Green Supply Chain Management in Asia-Pacific
What implications does the development of green practices in Asia-Pacific have for global supply chains? Kelvin Inn, Consulting Manager Hong Kong and co-author of the white paper "Green Supply Chain Management in Asia-Pacific" discusses sustainable practices in the manufacturing and logistics industries, and the role of sustainability in the Asia-Pacific.
Why is the topic of this white paper so important to international purchasing or production directors?
“Decision-makers from 50 of the most successful international companies in Asia surveyed by GIA in February 2009 expect the region to perform better than the rest of the world. Many Asian countries however, serve as global manufacturing bases, and their recovery will be tied to how the rest of the world performs.
We have witnessed how a slight dip in Western consumption produces severe problems among Asian suppliers, both amongst direct manufacturers and subcontractors. There is a great deal of operating leverage between Asian manufacturers and Western markets today.
We argue that Western businesses can use this leverage to push for more environmentally sustainable manufacturing, sourcing and logistics practices in the Asia Pacific region. For example, downstream customers like Wal-Mart have been pressuring suppliers in Asia to go green. Stricter environmental regulations in Europe have influenced Asian governments to pass similar laws. In addition, companies are starting to see the tangible cost and efficiency advantages of a greener supply chain.
However, encouraging better green practices will require Purchasing, Supply Chain or Production directors to have a keen understanding of the local practices and unique regulatory landscape of each Asian country they operate in.
We will provide an overview of these aspects in our white paper and unlock some of the complexities of the marketplace. We hope to provide greater clarity on what going green really means, learn more about how Asia has been responding to the green movement. Green investors and professionals can get a good overview of the regional regulatory factors and best practices from successful green leaders in Asia.”
How do the environmental regulations impact international businesses?
“The regulations pretty much affect all international businesses because countries worldwide are starting to harmonize their environmental regulatory regime with each other. It’s becoming a global phenomenon. It started in the major market economies and the emerging economies and less developed countries have followed suit.”
Can you give an example of different Asian environmental regulations, and their implications?
“China for example, has passed its own RoHS-equivalent regulations and has also enacted a comprehensive set of laws on air, water, & waste. Enforcement remains an issue and it is still developing extended producer responsibility legislation.
India, on the other hand, has bundled many laws into the broader Environment (Protection) Act, with less liability seen along the supply chain. Material mandates are largely concerned with direct health impacts and have not moved clearly to encompass a broader range of materials beyond those that are directly related to health.
The impact of either on global supply chains is different, and participants will get the answer to the second part of this question in the white paper."
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> Green Supply Chain Management in Asia-Pacific
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