Corporate environmental responsibility in the supply chain

A continuing trend in outsourcing increases the complexity of supply chains. Global supply chains extend over numerous echelons of countless companies. In parallel, the company-internal view on corporate environmental responsibility is being challenged as customers and legislation alike broaden a company's environmental responsibility to include organisations' upstream as well as downstream in the supply chain. Therefore, the aim of this study was to examine corporate environmental responsibility beyond corporate boundaries, i.e. in the supply chain. A cross-industrial study based on 16 case studies in Finnish trans-national corporations sheds light on various dimensions of corporate environmental responsibility upstream and downstream of product and process supply chains. Conclusions were drawn for corporate environmental responsibility as well as for the role of supply chain management in extending environmental demand over several echelons and diverse industries.     

Linking supply chain strength to sustainable development: a country-level analysis

Several global corporations have been severely criticized by different lobbying groups for the impact of their operations on the natural environment and on the local communities. Because corporate operations cannot be studied in isolation but rather as a part of a large network often referred to as a supply chain, this paper investigates the potential link between supply chain characteristics and sustainable development at the country level. In particular, the linkage between supply chain strength, generally defined as the number and quality of the suppliers and customers in a country, and the three dimensions of sustainable development namely environmental performance, corporate environmental practices, and social sustainability is assessed. Using archival data from The Global Competitiveness Report (2004–2005) and the 2005 Environmental Sustainability Index, a statistical assessment of the linkage was conducted. The results indicate that supply chain strength is positively linked to all three dimensions of sustainable development.     

Environmental evaluation of localising production as a strategy for sustainable development: a case study of two consumer goods in Jamaica

The objective of this study was to compare the life-cycle environmental impacts of changed production structures for two consumer goods (high-density polyethylene (HDPE) shopping bags and beds) in Jamaica. A scenario technique was used to construct three alternative production structures for each product; each scenario reflecting an increase in local production in Jamaica which depended on an increased supply of input materials which may be sourced: (1) externally from overseas suppliers, (2) from post-consumer recycling, and (3) locally on the island of Jamaica. These three constructed scenarios were then compared to the existing supply chain or reference scenarios of the products. The results showed that for both case products the recycling scenario was most preferable for localising production, resulting in the lowest environmental impact. This was because the production of raw materials accounted for the largest effect on total environmental impact. As such, the most immediate environmental improvements were realised by lowering the production of virgin materials.     

Integration of environmental aspects in product development: a stepwise procedure based on quantitative life cycle assessment

Significant environmental improvements can often be achieved by integrating environmental properties as an optimisation parameter in product development together with more traditional values such as production costs, functionality, aesthetics etc. This paper presents a professional method intended for managers based on quantitative life cycle assessment to identify environmental ‘hot spots’ in a reference product's life cycle and to select new environmentally optimised solutions for a new product. The paper takes its starting point in traditional procedures for product development (idea, analysis, goal definition, concept development and detail development) and shows step by step how the environmental properties of the new product can be optimised and thus contribute to the overall competitiveness of the new product.     

欧美绿色供应链发展经验及启示

随着工业化、城市化的飞速发展,我国经济社会面临的资源环境瓶颈约束日益突出,实现经济发展和环境保护的同步推进是当前工作的重要内容,环境保护将扮演更为重要的角色。实施绿色供应链管理有利于改善高能耗高污染问题,提高企业生产效率,增强核心竞争力,促进企业和社会的可持续发展。欧盟和美国在推行绿色供应链管理方面成果显著,汲取其先进的政策和实践经验,对中国推进绿色供应链具有重要的借鉴意义。     

Technological environmental innovations (TEIs) in a chain-analytical and life-cycle-analytical perspective

This paper is based on an empirical survey of technological environmental innovations (TEIs), i.e. new products, processes and practices that come with benign environmental effects. The survey is based on product chain analysis and innovation life cycle analysis. It turns out that most TEIs occur upstream rather than downstream, i.e. chain-upwards in the beginning rather than in the end of product chains, and in early stages of technology or product development rather than in later, more mature stages. There are conclusions to be drawn for ‘upstreaming’ environmental activities and for focusing environmental policy upon innovation.     

