Discuss the concept of sustainable supply chain management and how organizations are implementing it to reduce their carbon emissions
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Today, climate change has become a major topic of discussion across the world, forcing consumers and organizations to change their habits in order to combat their impact before it is too late. It is affecting every country on the continent by affecting day-to-day lives and economies. Weather patterns have greatly changed with weather events becoming extreme and sea levels rising. Through the past decades, both national and international research communities have worked together to develop a clear picture of why and how climate is changing, its impact on humans, and how to combat it. Countries have implemented laws and regulations in order to reduce the impact of greenhouse gas and carbon emissions. In response, organizations are incorporating sustainable supply chain concepts in order to reduce their carbon emission and waste while still maximizing profit.
This report will discuss the concept of sustainable supply chain management and how organizations are implementing it to reduce their carbon emissions.
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how organizations are implementing sustainable supply chain management to reduce their carbon emissions Case Study
Key Learning Outcomes
By the end of the case, students should be able to:
- Understand how organizations are implementing sustainable supply chain management to reduce their carbon emissions
- Understand supply chain management, what it is, and its elements
- Describe and illustrate aspects of sustainable supply chain management
1.0 INTRODUCTION
Today, sustainability has become a major focus for many businesses as they recognize how vital it is for them to reduce their environmental impact and promote social responsibility. One particular area where sustainability has become important is in supply chain management whereby companies are ensuring that their operations are not just profitable but environmentally friendly and socially responsible as well. Several companies have recognized the importance of sustainability in supply chains and implemented sustainable practices throughout their supply chains (Sanchez-Flores et al 2020).
Consumers, media, government, and investors among other stakeholders are putting organizations under a lot of pressure to demonstrate sustainable developments in their overall operations. It is becoming clearer that the traditional approach toward operations is no longer sustainable and that it is essential for organizations to conform to the regulatory environment and achieve their sustainable goals (Sanchez-Flores et al 2020). Besides the need to meet all stakeholders’ interests, make a profit and generate competitive advantage in today’s highly competitive environment, companies have been identified as means to facilitate the implementation of sustainable practices. Moreover the ever changing consumer demand patterns, pressure from governments and other stakeholders have forced brands to adopt sustainable practices in their supply chains (BMUV 2017).
As such, a number of companies, small, medium and large have made sustainability a core part of their business strategy, implementing sustainable practices throughout their supply chains. From promoting fair labor practices to using renewable energy sources to reducing waste, companies are leading the way in sustainable supply chain management (Cetinkaya et al 2011). The catastrophic impact of resulting from suppliers’ insufficient security and occupational health and safety standards such as the collapse of the Rana Plaza building in Bangladesh revealed how vital it is for companies to address the social impact of their activities within their supply chains.
Against this backdrop of such catastrophes, brands are under increasing pressure from consumers, regulators, and investors to safeguard workers’ rights in their supply chains. Major fashion brands have set standards for sustainable supply chains. In the fashion industry, companies such as Patagonia have resorted to using sustainable materials such as recycled polyester and organic cotton in their products and have also implemented fair labor practices in supply chains. Major brands are also regularly disclosing information about their supply chain to the public.
Adidas has made sustainability a key priority in its operations. The company is using more sustainable materials in its products, including recycled polyester and sustainable cotton. Adidas has also implemented sustainable practices in its manufacturing and transportation processes – and has launched a program to improve the sustainability practices of its suppliers, actively extending its sustainability reach to its scope 3 emissions (Ozsevim 2023).
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