by 30% by 2030. The sustainability team faces the challenge of aligning various departments to meet this target. The company’s supply chain network must be optimized to balance cost and environmental impact. The total demand is 48,950 units per month across five markets: Japan, the USA, Germany, Brazil, and India.
In one scenario, minimizing the Cost of Goods Sold (COGS) results in a total cost of 5.68 million/month, but CO2 emissions are high at 5,882 tons CO2eq. Shifting to minimize emissions, the model suggests opening seven factories, reducing emissions to 2,136 tons CO2eq, but increasing costs to 8.7 million/month.
Another scenario focuses on reducing water usage to below 2,650 kL/unit, which increases costs to 8.89 million/month and raises CO2 emissions to 4,742 tons CO2eq. Each scenario shows trade-offs between financial viability and environmental sustainability, highlighting the complexity of achieving consensus in green transformations.
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