AT THE THRESHOLD OF THE FOURTH INDUSTRIAL REVOLUTION: SUSTAINABLE INITIATIVES IN BRAZILIAN
INDUSTRIES IN THE CONTEXT OF ANTHROPOGENIC CLIMATE CHANGE
João Zaleski Neto
Universidade Anhanguera, Brazil
E-mail: zaleski@terra.com.br
Sergio Ruggiero
Universidade Anhanguera, Brazil
E-mail: sergio.ruggiero@aedu.com
Getúlio Kazue Akabane
Universidade Anhanguera, Brazil
E-mail: sergio.ruggiero@aedu.com
Luis Fernando Zulietti
Universidade Anhanguera, Brazil
E-mail: zulietti.zulietti@gmail.com
Submission: 24/07/2013
Revision: 08/08/2013
Accept: 09/08/2013
ABSTRACT
The
complexity and multiplicity of the possible interactions involved in the
phenomenon of anthropogenic climate change make it difficult, even for eminent
scientists, to be absolutely certain regarding the occurrence of global climate
change and its consequences. Nevertheless, there is a consensus that the crisis
is already here. While top-down
solutions to this problem are being discussed, this paper addresses the
bottom-up approach to reducing GHG emissions.
On investigating the behavior of three leading companies in the drinks,
food and paint sector, which are proactive specifically in relation to the
problem of global climate change and regarding sustainability in general, this
study identifies the best practices and documents and disseminates them with a
view to their implementation in other organizations. With the use of a tool containing 51
variables, which are each associated with five scenarios, it was possible to
identify the degree to which the companies meet the challenges imposed by the
search for sustainability. In this
context, the overall objective of this study was to investigate and identify
the behavior of three large companies which are leaders in their sector with
regard to sustainability and, specifically, their actions aimed at reducing the
effects of anthropogenic climate change.
Keywords: Climate Change,
Logistics, Sustainability.
1.
INTRODUCTION
The humanity has taken the privilege
of the relative stability of the environment brought by the Holocene, that is,
the interglacial period that began around 10.000 years ago and allowed some
complex societies to develop. The human activities, however, have gradually
modified the planet weather and its ecosystem. The Alive Planet Report 2012
(Relatório Planeta Vivo, 2012)
promoted by the NGO WWF (World Wide Fund for Nature), on its second and most recent version states that the
Humanity ecological footprint has exceeded 50% of the total planet´s
regeneration capacity.
The ecological footprint estimates
the quantity of hectars demanded by the human consumption versus the
regenerative planet´s potential. Paul Crutzen, the winner of the Nobel prize in
Chemistry of 1995 has concluded that the Earth has entered in a new period
called the Anthropocene, in which the humanity is responsible by the planet´s
climate change. This way, the current world´s scientific community main concern
is related to the instability of critical biophysics systems on Earth, caused
by men´s work, which can bring catastrophic consequences to the wellbeing of
humanity.
So,
with this concern, many scientists,
along with Johan Rockström (2009) have asked each other “ What are the
planetary pre-conditions, which are not negotiable, that must be respected by
the humanity, in order to avoid the risk of environmental delete changes or
even, catastrophic, in continental to global scales?” The search for the answer
to this question have taken them to introduce the planetary limits concept. Such limits are fixed values for
measurable variables on the search for keeping safe distances from the
considered dangerous levels.
They have proposed new planetary
boundaries, whereas three of them were already outmoded, along with the climate
change. Thus, this research can be related to the climate change context, for
having the goal of contributing with the introductory steps for the reduction
of the greenhouse gas emission (GHG), resulting from human activities.
2.
GOALS
One of the ways of finding the
solution to this serious environmental crisis faced by civilization is focusing
on the leading companies, which are pro-active in the reduction of the
greenhouse gas emission issue (GHG), identify the best practice and disseminate
them.
