60515A S9 Sustainability

OPER60515A
Supply Chain Management:

Fundamentals and Trends
Class 9 ─ Sustainable Supply Chains
Wenyi Xia
© Xia, W. & Rancourt, M.È., 2023

Outline
 Introduction
 Tragedy of the commons
 Stakeholders
 Triple bottom line
 Sustainable supply chains
 Sustainable design
 Sustainable procurement
 Sustainable manufacturing
 Sustainable packaging
 Sustainable transportation
 Waste management
 Article Discussions
 Case study: Starbucks and Conservation International
A changing global climate system
Intergovernment
Panel on Climate
Change (IPCC) is
now 95% certain
that human are
the main cause
of current global
warming.
Source: https://www.ipcc.ch/site/assets/uploads/2018/02/SYR_AR5_FINAL_full.pdf (pp.41)

Causes
Sources of CO2 emissions
Source: http://www.oica.net/category/climate-change-
and-co2/.
Source: https://www.footprintnetwork.org/our-
work/climate-change/
Definition of Sustainability
 Definition of Sustainability:
meeting the needs of the present without compromising
the ability of future generations to meet their own needs
– United Nations Brundtland Commission
 It has become increasingly clear that the world’s resources and
environment will not be able to support the current growth (of
population, consumption, living standard, economy, etc.)
unless supply chains become more sustainable.
 Sustainability has become a key priority in the design and

operation of supply chains in the 21st century.
Source: Chopra, S. (2017), Supply Chain Management, 7th Edition.

Discussion
Why should companies care about sustainability

when they have to focus on profits?
Challenges Opportunities
?
?
Main challenge of improving sustainability
 Many actions that improve sustainability of a supply chain

impose costs that are local (to an individual, a firm, supply
chain, or country) but provide common benefits that are more
global.
 In contrast, a disregard for sustainability provides benefits that

are local but costs that are shared globally.
 As a result, encouraging sustainability without some external

pressure, in the form of either a public mandate or an
economic incentive, can be difficult.

Tragedy of the commons (Hardin, 1968)
As Hardin writes, “Therein is the tragedy. Each man is locked into a system that compels him to
increase his herd without limit—in a world that is limited. Ruin is the destination toward which all
men rush, each pursuing his own best interest in a society that believes in the freedom of the
commons. Freedom in a commons brings ruin to all.”
Figure Source: https://www.sustainable-environment.org.uk/Earth/Commons.php

Tragedy of the commons (Hardin, 1968)
 Environmental pollution
 The company incurs the entire cost of reducing the amount of waste it
discards, whereas the cost of throwing waste into the environment is
shared by the entire world.
 At country level
 IPCC: even though most of the buildup of CO2 in the atmosphere has
come from the United States and Western Europe, poorer countries
closer to the equator are likely to pay the biggest price.
 In such an environment, getting any agreement is difficult because the
optimal joint action is not individually optimal, whether at the company
or country level.
 Overuse of natural resources such as fish, water, and forest
 Every company and supply chain faces the challenge of the tragedy of the
commons as it operates in a global environment.

Shareholders vs Stakeholders
 Shareholders: individuals or organizations that legally own

one or more shares of stock in the company.
 Stakeholders: individuals or organizations that are influenced,

either directly or indirectly, by the actions of the firm.
 Many companies today have expanded the scope of their

strategy to include stakeholders.
 Firm’s strategy must not only focus on the economic

viability of its shareholders, but should also consider the
environmental and social impact on key stakeholders.
Source: Jacobs, F.R., Chase, R.B., 2021. Operations and supply chain management. 16th Edition, McGraw-Hill.
Stakeholders
Stakeholder groups can exert pressures on focal companies to
enhance the sustainability performance of their supply chains.
(political and
Governance
legal)
(medias,
Society
NGOs, etc.)
Competitors
Companies
Shareholders Clients and

and investors consumers

Discussion
For every stakeholder group, describe their role (i.e.,

responsibilities, actions, or interests) to improve, encourage, or
enforce sustainability.
(political and
Governance
legal)
(medias,
Society
NGOs, etc.)
Competitors
Companies


