The development of scenario analysis tools to help IKEA set and follow up climate footprint goals

Examensarbete för masterexamen

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Type: Examensarbete för masterexamen
Title: The development of scenario analysis tools to help IKEA set and follow up climate footprint goals
Authors: Bernhard, Marcus
Abstract: IKEA has joined the Science Based Target initiative in an effort to stay in line with what the latest science says is necessary to limit global warming to 1.5 °C. To enable a fact-based approach for setting and evaluating climate targets within IKEA,tools are necessary. The use of scenario analysis has been recognized as a good way to evaluate alternative options for setting climate targets and plans. Scenario analysis can for example be used to evaluate what will be the impact if a supplier purchases electricity from renewable energy sources instead of fossil based. Several scenario analysis simulation tools have already been developed at IKEA. This project has continued the development of these tools. To understand the needs of the organization and how the existing simulation tool has been used, stakeholder interviews were conducted. The main identified concerns were that the tool was not always available with the latest data, it was perceived as hard to use, it did not always fulfill the need of a certain user, and it was sometimes unclear who had the responsibility of running the simulations. Based on the interviews, two simulation tools have been developed as part of this project. One will be used to set and evaluate climate targets for tier 1 suppliers and the IKEA stores, and the other tool is intended to be used for food ingredients. The main efforts have been put at creating a standardized data structure to allow for a simpler process of updating the simulation tool with new data. The usability of the tool has also been improved. The project has also investigated the implications of using Attributional Life Cycle Assessment data in a tool for decision making. It was identified as a good approach for improving the environmental performance of the value chain. To make sure unintended consequences are avoided outside the value chain,a number of principles are suggested that should be used in conjunction with the simulation tool.
Keywords: scenario analysis tool;simulation tool;corporate climate targets;decision making;attributional life cycle assessment;consequential life cycle assessment;greenhouse gas emissions;climate footprint
Issue Date: 2021
Publisher: Chalmers tekniska högskola / Institutionen för teknikens ekonomi och organisation
Series/Report no.: E2021_057
URI: https://hdl.handle.net/20.500.12380/303888
Collection:Examensarbeten för masterexamen // Master Theses



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