It is relevant, investigating these
critical factors, which help finding the solution or reducing the anthropogenic
climate crisis. This way, the current
research proposes the research and evaluation of the behavior of three great
business segment leader organizations, which have the awareness for the use of
clean technology
The specific goal is identifying
success factors, able to be confirmed and imitated, as well as knowing the
adjustment degree, where these organizations are found. On the other hand, it
is expected to know the critical factors that raise difficulties for the reach
of great performance standards.
3.
THE CLIMATE CHANGE
Since the Industrial Revolution
around 1750, the humanity has intensified the use of carbon fuels, such as:
wood, coal, turf, gas, among others. The necessity of a cheaper electrical
energy was intensified with the increase of the world population, from 700
million people, in the half of the XVIII century to seven billion, in the
current days.
The increasing industrialization,
the tireless exploration of the natural resources, the necessity of feeding,
transporting and warming billions of people in these 260 years have
significantly increased, the Carbon Dioxide (CO2) concentration on the
atmosphere. The CO2 is known for being one of the main causers of the greenhouse
gases effects.
The Greenhouse effect occurs when,
about half of the sun rays, which pass through the atmosphere are absorbed by
the Earth and converted to heat, which causes the emission of long waves
(infrared) back to the atmosphere where the molecules, including the CO2,
absorb them, bringing the planet´s warming, as a consequence. (ROY, 2012). It is also observed that the CO2 is not
easily dissipated on the atmosphere, having a long life: approximately 56% of the
whole CO2 released on the burn of fossil fuels by human activity remains in the
air and is directly and indirectly responsible for 80% of the total global
warming. When the carbon leaves the atmosphere, it is said that it has gone to
the sinkhole.
All living beings are like carbon
sinkholes, as well as the oceans and some rocks. For each atmosphere molecule,
there are 50 carbon molecules in the oceans. Whenever the dead plants are
buried, a lot of CO2 is stored on the ground, becoming fossil fuels (FLANNERY,
2007). These fossil fuels are used to
generate the electrical energy that supports the global economic expansion, or
the civilization, as we know it.
The CO2 is not the only greenhouse
gas (GHG) that is generated by human activity, there are, approximately, other
thirty similar gases, found on the atmosphere, in smaller quantities. For
practical reasons, their effects are evaluated by their conversion in CO2.
After the CO2, the methane is the second most powerful GHG, according to the
Climate Change understanding.
The methane is 60 times more able to
retain the heat than the CO2; however, it stays a few years in the air. Recent
estimation states that the methane is responsible for 15% to 17% of the global
heating on the XXI century. Other GHG is the nitrous oxide (laughing gas) and
the gases of the HFC and CFC categories, the two last were developed by the
mankind.
Scientists have established the
concentration of CO2 in 350 ppm, as being an acceptable limit for keeping the
climate conditions stable. Currently, this limit has already been exceeded.
The consequences are extremely
important, if the Point Of No Return is overtaken. The climate will be more
extreme: deep hurricanes, the increasing of the sea level, irregular rains,
causing drought and flood, the melting of permanent glaciers. The results will
be climate wars, mass migrations, hunger and shortage, according to the
International Panel about climate change.
What is the solution for such a
crisis? Recently, in the beginning of 2012 Lester Brown, the writer of “Plan B
4.0 Mobilizing To Save Civilization” has proposed a reduction of 80% on the
emission of CO2 until 2020, in comparison with the standards of 2006. This can
be done by the energy matrix change based on carbon for clean and renewable
energy sources, such as wind, solar and geothermal.
Roy (2010) has proposed the
reduction of the emission of GHG to 90%
based on the standard of 1990. For this to happen, he suggests a
reduction of 20% on each year, using carbon emission limits and carbon trade
for only five years. He affirms that the atmospheric CO2 must be reduced to 350
ppm, but for this, it is necessary, an investment of 2% to 3% of the PIB,
immediately (STERN apud ROY, 2010), and thereafter, increased, in order to implement the necessary
technological changes: basically the carbon energy sources for nuclear fusion,
hydroelectric, geothermal, wind, solar, tidal, hydrogen, biomass and
co-generation.
