Climate-friendly supply chains: Driven by business value not regulations

Maryam Masoumi

Research output: Contribution to specialist publicationAIB Review - scholarly output

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Abstract

Focusing on Business Value: Why?

“…when there are no government regulations, the trick is how do you encourage the suppliers to improve their environmental performance, particularly the suppliers who do not have that mind frame of reducing CO2 emission…. what we do here is, we don’t put CO2 reduction as our main theme, but we put it as the cost reduction activity for the company, because eventually if they can reduce CO2 they are also reducing the operating cost, so if we try to encourage them to look at that as a cost reduction activity, CO2 reduction comes hand in hand with that….”.

The above anonymous excerpt was said by the environmental manager of an international automotive manufacturer in an emerging economy in an interview discussing the drivers and barriers of green supply chain management (GSCM) practices. What is clear from this statement is that the shift from reactive and compliance-based to proactive and strategic adoption of green practices happens only when organisations realise the benefits such practices can bring to their businesses. While environmental laws and regulations such as carbon pricing can be an effective tool to mitigate climate change, it is not enough to meet required climate targets.
Original languageEnglish
No.2
Specialist publicationAIB Review
PublisherAustralian Institute of Business
Publication statusPublished - 20 Aug 2020

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