Influences, practices and opportunities for environmental supply chain management in Nova Scotia SMEs

Executives are increasingly paying attention to the importance of supply chain management [Lambert DM, Cooper MC. Issues in supply chain management. Industrial Marketing Management 2000;29(1):65–83; Hagelaar GJLF, van der Vorst JGAJ. Environmental supply chain management: using life cycle assessment to structure supply chains. International Food and Agribusiness Management Review 2002;4:399–412]. The management of the supply chain can be a central aspect of a company's competitive advantage [Preuss L. Rhetoric and reality of corporate greening: a view from the supply chain management function. Business Strategy and the Environment 2005;14:123–139]. SCM also offers considerable opportunities to reduce a company's environmental impact. The supply chains of three small and medium enterprises (SMEs) operating in the Burnside Industrial Park in Nova Scotia, Canada were investigated to explore the opportunities to improve environmental performance of SMEs linked in supply chains. This study confirmed that time and, to a lesser degree, financial resources to address solid waste and energy issues are the greatest limiting factors. Small suppliers, and even to a certain degree medium-sized enterprises, have difficulties in allocating resources to initiatives that are not viewed as directly related to their core function, namely manufacturing the product or providing the service. This study clearly demonstrated that opportunities exist to reduce greenhouse gas emissions and solid waste. Although, the benefits that would be gained from the implementation of any of the individual actions in the supply chains explored in this study are individually small, the cumulative benefits that could be achieved among supply chains and within industrial parks are substantial, given the number of small- and medium-sized enterprises.     

Improving enterprise competitive advantage with industrial symbiosis: case study of a smeltery in China

Industrial symbiosis, a subfield of industrial ecology, focuses on transforming the waste of one firm into the valuable input of another, which improves the competitive advantages of supply chain by reducing production cost and improving environmental performance. Considering the specific situation where there are so many state-owned big company groups in China, this paper utilizes the ideas of constructing an industrial symbiosis among different firms, and does a case study on applying the concept into the inner relationships' reconstruction among different production systems in a big state-owned smeltery in South-west China. Three kinds of approaches are explored: 1) recycling and reusing the release; 2) concentrating and abstracting metals from the residues; 3) extending the product chain for value-added products. The results show that it can effectively improve the competitive advantage of the enterprise in terms of decreasing production cost and improving environmental performance.     

Environmental impact of future milk supply chains in Sweden: a scenario study

The objective of this study was to analyse the environmental impact of future supply chains for dairy products. A scenario technique was chosen because scenarios can yield information about the environmental consequences of certain lines of action or developments in a system. To quantify the effects of future systems, a mathematical model of the milk supply chain was constructed and used to simulate possible scenarios. The model was based mainly on life cycle assessment (LCA) methodology. The results show that any consideration of the environmental effects of the milk supply chain must consider the entire chain. The amount of packaging materials used is an important factor, as is the transportation of the dairy products to households.     

Constructing sustainable palm oil: how actors define sustainability

Biofuels as a renewable source of energy have gained considerable importance in recent years. The use of biofuels is expected to rise since national governments of developed nations like the US and European countries see it as one of the ways to fulfill climate targets and increase the security in their energy supply. Production of biofuels is also expected to rise as developing nations see in biofuels the opportunity for connecting to international markets through supplying a new demand in the energy market.Several studies report on the environmental, social and economic gains and detriments that can arise from increased biofuel production and consumption. However, research that provides insight into the way in which such issues are defined by actors within the product chain is scarce. In this article we analyse how the strategies and value definitions of actors involved in the production and consumption of biofuels lead to specific definitions of sustainability. The empirical material concerns the chain of palm oil production in Colombia and electricity generation in the Netherlands. It is analysed using the method of action-in-context, which allows us to uncover the level and source of diversity of sustainability definitions in the product chain.While the current growth in production of palm oil is definitely buyer driven, the analysis of various activities in the chain shows that several aspects of sustainability are defined in more complex actor fields throughout the product chain.     