Roy (2010) still suggests that all
the carbon industry subsidies should be removed and proposes the charging on
the use of carbon and GHG emission. The raised funds should be invested in
subsidizing the development of clean technologies, carbon free.
It should be noted that another
important aspect is the efficient use of energy. Through it, great amounts of
GHG may no longer be released into the atmosphere.
Paul Crutzen (2006) notes that between 2001
and 2002 these emissions increased 2%. Recognizing that, by far, the best
solution to climate change is through the reduction of CO2 emissions, he
proposes the spread of sulfate particles into the stratosphere to reflect
sunlight and cool the planet, a way to artificially emphasize the Albedo Effect
which is defined by measuring the reflectivity of the surface of a body.
However, the eminent scientist argues that it is unclear whether this solution
is environmentally safe.
It is clear that the above-described
proposals represent, basically, a top-down approach, where efforts to cut GHG
emissions are imposed by government policies.
In June 2013 the US federal government presented a plan to combat
climate change. On observing that
natural disasters cost the United States over US$ 100 billion, not including in
the figure the health problems caused by extreme climate conditions, President
Obama outlined his plan to deal with anthropogenic climate change. He proposes to reduce emissions from
thermoelectric power stations, to encourage the generation of solar and wind
power, to establish challenging standards for savings in heavy-duty fuel (the
second largest source of GHG in the United States) and increase the energy
efficiency and reduce the energy wastage in commercial, manufacturing and
domestic installations. It also addresses the necessity to prepare for the
adverse effects of climate change (CC), investing and supporting initiatives
which are resistant to CC, for instance, in hospitals, in the agricultural
sector and in logistics operations. Furthermore, the US leader proposes to
mobilize the economically strong countries in order to bring them to the
negotiating table and jointly take key decisions with regard to CC (CLIMATE
CHANGE, 2013). In the study reported herein, the approach to reducing GHG
emissions is bottom-up, where efforts to reduce the effects of CC begin within
companies through the proactive adoption of better sustainable practices.
4.
LOGISTICS AND SUSTAINABILITY
The biggest concern is to develop
ways to allow symbiotic coexistence between the industrial development and
environmental protection. Fleischmann et al. (1997) noted that, frequently,
economic and environmental issues are interlaced. They illustrate the example
when the rising costs of waste disposal cause the waste reduction to be more
economical, along with the formation of consumers´ environmental awareness,
which represent new market opportunities. Ideally, this induces a combination
of ecological and economic advantages as suggested in the concept of
sustainable economy.
The focus of corporate strategy has
traditionally been on the increase in sales volume through cost reduction
leading to the operations’ profitability. However, with the growing issue
involving the limitation of resources, global warming, emission of greenhouse
gases and the health of the consumer, the urgency of enterprises to incorporate
the factor of sustainability in their strategies has increased.
Some recent events have shown that
this approach: the effect of the oil spill in the Gulf Coast of the United
States negatively affected the value of the shares of British Petroleum (MOSS,
2010; GROSS, 2010), the severe penalties imposed on the Shenzhen Energy Group
in China after a tanker ship ocean carrying coal slammed into the great reef
barrier (HUANG, 2010), and the boycotts, which says that the consumers threatened a major
manufacturer of sports equipment after the public found out about child labor
(KENYON; CAMPBELL; HAWKEY, 2000) .
With the rise of the concept of the
conscious consumer and the incorporation of sustainability as a corporate
strategy to reach investors' expectations, the long-term impact that such
operations have on the community and the environment are the subject of
increasing debate among the community at large (PROKESCH, 2010). With the
growth of demands for green products, logistics systems that deliver these
products in the hands of consumers should also be green (WU et al., 1994).
