Low carbon and green supply chains: the legal drivers and commercial pressures

Purpose – This paper proposes discussing the growing supply chain pressures, both legal and commercial, the background to them and their implications for countries with large consumer markets, such as the UK and for countries, such as the Republic of China, which are suppliers, but themselves increasingly important as consumer markets. Design/methodology/approach – Having regard to the multi disciplinary nature of the readership the paper does not focus too narrowly on legal regulation: nevertheless the legal perspective is important in at least one respect. The imposition of law and penalties provides a powerful incentive to behavioural change, and is very effective in focussing attention. Findings – The paper reveals that plainly it will be a challenge for supplier countries, as it will be for industry in the West, to meet new regulatory standards, particularly those which aim to force technology, like the vehicle emission standards referred to above, or standards relating to supply chain management, which will intervene in the established contractual arrangements between suppliers and their customers. It will also be a challenge to meet consumer demand for “greener” products as education of consumers in sustainability issues improves. Originality – This paper contributes towards green supply chain management that is emerging to be an important approach for enterprises to improve performance. Managerial implications are also identified.