ASSESSMENT OF ORGANIZATIONAL CARBON FOOTPRINT AND TRANSITION RISKS TOWARD CARBON NEUTRALITY: A CASE STUDY OF A COMPRESSOR MANUFACTURING PLANT

Abstract

This research aims to assess the organizational carbon footprint (CFO) and analyze transition risks toward carbon neutrality in a case study of a compressor manufacturing plant. The study applies both quantitative and qualitative research methods using the McKinsey 7S framework, PESTEL analysis, and risk assessment in accordance with the Task Force on Climate-related Financial Disclosures (TCFD) framework.

            The results indicate that the organization’s total greenhouse gas (GHG) emissions amount to 32,268 tCO₂e per year. The largest proportion of emissions originates from Scope 3 (other indirect emissions), accounting for 59.46%, primarily due to embedded carbon in raw materials such as steel and copper. This is followed by Scope 2 emissions (electricity consumption) at 23.68% and Scope 1 emissions (direct emissions) at 16.85%. The transition risk assessment identifies 11 high-risk issues, particularly policy and regulatory risks related to the Carbon Border Adjustment Mechanism (CBAM) and carbon taxation, as well as technological risks associated with the use of R-22 refrigerant. The study proposes management approaches including the implementation of green procurement policies, investment in high-efficiency technologies, and the integration of greenhouse gas (GHG) performance indicators into corporate strategy. These measures are intended to enhance competitiveness and support the organization’s transition toward a Carbon Neutrality.