Governance
 Make social arrangements or mechanisms to coerce all

participants to behave in a way that helps the “common good”
that is “free” to all.
 Emitters should internalize the “monetary value” of the social
or environmental cost of their actions
 Create and maintain accountable policies and programs
 Extend producer responsibility (e.g. collection, recycling, de-
pollution, recovery, re-usage, etc.)
 Restrictions on materials
 Set targets
 Two approaches
 Command-and-control approach
 Market mechanisms
Governance – Command-and-control approach
 Command-and-control approach: the government or

regulators set standards that every-body must adhere to.
 Examples
Fuel Economy
 Corporate Average Fuel Economy standards (or CAFE standards)
 Require automakers to raise average fuel efficiency of new cars and
trucks from 29 miles per gallon in 2012 to 54.5 miles per gallon in 2025.
 United States vehicle emission standards
 Set GHG emission standards for new automobiles
Waste Management
 Waste electrical and electronic equipment (WEEE) Directive
 Sets criteria for the collection, treatment and recovery of WEEE.
 End of Life Vehicles Directive
 Packaging and packaging waste Directive
 Quebec law on the recovery and reclamation of products by enterprises
Governance – Market mechanisms
 Market mechanisms: set mechanisms in place to address

environmental issues (i.e., excessive emission of greenhouse
gases into the atmosphere).
 As opposed to “command-and-control” environmental

regulations, market mechanisms are more flexible
approaches, and allow organizations to decide how best to
meet policy target
 Examples
 Cap-and-trade
 Carbon tax

 Cap-and-trade (quantity instrument)

 Quantity of emissions is fixed by the regulator, but price of
emissions is set by the market.
• The government creates a limited number of total
allowances that are distributed among all players in the
economy.
• If players generate fewer emissions than the allowances
they own, they can sell their surplus allowances to
others that may be polluting above their limit and need
additional allowances.
• The “price” of allowances in this mechanism is created
by the supply and demand for allowances.

 Implementation of Cap-and-trade
 EU Emissions Trading Scheme (ETS) in 2005
• Distributed free permits or allowances
• Allowance price peaked at 30 euro a ton in April 2006,
but collapsed to below 5 euro a ton by 2013.
 Took away incentives for firms to reduce emission
• Reasons for the market failure:
 The distribution of too many free allowances
 The setting of caps that were easily reached
• Corrections:
 reduces the cap on emissions by 2.2% each year
 auction allowances (rather than free allocations)
 Carbon tax (price instrument)

 Price of emissions is fixed by the regulator, but quantity of
emissions is decided by the firms.
 Each entity generating greenhouse gases is charged a tax
proportional to the size of the emissions.
 Implementation of carbon tax

 Japan has introduced a tax on oil, natural gas, and coal that is
expected to cost utilities about 80 billion yen annually from 2016.
 In Canada, the federal government implemented a coordinated
nation-wide carbon price, beginning at $20 per tonne of carbon
dioxide equivalent emissions (tCO2e) in 2019 and rising to $50 per
tonne as of April 1, 2022.

Cap-and-trade v.s. Carbon tax

 Cap-and-trade (quantity instrument):
 Explicitly limit emissions
 May display significant price volatility
 Difficult to determine the quota of emission allowances
Too large (small) a quota → too low (high) a price of emissions
 Carbon tax (price instrument):

 Simpler to administer (an explicit single price)
 Do not guarantee a decrease in emissions
 Difficult to determine the optimal tax rate
Too low a tax →insufficient efforts to reduce emission
Too high a tax→ loss to the firms, and overall society
Carbon pricing around the world
ETS: Emissions Trading Scheme (cap-and-trade)
Source: https://carbonpricingdashboard.worldbank.org/
Customers
 Is there a market for sustainable products?

