Abstract
Amalgamating green energy and green technologies can ensure sustainable green supply chain management practices through boosting organizational performance and reducing carbon footprint around the world. The traditional supply chain system is one of the major sources for global emissions. To establish eco-friendly, cost-effective, and sustainable GSCM, this chapter proposes a renewable energy and low carbon technology-based green supply chain simulation design. Adopting GSCS will ensure maximum utilization of resources but significantly reduce lead-times and climate emissions. The GSCS defines the green techniques for executing RE plants without leverage risk. An exploratory approach has been applied to demonstrate green policies with realistic evidence, which will help to gain knowledge of successful implementation of GSC policies to intensify financial growth and green environmental safety. In addition, executable eco-friendly directions chronicled in this chapter would also be beneficial for the firms including SMEs, especially those in the embryonic stage of GSCM practices.
TopIntroduction
Sustainable low carbon economic development can’t be ensured without the blessings of nature, but worldwide emissions have increased high risk threats for green environmental protection. The enormous CO2 emissions from conventional supply chain activities have badly affected earth’s ecological components and economic sustainability. Environmentally hazardous raw materials procurement, high risk emission friendly manufacturing systems or distribution processes can lead to dangerous climate disasters that gradually increase severe monetary consequences. Recent studies imperatively mentioned that depending on high emission friendly industrial technologies, coal or nuclear sourced energy consumption throughout the supply chains would be extremely harmful for society and environment, which could further threaten operational performance of business.
Therefore, adopting climate friendly green simulation policies is indeed for ensuring organizational and environmental sustainability before it’s too late. In this perspective Mishra et al. (2023) denoted that climate friendly green supply chain simulation techniques would decrease high-risk emissions while increasing efficiency, productivity, and sustainability. Basically, supply chain is a compressed flow of business process that starts with raw material procurement and finishes with disposal of final goods. Throughout the process, adopting green strategic solutions will significantly decrease CO2e because emissions from the traditional supply chain (TSC) are extremely high as well as threatening sustainable business development.
Following this illustration, TSC activities e. g., inbound logistics, traditional manufacturing system, warehouse activities, distribution activities, and disposal activities are the direct sources of CO2 emissions. On the other hand, consumption of coal/nuclear sourced energy is one of indirect risk friendly emission sources. For example, a large amount of Rav-Trm wastewater of a nuclear energy plant must be released to run the power generation process, although only few countries release radioactive contaminated-water after emission reduction treatment systems, but such treatment couldn’t completely remove the hazardous elements from the nuclear plant wastewater. Therefore, releasing Rav-Trm wastewater into the ocean or other area, even after the treatment process, is still harmful for the ecological components, especially for living things. For instance, Figure 1 shows how both direct and indirect high-risk friendly emissions due to using TSC mechanisms are continuously rising, consequently developing intimidating challenges for the green environmental and organizational sustainability, which will badly need to be reformed by eco-friendly architecture to build a sustainable supply chain network.
Figure 1. CO2 emissions from the traditional supply chain
Many prior studies described the green supply chain necessity and impact of GSC on environmental performance, but energy or technology based green simulation for climate friendly supply chain management has not been developed yet. Another biggest barrier is a debate on profit growth after implementing green supply chain policies. The previous study examined the impact of green supply chain practices (GSCP) on a firm’s economic performance as well as environmental performance and found that GSCP positively influences EP, but it doesn’t have significant influence on OrgP (Lerman et al., 2023). Conversely, the study conducted by Ferreira et al. (2023) mentioned a positive correlation between GSC integration and company performance, which denotes a somewhat debatable role of GSC management practices on the firm’s performance.
Although green SCP has been gradually adopted by many firms in the developed regions, the rest of the regions are still far behind either for technological advancement or financial instability. In this situation, integrating green SCP through green supply chain simulation (GSCS) techniques would improve the overall firm’s performance as well as ecological protection. Several studies emphasized the necessities of developing GSCS, but no significant solution has been made by any other studies yet, which enlarged the research scope for investigating the impact of green SCM with GSCS on organizational performance and control of CO2e in the manufacturing sector.
Key Terms in this Chapter
LGES: The land-grade green energy system (LGES) refers to the renewable energy projects that develop on the solid or water ground (i.e., wind energy projects, photovoltaic energy systems on land area and floating solar energy plants on ocean/river surface).
Climate Finance: To mitigate monetary scarcity for green economic development, world leaders from matured economies have formed an alliance to provide financial support for green economic development around the globe, such funding support is called climate finance.
Default Credit Limit: DCL or default credit limit is a contractual on credit facility between manufacturer and wholesaler. For instance, manufacturers provide credit purchase limits to next level business customers (i.e., wholesalers/retailers).
Liquidity Crisis: In business, if a firm runs out of required working capitals or funds (cash balance) to support its operating activities or short-term and long-term liabilities, it can be described as a liquidity crisis.
EAIT: Earnings after interest and tax or EAIT is the actual profit after deducting all interest and tax expenses throughout the fiscal year.
High-Risk Leverage: Borrowing excessive long-term debt amounts with higher interest rates or two times above of total assets would lead to difficulty in repayments of liabilities that develop high-risk leverage.
Rav-Trm Wastewater: Any nuclear based-energy generation plant releases radioactive-tritium (Rav-Trm) contaminated wastewater that contains high amounts of radioactive type substances, it is therefore extremely dangerous for living things and ecological sustainability.
BT-Based Power Distribution: Generally, using conventional power distribution systems may lead to system loss and other technical interruption, which will increase system maintenance costs and lead time. In this situation, blockchain technology-based energy distribution systems would be excellent to mitigate those problems. Using a BT-based distribution system for distributing power from renewable energy plants would increase efficiency and decrease costs.