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Hotspot Scenario Analysis
Author(s) -
Pelton Rylie E.O.,
Smith Timothy M.
Publication year - 2015
Publication title -
journal of industrial ecology
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 2.377
H-Index - 102
eISSN - 1530-9290
pISSN - 1088-1980
DOI - 10.1111/jiec.12191
Subject(s) - industrial ecology , supply chain , procurement , environmental economics , carbon footprint , sustainability , purchasing , life cycle assessment , business , ecological footprint , environmentally friendly , environmental impact assessment , environmental resource management , computer science , operations management , greenhouse gas , environmental science , production (economics) , marketing , economics , ecology , macroeconomics , biology
Summary Increasingly, organizations are working to reduce the environmental footprint of their supply chains. The use of environmentally preferable purchasing criteria is one strategy organizations use to address this goal. However, evaluating the environmental performance of these criteria (e.g., recycled content, biodegradable, renewable, and so on) has remained elusive. Life cycle assessment (LCA) can measure the impact reduction potential of sourcing strategies. However, full process‐based LCAs are time‐consuming and costly across multiple criteria of thousands of products and inputs purchased in an organizational setting. A streamlined “hotspot” methodology is presented using a combination of environmentally extended economic input‐output (EEIO) approaches and extant literature to identify hotspots in which to constrain a parameterized process‐based LCA. A case study of breakfast cereal manufacturing is developed to (1) assess the efficiencies associated with the hotspotting approach and (2) demonstrate its applicability in generating comparable decision signals of environmentally preferable sourcing criteria for procurement and supply‐chain managers along the dimensions of global warming potential and water use.