Raising legitimacy – Opportunities and risks of introducing greenly produced raw material at a manufacturing company
This thesis analyzes what a manufacturing company needs to do to raise the legitimacy in sustainable procurement. Greenly produced raw material as well as the circular economy are of interest to cut the high CO2 and GHG emissions reflected in Scope 3 in the sustainability report.
Nina Baumann, 2023
Bachelor Thesis, Schindler Group
Betreuende Dozierende: Florian Jakob
Keywords: Procurement, Sustainability, Circular Economy
This thesis compares the market for green and traditional produced raw material. It also assesses three of the most promising suppliers. In the second part of the thesis a diffrent, more efficient approach is presented on how the manufacturer can operate sustainably. The goal is to reduce CO2 and GHG emissions by 90 percent by 2040 and therefore the company needs to find solutions on how to achieve this goal.
A literature review was carried out to analyze the raw material market as well as the circular economy. The internal supplier risk assessment and the newly defined green supplier requirements, which are aligned with the company's sustainability strategy, were chosen as the method for analysing suppliers. The literature review and the interviews revealed that there is potential in the circular economy, but the potential is not being sufficiently exploited.
The greenly produced raw material has been defined as a non-fossil fuel production using almost 100 percent recycled raw materials. This applies to the whole value chain. However, the demand for the greenly produced raw material is too high to serve all customers. In addition, the green raw material will be 20 to 30 percent more expensive than the traditional produced raw material. There is a lack of investment in the green market to start producing. The sustainability goals can be achieved through the circular economy. The circular economy is able to reduce CO2 and GHG emissions as well as cut costs. Achieving these benefits requires many changes in processes, behaviour and strategy. However, the products of this manufacturer are ideal for a circular economy because they are built with valuable components and raw materials that can be easily incorporated into a circular economy. Introducing this concept will help not to be dependent on fragile supply chains, or traditional industries, and will attract a new customer segment. This is a more promising investment than buying greenly produced raw material at a high price and low availability.
Studiengang: Betriebsökonomie (Bachelor)
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