 Difficulty
 Traceability: End users have limited knowledge of the source of the raw
materials and the conditions under which the products were created.
 Greenwashing: products and practices that seem green but
fundamentally aim to grow profits.
 TerraChoice: “more than 98 percent of supposedly natural and
environmentally friendly products on U.S. supermarket shelves are
making potentially false or misleading claims”
 Willingness to make an effort: Starbucks has only been able to increase
the percentage of beverages served in customer-owned tumblers from
1.4 percent in 2009 to 1.8 percent in 2013, but the rate dropped back
to 1.3% by 2018, despite efforts such as introducing a 1$ reusable cup.
 Solutions?
Shareholders and investors
 Do sustainable enterprises perform well on the stock

markets?
 Do investors value sustainable businesses?
« Investors see a strong link between corporate sustainability

performance and financial performance — so they’re using
sustainability-related data as a rationale for investment
decisions like never before. »
Unruh et al. Investing for a Sustainable Future. MIT Sloan Management Review, May 2016 .

« Investing for a sustainable future »
Source: Unruh et al. Investing For a Sustainable Future. MIT Sloan Management Review, May 2016.

Society & Competitors: put pressure
(political and
Governance
legal)
Society
(medias, NGOs,
etc.)
Competitors
Companies


Triple bottom line
Examining the impact of business decisions on three key arenas:
Source: Bush, C., Sustainable Sourcing: A new Approach to high performance in supply chain management,
Accenture, 2010.
Triple bottom line – Environmental dimension
 Measures a firm’s impact on the environment, including air,

land, water, and ecosystems.
 Activities that improve a firm’s environmental performance:

• Resource reduction
 Starbucks reduced water consumption in its stores by
10.71% between 2019 and 2021.
• Emission reduction
 Walmart reduced GHG emissions by 30% between 2015
and 2021
• Product innovation
 Modular design by IKEA; High-efficiency toilet, etc.
Triple bottom line – Social dimension
 Measures a firm’s ability to address issues that are important
for its workforce (employment quality, health and safety,
training and development, etc.), customers (accurate product
information and labeling, etc.), and society (impact on local
communities, etc.).
• Standards and audits
 Walmart created “Standards for Suppliers” that require
suppliers to eliminate child labor, and look after the
safety and health of workers
 Starbucks sourced 95 percent of its coffee in 2013
“through C.A.F.E. practices, or another externally audited
system.”
• Provide support to (often much smaller) suppliers
Triple bottom line – Economic dimension
 Many actions taken in a supply chain can improve

performance along both economic dimensions and
environmental & social dimensions.
 Example:
The IKEA watering can versus the traditional watering can!
Impact on inventory, transportation and production costs?

Triple bottom line – Challenges in measuring environmental &
social performance
 First challenge: Scope of measurement

• Consider a company that reports only energy consumption
within its own operations
 outsource production offshore: own energy consumption
declines, while entire supply chain energy consumption
may increase.
 bring production in-house/onshore: own energy
consumption increases, while entire supply chain energy
consumption may decrease.
• It is thus crucial to measure the social, environmental, and
economic impacts across the entire supply chain.

Triple bottom line – Challenges in measuring environmental &
social performance
 Second challenge: use of absolute or relative measures
• An absolute measure reports the total amount of energy
consumption
 Advantage: reports the full impact
 Disadvantage: ineffective at capturing improvement
• A relative measure reports the energy consumed per unit of
output
 Advantage: effective at capturing improvement
 Disadvantage: choice of outputs (e.g., dollars of sales,
kilograms of output, or square feet of space)
• In general, it is better for firms to measure and report both
absolute and relative measures to get a true picture of their
performance.
Sustainability – Supply chain decisions
Consider supply chain decisions to support the triple bottom

line
Source: Heizer J, Reder B, Muson C. Operations Management:

