GHANA INSTITUTE OF MANAGEMENT AND PUBLIC ADMINISTRATION

(GIMPA)

GBUS 734: SUPPLY CHAIN MANAGEMENT

LECTURER: DR JOHN K OBOUR
TASK:
SEARCH ON GREEN SUPPLY CHAINS AND WRITE A PAPER REGARDING THE
GLOBAL REGULATORY STATUS OF ENVIRONMENTAL LEGISLATION AND HOW
IT IS IMPACTING SUPPLY CHAIN. DO THESE APPLY IN GHANA?

BY:
DENNIS OWUSU - SEKYERE
(215003500)
APRIL 2016

The concept of green supply chain management (GSCM) is gradually attaining high level
significance given that it can help to minimize negative impact of business activities especially
manufacturing on the environment. Organizations around the world, as well as their stakeholders,
are becoming increasingly aware of the need for environmental management, socially responsible
behaviour, and sustainable growth and development. Accordingly, as the proactive management of
environmental aspects meets with enterprise risk management, corporate governance, and sound
operational and financial practices and performance, International Standards and regulations are
becoming increasingly important for organizations to work towards common and comparable
environmental management practices to support the sustainability of their organizations, products,
and services. They have thus been forced to rethink and adopt environmental friendly process and
products that have lesser or reduced impact on the environment over the life cycle of the goods or
services. These practices include among other things; the reduction of greenhouse gas emissions
and contaminants, reduced waste and support reuse and recycling, improved energy and water
efficiency, the use of renewable resources, reduced hazardous waste, and reduced toxic and
hazardous.
According to Srivastava (2007) green supply chain management is the process of integrating
environmental thinking into supply-chain management, including product design, material
sourcing and selection, manufacturing processes, delivery of the final product to the customers as
well as end of life management of the product after its useful life.
Organizations often find it difficult distinguishing between green supply chain management and
sustainable supply chain management and use them interchangeably. The distinction is that whilst
sustainable supply chain focus on economic profit as a first priority before social and

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environmental benefits but green supply chain considers environmental issue as an opportunity to
create economic value.
The ISO 14000 is a series of environmental management standards or framework developed and
published by the International Organization for Standardization (ISO) for member countries
including Ghana organizations to integrate green systems into their operations and improve their
environmental management efforts.
ISO 14001, the worlds most recognized framework for environmental management systems
(EMS) helps organizations both to manage better the impact of their activities on the environment
and to demonstrate sound environmental management. It also addresses those of its products and
services. Therefore ISO/Technical Committee has developed the Life-cycle assessment (LCA) as a
tool for identifying and evaluating the environmental aspects of products and services from the
extraction of resource inputs to the eventual disposal of the product or its waste
Other environmental management tools developed by ISOs Technical Committee include: ISO
14004, which complements ISO 14001 by providing additional guidance and useful explanations.
Environmental audits are important tools for assessing whether an EMS is properly implemented
and maintained. The auditing standard, ISO 19011, is equally useful for EMS and quality
management system audits.
ISO 14031 provides guidance on how an organization can evaluate its environmental performance.
The standard also addresses the selection of suitable performance indicators, so that performance
can be assessed against criteria set by management.

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The ISO 14020 series of standards addresses a range of different approaches to environmental
labels and declarations, including eco-labels (seals of approval), self-declared environmental
claims, and quantified environmental information about products and services.
.
The ISO 14040 standards give guidelines on the principles and conduct of LCA studies that
provide an organization with information on how to reduce the overall environmental impact of its
products and services.
ISO 14064 parts 1, 2 and 3 are international greenhouse gas (GHG) accounting and verification
standards which provide a set of clear and verifiable requirements to support organizations and
proponents of GHG emission reduction projects.
ISO 14065 complements ISO 14064 by specifying requirements to accredit or recognize
organizational bodies that undertake GHG validation or verification using ISO 14064 or other
relevant standards or specifications.
ISO 14063, on environmental communication guidelines and examples, helps companies to make
the important link to external stakeholders.
In addition to the ISO 14000 family, there are host of other agencies, regulations and pacts in
various regions and countries to promote green supply chain. These regulation and agreements
covers areas like water/marine resources, air, forest and land resources, waste management, etc.
Some of these agreement include the UN Framework Convention on Climate Change, Soil
Pollution Prevention Law and Environmental Impact Assesment Law all of Japan; Germany also
has the Environmental Impact Assessment Act, 2000; the UK has the Energy Act 2010; the USA

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has the Toxic Substance Control Act, Resource Conservation and Recovery Act, Surface Mining
Control & Reclamation Act, to mention but a few.
Green Supply Chain has thus become prominent due to the following drivers:
Global alarm over Greenhouse Gas emission: Corporate policies are concentrating more on
identifying and lowering the carbon footprints caused by their equipment, infrastructure and
people.
Climate Change: Global warming is impacting the weather and causing threat to the existence of
human and certain species. This has become a primary cause of concern for the environmentalists
all over the world.
Government and Environmental Protection Agency regulations: An organization need to
follow certain specifications to obtain environmental certifications like the ISO 14000.
Penalization by policing agencies to implement carbon credit obedience is another inspiring factor
for Green initiatives.
Improved environmental awareness among the community: Vendor selection based on Green
practices, sharing of best practices in companies across the supply chain, end to end obedience
along the supply chain are the instrumental factors behind a successful Green Supply Chain.

