Assessing the economic performance of an environmental sustainable supply chain in reducing environmental externalities

This study investigates the mechanism that motivates supply chain firms to reduce environmental ex- ternalities while balancing the economic feasibility of the supply chain system under environmentally constrained circumstances in a competitive market. Taking government policy incentives into account, a quantitative model of an integrated supply chain that incorporates sustainable constraints is formu- lated to optimize supply chain firms’ operational strategies of producing environmental friendly products (EFPs). This study contributes to the literature with a better understanding the interplay and interrelation of multiple sustainable constraints and their impact on supply chain firms’ collaborative decisions. Our findings suggest that the decisions of operating EFPs are subject to sustainable constraints and that the government policy incentives play a dominant role overseeing supply chain firms’ environmental behav- iors toward sustainability

Life Cycle Costing and Food Systems: Concepts, Trends, and Challenges of Impact Valuation

Our global food systems create pervasive environmental, social, and health impacts. Impact valuation is an emerging concept that aims to quantify all environmental, social, and health costs of food systems in an attempt to make the true cost of food more transparent. It also is designed to facilitate the transformation of global food systems. The concept of impact valuation is emerging at the same time as, and partly as a response to, calls for the development of legal mechanisms to address environmental, social, and health concerns. Information has long been understood both as a necessary precursor for regulation and as a regulatory tool in and of itself. With global supply chains and widespread impacts, data necessary to produce robust and complete impact valuation requires participation and cooperation from a variety of food system actors. New costing methods, beyond basic accounting, are necessary to incorporate the scope of impacts and stakeholders. Furthermore, there are a range of unanswered questions surrounding realizations of impact valuation methods, e.g. data sharing, international privacy, corporate transparency, limitations on valuation itself, and data collection standardization. Because of the proliferation of calls for costing tools, this article steps back and assesses the current development of impact valuation methods. In this article, we review current methods and initiatives for the implementation of food system impact valuation. We conclude that in some instances, calls for the implementation of costing have outpaced available and reliable data collection and current costing techniques. Many existing initiatives are being developed without adequate consideration of the legal challenges that hinder implementation. Finally, we conclude with a reminder that although impact valuation tools are most often sought and implemented in service of market-based tools for reform, they can also serve as a basis for robust public policies

Incorporating life cycle external cost in optimization of the electricity generation mix

The present work aims to examine the strategic decision of future electricity generation mix considering, together with all other factors, the effect of the external cost associated with the available power generation technology options, not only during their operation but also during their whole life cycle. The analysis has been performed by integrating the Life Cycle Assessment concept into a linear programming model for the yearly decisions on which option should be used to minimize the electricity generation cost. The model has been applied for the case of Greece for the years 2012-2050 and has led to several interesting results. Firstly, most of the new generating capacity should be renewable (mostly biomass and wind), while natural gas is usually the only conventional fuel technology chosen. If externalities are considered, wind energy increases its share and hydro-power replaces significant amounts of biomass-generated energy. Furthermore, a sensitivity analysis has been performed. One of the most important findings is that natural gas increases its contribution when externalities are increased. Summing-up, external cost has been found to be a significant percentage of the total electricity generation cost for some energy sources, therefore significantly changing the ranking order of cost-competitiveness for the energy sources examined

The environmental externalities of tobacco manufacturing: A review of tobacco industry reporting.

Growing research and public awareness of the environmental impacts of tobacco present an opportunity for environmental science and public health to work together. Various United Nations agencies share interests in mitigating the environmental costs of tobacco. Since 2000, transnational tobacco industry consolidation has accelerated, spotlighting the specific companies responsible for the environmental and human harms along the tobacco production chain. Simultaneously, corporate social responsibility norms have led the industry to disclose statistics on the environmental harms their business causes. Yet, independent and consistent reporting remain hurdles to accurately assessing tobacco's environmental impact. This article is the first to analyze publicly available industry data on tobacco manufacturing pollution. Tobacco's significant environmental impact suggests this industry should be included in environmental analyses as a driver of environmental degradation influencing climate change. Countries aiming to meet UN Sustainable Development Goals must act to reduce environmental harms caused by the tobacco industry

