An Assessment Tool to Integrate Sustainability Principles into the Global Supply Chain

Abstract

Abstract:The integration of sustainability principles into the assessment of companies along the supply chains is a growing research area. However, there is an absence of a generally accepted method to evaluate corporate sustainability performance (CSP), and the models and frameworks proposed by the literature present various important challenges to be addressed. A systematic literature review on the supply chain at the corporate level has been conducted, analyzing the main strengths and gaps in the sustainability assessment literature. Therefore, this paper aims to contribute to the development of this field by proposing an assessment framework a leading company can adopt to expand sustainability principles to the rest of the members of the supply chain. This proposal is based on best practices and integrates and shares efforts with key initiatives (for instance, the Organizational Environmental Footprint from the European Commission and United Nations Environment Programme and the Society of Environmental Toxicology and Chemistry UNEP/SETAC); moreover, it overcomes important limitations of the current sustainability tools in a supply chain context consistent with the circular economy, the Sustainable Development Goals (SDGs), planetary boundaries, and social foundation requirements. The results obtained create, on the one hand, new opportunities for academics; and, on the other hand, in further research, the use of this framework could be a means of actively engaging companies in their supply chains and of achieving the implementation of practical and comprehensive CSP assessment.

Identifying the Equilibrium Point between Sustainability Goals and Circular Economy Practices in an Industry 4.0 Manufacturing Context Using Eco-Design

“…Therefore, from a circular point of view, a system should function as a biological environment where everything is functional and everything is regenerated: the concept of waste does not exist because, in fact, waste becomes the basis for the development of other forms of life in a general framework of equilibrium. Despite this, the challenge is to identify a point of equilibrium, because the system, besides being potentially regenerative, should also be sustainable (Muñoz-Torres et al 2018). It follows that, from a sustainable point of view, not everything that could be recycled, reduced, recovered, reopened, and reused is, in fact, sustainable in environmental, social, and economic terms.…”

Dirty Banking: Probing the Gap in Sustainable Finance

“…Overall, mainstream financial institutions still fall short of putting their money where their mouth is. Although scholarship is advancing new conceptualization to promote the integration of sustainability principles into global supply chains [27], banks still struggle to develop and implement them consistently across the products and services they offer. Arguably, the development of ethical banking is a direct symptom of this failure.…”

“…This typically describes grassroot forms of finance-led activism, such as the anti-apartheid movement as well as shareholder initiatives led by religious groups. The former is widely recognised by scholars as a central source of inspiration for later forms of finance-led activism (see, for instance, [27,57,58]). In later phases, as niche innovations find wider acceptance, they start competing with the established regime or can be co-opted by incumbents-the increasing ubiquity of investments labelled SRI [23], ESG indices, and rating agencies [59] are good examples of the latter dynamic.…”

Can environmental, social, and governance rating agencies favor business models that promote a more sustainable development?

“…Nonetheless, as Dyllick and Muff (2016) state, there is a "big disconnect" between this apparent improvement and the deterioration of the planet showed by the studies that monitor it. To resolve this contradiction, Muñoz-Torres et al (2018) highlight that sustainability principles at meso and macro levels should be applied along the supply chain, which will ensure consistency with the already accepted international principles and goals. 1 Therefore, companies should address their environmental impact without crossing the finite boundaries of the planet and should contribute to safe operating space for the development of humanity.…”