A Quantitative Model for Environmentally Sustainable Supply Chain Performance Measurement

Abstract

©2017 The Authors. The development of robust mechanisms for supply chain performance measurement have been identified as an integral step needed for the transition towards sustainable supply chain systems and a greener global economy. However, measuring the environmental performance of supply chains is a challenging task, due to several factors, such as the lack of standardised methodologies and the inherent multi-criteria nature of the problem. By leveraging the capability of a Multi-Regional Input–Output framework to handle the complex and global nature of supply chains, the current work presents a robust environmental sustainable performance measurement model underpinned by industrial lifecycle thinking.

As a result, some theoretical insights are provided and an empirical application of the model to the Metal Products industry of the BRICS (Brazil, Russia, India, China, and South Africa) nations undertaken in an attempt to address some of the methodological and applied measurement challenges. In particular, this allowed the modelling of carbon emissions trends within, and between the BRICS nations and with the Rest-of-the-World over a 20-year period (1992–2011) as well as providing an opportunity to hypothesis on their future carbon emissions performances. Specific analyses of the Metal Product industry showed that demand represents the main driver for the increasing carbon footprint. However, the overall decline in reported carbon footprint was due to improvements in emissions intensity and efficiency gains induced by technology. The study further assesses the effects of imports and economic growth on carbon footprint and discusses the implications of the study to sustainability transition processes in the BRICS nations.