It is important to note that there
is a potential issue between reverse logistics and green logistics (ROGERS; TIBBEN-LEMBKE,
1999). The reduction of energy and environmental pollution associated with
better transportation planning and the use of less packaging material can be
considered an integral part of the agenda of Green Logistics
The green logistics will change
politics, ways of conducting business and behavioral models; will be the new
leader of future innovation, job creation, CO2 reductions and energy
conservation by creating a competitive advantage in the intermodal industry.
De Brito and Dekker (2003), also
identify differences between reverse logistics and green logistics, especially,
the recent considerations on the environmental aspects of all logistic
activities mainly focused on logistics supply from the producer to the
customer. Moreover, it is said that if no goods or materials are being
returned, it is probable that the activity is not a reverse logistics.
One of the underlying principles of
reverse logistics is to provide effective methods for collecting the products
at end of life-cycle and to return the damaged merchandise for reconditioning;
associated benefits such as reducing vehicles mileage for lower emission of
pollutants and noise, cover the auspices of Green Logistics.
-
Packs reduction -
Emission of poluents and noise -Selection
of environmental impact ways -Recycle -Remanufactoring
-Reuse
of Packs -
Product Return -
Return to Market - Secundary
Market
FIGURE
1: Comparison between Reverse and Green logistics. Source: Rogers
and Tibben (2001) |
In fact, shipping of returned goods
in the supply chain causes the main impact on reverse logistics as it affects
the sustainable operation, especially in matters of fuel consumption, mileage,
air quality, noise pollution, the safety system and health.
The reduction of supply source
strategy must be used to minimize unnecessary emissions and environmental
effects, thereby obtaining the possible competitive advantages (WU et al. 1994;
MARIEN, 1998). According to the authors, the basic principles of reducing
supply sources imply:
a) making things smaller and lighter, thus resulting in
lower logistic costs;
b) minimizing the production and distribution operations
to reduce the amount of useless materials generated;
c) recycling of the packaging materials and containers
more than once;
d) Replacement for material that is environmentally
friendly.
Such strategies can increase end
user satisfaction by reducing costs and waste.
Recycling can be considered a good
policy, only when the environmental discharges and the resources used for
collection, sorting and recycling of material are lower than the environmental
discharges and the needed resources to provide the equivalent virgin material,
and the necessary resources to accommodate the material safely. Beamon (1999)
suggests that the first step of this challenge is to redefine the basic
structure of the entire supply chain to accommodate environmental issues and
minimize the use of resources and waste emission.
Rodrigue, Slack and Comtois (2001)
argue that in one hand, while the spatial and technological development have
improved the cost, efficiency and reliability of transport systems for freight
and passenger, on the other, the negative environmental impact of transport
received widespread recognition by society and is at the center of sustainability
issues, especially in urban areas.
In
fact, the focus on the supply chain is a broader step in the adoption and
development of sustainability, since it considers the processing of the product
from the initial raw material to its delivery at the point of consumption
(SEURING et al. 2008; LINTON, KLASSON; JAYARAMAN, 2007), including each link
business from logistics, strategic planning, information services, sales and
marketing, to finance where each manager is responsible for encouraging
sustainability initiatives (SARKIS, 1998).
The interaction between
sustainability and supply chain is the next critical step, according to recent
research in the field of operations and the environment (CORBETT; KLEINDORFER,
2003), operations and sustainability (KLEINDORFER; SINGHAL; WASSENHOVE, 2005).
Although many studies have focused
on the idea of sustainability within the context of the supply chain (SEURING; MULLER, 2008; SRIVASTAVA, 2007), there is
still a little work concerned on the understanding of the role and importance
of logistics organization toward sustainability.
The
logistics operation is the integrated management of all necessary activities to
move products through the supply chain and logistics costs can be defined as
"the monetary expression of all kinds of labor consumed during the
displacement of the product" (BIN; CHAOYUAN, 2005).
