Drivers to mitigate climate change in context of manufacturing industry: An emerging economy study

Abstract

Business strategy and the environment are becoming increasingly central within the global agenda. In particular, some emerging countries such as India show strong growth in the manufacturing sector while also exhibiting high emission values. This inevitably creates a paradox. Therefore, this study aims to determine the drivers for Indian manufacturing firms to pursue sustainability. The methodologies used in this work is comprised of modified total interpretive structure modeling (m‐TISM) that is based on 21 drivers to mitigate climate change and cross‐impact matrix multiplication applied to classification (MICMAC) that evaluates the dependence power and driving power of the drivers. The findings from the study reflect that there are nine levels into which the clusters are divided. “greenhouse gas performance” and “encouraging low carbon products” are influenced by all other drivers, while the driver “dynamic transitions in economic and political situation” occupies a mirror position. This last driver has the greatest impact on the achievement of the goal along with “persistent with corporate conventionalities” and “dynamic transitions in economic and political situation.” The economic dimension has a key asset in the manufacturing context, but the influence of sustainable technology on the supply side and of the responsible consumption on the demand side cannot be overlooked. Businesses that focus on short‐term maximization by not focusing on renewable and circular resources may be uncompetitive in the long‐term.

Low-Carbon Initiatives in the Pulp and Paper Industry and the Contributions to the Carbon Market in Brazil

“…These practices include the establishment of voluntary long-term goals, the transparent communication of their sustainable practices through institutional websites and sustainability reports, the education and training of employees and business partners on the importance of environmental conservation, and the linking of employee variable compensation to environmental, social, and governance goals. These actions demonstrate that the companies analyzed are committed to sustainability in all its dimensions, from operational to cultural (Dwivedi et al, 2023).…”

“…This encompasses diverse strategies like Company D's pioneering use develop lighter, more efficient packaging. These initiatives not only mitigate environmental impact through reduced transportation emissions but also bolster regional economies by prioritizing locally sourced materials and fostering sustainable practices among suppliers (Dwivedi et al, 2023;Lee, 2012). By embracing such holistic approaches, these companies pave the way for a more sustainable supply chain paradigm.…”

“…In addition to the production, product, and logistics strategies, all the companies analyzed have actions that reflect a holistic commitment to sustainability and corporate responsibility (Dwivedi et al, 2023;Lee, 2012). These practices include the establishment of voluntary long-term goals, the transparent communication of their sustainable practices through institutional websites and sustainability reports, the education and training of employees and business partners on the importance of environmental conservation, and the linking of employee variable compensation to environmental, social, and governance goals.…”

A Framework to Assess Manufacturers’ Circular Economy Readiness Level in Developing Countries: An Application Case in a Serbian Packaging Company

“…The application of the framework to the company analyzed also revealed that there is room for improvement in developing countries to foster CE adoption, especially in relation to the policy context. Indeed, policy incentives and instruments of public authorities could considerably support the circular transition process in companies [6], as well as stimulate them, their customers, and the entire community towards a more responsible business [77]. In particular, a consideration specific for Serbia can be performed due to the fact that EC is promoting CE also in the Western Balkans countries [78].…”

“…The European Commission (EC) in 2015 [4] defined CE as a model of production and consumption, which involves sharing, leasing, reusing, repairing, refurbishing, and recycling existing materials and products as long as possible, resulting in the extension of the product's life cycle and a reduction in waste to a minimum. Unlike the traditional linear economy and its make-consume-dispose approach [5], a CE takes into account the limits of the natural resources of our planet and strives to reduce the consumption of raw materials and energy by increasing the share of renewable or recyclable resources, while reducing greenhouse gas (GHG) emissions, material losses, and waste [6]. In addition, a CE contributes to economic growth, the innovation level [7], and the creation of new jobs [8].…”