Regional Policy and Sustainable Supply Chains Martin Rhisiart Cardiff Business School.

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Presentation transcript:

Regional Policy and Sustainable Supply Chains Martin Rhisiart Cardiff Business School

Sustainable development Sustainable development is development that meets the need of the present without compromising the ability of future generations to meet their own needs Brundtland definition

Sustainable Development and regional policy Incorporating a medium- to long-term perspective in regional policy making, balancing and making effective use of economic, social and environmental resources

Sustainability & sustainable development  Growing importance attached to sustainable development  Multiple layers of application Global summits, e.g. Johannesburg EU, e.g. EU Sustainable Development Strategy State Regional

Stimuli for more sustainable products  Regulatory Global EU National Regional  Consumer demands  Customer companies-supply chains

Sustainable development ENVIRONMENT SOCIETYECONOMY

Regional policy tools & supply chains  Regional policy can be a powerful way of stimulating desired, sustainable outcomes Procurement Channelling support to programmes that promote sustainability  Associations/clusters based on principles of sustainability  Quality standards

Society  Quality of life  Skills/employment  Relationship with community

Environment  Waste  Use of materials  Environmental management systems, e.g. ISO14001  Company environmental policy

Economy  Best value  R&D  Strategic planning  Intelligence  NPD  Skills

How can regional policy determine which supply chains are sustainable? Complexity + Future-oriented decisions Major challenges for policy-makers! Technology Social and economic trends

Non-sustainable scenario? ‘Foreign Direct Investment opportunity’ Low skill, competition on labour cost per unit Pressure to create employment Regional financial aid Production starts...

…3 years later Difficulties in markets Pressure on parent company Closure of production facility Migration of facility to lower cost economy Pressure to create employment…