Transition to Net Zero Supply Chains through Digitalization, Renewable Energy, Circular Economy and Green Finance

Dear Colleagues,

Net-zero carbon emissions by 2050 has become the latest target for governments and companies in tackling global climate change (Fankhauser et al. 2022). Supply chains are a major producer of carbon emissions, generating nearly 60% globally (Kris Timmermans, 2022). In addition, supply chains have high operating costs and are susceptible to the risks and disruptions of climate change.  Developing a sustainable supply chain is therefore an essential step in the transition towards net zero carbon.

The transition to net-zero emissions will require a transformation of all the economic sectors as well as effective strategies, such as supply chain digitalisation. Digitalisation has the potential to reduce resource usage and facilitate the transition to a circular economy (Antikainen et al. 2018) by helping to close, slow, narrow, intensify and dematerialise resource loops (Geissdoerfer et al. 2018). Supply chains powered by digital technology, innovation, data and a skilled workforce can drive sustainability and resilience (Timmermans, 2022).

Renewable energy accounts for a reduction of almost 55% in global greenhouse gas emissions; however, tackling the remaining 45% requires a circular economy approach to decouple economic activity from the consumption of finite resources (Ellen Macarthur Foundation, 2019). Another strategy for transiting to net zero is switching to renewable energy and fuel. Large-scale, renewable-energy-driven economies would lower carbon emissions and regulatory compliance and in turn improve long-term resilience. Similarly, organisations are seeking environmentally friendly alternative raw materials and other supply chain inputs to reduce carbon emissions. Stemming from the concept of a sustainable supply chain, circular supply chain management integrates circular economy philosophy into supply chain management (Govindan and Hasanagic, 2018) and its surrounding industrial and natural ecosystem (Farooque et al. 2019).   A circular supply chain aims to maximise value recovery across different supply chains in the same industrial sector and/or other sectors (Genovese et al., 2017).

In addition, using life cycle assessment to measure end-to-end supply chain sustainability and keeping products and materials in use for as long as possible are also important strategies for net-zero carbon.

The transition towards net-zero carbon requires significant financing. Sustainable finance teams need to be established and actively engage with governments, international organisations, civil society and the finance sector to advocate for sustainable finance policy reform, and to promote more sustainable investments in the green transition. Although governments have promised to invest in sustainable initiatives, public finances are stretched thin due to the COVID-19 crisis. Thus, private capital and other public finance mechanisms will be essential in funding the green transition.

This Special Issue aims to share new research and emerging approaches to accelerating the transition to net-zero supply chains, and will thus contribute to the understanding of how digitisation, renewable energy, circular economy and green finance can promote sustainable supply chains.

Original research articles and reviews are welcome. Research areas may include (but are not limited to) the following:

• A framework for developing Net-Zero supply chain, including tools and methods to achieve sustainability and metrics to measure outcomes;
• Tools to capture and quantify the carbon footprint along a supply chain;
• Sustainable finance and supply chain finance; how to mobilise capital to finance the transition to net-zero carbon;
• Innovation and enterprise in sustainable supply chains;
• Fostering greater collaboration in the supply chain to achieve end to end sustainability;
• Embedding circular economy into supply chains;
• Digital technology powered sustainable supply chains;
• Renewable energy supply source adoption and sustainability;
• Empowering, and engaging with, suppliers to decarbonise.

We look forward to receiving your contributions.

References:

Antikainen, M.; Uusitalo, T. and Kivikytö-Reponen, P. Digitalisation as an Enabler of Circular Economy. Procedia CIRP, 2018, 73, 45–49.

Ellen Macarthur Foundation. Completing the picture: how the circular economy tackles climate change. Available Online: https://emf.thirdlight.com/link/dcijanpohgkd-oblthh/@/preview/5 (accessed on 10 May 2022)

Farooque, M.; Zhang, A.; Thürer, M.; Qu, T. and Huisingh, D. Circular supply chain management: A definition and structured literature review. J. Clean. Prod. 2019, 228, 882–900.

Fankhauser, S.; Smith, S.M.; Allen, M.; Axelsson, K.; Hale, T.; Hepburn, C.; Kendall, J.M.; Khosla, R.; Lezaun, J.; Mitchell-Larson, E. and Obersteiner, M. The meaning of net zero and how to get it right. Nat. Clim. Chang. 2022, 12, 15–21.

Geissdoerfer, M.; Morioka, S. N.; de Carvalho, M. M. and Evans, S. Business models and supply chains for the circular economy. J. Clean. Prod. 2018, 190, 712–721.

Genovese, A.; Acquaye, A.A.; Figueroa, A. and Koh, S.C.L. Sustainable supply chain management and the transition towards a circular economy: Evidence and some applications. Omega, 2017, 66(Part B), 344–357.

Govindan, K. and Hasanagic, M. A systematic review on drivers, barriers, and practices towards circular economy: a supply chain perspective. Int. J. Prod. Res. 2018, 56, 278–311.

Timmermans K. How sustainable supply chains can unlock net zero emissions. Available Online: https://www.accenture.com/us-en/insights/supply-chain-operations/supply-chains-key-unlocking-net-zero-emissions#:~:text=Supply%20chains%20are%20the%20key,in%20getting%20to%20net%20zero. (accessed on 10 May 2022)

Prof. Dr. Ying Xie
Prof. Dr. Liz Breen
Dr. Jiachen Hou
Dr. Ying Wang
Dr. Ozlem Bak
Guest Editors

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• net-zero carbon
• digitalisation
• circular economy
• renewable energy