Bio-energy supply chains and stakeholders

What are the management challenges and opportunities of bio-energy chains for both running their business efficiently and effectively and fostering the relationships with most relevant external stakeholders? This question is approached by systematically reviewing papers at the interface of bio-energy and supply chain or logistics issues. The review conducted as content analysis is based on an analytic framework that conceives bio-energy chains between challenges and benefits of bio-energy production with simultaneous internal supply chain management and external stakeholder management needs. Smartly designed and operated bio-energy projects hold promising potentials of contributing to sustainable development by both mitigating climate change and strengthening adaptation capabilities. Our analysis distils specific strategies and success factors for tapping this potential on two levels: On a supply chain level, individually adapted and designed supply chain systems relying on trustful information exchange, cooperation and relational governance safeguard profitability while holding adverse ecological and social impacts of operation down; they allow, for instance, minimising costs and emissions, implementing new technologies, and coping with environmental uncertainties such as crop failures and volatile prices. On a stakeholder level, governments as key actors for designing the future legal framework of bio-energy are primary targets for lobbying activities of bio-energy representatives. Respective arguments may focus on economic development and job generation. By minimising its adverse impacts on society and eco-systems and by communicating these efforts credibly, bio-energy warrants its superiority over fossil energy systems. Involving NGOs and residents in early stages of bio-energy projects via transparent two-way communication considerably increase societal acceptance.     

A critical assessment of motives for product recovery: the case of engine remanufacturing

Over the past decade, there has been an increasing interest in product take-back, product recovery and the (re-)distribution of these products. The automotive sector, in particular, has a strong history of product recovery operations, such as remanufacturing. Alongside this development, an academic interest in the management of re-use, recycling or remanufacturing has evolved and developed into the field of closed-loop supply chain management. Closed-loop supply chain management, however, is only characterised by a short research history, the earliest contributions can be found on reverse logistics and were published in the early 1990s. Due to the novelty of the field there are still a large number of unsolved research problems. One of these is the question for the rationale behind product recovery operations. This research is based on in-depth case studies within the remanufacturing facilities of a major European Vehicle Manufacturer. The article examines whether the ‘classic’ motives for product recovery are applicable to automotive remanufacturing. It concludes with a summary of the contributions this research makes to theory, to industry and to future research in the field.     

Integrating carbon footprint into supply chain management: the case of Hyundai Motor Company (HMC) in the automobile industry

The purpose of this paper is to improve our understanding of carbon footprint within the context of automobile supply chain management. The case study approach is employed as a research method. Primary data were collected through site visits and extensive interviews with HMC’s corporate and plant management. First, identification and measurement of direct and indirect carbon footprint is critical for mitigating supply chain risks. Second, setting the system boundary of measurement is another important issue to integrate the issue of carbon footprint into supply chain management. Third, developing a map of product carbon footprint facilitates identification and measurement of carbon emissions across the supply chain. Companies today operate in a carbon-constrained world. In particular, the automobile industry is under pressure to take a close look at its product carbon footprint. Managing the downstream consequences of the use of its products and inputs from upstream suppliers is critical for developing carbon risk-mitigated supply chain management. This paper is of benefit to academics and managers by providing a new way to integrate carbon emissions in supply chain management. Since climate change and carbon footprint present challenges to many industries, increasing our understanding of how to integrate carbon footprint in supply chain management is necessary, but has seen little research in the automobile industry.     

Incorporating sustainability into supply management in the automotive industry – the case of the Volkswagen AG

Companies are perceived as important actors in the drive for sustainability. Linked to this, and in response to increasing demands from various stakeholder groups, companies start to look at their supply chain to enhance their overall sustainability profile. Two major triggers can be identified: (1) focal companies are held responsible for environmental and social problems caused by their suppliers, which become more and more important as (2) an increasing share of value is created at the supplier level. In response to such demands, companies have to find ways to incorporate environmental and social aspects into their supply (chain) management. Therefore, environmental and social standards are integrated into supply management by amending the purchasing processes. This paper presents one approach to integrate social and environmental standards into supply policy and supply management at the Volkswagen AG, a focal company of the automobile industry. Therefore, required changes of the sourcing and supply structures were identified during an action research project, and possible options adaptable for company internal integration are shown.     

Organising for environmental considerations in complex product development projects: implications from introducing a “Green” sub-project

This paper presents findings from a case study of a product development project in which environmental performance requirements were introduced. Focus is set on how the project was organised in order to ensure that the environmental performance requirements were considered. A specific “Green” sub-project was included in the project organisation. The analysis shows that such a sub-project can: (1) serve as a means to put environmental considerations on the agenda, (2) introduce a risk for confusion regarding who is responsible for fulfilling the environmental performance requirements, (3) act as an arena for communication about the environmental performance requirements, (4) serve as a platform for environmental champions to be active, and (5) serve as a means for environmental specialists to become part of established contact networks in the product development organisation.     