© Xia, W. & Rancourt, M.È., 2023 Sustainability and Supply Chain Management.
Sustainability – Supply chain decisions
Integrating environmental, social and economic thinking

into supply chain management
Source: Christopher, M. « Logistics & Supply Chain Management », 5th edition

Life Cycle Analysis (LCA)
 LCA can be used to assess the environmental
impacts associated with a product’s life from cradle
to grave.
 Compare the overall environmental impact of two
products, two processes, two power generation
options, two packaging options, etc. througout their
life cycles.
 Summarizes the envrionmental impacts associated with the production,

transport, consumption and disposal of products
 Useful for both consumers and producers (firms)
 E.g., Paper or plastic bags, which are worse for the environment?

Paper or plastic bags?
After eight uses, not including washing, a reusable plastic bag has a
lower environmental impact than a single disposable plastic bag.
Numbers given are per 1,000 bags.
Source: California State University, Chico, Research Foundation; Joseph Greene
Electric cars
Battery Electric Vehicles (BEVs)

Internal Combustion Engine Vehicles (ICEV)

The circular economy
Linear economy Circular economy
Source: Sauvé et al. (2018). L’économie circulaire.

Sustainable design

Sustainable design

Sustainable design
Winglets, the vertical tips at the end of aircraft wings, are
designed to reduce drag and therefore increase fuel
efficiency. These winglets increase climb speed, reduce
noise by 6.5%, cut carbon dioxide emissions by 5%, and
save 6% in fuel costs.
• Alaska Air has retrofitted its entire 737 fleet
with winglets, saving $20 million annually.
Airlines from around the world, including Air China, Virgin

Atlantic Airways, KLM, Alaska, Air New Zealand, and Japan
Airlines, are experimenting with alternative fuels to power
their jets in an effort to reduce greenhouse gas emissions
and to reduce their dependence on traditional petroleum-
based jet fuel. Alternative biofuels are being developed
from recycled cooking oil, sewage sludge, municipal
waste, coconuts, sugar cane, and genetically modified
algae that feed on plant waste.

Sustainable design
Other examples:
Boston’s Park Plaza Hotel UPS reduced the amount of materials Coca-Cola’s redesigned
eliminated bars of soap and it needs for its envelopes by Dasani bottle reduced the
bottles of shampoo by installing developing its reusable express amount of plastic needed
pump dispensers in its envelopes, which are made from and is now 30% lighter than
bathrooms, saving the need for 100% recycled fiber. These envelopes when it was introduced and
1 million plastic containers a are designed to be used twice, and made from 100% recycled
year. after the second use, the envelope plastic (excluding caps and
can be recycled. labels).

Sustainability and Supply Chain Management.
Sustainable procurement
 Definition: integration of sustainable development and social
responsibility into the acquisition processes of private and
public organizations.
 For most firms, the greatest social and environmental impact
occurs in the extended supply chain outside their own
enterprise.
 This impact has grown as firms have increased their global
sourcing, especially from low-cost countries.
 Thus, to truly have an impact on sustainability, we must look at
the extended supply chain and work with their suppliers to
improve performance.

Sustainable procurement
 Ensure material circularity
 Eliminate hazardous substances
 Ensure the use of more
 Buy local environmentally friendly means of
 Support the social transportation and packaging options
economy  Reduce the impacts generated during
Environ-
 Ensure human, labour mental use (consuption of energy and other
and community rights consumables)
are respected (Supplier
code of conduct)
Social Economic
 Calculate total cost of

ownership
 Forster equity across supply
chains (fair prices, interest in
Source: ECPAR. « Responsible procurement », website:
SMEs)
http://www.ecpar.org/fr/achat-responsable. Consulted March 5th 2019.

Sustainable procurement - Practices
 Determination of environmental, social and economic issues
 Integration of sustainable development criteria in the
procurement process
 Use of certifications
 Supplier assessments
 Production point audits
 Support for SME suppliers
 Support and training for suppliers
 Collaborations with NGOs or other qualified partners
 Etc.