As estimated by the IMF
(International Monetary Fund), the average logistics costs constitute
approximately 12% of the annual gross domestic product in the world (BALLOU,
2004). As for the impact it has on the environmental logistics CSCMP ((The Council of Supply Chain Management Professionals, 2008) the logistics produces up to 75% of the carbon footprint of a company, which means knowing all GHG emissions during the life cycle of a product, that is, knowing the emissions that occurred from the production of its raw material to its final disposal. In the combination of monetary cost and environmental impact, the
logistics contributes
to the operation to become a key area. Therefore, it is
necessary the exploration of new opportunities
for strengthening it and making it even more
efficient.
For the companies to implement the
sustainability strategy in their supply chain in charge of operations, the
logistic function must play a prominent role (MOLLENKOPF et al., 2010; GOLDSY; STANK,
2000). For most companies,
logistics costs are
substantial constituting
the second
factor in the overall
cost structure following
the product sale’s cost.
Sustainable
products is a term used to understand all kinds of products that aim to improve
environmental and social quality which is related to the environmental and
social implementation patterns, that is, the ultimate goal is to satisfy
customers and gain competitive advantage in the market (ABUKHADER; JOHNSON,
2004; BOWEN, 2001; GOLDBACH; SEURING; BACK, 2004; KOVACS, 2004; MEYER; HOFMANN,
2000).
The existing literature on logistics
and supply chain also highlights the importance of sustainability (CARTER; ROGERS,
2008) and energy efficiency (HALLDORSSON; KOVACS, 2010) where the need to
review the operational level was identified, in which this issue is neglected. Abukhader and Johnson (2004) conducted a comprehensive literature review on environmental and logistics and observed weak links between the implementation of logistics and the environment subjects.
As logistic managers are vital to
each functional area, they must understand how each section affects the total
supply chain (MURPHY; POIST; BRAUNSCHWEIG, 1996). For the present study, the supply chain refers to the operations made to certify the materials that will
compose the goods or services to be produced from multiple vendors as well as the transportation of these goods into the manufacturing point. The value chain refers to the company, the management process,
and the necessary
operations for the manufacture of
goods and / or services.
The
supply chain refers to the operations that cover processes for the handling and
storage of finished products to the consumption point. The reverse logistics
presents the idea of sustainability and the end of the product cycle which,
gradually, is an important part for providers, consumers and government
entities (MEADE; SARKIS; PRESLEY, 2007; PRAHINSKI; KOCABASOGLU, 2006).
5.
METHODOLOGY
According
to Lakatos and Marconi (1995, p. 15): "Search is not just seeking the
truth, it is to find answers to posed questions by using scientific
methods."
Quantitative
research means showing opinions and information through figures to classify and
analyze them. It
requires the use of resources and statistical techniques (percentage, mean,
mode, median, standard deviation, correlation coefficient, regression analysis,
etc.). According to Richardson:
The
quantitative research can be characterized as an attempt of a detailed
understanding of the meanings and situational characteristics presented by
respondents, rather than the production of quantitative measures of
characteristics or behaviors Richardson (1999, p. 90).
In this work, two methods were used
to collect data and information. The
first consisted in bibliographical research conducted by consulting books,
dissertations, theses, scientific articles and conferences, and access to the
documents obtained through databases and libraries.
The
second was a statistical study, in which the data was obtained through a
questionnaire where the posed questions were of the multiple choice type, some
being complemented with the possibility of open-ended responses. These questionnaires were
applied at the managers and directors of three major companies in the
beverages, paints and food sectors, in the first half of 2012. The five
scenarios and questions have been organized by themes: environmental, social,
economic and technological, with 13, 9, 10 and 19 questions for each area,
respectively. The exhibition and summarization of data was performed using
descriptive statistics, through charts, tables and parametric measures.
The
results are related to the study of three large companies from the beverages,
paints and food products segments. Such companies were evaluated through a
matrix-questionnaire consisting of five adequacy settings, since the scenery
with a score of 1, i.e., when it does not meet the minimum sustainability
demanding, passing to the scenery with
score 3, whose disposition partially meets the same requirements, to achieve
the maximum score of 5 points, where the organization fully meets the requested
requirements.
