A decision analytic tool for corporate strategic sustainable energy purchases

Energy procurement for global companies grows more challenging with improved sustainable energy opportunities, increasing greenhouse gas compliance reporting, electricity market regulatory changes, and customer pressure for companies to be sustainable. With so many dimensions to the challenge, it is difficult to simultaneously weigh the options and make a fully informed decision. In this case study, we develop a multi-criteria model to support global companies’ sustainable energy procurement decisions. The model synthesizes calculated and judgment-based metrics for both environmental and business considerations using the Analytica decision modeling software. In order to facilitate the use of this powerful modeling platform for multi-criteria strategy applications, we implement two new generic modules, one for multi-attribute utility and one for decision-analytic strategy tables. We then apply the model to a real-world case study for a multinational company, using a stochastic framework with Monte Carlo simulation to create a range of values for the various strategies. The model can be replicated for similar energy purchasing decisions, while the modules can be reused for a wide range of decision modeling situations.