Supplier assessment – Example
Source: Walmart « Supplier Sustainability Assessment », récupéré sur le site

https://dnr.wi.gov/topic/SmallBusiness/documents/caseStudies/WalmartSupplierSustainabilityAssessmentFullPacket.pdf, le 12 septembre 2018.
Use of Certificates – Example
Certifications used in Canada
Source: ECPAR. Baromètre de l’achat responsable 2016. Website://www.ecpar.org/fr/barometre. Consultéedl

September 10 septembre 2018. Figure 7 – Les certifications utilisées, p. 14.
Sustainable procurement – issues remain
 Verifying and tracking supplier performance with regard to

sustainability, however, continues to be a major challenge for
most firms.
 Again “tragedy of the commons”: the verification and tracking

efforts are often firm specific, whereas the benefits from
improved social and environmental responsibility at suppliers
are shared by all.
 Activists along with incentives and mandates will always have

a significant role to play in pushing firms to consider the social
and environmental dimensions when making sourcing
decisions.
Sustainable manufacturing
To produce the so-called premium denim, water is a key component in

various steps of the process in order to create that “distressed” vintage look:
repeated washing with stones, bleaching, dyeing, sand blasting, etc.
Traditionally, about 34 liters of water

are used to make a pair of Levi’s
signature 501 jeans.
Levi Strauss & Co., with sales of $5 billion, is using their Water<Less process
to reduce the water used in denim manufacturing. The company has saved
more than 3 billion liters of water and recycled more than 1.5 billion liters of
water so far.

Sustainable manufacturing
At Frito-Lay’s factory Arizona, more than 500,000 pounds of potatoes arrive every day
to be washed, sliced, fried, seasoned, and portioned into bags of chips. The process
consumes enormous amounts of energy and creates vast amounts of wastewater,
starch, and potato peelings.
Green manufacturing practices:

• Run the plant almost entirely on renewable fuels and recycled water
• Install high-tech filters that recycle the water used to rinse and wash potatoes
• recycles corn by-products to make other snacks
• starch is reclaimed and sold, primarily as animal feed
• Use fuel-efficient ovens to recapture heat from exhaust stacks
At Frito-Lay’s Florida plant, only 3.5% of the waste goes to landfills, but that is still
1.5 million pounds annually. The goal is zero waste to landfills.
Source: Heizer J, Reder B, Muson C. Operations Management: Sustainability
and Supply Chain Management.
Sustainable packaging
The American company Ecovative is responsible for developing the
alternative styrofoam. "Mushroom Packaging," as it’s called, is created by
letting the mycelium grow around clean agricultural waste, such as corn
stalks or husks. Over a few days, the fungus fibers bind the waste together,
forming a solid shape. It is then dried to prevent it from growing any further.

Sustainable packaging
Wal-Mart’s Packaging Scorecard to Suppliers
Metrics Weight
Greenhouse gas emissions created during package production 15%
The packaging material’s sustainability 15%
Average distance the material is transported 10%
Package-to-product ratio 15%
Cube utilization 15%
Recycled content 10%
Recovery value 10%
Renewable energy use 5%
Innovation 5%

Sustainability and Supply Chain Management.
Sustainable transportation – Issues
Drivers of increased or inefficient transportation activities
 Global supply chains and increased global trade
 Transport imbalances
 Empty trucks & containers
 JIT practices
 e-commerce (last-mile & returns)
 Etc.

Sustainable transportation – Definition
 Meet the basic needs of individuals and societies, while

respect the well-being of individuals and ecosystems, and
equitably towards future generations
 Affordable, operates efficiently, offers choices of

transportation modes, and supports economic development
 Limits emissions and discharges below the planet's absorptive

capacity, minimizes the consumption of non-renewable
resources, reuses and recycles resources, minimizes land use
and noise

Sustainable transportation – Solutions
 Reduce transportation activities!

