A conceptual framework for analyzing sustainability strategies in industrial supply networks from an innovation perspective

This article proposes a new conceptual framework concerning the implementation of sustainability in supply networks from an innovation perspective. Based upon a recent qualitative literature review in environmental, social/ethical and logistics/operations management journals, this article summarizes and analyses the approaches found. Concluded is that even though innovation, socialization, experimental learning and cultural perspectives have been acknowledged as being relevant to explaining supply network dynamics in general, they are rarely included in the current frameworks concerning sustainability. The question still remains why companies influenced by the same external factors and similar in size and power develop a different strategy towards sustainability aspects in their supply network. The article demonstrates with the first results of a survey held in the fashion/clothing sector the relevance of this question.The proposed conceptual framework states that the capability to develop a strategy is influenced by the innovation power of the “focal” company and its supply network. The three implementation strategies presented in the framework are: resign, offensive and defensive. Two propositions are defined to be tested. These propositions focus on the relation between the level of innovation power and the implementation strategy concerning sustainability. Factors used to characterize the innovation power of the “focal” company are: external orientation and transparency, cooperation between departments, learning and adapting, leadership, autonomy and possibility for experimenting, and result driven. Cooperation in the supply networks is characterized by factors like trust, reputation, joint programmes, and cooperative information systems throughout the supply network.In empirical research, strategies found will be related with the level of innovation power. This level will be measured using the factors mentioned. The results might add a new innovation dimension to an improved conceptual framework within the interdisciplinary field of sustainability and supply network research.     

企业碳中和行动的驱动力与模式

碳中和已成为我国气候治理和可持续发展的重要目标。尽管碳中和是国家面向2060年的长期愿景,尚未转换成针对企业的政策约束,但全球很多企业已经快速响应,主动制定自身的碳中和战略。本文从企业环境行为的驱动理论出发,分析了企业做出碳中和承诺的内部和外部驱动因素,论证了企业"化被动为主动"、自主实行碳中和战略,不但有助于在未来更加严格的气候政策规制中获得先机、赢得行业竞争优势、拓宽绿色市场份额、规避可能的经济风险,而且具有体现企业社会责任感、树立良好品牌形象、提升企业创新能力和核心竞争力等积极作用。在此基础上,梳理了能源密集型、资源密集型和高新技术企业的碳中和战略及模式,总结分析了国内企业实现碳中和承诺的机遇和挑战,为国内企业制定零碳发展战略、实现碳中和目标提出了路径建议。     

Eco-design implemented through a product-based environmental management system

Lucent Technologies (Lucent) has undergone considerable change in business strategy with the outsourcing of manufacturing activities. In order to control the significant environmental aspects of hardware products, Lucent's wireless business unit, Mobility Solutions, determined it would concentrate on the design of products: focusing on eco-design enables product sustainability to be improved, with each product generation providing a ‘start of pipe’ (front end) solution with attendant efficiencies.Mobility Solutions pioneered a product-based environmental management system (PBEMS) to formally address the impacts of wireless hardware products on the environment throughout the entire product lifecycle, regardless of where products are developed. This management system looks beyond the environmental impacts of manufacturing to include conceptual design, development, use by the customer, and final product disposal.The success of this approach can be attributed to the integration of eco-design with traditional hardware product realization processes. Through the PBEMS, business and environmental processes are simultaneously utilized to manage significant product aspects and to incorporate sustainability principles during product design. Many innovative eco-design tools are applied during the product realization process to identify areas for improvement of future products, and to verify that each generation of existing products is more sustainable than its predecessor. These eco-design tools include eco-roadmapping, design for environment guidelines and checklists, and lifecycle assessments.The Mobility Solutions PBEMS conforms to the requirements of the ISO 14001 international standard and has achieved third-party certification. By implementing environmentally responsible characteristics through eco-design programs, employees, customers, and the world community benefit from a consistent approach to the environmental management of wireless hardware products. Mobility Solutions continues to reap the value of sustainable product design that is both good for the environment and makes sound business sense.     