The proper implementation of green supply chain will provide the following benefits.
Resource Sustainability: Green Supply Chains guarantees the effective utilization of all of the
available productive resources to an organizations. With GSCM, resources of organizations will be
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put to a judicious use through an environmental friendly production process to produce the desired
green outputs.
Lowered Costs/Increased Efficiency: At the core of Green Supply Chain Management lies the
principle of reducing waste by increasing efficiencies. Effective management of resources and
suppliers, can reduce production costs, promote recycling and also, the reuse of raw materials.
Consequently, the relevant operational costs are reduced whilst; the efficiency of using resources is
improved.

Product Differentiation and Competitive Advantage: It helps an organization to position itself

and its products as environmentally friendly in the customers perception. Besides attracting new
profitable customers for organizations, it will give competitive edge over the competitors in the
market place. It will also strengthen the brand image and reputation in market place.
Reducing Risk of fines and penalties: Organizations adopting Green Supply Chain practices can
reduce the risk of being prosecuted for anti-environmental and unethical practices.
Improved quality and products: Organizations that produce products which are technologically
advanced and environment friendly will enhance the brand image and brand reputation in
customers mind.

Despite the colossal contributions of supply chain activities to the social wellbeing and economic
development in Ghana, environmental sustainability has also been threatened amidst the various
environmental regulations in Ghana. The Environmental Protection Agency and Ghanas
subscription to ISO 14000 gives an indication that GSCM is operational but efforts made by
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government, organisations and civil society is inadequate. While some players in the mining,
manufacturing, and agricultural like Sandvik, Tullow, VRA, Anglogold, etc have tried their best to
achieve this, the governments efforts in this are leave much to be desired. For example, the Ghana
Cocoa Boards Cocoa Life Programme to train farmers on sustainable natural resource
management, train farmers on soil improvement practices and also the afforestation programme,
the fight against galamsey has yielded little or no results.
The following factors among other shave hindered the success of GSCM in Ghana.
a.
b.
c.
d.
e.

Lack of awareness of the potential economic benefits of green supply chain

Lack of political commitment
Lack of the learning capacity to evaluate green supply chain;
High cost of environmental sustainability programs
Lack of management commitment

In conclusion, I wish to make the following recommendations considering the benefits of GSCM:
1. Collaborations and Integration
The environmental Protections Agency must strengthen their collaborative efforts with the various
organisations and provide support and the needed training on best measures aimed at greening the
environment. Civil Society Organisations, NGOs, Workers Unions, professional Associations
should serve as avenue for all stakeholders to have shared goals of sustaining the environment.

2. Policies and Regulations

The government through the appropriate ministries must enact stringent laws that will regulate and
enforce compliance to GSCM practices across the country, the breach of which will result in
community services, fines, jail terms, etc.
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3. Monitoring and Evaluation

Monitoring and developing continuous improvements programmes is a prerequisite for sustained
green supply chain. Evaluation reports should be regularized and published in the national dailies
firms that do not comply should be blacklisted and deter others from doing same.
Finally, since Green Supply Chain Management has become a prerequisite for environmental
sustainability including human existence and organizational profitability, organizations,
governments, Trade Associations, Civil Society Groups, etc must resort to the best practices from
green procurement to green designing, green manufacturing, green distribution up to reverse
logistics as below.

Reverse
Logistics

Green
procurement

Green
Distribution

Green
designing

Green
Manufacturi
ng

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REFERENCE LIST
http://www.eajournals.org/journals/european-journal-of-logistics-purchasing-and-supply-chainmanagement-ejlpscm/vol-4-issue-1-february-2016/factors-influencing-green-supply-chain-in-themining-sector-in-ghana/

http://www.iso.org/iso/climatechange_2015.pdf

http://www.iso.org/iso/iso14000

http://www.iso.org/iso/theiso14000family_2009.pdf

https://en.wikipedia.org/wiki/List_of_environmental_laws_by_country

http://www.reportingoilandgas.org/sandvik-ghana-obtains-iso-14001-certification/

Srivastava, S.K., (2007) Green supply-chain management: a state-of-the-art literature review,

International Journal of Management Reviews, Vol. 9, No. 1, pp 5380.

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