Key Factors in Driving Sustainability Initiatives in the Supply Chain : A multiple case study of manufacturing companies
Abstract: The manufacturing industry is accountable for a significant amount of carbon emissions released, and manufacturers experience pressure from stakeholders to address the sustainability issues and contribute to the UN Sustainable Development Goals. However, the lack of verified frameworks to achieve a sustainable supply chain makes it difficult to revisit their supply chain strategies. This study benchmarks how manufacturing companies in Sweden achieve sustainability in their supply chains by examining the a priori and post-implementation factors required, as well as how the sustainability initiatives are structured. The study is a multiple case study, which started with a literature review to gain a relevant understanding of the research problem. Semi-structured interviews were held with seven case companies in different sectors in the manufacturing industry and with two environmental consultants. The findings prove that manufacturing companies achieve sustainability in their supply chains by combining a priori and post-implementation factors with aspects regarding the structure of the initiatives. Top management commitment and management providing the necessary means to drive the initiative are crucial a priori factors. Moreover, the findings demonstrate to define ownership of the tasks in the initiative and that top management should integrate sustainability in the business model and have a budget for sustainability initiatives. Prioritizing the activities with the largest value creation is important, where a materiality analysis facilitates. Training employees and management on sustainability, and encouraging the employees to find green improvements are necessary. Post implementation, adopting a circular process is critical, while also ensuring sufficient resources throughout the initiatives. Moreover, the findings highlight strict governance with clearly defined ownership over time, the more decentralized the better. A cross-functional organization is advantageous for achieving the above-mentioned factors. The reason for pursuing an initiative must be defined to enable clear goals. Backcasting and a materiality analysis are useful tools to create measurable goals accordingly, and the goals should be scientifically approved by the Science Based Target initiative. In the execution, using previous experiences on internal and external platforms aid the case companies with their goal conflict prioritization. Lastly, frequent follow ups are critical, where the follow-up process should follow international standards. It is necessary to have a defined process for follow ups and have traceable follow ups to view the progress.
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