Sustainability in the New Zealand wine industry: drivers,stakeholders and practices

This research aims to investigate various sustainability issues in the New Zealand wine industry. Namely, the study examines (1) what drives the industry to engage in sustainability practices, (2) the role of stakeholders in the company's decision-making, and (3) environmental practices related to water utilization, chemicals and waste management. A qualitative research approach supplemented by quantitative measures was adopted to answer the research questions. Twenty-four wineries were studied. The research found that the most important drivers for sustainable practices are personal values, preferences and satisfaction with the profession (i.e., enjoyment of the work itself), followed by product quality and customers' demand. Size of firm also appears to be an important factor. New Zealand wine companies are also driven by the market, but companies do not receive a price premium for grapes grown sustainably or organically grown. The study proposes a typology matrix that differentiates wineries' involvement in sustainability based on the extent of sustainability practices and sustainability drivers.     

Using corporate social responsibility benchmarking framework to identify and assess corporate social responsibility trends of real estate companies owning and developing shopping centres

Shopping centres that include retail activities have come in for criticism as to their environmental, architectural and social impacts. However, the sector has been applying corporate social responsibility (CSR) practices. In an attempt to identify the best practices regarding CSR and trends therein we developed a CSR benchmarking of companies from the real estate sector owning and developing shopping centres. Based on information from websites, annual, environmental and sustainability reports, and customer services department’s information, in 2004 and 2010, a comparative CSR benchmarking was performed on 23 real estate companies with shopping centres based in Europe, China, Australia and the USA. The CRS benchmarking framework focused on reported CSR practices and included categories and sub-categories of evaluation in four domains: (1) external results, (2) internal results, (3) management processes and (4) learning and innovation. The framework was inspired by the sustainability balanced scorecard structure. The United Kingdom real estate sector’s companies studied did relatively well when evaluated by the framework used in this study. The highest ranked real estate companies applied sustainable or environmental buildings standards and did show a commitment to transparency and CSR disclosure. The positive evolution of CSR practices in the 23 companies studied in 2004 and 2010 may reflect efforts to improve competitiveness and the reputation of the companies with shopping centres through CSR initiatives.     

Integrated environmental product innovation in the region of Munich and its impact on company competitiveness

This paper examines the impact of environmental innovations on company competitiveness of both the environment industry and related sectors in the region of Munich. The focus is on the drivers of these innovations and their respective effects on innovating companies. Not only innovations in the area of end-of-pipe technologies, but also the development of integrated products and production methods are examined. In a regional case study approach, a sample of 14 manufacturing and service companies in Munich (Southern Germany) was interviewed. Essentially, environmental innovation is driven by a mixture of factors internal and external to the firm: not only regulatory pressure, but also cost pressure, competitive advantages, technological lead and customer pressure are important drivers. Regulatory pushed innovations contribute to the competitive performance of sample companies in a similar way as environmental innovations which are carried out voluntarily. That would yield proof for the so-called Porter hypothesis which assumes that environmental legislation stimulates innovation and leads to “win–win” opportunities where simultaneously pollution is reduced and productivity increased.     

Proposal for new quantitative eco-design indicators: a first case study

Eco-design is a valuable approach in order to reduce the environmental impact associated with a product system, by introducing environmental considerations early on in its design. Different strategies are possible for the implementation of eco-design, depending on the intended goals as well as the characteristics of the products. The present work proposes a series of eco-design indicators and tests to what extent the application of these simple indicators provides a reliable indication of the reduction of environmental impact, as measured by commonly employed Life Cycle Impact Assessment (LCIA) indicators. The product chosen for the case study was a water source heat pump. Two of the newly-developed indicators were applied and compared to LCIA indicators, focussing on design for disassembly and for recycling. A good and robust correlation was found, providing support to the thesis that these simple eco-design indicators can be used as a proxy to quickly and effectively gauge the environmental improvements introduced in a product system at the design stage.     

