Page 10 - Logistics News - August 2021

T H OU GHT L E A D E R SHIP

Green supply chain management –

the diamond in the rough

By Aveshin Reddy, aveshinr@richfield.ac.za and Arno Meyer,
arnom@richfield.ac.za of the Richfield Graduate Institute of Technology

A look at the concept of integrating sustainable environmental processes into the traditional
supply chain.

t is well-known that diamonds are formed under one component. The three essential elements
conditions of intense pressure. Likewise, the of sustainability are environmental, social and
I ‘formation’ of green supply chain management economic sustainability.
(GSCM) has emerged due to increased pressure
on organisations to improve their environmental Environmental sustainability refers to an
performance and sustainability. To better organisation’s impact and performance on an
understand the GSCM ‘diamond’, it is essential to environmental level. In a supply chain context,
consider the origin and composition. it would refer to a reduction in waste generation,
pollution, energy usage and recycling, to name a
Numerous attempts have been made throughout few. Apart from ensuring the environment’s well-
history to improve environmental performance being, some of the additional benefits of improving
within organisations without any significant environmental performance include a better
success. However, a critical breakthrough occurred public image of the organisation and adhering to
in 1987 when the Brundtland Report, a publication governmental policies.
by the World Commission on Environment and
Development (WCED), introduced the concept of Social sustainability refers to human health,
sustainable development and described how it could justice, education and resource security, among
be achieved. other essential social elements in society. It could
refer to initiatives such as using local rather
According to the Brundtland Report, sustainable than foreign suppliers and responsible sourcing
development can be encapsulated as: “Development techniques.
that meets the needs of the present without
compromising the ability of future generations Economic sustainability refers to an
to meet their own needs.” The report and its organisation’s job creation capability, conservation
L O GI S T I CS NEWS to incorporate sustainability initiatives and safeguard the organisation from potential risks.
findings elucidated the importance of organisations
of resources and organisational practices to
The benefits here are obvious: better organisational
policies within their business and operations. By
understanding the foundation of GSCM, which
performance will translate into improved employee
is sustainable development, firms are able to
benefits and investment into environmental
understand that GSCM is not based on merely

8 A U GU S T 2021 initiatives. www .l o g ist i csn e w s .c o .z a