Abstract
This chapter investigates implementing sustainable supply chain management in packaging design within the automotive manufacturing industry. The study identifies how sustainable automotive packaging can enhance packaging design, explores the main design features, and proposes a sustainable automotive packaging model. Therefore, drawing on an in-depth case study of a leading luxury automotive manufacturer in the UK (United Kingdom), this paper examines the determinants of packaging in line with sustainable supply chain management principles and offers a unique model design. The findings suggest that four areas, including internal features, external features, design functionality and handling, influence sustainable automotive packaging design in the supply chain. The chapter contributes to the current literature with an evidence-based sustainable automotive packaging model. It also provides a framework for green supply chain management concerning packaging in the automotive industry.
TopIntroduction
The modern-day business environment is becoming more dependent on sustainable strategies to increase long-term value for its stakeholders. Recently, increasing pressures have enhanced the focus of capital markets to improve decarbonisation (Goldman Sachs, 2022). The stakeholder pressures led to new studies on ‘Carbonomics’ to explore the relatedness of economic activities excessively producing greenhouse gases and carbon dioxide (Ingenbleek & Krampe, 2023; Kamasak & Palalar, 2023; Wahyuni & Ratnatunga, 2015). Furthermore, understanding ‘Carbonomics’ helps businesses take accountability through a sustainability perspective. Sustainable decision-making is imperative to enhance business operations for emissions reductions and to prepare business models to ascertain longevity.
Increasing government intervention has led to accelerated implementation of sustainability initiatives due to climate change agendas rising in importance with many European governments (Deloitte, 2020). Governments have collaborated globally to instil international treaties, such as the “Paris Agreement”, aiming to combat climate change through emission targets. Parliament has set sustainability UK commitments to counteract carbon emission pollution by implementing net-zero emissions targets by 2050 (Shahbaz et al., 2020). As businesses and suppliers are most cognisant, they must collaborate to adopt best practices that mitigate emissions whilst operations remain competitive and profitable.
Financial institutions developed the Environmental Social Governance (ESG) rating, a quantifiable measurement system to analyse businesses' ethical commitments, in 2004. ESG ratings provide stakeholders with a technique for comparing business investment in social issues to regulate Corporate Social Responsibility (CSR) (Clementino & Perkins, 2021). Although highly illegal, due to ESG rating, businesses may overclaim their participation in sustainable initiatives, conveying misleading information to their stakeholders, known as “Greenwashing” (Alkan & Kamasak, 2023; Miller, 2017). Within the automotive industry, Parguel and Benoît-Moreau (2013) emphasise that misleading statistics deter manufacturers from promoting sustainable practices to conceal their legitimate carbon footprint and escape regulations. An example is Volkswagen`s diesel-engine scandal involving falsifying emissions tests (Bloomberg UK, 2023). Furthermore, Forbes (2021) states that in 2018, the automotive industry produced 9% of greenhouse gas emissions; therefore, a significant change to act more sustainably is paramount.
Key Terms in this Chapter
Life Cycle Assessment (LCA): LCA provides a thorough analysis of all the environmental impacts of a product by compiling an inventory of relevant inputs and outputs of the system, evaluating the potential environmental impacts associated with these inputs and outputs and interpreting the results concerning the objectives of the study ( ISO, 1997 ).
Sustainable Supply Chain Management (SSCM): SSCM refers to the integration of sustainable development and supply chain management whereby sustainable development is often described as containing three dimensions – integrating environmental, social and economic issues for human development – which also affects the corporate strategy and action.
Returnable packaging (RP): The Returnable Packaging Association (RPA) defines ‘returnable packaging’ as packaging which includes “reusable pallets, racks, bulk containers, hand-held containers and dunnage that move product efficiently and safely throughout the supply chain.
Triple Bottom Line (TBL): Proposed by Elkington (1998) , the Triple Bottom Line (TBL) framework suggests that economic, environmental, and social factors play a pivotal role in constructing the nature of firms` business activities and ethical perceptions.