The
1-5 score was based on the Likert scale, which is a psychometric scale of the
most known and used in quantitative research, since it intends to register the
level of agreement or disagreement with a statement or set position.
The
settings were constructed according to four groups of indicators:
environmental, economic, technological and social (with respectively 13, 10, 19
and 9 questions), demonstrating the degree of sustainability in which they find
themselves.
6.
RESULTS
By
way of illustrations, in the following table, the comparison between the
operating companies in the segments of beverages, paints and food products can
be seen. Table 1
below shows the compilation of the provided data, based on collected
information with the matrix-questionnaire instrument, where: Q refers to the
number of questions that composes each indicator, T means the total number of
possible points; P expresses the achieved score and, finally, the percentage
column which reflects the ratio P / T.
TABLE
1: Comparative data among the researched segments.
|
BEVERAGE |
PAINT |
ALIMENTARY |
|||||
INDICATORS |
Q |
T |
P |
% |
P |
% |
P |
% |
ENVIRONMENTAL |
13 |
65 |
49 |
75.4 |
49 |
75.4 |
53 |
81.5 |
SOCIAL |
9 |
45 |
37 |
82.2 |
43 |
95.5 |
35 |
77.8 |
TECHNOLOGICAL |
19 |
95 |
53 |
55.8 |
*43 |
*78.2 |
61 |
64.2 |
ECONOMICAL |
10 |
50 |
34 |
68.0 |
30 |
60.0 |
42 |
84.0 |
Source: Research´s
writers. (2012).
*: from the total of questions about technology of
paint segment 8 of them could not be answered.
From
Table 1 we can see a slight supremacy of the company in the food industry
regarding the environmental indicator, although regarding the social indicator
it needs a bigger leap in order to achieve a better level of adequacy. The
paint company shows a high commitment, while the others are at a good stage and
room for growth in the short term. The indicator shows that technology
companies have invested as little as possible so that their activities could be
carried out, however, much can be done towards competitive advantage by
improving processes and operations, and finally, to the economic indicator; the
companies in the beverage and paint sectors are not suitable enough, demanding
a qualitative leap to considered acceptable levels. Figure 2 shows the results
didactically.
FIGURE 2: Didactic Comparative Visualization of the
Indicators. Source:
Research authors (2012). |
In the case of large market leaders
companies, it can be observed that they are responsible with environmental
issues and are committed to the sustainability and reduction of GHG emissions,
but the practice of theoretical placements has not been translated into
absolute reality, yet.
As
shown in the didactical illustrations of the collected data, although there are
different scores among companies (the largest around 22%), none of them reached
the level of 80% compliance with the requirements of the array-questionnaire,
even with the current technology producing medium quantities of GHGs, due to
the fact that part of the processes uses energy source based on fossil fuel
that emit moderate amounts of GHG. It is observed that
during the
process, there is
the recycling of
all technologically possible components / inputs aiming at sustainability.
Considering
logistics, companies / third party logistics employ systems to optimize routes
and tracking of fleets. These
systems show hindrances to proper working. For example, there is a recommendation to drivers to drive as long as possible in speeds that emit the least amounts of GHGs., but there is no monitoring.
In relation to the final
destination of
the products, we can also say that the companies do not have a capable system of reusing all
residues, or intend
to design
their product
thinking about its
course from the "cradle
to grave" in
medium term. An
important factor noticed,
is the ignorance
of the meaning of the term carbon footprint,
which means, they are not aware of GHGs emissions during
life cycle of
a product, starting from the production of its raw material to its final disposal.
Nitrogen Oxide arises from gas
burning in boilers, and the Burning of fossil fuels for power generation is
responsible for the emission of huge amounts of gases directly related to
global warming (GHGs).
The
companies committed to adjust their process in order to reach a Clean
Production (CP). This CP seeks
to meet society's
needs for
environmental friendly products through
the use of efficient
and renewable energy systems.
