1) The first theme in developing “environmentally sustainable/ friendly/
sound/ preferable/ responsible”, “green”, “eco” supply chains is related to reduction of consumption. The simple
equation behind this theme
is that by reducing demand, supply will be reduced as well. Less consumption may
lower: need for goods and services, depletion of carrying capacity of the World,
and degradation of ecosystem services as well as natural resources.
2) An obvious conclusion from the previous theme is that although consumption can be reduced, it cannot be omitted. As production and consumption of goods and services in the right condition [I will explain this later] can lead to emergence of innovative goods and services, the economy should instead become green. It is also impossible to eliminate the socioeconomic metabolism like need for food, materials, packages, energy, and [goods and passenger] transport services. A green economy can lead to optimization of consumption by increasing efficient utilization of resources and reducing waste.
2) An obvious conclusion from the previous theme is that although consumption can be reduced, it cannot be omitted. As production and consumption of goods and services in the right condition [I will explain this later] can lead to emergence of innovative goods and services, the economy should instead become green. It is also impossible to eliminate the socioeconomic metabolism like need for food, materials, packages, energy, and [goods and passenger] transport services. A green economy can lead to optimization of consumption by increasing efficient utilization of resources and reducing waste.
Some measures
for transition towards a green economy are mentioned below.
a) Decoupling the economic growth from the increase in mobility by:
developing knowledge-intensive and dematerialized/ weightless economy, exporting
intellectual properties, localisation/ nearshoring for the branches which can be
localised/ neareshored [otherwise taking advantage of free-trade and WTO for
export and import], and increasing accessibility.
b) Closing the loop of supply chains (closed-loop supply chains) by
developing completely renewable [and carbon/ GHG neutral] energies/ basic
industries as well as recyclable [and nontoxic] goods. Some examples of
renewable energy resources are hydro, wind,
solar, geothermal, and biomass [I will explain their
implementation challenges later]. Reverse Logistics and Life
Cycle Assessment (LCA) are some activities of closed-loop supply chains to
mention.
c) Developing clean technologies in different sectors of economy/ industries
[which may reduce energy, emissions, and traffic intensities]. Some examples of
such technologies are: Carbon Capture and Storage (CCS), decentralized
fuel/ energy cells, lighter goods (nanotechnology and graphene), electrified infrastructure, driverless vehicles, smart grids, ICT, and
virtual reality.
d) Increasing productivity, efficiency, and effectiveness of economic
activities through: de-speeding the supply chains, eco-design and
manufacturing/ production, increasing fill-rates/ load factors and utilization of
packaging systems as well as supply chains resources, increasing utilization of infrastructure capacity, consolidation
centers, collective traffic for goods and passengers, reducing energy and
emissions intensities of all modes of transport, eco-driving/ eco-sailing/ green-take
off and approach, route planning/ optimization …
3) The third theme is related to adaptation which refers to those types of measures which may change environmental behaviour of supply chains’stakeholders/ agents in both short and long-terms. The nature of the measures can change over time. Stakeholders/ agents may change their behaviour reactively (top-down) and/ or proactively (bottom-up) both influencing and influenced by their surrounding environments (any type of environment).
Top-down changes can lead to compliance with environmental norms, legislations, and standards. They might be governed through: Market Mechanisms (subsidies and tax incentives, emissions trading schemes, tax on fossil fuels and GHG emissions, infrastructure charges/ tolls, congestion charging, vehicle license duty/ vehicle tax, public investment), Regulatory Mechanisms (environmental laws and standards, eco-labeling/ certification, technology-replacement schemes, environmental classification of vehicles, vehicle maintenance control, environmental zones, vehicle size/ length/ capacity/ weigh/ circulation/ idling/ access time restrictions, delivery time restrictions), and Normative Mechanisms (setting schemata and preferences, setting organizational goals/ visions and strategies).
Top-down changes can lead to compliance with environmental norms, legislations, and standards. They might be governed through: Market Mechanisms (subsidies and tax incentives, emissions trading schemes, tax on fossil fuels and GHG emissions, infrastructure charges/ tolls, congestion charging, vehicle license duty/ vehicle tax, public investment), Regulatory Mechanisms (environmental laws and standards, eco-labeling/ certification, technology-replacement schemes, environmental classification of vehicles, vehicle maintenance control, environmental zones, vehicle size/ length/ capacity/ weigh/ circulation/ idling/ access time restrictions, delivery time restrictions), and Normative Mechanisms (setting schemata and preferences, setting organizational goals/ visions and strategies).
On the other hand, bottom-up changes might be governed through
Cognitive Mechanisms (information giving and
advising, support for R&D/ innovation/ education/ training, incentives for entrepreneurs, demonstration
projects, collaboration
(alliance-building), taking
initiatives like green procurement/ purchasing and green marketing, as well as voluntary
environmental- calculations/ measurement/ footprints, benchmarking/ rating, monitoring, modelling,
assessment/ evaluation, reporting).
In order to transform the supply chains towards environmental sustainability, a diverse and mixed packet of all the themes [with minimal antagonistic effects on each other] is essential.