Fitting together the building blocks for sustainability: a revised model for integrating ecological,social, and financial factors into business decision-making

Companies committed to integrating sustainability concerns into product decisions are confronted with the daunting task of assessing hundreds, or thousands, of materials and goods. Further complicating efforts have been the rapid growth of environmental and social assessment principles, strategies, actions, and tools. The lack of clarity on how existing approaches are complementary or distinct has resulted in ambiguities about pathways forward for companies. This current state of the field highlights the need to draw out interconnections between the wide range of current work on integrating environmental and social issues into material, product, and other business decisions.This article—developed through collaboration among several environmental, social, and sustainability-oriented researchers and practitioners—addresses this need through building upon pre-existing work [J. Cleaner Prod. 10(3) (2002) 197; J. Cleaner Prod. 8(3) (2000) 243]. It proposes adaptations on a framework for organizing the assessment field, including development of exemplary sustainable product characteristics and their inclusion in a “strategic sustainable development” decision-making model and process [J. Cleaner Prod. 10(3) (2002) 197]. The article also argues for an expansion of analytical approaches within this previously developed framework in order to highlight social aspects of sustainability and landscape-level issues. Finally, the article puts these elements together to describe a pathway forward for companies. In the conclusion, areas for future research are highlighted.     

Experiences of and views on third-party assurance of corporate environmental and sustainability reports

This study explores the development of environmental and sustainability reporting in Sweden and the dynamics behind the corporate decision to introduce, or not to introduce, third-party assurance of voluntary reports. The results are based on interviews with 28 Swedish companies, an analysis of corporate environmental/sustainability/annual reports as well as interviews with assurance providers. Between 1990 and 2003, the number of corporate voluntary reports increased and by 2003 approximately one-third of the reports were subject to third-party assurance. In general, the assured companies were positive in regards to the perceived benefits from third-party assurance, e.g. guidance on how to develop efficient internal reporting systems and increased credibility for published data. The companies without assurance were hesitant to adopt the concept. Their main arguments included the high cost of assurance and the lack of evidence that third-party assurance would result in enhanced credibility. According to the companies, the driving forces for the future development of assurance practices will most probably consist of a combination of proactive approaches from leading companies, generally accepted reporting guidelines and assurance methods, increased pressure from stakeholders and the general acceptance that third-party assurance creates benefits for the company and its stakeholders. In conclusion, this study calls for more attention to be paid towards establishing possible links between methods for third-party assurance and increased credibility for corporate environmental or sustainability reports.     

Collaborative activity with business partners for improvement of product environmental performance using LCA

Collaborative activities with business partners have potential to improve environmental performance of product and life cycle assessment (LCA) is an essential technique to implement eco-design of product and production process. However, collection of LCA data from supply chain is a major issue for LCA practitioners. We propose a Supply Chain Collaboration Model (SCCM), which is a framework for collecting producer-specific LCA data from business partners and for promoting improvement activity of product environmental performance. We demonstrate the practicability of the SCCM using three case studies. In each case study, two or three partner companies organized a product improvement project and carried out process analysis techniques such as LCA and material flow cost accounting (MFCA). As a result, improvement activities from the economical standpoint could provide an incentive for business partners to collect LCA data, and thus the SCCM is an effective framework for eco-design.     

Product service systems in the automobile industry: contribution to system innovation?

This article investigates the actual and potential contribution that product service systems (PSSs) can make in moving beyond incremental technological improvements towards a focus on behavioural changes and system innovation in the automobile industry. It begins by discussing the means by which existing and planned PSS initiatives can be evaluated in terms of their contribution towards innovation at the system level in the automotive industry. Building on and expanding earlier work, it is suggested that they should be assessed against an expanded set of five key evaluative criteria including: evidence of ‘higher-order’ learning amongst stakeholders; changes in infrastructure and institutional practice; changes in vehicle design, manufacture and end-of-life management; changes in vehicle ownership structure; and changes in modes of producer–user interactions. Following this discussion, the article provides a structured overview of some current and planned PSS initiatives at the empirical level in the automotive industry. The identified initiatives are then assessed against the key evaluative criteria in an effort to reveal their actual or potential contribution to meeting the sustainability challenges of the automotive industry. Based on this exercise, it is argued that since most current initiatives do not unify these key elements of a PSS in a single coherent system they do not constitute ‘complete’ versions of PSS, and therefore, fail to deliver the full range of envisaged benefits in contributing towards system innovation. The article concludes by outlining some key areas for future research into potential strategies to address such challenges.     

