Improving environmental and social considerations in supply chain management: HSY and sourcing activated carbon

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School of Business | Master's thesis

Date

2022

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Mcode

Degree programme

Creative Sustainability

Language

en

Pages

140

Series

Abstract

As past decades have been marked by increasing globalization of our economies, our societies are more than ever relying on multi-tier supply chains scattered around the globe to provide the essential goods and services we use daily. Although it is increasingly being pointed out, the link between those multi-tier supply chains and the environmental and social impacts associated to them has often been forgotten, leaving the field of sustainable supply chain management still underdeveloped. Commissioned by HSY, the entity responsible for water and waste management surrounding the Helsinki area, this study aimed to investigate the environmental and social impacts associated with the upstream supply chain of four different raw materials used to manufacture activated carbon(AC): coal, coconut, wood, and peat. It is supporting HSY in their upcoming sourcing process of activated carbon, providing a holistic overview of noteworthy social and environmental challenges linked to the upstream supply chain of each raw material in a set geographical area: China for coal, Indonesia, the Philippines, India, and Sri-Lanka for coconut, and Finland for peat and wood. Findings are general to the entire raw material industries and not systematically applicable to raw materials used by AC manufacturers. Descriptive case studies have been conducted for each raw material. After a review of academic and grey literature available online, 10 interviews with industry representatives, academic researchers, and civil society representatives have been organized to investigate environmental and social issues further. Results of this research point out that noteworthy environmental and social sustainability impacts could be found for each raw material. Their magnitude and severity differed, but in both dimensions, the most significant impacts were found for coal mining in China. The information available on each of the industries greatly differed, making increased academic research, civil societies awareness, and industry reporting necessary for improved transparency. This study encourages the use of renewable raw materials, granted further social and environmental sustainability aspects are considered simultaneously. Regarding managerial implications, this study stresses the importance of active collaboration with direct and indirect suppliers, non-traditional stakeholders such as NGOs, and even other AC buyers. On top of collaborating with suppliers, a careful selection and monitoring process often goes together and seems necessary to ensure minimal impacts along the entirety of the chain.

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Thesis advisor

Lankoski, Leena

Keywords

multi-tier supply chain management,, environmental and social sustainability, activated carbon, corporate social responsibility

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