Modeling enablers of supply chain decarbonisation to achieve zero carbon emissions: an environment, social and governance (ESG) perspective

Abstract

Climate change is the greatest threat to our planet and way of life. There is an immediate need of decarbonisation and a push for a smooth transition to a world with no net carbon emissions. To achieve sustainability, fast-moving consumer goods (FMCG) firms are increasing their efforts to reduce their carbon footprint across their supply chains. The firms and government undertake several initiatives towards achieving the zero carbon mission. Hence, there is a need to identify the prominent enablers that may enhance the decarbonisation in the FMCG sector and contribute towards a net-zero carbon economy. The current study has identified and assessed the enablers (6 main criteria, 19 sub-criteria), including green innovation, green supply chain, sustainable decision-making, organisation decisions and government control from environment, social and governance (ESG) perspective. Eco-friendly manufacturing techniques and eco-friendly goods may give businesses a competitive edge and sustainability. The six primary factors that can help to reduce decarbonisation are evaluated using the stepwise weight assessment ratio analysis (SWARA) technique. The criteria and sub-criteria are assessed by SWARA method. A total of 32 experts from the FMCG industry are undertaken to validate and assess the enablers. This study identified and evaluated the ESG-based decarbonisation enablers in FMCG. The study shows that green innovations are ranked first, followed by organisational decisions and government control. This is likely the first study to examine how the FMCG industry's enablers for decreasing carbon footprints connect. The study is helpful to the supply chain managers and the other decision makers to implement well-designed processes for creating new products and a supply chain from the point of purchase to the place of supply, all backed by advanced technology and the appropriate regulatory adjustments.

Keywords: CO2 emissions; Decarbonisation; ESG perspective; FMCG; Zero carbon emission.