Developing sustainable products and services

In light of increasing pressures to adopt a more sustainable approach to product design and manufacture, the requirement to develop sustainable products is one of the key challenges facing industry in the 21st century. Hence, the concept of developing sustainable products as well as services is evolving as a key element of Cleaner Production. Sustainable product development initiatives (mainly through eco-design) have been evolving for some time to support companies develop more sustainable products. Ireland has been running the highly successful Environmentally Superior Products (ESP) initiative that supports industrial companies to incorporate a more sustainable approach to the development of products and/or services. The lessons learned from the ESP and other global Sustainable Product and Service Developments in industry and research, are being used to develop a method for effective sustainable product and/or service development (SPSD) in industry. The method is designed to provide pragmatic guidance to business and industry for developing sustainable products and services as well as incorporating this approach within existing corporate strategy, cleaner production and product development systems. This method is being developed by the authors at the Environmental Policy and Management Group (EPMG), Department of Environmental Science and Technology, Imperial College London, UK in conjunction with industry and practitioners. The method provides a framework for implementing SPSD throughout the entire lifecycle of a product and/or service. It can be used to identify, assess and implement the options for optimum sustainability in the design and development of a product and/or service. This paper describes the key features of this method.     

Informal knowledge processes: the underpinning for sustainability outcomes in EIA?

Environmental Impact Assessment (EIA) was originally tailored for restructuring rules and values regarding environmental protection, through interdisciplinary work. EIA has developed as a tool for decision-making for the implementation of projects which potentially pose significant environmental impacts. This paper reviews the sustainability and interdisciplinarity assumptions inherent in EIA. It illustrates through a case study of a proposed landfill extension in Rio Grande do Sul, Brazil, that these principles can arise more from informal knowledge processes than from legal ones. It can be shown that interdisciplinarity is often misunderstood as multidisciplinarity or simple knowledge clustering, and sustainability has no common definition amongst EIA practitioners, but that there predominates an understanding which delivers weak sustainability, driven primarily by social and economic goals. The conclusion is that EIA cannot achieve the original vision set out in the world's first legislation adopted in 1970 unless a learning-organization approach is taken whereby: the critical role of informal knowledge is recognized; informal knowledge is properly managed by EIA teams to engender a common understanding of sustainable development goals; interdisciplinary and transdisciplinary working practices are adopted.     

Developing capabilities and competence for sustainable business management as innovation: a research agenda

This paper frames the response by business to the challenge of sustainable development in terms of innovation. It addresses how the shift in business focus from competitiveness to sustainability impacts the capabilities and competence for innovation. A review of the literature suggests that innovation for sustainability requires the active involvement of a broader and more diverse network of actors, including those with more local knowledge of the implications of innovations than is the case with more conventional forms of innovation. The paper also identifies a systematic failure to address the need for inventiveness as a cornerstone of innovation. The paper puts forward elements of an applied research agenda to support the development of a better understanding of the capabilities that foster the competence by business to innovate in ways that are more sustainable.     

Sustainability experiments in Asia: innovations shaping alternative development pathways?

