Ali Ashar Jaffri
The wave of green management has engulfed the global economies and revolutionized the business norms. The 21st century has witnessed the dawn of the Green Management Approach vis-à-vis the previously existing Traditional Management Approach. Various industries have adopted the principles of green management in the form of green manufacturing, green procurement, green retail, green real estate and green banking. Green management principles are centred on maintaining equilibrium in the fulfilment of an organization’s environmental, social, governance and economic objectives. Crippled by environmental degradation and resource shortage, the world economies have started viewing sustainable development as their hope for survival. One such area that plays a major role in connecting the green value chain partners across all industries is called Green Supply Chain Management.
It is the idea of integrating sustainable environmental practices in the traditional supply chain concept. It encompasses the application of environmental sustainability on various processes including supplier selection, raw material acquisition, product design, product manufacturing and assembling, distribution and end-of-life management. Organizations can green their value chain practices by collaborating with suppliers having green certifications like ISO 14001, utilization of energy efficient storage, transportation methods, equipment, engaging with green distributors and other value chain partners. This potent business ideology lowers an organization’s environmental risks while accelerating operational and economic efficiency of various business operations. The implementation of green practices in various supply chain activities create a robust market for green financing that can be captured through green banking.
Pakistan is a signatory of various international environmental agreements such as “The Paris Agreement” and has integrated the United Nations Sustainable Development Goals (UN-SDGs) in the country’s national development agenda. Significant lapses can be observed in the implementation of various green management principles across industries. Pakistan falls among the top ten countries most adversely affected by climate change. Our economy is facing huge losses due to various hazards arising from pollution, environmental degradation and resource shortages. The International Finance Corporation has identified low stakeholder awareness as the major obstacles in the development of green management in Pakistan. Lack of green governance can be observed in majority of the product and service industries operating in Pakistan. The country requires a synergistic blend of green business operations, processes and capabilities across various platforms.
A ‘Clean and Green Pakistan’ needs the implementation of Green Supply Chain practices across all industries and for all stakeholders. The government should strive to create synergy between the various developmental projects and green management principles in order to boost Pakistan’s green economy. One of the greatest opportunities for the implementation of Green Supply Chain initiatives exists in the form of the China Pakistan Economic Corridor (CPEC) projects. China is investing billions of dollars in various projects throughout Pakistan, having the potential to create a massive impact on the country’s economy and prove as force multiplier. The question arises, how many of these projects utilize green management principles and will these projects improve or worsen Pakistan’s natural environmental woes. Research shows that a huge green investment potential exists in CPEC projects in the form of green product and service design, green procurement, green production, green warehousing, green retail, and green transportation. In the absence of implementation of Green Supply Chain practices for such mega projects, Pakistan can face negative impact in the form of increased environmental degradation and lost opportunity cost of potential green investment. The implementation of such green standards will ensure green practices from all the related stakeholders thereby reducing the country’s environmental degradation and nurturing the green economy.
The government should encourage financial institutions to promote green financing in the various supply chain activities connecting our economy. All over the world, Green Supply Chain is functioning as the backbone of a green economy. An effective and efficient Green Supply Chain network across various industries can serve as Pakistan’s pathway towards the adoption of UN-SDGs. The vision of a ‘Clean and Green Pakistan’ cannot become a reality without the development of a network that connects and creates synergy among various green supply shareholders. The saga would indeed provide formidable base and potential for the emerging economy.
—The writer is the General Manager Supply Chain & Procurement at Bank Al Habib Limited.
