Original Research

A green profitability framework to quantify the impact of green supply chain management in South Africa

Nandie Coetzee, Wilna L. Bean
Journal of Transport and Supply Chain Management | Vol 10, No 1 | a251 | DOI: https://doi.org/10.4102/jtscm.v10i1.251 | © 2016 Nandie Coetzee, Wilna L. Bean | This work is licensed under CC Attribution 4.0
Submitted: 11 July 2016 | Published: 27 October 2016

About the author(s)

Nandie Coetzee, Department of Industrial and Systems Engineering, University of Pretoria, South Africa
Wilna L. Bean, Department of Industrial and Systems Engineering, University of Pretoria, South Africa

Abstract

Background: The greenhouse gas emissions of South Africa are the largest contribution by a country in the African continent. If the carbon emissions are not reduced, they will continue to grow exponentially. South Africa’s emissions are placed in the top 20 in the world when considering per capita emissions.

Objectives: The aim of the research article was to investigate how the impact of implementing environmental initiatives on business profitability and sustainability can best be quantified in a South African business.

Method: Various methods, theories and best practices were researched to aid in the development of the green business profitability framework. This framework was applied to two case studies in different areas of the supply chain of a South African fast-moving consumer goods business.

Results: Results indicated that the green profitability framework can be used successfully to quantify both the environmental and profitability impact of green supply chain initiatives. The framework is therefore more suitable for the South African company than other existing frameworks in the literature because of its ability to quantify both profitability and sustainability in short- and long-term planning scenarios.

Conclusion: The results from the case studies indicated that the green business profitability framework enabled the tracking of environmental initiatives back to logistics operations and profitability, which makes it easier to understand and implement. The developed framework also helped to link the carbon emissions to source, and to translate green supply chain actions into goals.

 


Keywords

green supply chain management; business profitability modelling; green SCOR; product costing

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Crossref Citations

1. Extending green supply chain management activities to manufacturing small and medium enterprises in a developing economy
Chengedzai Mafini, Welby V. Loury-Okoumba
South African Journal of Economic and Management Sciences  vol: 21  issue: 1  year: 2018  
doi: 10.4102/sajems.v21i1.1996