Global sustainability is increasingly influenced by processes of industrialisation and urbanization in non-OECD countries, especially in Asia. Growth models suggest that developing economies and regions will become first relatively more resource- and pollution-intensive, before converging on more resource-efficient and low-pollution production and consumption patterns expressed in developed countries. Alternative less resource- and pollution-intensive growth models for latecomer countries promise social and economic benefits in the short- and long-term. Drawing on insights from system innovation research on long-run change in socio-technical systems, we discuss the potential role of ‘sustainability experiments’ to generate innovations that will constitute new ‘greener’ growth models. We observe a great number of technology-based initiatives that we characterize as sustainability experiments in East and South Asian countries. These experiments emerge in the context of the growth of new socio-technical regimes in key sectors, including energy, transport, manufacturing, food and the built environment. We set out a conceptual framework for assessing the role of experiments, and for evaluating how they link with and become anchored into alternative more sustainable regimes. In this paper we argue that sustainability experiments represent a significant new source of innovation and capability-formation, linked to global knowledge and technology flows, which could reshape emergent socio-technical regimes and so contribute to alternative development pathways in latecomer countries. We conclude by summarizing the six papers published in this Special Issue.     

Adopting and applying eco-design techniques: a practitioners perspective

This paper discusses the findings of a small scale research project which explored the possibility of adopting eco-design techniques. The paper focuses on identifying how eco-design techniques can be determined as being compatible with new product development processes. Via the development of a five stage ‘applicability framework’, this study demonstrates how a compatible suite of tools can be identified for application to product development processes. Testing and validation of this ‘applicability framework’, which was used to identify three key eco-design techniques; namely checklists, guidelines, and a material, energy and toxicity (MET) matrix, is shown to have taken place in relation to the development of a lightweight chemical detector product. It is established that checklists, guidelines and the MET matrix can be used both on a specific product, and also more generally in the design process. In particular, the MET matrix is shown as being used to successfully identify key environmental aspects of the product during its lifetime. The paper concludes by arguing that eco-design techniques may not have been more widely adopted by businesses because such methods are not necessarily generic and immediately applicable, but instead require some form of process-specific customisation prior to use, which can in turn act as a barrier to adoption. It is also highlighted that the shear diversity of pressures that come to bear during the product development process can also act as a barrier to adoption, and that the full integration of eco-design techniques will have to encompass approaches which overcome such pressures.     

Environmental management and audit schemes implementation as an educational tool for sustainability

The trail to sustainability requires a revolution on the way environmental professionals perceive and solve environmental problems. In a globalisation context, environmental professionals have to develop new personal, interpersonal, societal and technical skills to become active throughout their professional lives and to be of value in the quest for sustainability. Professionals have to develop open mindsets, a holistic perspective of the problems and integrated solutions. Current environmental engineer courses fail to provide the required skills, due to the traditional higher education structure. The role of implementation of an Environmental Management System on campus, in providing students with the ‘hands-on’, ‘on-the-job’ business skills that will make them useful in the search for sustainability is discussed.     

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.     

Shaping sustainable technology development in the coatings chain Defining boundaries,environmental problems and main players

To meet the requirements of sustainable technology development, innovation processes should go beyond optimization, retroffitting and redesign based on incremental innovation, to focus particularly on breakthrough innovations. The aim of current research looks forward to building insights in the field of environment, technology and innovation to design and test a methodology for medium-, long-term innovation planning of future technological options towards sustainability in the paint and coatings chain, and to draw conclusions under which conditions this methodology is feasible. This paper describes the conceptual and theoretical framework as well as the integrated chain, the main environmental problems and the main actors in the network under research.     

Emerging design strategies in sustainable production and consumption of textiles and clothing

This study contributes to current knowledge of sustainability in textile and clothing production and consumption. When the textile and clothing industry aims to promote sustainability, the main change factors have been linked to eco-materials and ethical issues in production. At present, however, business models are mainly linked with a large volume of sales and production. Although industrial development has moved toward smaller environmental impact, production as well as consumption has increased to levels where the benefits of technological development are reduced. A change is thus needed to reach a systemic transformation, not only in production but also in consumption. The aim of this paper is to open up the discussion on opportunities for radical change in this industry. The paper presents ways to rethink and redesign business in the textile and clothing field by offering an overview on several design strategies that exist today in niche markets. Furthermore we evaluate how interested consumers are in these design strategies and discuss the opportunities these design approaches offer to sustainable development through new value creation.