 Make transportation networks more efficient
 Intermodal freight transportation
 Change sourcing strategies
 Network and routing optimization
 Reverse logistics and close-loop supply chains
 Reduce the pollution caused by each mode
 Review product and packaging design
 physical characteristics, the choice of materials, the ease of re-cycling,
re-use, and end-of-life disposal.
 Use postponement strategies
 Shared capacities
 Transportation and infrastructure
Waste Management: 3R
What are the 3Rs ?
• Reducing: choosing to use things with care to reduce the amount of waste
generated.
• Reusing: the repeated use of items or parts of items which still have usable
aspects.
• Recycling: the use of waste itself as resources.
Waste minimization can be achieved in an efficient way by focusing primarily on the
first of the 3Rs, "reduce," followed by "reuse" and then "recycle."

Apple’s newest disassembly robot,
Daisy, is the most efficient way to
reclaim more of the valuable materials
stored in iPhone. Daisy is capable of
disassembling nine versions of iPhone
and sorting their high-quality
components for recycling. Daisy can
take apart up to 200 iPhone devices per
hour, removing and sorting
components, so that Apple can recover
materials that traditional recyclers can’t
— and at a higher quality.

 Retread old tires so that they can be used again
 Retreaded tires are used in trucks, buses, heavy construction and
agricultural equipment, aircraft, and passenger vehicles.
 Retreaded tires are cheaper to produce and tires can be retreaded
multiple times.
 However, retreaded tires accounted for

only “3% of total sales by U.S. firms
within the tires sector” between 2009
and 2011.
 In 2011, production at U.S. tire
retreaders was limited by the availability
of used tire casings, because old tires
were not being recycled effectively.

3R: issues remain
 Why do we not see more instances of 3Rs?
 Lack of Manufacturer efforts
 Concerns of cannibalization of demand for new products
 Lack of customer efforts to return used product.
 Tragedy of commons: the cost of a product ending up in a
landfill is borne by society, whereas the cost of recycling is borne
by each manufacturer/consumer.
 What can be done to increase the return of used product?

 Polluter pays the cost inflicted on society
 Take-back mandates (e.g., WEEE Directive )
 Advance disposal fees for materials hard to dispose of (e.g.,
electronic waste recycling fee)
 Deposit–refund programs (e.g., return empty cans or bottles)
 “Pay as you throw”
© Xia, W. & Rancourt, M.È., 2023 Source: Chopra, S. (2017), Supply Chain Management, 7th Edition.
Article Discussion – Lee (2010)
Questions
 Aim and methodology of this paper?
 What are the main findings?
 What are the main recommendations proposed by Lee

(2010)?
Source: Lee, H. L. (2010). Don’t tweak your supply chain–rethink it end to end. Harvard Business Review,
88(10), pp. 62-69.

Article Discussion – Blanco (2014)
Three examples of collaboration and shared

capacities
 Boise & OfficeMax
How did these
 Ocean Spray & Tropicana companies collaborate
and what were the
 Caterpillar & Suppliers benefits?
Source: Blanco, E. (2014). Delivering on the promise of green logistics. MIT Sloan
Management Review, 55(2), pp.1.

Case study: Starbucks and CI
Discuss the following questions:
1. Assess Starbucks’ collaboration with CI, i.e., analyze the rationales for
undertaking the collaboration and the relationship between Starbucks
and CI.
• What are the challenges or risks for Starbucks to partner with CI?
• What benefits (value creation) can be derived from the Chiapas
Project for both Starbucks and CI?
2. Describe the key factors that enabled this alliance between
Starbucks and CI to work as well as it has.
3. Are Starbucks’s purchasing guidelines (the sourcing guidelines
presented in Exhibit 9) effective? Could they be applied by the other
stakeholders involved in the coffee supply chain (e.g., roasters and
retailers)? Justify.