环境规制、经济高质量发展与生态资本利用的空间关系——以北部湾经济区为例

生态资本利用的空间关系影响区域可持续发展。以北部湾经济区2006—2019年面板数据为例,构建空间杜宾模型研究环境规制、经济高质量发展与生态资本利用的空间关系,结论如下：（1）环境规制、经济高质量发展和生态资本构成三E系统。（2）生态资本利用存在显著空间正自相关关系。（3）生态资本供需、流量利用及存量占用与环境规制显著空间正相关,环境规制抑制了存量占用及资本供需和流量利用水平;与经济高质量发展显著空间正相关,经济高质量发展显著提高了资本供给需求与流量利用,也增大了存量占用。（4）交互效应显著抑制了两者对资本供需与流量利用的影响、抑制了环境规制对存量占用的影响,也促进了经济高质量发展对存量占用的影响。研究结论对区域生态资本管控有实际意义。     

Why do firms engage in environmental management? An empirical study in China

There are increasing pressures being put on firms, from a number of different sources, such as governmental regulation, community participation and market demand, to engage firms in environmental initiatives. These factors play different roles at various development periods. Government regulation was the major pressure, initially. However, community participation and market demand have become more and more important. Thus a better understanding of the determinant factors that play a role in engaging firms to take environmental management initiatives may help policy makers develop more effective environmental policies. Using data collected from 89 firms in Wujin county of Jiangsu Province, China, this paper developed an index system to evaluate the corporate environmental management performance. Furthermore, we used econometric methodology to identify the main factors that probably shape corporate environmental management performance, including both external pressures and firm characteristics. The results showed that pressures from supply chain, customers, and communities played positive roles in engaging firms to improve environmental management performance. However, the pressure from the regulatory system did not implicate positive effect on environmental management performance when basic compliance is not an issue in the region anymore. The results also showed that firms with larger scale will be more active in engaging in environmental management initiatives. Finally, our results suggest that: (a) regulation's stimulation may be reduced as long as firms have complied with requirements of local environmental standards and other environmental laws; (b) policy makers should pay more attention to market and information instruments; (c) more financial and technical support should be provided to encourage small- and medium-sized enterprises (SMEs) to improve environmental performance.     

Stepwise environmental product declarations: ten SME case studies

The lack of reliable communication tools is anticipated to become an important barrier to design and sell products with improved environmental performance. In this paper, environmental product declarations, EPDs, and in particular a Stepwise EPD approach is investigated as a means to overcome the communication barrier. The experiences of ten European SMEs who have tried to use Stepwise EPDs for market communication and as a basis for eco-design are described and discussed. The experiences suggest that Stepwise EPDs based on life cycle assessment can be a cost-efficient tool to improve the environmental performance of products. For normal marketing activities the Stepwise EPDs were disappointing. Using the underlying LCA as a platform for in-depth communication with selected parties in the supply chain showed more promise.     

A life-cycle framework to analyse business risk in process industry projects

The chemical and related process industries are particularly exposed to high environmentally related costs arising from normal operation and accidents, not only of their own processes but also other processes in their supply chains. A methodology (Process environmental risk assessment—PERA) is presented for the assessment of all such risks during the design of new processes. This can be seen as a project-centred risk assessment that seeks potential problems along the whole supply chain. Each activity, resource use or waste source along the supply chain represents a potential interaction between the supply chain and the environment. These potential interactions are identified systematically using a life-cycle based assessment. To assess the risk to the project or process supply chain arising from those interactions the relevant stakeholders must be identified. Their likely response can then be considered and ranked according to the risk it poses. The methodology facilitates the management and communication of risk, and is illustrated by application to some aspects of the manufacture of PVC. The method could equally be applied to the assessment of existing processes.     

A new business model for baby prams based on leasing and product remanufacturing

A shift in business thinking from selling products to providing service solutions to customer needs is becoming noticeable. It is driven by increasing competition and the need to identify new profit centres for producers of mature products. This paper identifies a new product group that could be interesting from the product-service system perspective – baby prams. The study presents a new business model based on selling the function that baby prams provide through leasing prams. It discusses potential barriers and necessary changes in product design and the supply chain to make it work. The product-service system in this case could include the organisation of a reverse logistics system with different levels of refurbishment and remanufacturing of prams, partially by retailers. The new model may provide customers with a high quality pram in a “like new” condition for the period they need it, and may help avoid transaction costs of having to sell the pram on the second-hand market. Economic estimations point to a significant potential for increased profits, while the environmental potential should be further investigated.