Water Neutral: Reducing and Offsetting the Impacts of Water Footprints

During the past few years the water footprint has started to receive recognition as a useful indicator of water use, within both governments (UNESCO, 2006) and non-governmental organizations (Zygmunt, 2007; WWF, 2008), as well as within businesses (WBCSD, 2006; JPMorgan, 2008) and media (The Independent, 2008; The Economist, 2008; Discover Magazine, 2008). The increased interest in the water-footprint concept has prompted the question about what consumers and businesses can do to reduce their water footprint. Several instruments have been proposed, including a water label for water-intensive products, an international water-pricing protocol, an international business agreement on water-footprint accounting, and a Kyoto-protocol-like agreement on tradable water-footprint permits (Hoekstra, 2006; Verkerk et al., 2008). Another concept that has been proposed is that of 'water neutrality'. The idea behind the concept is to see whether humans can somehow neutralise or offset their 'water footprint'. The question is very general and interesting from the point of view of both individual consumers and larger communities, but also from the perspective of governments and companies. The aim of this report is to critically discuss the water-neutral concept. It first discusses the water-footprint concept, because water neutrality is all about reducing and offsetting the impacts of water footprints (Figure 1.1). Subsequently, the report elaborates the idea of water neutrality. After a generic discussion of the concept, it is discussed what water neutrality means for a product, an individual consumer or a business. Finally, the concept is critically analysed in terms of its strengths and weaknesses

Collaborative mechanism on profit allotment and public health for a sustainable supply chain

This paper explores the collaborative mechanism that motivates supply chain firms to collectively invest in environmental technology and produce environmental friendly products (EFPs) to reduce pollutant emissions and negative impacts on environment and public health. Our paper investigates how such firms can achieve the balance between economic feasibility and environmental and social sustainability under multiple sustainable constraints in terms of the triple bottom line dimensions. The work also describes the impacts of interrelated multiple sustainable constraints on optimal policy for the supply chain transfer price and profit allotment decisions. Our findings suggest that government intervention plays a dominant role in governing the supply chain firms’ behaviors in the context of environmental and public health sustainability. The profit allotment is determined through the process of negotiation of the transfer price interrelated with the government subsidy sharing between the supply chain firms

Training materials for different categories of users

Agricultural and Food Policy, Environmental Economics and Policy, Farm Management, Land Economics/Use, Production Economics, Teaching/Communication/Extension/Profession,

Sustainable fibre for sustainable fashion supply chains: where the journey to sustainability begins

Adopting a sustainable business model is an essential element of gaining competitive advantage. Specifically, the management of fashion and textile supply chains characterized by geographical extension requires paying particular attention to environmental and social sustainability. Following an analysis of the literature on sustainable supply chains in the fashion and textile industries, this qualitatively based research examines – from a supply chain perspective – the sustainability initiatives implemented by a yarn and garment producer through a single case study. Subsequently, the classification of potential sustainability initiatives is presented. From this investigation, several good practices for sustainable fashion supply chains can be identified, providing a reference point for similar companies. Keywords: sustainable fashion supply chain, sustainable textiles, closed loop supply chai

Accounting for changes in biodiversity and ecosystem services from a business perspective

Biodiversity refers to the dynamics of interactions between organisms in changing environments. Within the context of accelerating biodiversity loss worldwide, firms are under increasing pressures from stakeholders to develop appropriate tools to account for the nature and consequences of their actions, inclusive of their influences on ecosystem services used by other agents. This paper presents a two-pronged approach towards accounting for changes in biodiversity and ecosystem services from a business perspective. First, we seek to analyze how Environmental Management Accounting (EMA) may be used by firms to identify and account for the interactions between their activities and biodiversity and ecosystem services (BES). To that end, we use dairy farming as a case study and propose general recommendations regarding accounting for changes in biodiversity and ecosystem services from a management accounting perspective. Secondly, after discussing the corporate reporting implications of the main environmental accounting approaches, we propose the underlying principles and structural components of a Biodiversity Accountability Framework (BAF) which would combine both financial and BES data sets; hence, suggesting the need for changes in business accounting and reporting standards. Because this would imply significant changes in business information systems and corporate rating practices, we also underline the importance of making the associated technological, organizational and institutional innovations financially viable. The BAF should be designed as an information base, coconstructed with stakeholders, for setting up and managing new modes of regulation combining tools for mitigating BES loss and remunerating BES supply.Accounting, business, biodiversity, ecosystem services, indicators, management accounting, financial accounting, reporting, corporate social responsibility, standards, biodiversity accountability framework.