Next class: Digital Supply Chain
Note that we swapped Class 10 and Class 11 due
to the schedule of guest speakers.
LaValle, S., Lesser, E., Shockley, R., Hopkins, M. S., & Kruschwitz, N. (2010). Big
data, analytics and the path from insights to value. MIT sloan management
review.
Ittmann, H. W. (2015). The impact of big data and business analytics on

supply chain management. Journal of Transport and Supply Chain
Management, 9(1), 1-9.
Waller, M. A., & Fawcett, S. E. (2013). Data science, predictive analytics, and
big data: a revolution that will transform supply chain design and
management. Journal of Business Logistics, 34(2), 77-84.
Materials are available on zonecours

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OPER60515A

Supply Chain Management:

© Xia, W. & Rancourt, M.È., 2023

Source: https://www.ipcc.ch/site/assets/uploads/2018/02/SYR_AR5_FINAL_full.pdf (pp.41)

 Sustainability has become a key priority in the design and

Source: Chopra, S. (2017), Supply Chain Management, 7th Edition.

Why should companies care about sustainability

 Many actions that improve sustainability of a supply chain

 In contrast, a disregard for sustainability provides benefits that

 As a result, encouraging sustainability without some external

Source: Chopra, S. (2017), Supply Chain Management, 7th Edition.

Figure Source: https://www.sustainable-environment.org.uk/Earth/Commons.php

© Xia, W. & Rancourt, M.È., 2023

 Shareholders: individuals or organizations that legally own

 Stakeholders: individuals or organizations that are influenced,

 Many companies today have expanded the scope of their

 Firm’s strategy must not only focus on the economic

Shareholders Clients and

© Xia, W. & Rancourt, M.È., 2023

For every stakeholder group, describe their role (i.e.,

Shareholders Clients and

© Xia, W. & Rancourt, M.È., 2023

 Make social arrangements or mechanisms to coerce all

 Command-and-control approach: the government or

 Market mechanisms: set mechanisms in place to address

 As opposed to “command-and-control” environmental

© Xia, W. & Rancourt, M.È., 2023

 Cap-and-trade (quantity instrument)

© Xia, W. & Rancourt, M.È., 2023

 Carbon tax (price instrument)

 Implementation of carbon tax

Source: Chopra, S. (2017), Supply Chain Management, 7th Edition.

Cap-and-trade v.s. Carbon tax

 Carbon tax (price instrument):

ETS: Emissions Trading Scheme (cap-and-trade)

 Is there a market for sustainable products?

 Do sustainable enterprises perform well on the stock

 Do investors value sustainable businesses?

« Investors see a strong link between corporate sustainability

© Xia, W. & Rancourt, M.È., 2023

© Xia, W. & Rancourt, M.È., 2023

Shareholders Clients and

© Xia, W. & Rancourt, M.È., 2023

 Measures a firm’s impact on the environment, including air,

 Activities that improve a firm’s environmental performance:

 Many actions taken in a supply chain can improve

© Xia, W. & Rancourt, M.È., 2023

 First challenge: Scope of measurement

Source: Chopra, S. (2017), Supply Chain Management, 7th Edition.

Consider supply chain decisions to support the triple bottom

Source: Heizer J, Reder B, Muson C. Operations Management:

Integrating environmental, social and economic thinking

Source: Christopher, M. « Logistics & Supply Chain Management », 5th edition

 Summarizes the envrionmental impacts associated with the production,

© Xia, W. & Rancourt, M.È., 2023

Battery Electric Vehicles (BEVs)

© Xia, W. & Rancourt, M.È., 2023

Linear economy Circular economy

Source: Sauvé et al. (2018). L’économie circulaire.

© Xia, W. & Rancourt, M.È., 2023

Source: Heizer J, Reder B, Muson C. Operations Management:

Airlines from around the world, including Air China, Virgin

Source: Heizer J, Reder B, Muson C. Operations Management: