Different factors make organizations interested in adopting Green Supply Chain (GSC) practices. This starts with regulatory Compliance and Risk Management, where governments and international bodies are increasingly implementing strict environmental regulations. GSC practices help organizations stay compliant, avoid penalties, and proactively manage environmental risks. Another reason is to save costs and improve operational efficiency such as adopting energy-efficient operations, waste reduction, and resource optimization, which in return lead to cutting costs over time. For instance, reducing packaging (read this manuscript: 10.3390/su141912644) or optimizing logistics can lead to savings in materials and fuel (read this paper: 10.3390/su142114463). A third reason is to enhance brand image and competitive advantage as consumer awareness about environmental impacts of products and their supply chains are becoming more critical. Companies that adopt sustainable practices can improve their reputation, attract eco-aware customers, and differentiate themselves in the marketplace.
Other factors like investor and stakeholder expectations since sustainability practices might be considered as key criterion for many of them. Implementing green supply chain practices demonstrates a commitment to long-term value creation and corporate responsibility. In addition, innovation might be another factor for sustainability practices to encourage innovation in product design, material use, and logistics. Some stakeholders look at sustainability practices as a way to contribute to the sustainable development goals such as reducing carbon emissions, conserving biodiversity, and supporting the UN’s Sustainable Development Goals (SDGs).
I would like to invite you to read our paper about Sustainable supply chain management practices in developing countries: An empirical study of Jordanian manufacturing companies (https://doi.org/10.1016/j.clpl.2022.100005), in which we investigate sustainability practices and factors that lead to adopt these practices.
3. Reduce Costs: Minimize waste, energy consumption, and operational costs, improving profitability.
Overall, Green Supply Chain practices offer a win-win opportunity for organizations to reduce environmental impact while improving profitability and competitiveness.