A Study of Greenhouse Gas Assessment and Supplier Selection

Green House Gas (GHG) emissions from corporate activities are gradually becoming a mainstream management issue for businesses. The GHG Protocol Scope 3 Corporate Standard has been adopted as the international standard to report a corporation’s overall emission profile of their value chain activities. Through Scope 3 Corporate Standard, companies can recognize potential emissions and associated environmental risks from their supplier. In consideration of GHG inventory associated risks covered in supply chain activities, this research proposes four dimensions supplier selection framework which integrating organizational, social, environmental and risk into a supplier selection principle. Analytic Hierarchy Process (AHP) is used to analyze the weights of the multi-criteria decision-making factors designed for supplier selection. This study found the quality and regulatory risk are the most important supplier selection criteria. Facing the risk caused from the regulations and standards of greenhouse gas will induce corporations adjusting the weights of the traditional economic criteria.