Also, the materials used should not offer risk or threaten the planet's
biodiversity. The
first steps towards clean production are changes in the production process,
adjusting it to international standards regarding efforts for controlling and reducing GHG emissions.
Companies
recognize the importance of training and developing employees in clean
technologies and the consequent reduction of GHG emissions. The former also includes
enhancement in maintenance,
such as leakage prevention, less use of toxic substances, and internal recycling systems for the reutilization of water or heat, which would be otherwise, dissipated.
The
different levels of commitment in promoting education in clean technologies
probably can be explained from the viewpoints of their leaders, where use of
clean technologies implies in competitive advantage, resulting in greater
employment generation and income.
As to
purely social nature actions both companies presented the best possible
results. The beverage company offers an important support to the Vocational Qualification program,
held in partnership with Anhanguera college, from Jacareí. This program,
which is part of the company, is for
underprivileged
youth with over 18, who want to acquire basic knowledge in important areas that help employability, taking into consideration the current market scenario, like: computer administration and logistics classes.
Companies
generally commit to educate and train people in the use and knowledge of clean
technologies in the medium term, as well as implementing a work security
standard, when adopting new clean technologies.
The
companies are also committed to the social interaction encouragement in order
to improve the assimilation of new knowledge and behaviors related to
environmental conservation and the use of new clean technologies, as well as
implementing policies for the distribution of earnings and profits resulting
from the use of new clean technologies in the medium term.
There
is a clear concern for the training and development of people regarding the
field of clean technologies and the consequent reduction of GHG emissions.
The
growing interest and public awareness regarding environmental issues has led
companies from various industries such as beverage, food and inks to consider
such issues on its production process.
In
the paint market, the pressure to the ecological respect has forced the
technological development toward the water-soluble and powder paints. The Brazilian paint industry is
clearly defined, comprising three types of companies: large conglomerates
(domestic and international), medium-sized companies with administration of
familiar character and small and medium industries aimed at serving specific
market segments. Considering industrial paints, long-term changes involving
manufacturers of resins and pigments are about to happen. For small formulator
plants, the reflection is higher for the need of dispersion and mixing
equipment replacement, as water-soluble inks require stainless steel equipment.
Significant
differences can be seen in the evaluation of the managers of the three
companies regarding the relationship between product demands and practices that
reduce GHG emissions. According
to the beverage industry, the market is not interested in efforts to reduce /
not emit greenhouse gases, whereas there are no implications on profitability
from such actions. In the paint’s segment, a market share (50%) considers
important efforts and the other part ignores or disregards, and must therefore
invest in advertising to educate consumers in order to sell their products at a
prize price and increase profitability. For the food company, the market
clearly perceives efforts from the company to reduce / not emit GHGs and
chooses to buy their products, even with a higher price, thereby, increasing
their profitability. Thus, the leader of the food company believes that
sustainable practices, such as reducing greenhouse gas emissions, contribute to
making the demand curve for their products less elastic, that is, the
percentage fall in sales decreases for a given increase in their products´
price.
For
beverage and food companies, investments to reduce GHG emissions create
competitive advantages, while creating an increase in costs for the paint
company. The former
claim that their debt levels do not make efforts to reduce GHG emissions, while
the paint manufacturer says just the opposite, emphasizing that the most
committed investments are those for short and medium term.
Investments in GHG reduction by
the paint company don’t prove themselves to be worth because the return on
invested capital occurs only in the long term. However, for the food and
beverage companies such investments provide adequate returns in the medium
term.
Total
Productivity Maintenance is the training focus of the beverage company. Through this system, the machine
operator is responsible for maintaining the equipment, and administrative
employees must know the whole production process of their products. This
management method intends to create a high-performance manufacturing
environment, and to reduce losses through continuous improvements in equipment
and processes. The effectiveness of the training for the TPM is measured by the
increase in productivity and efficacy of the processes.
The
market of the food and beverage companies demands products with lower prices,
but on the same time that cause less damage to the environment. The leading Brazilian food
industry company and a partner, that is a global leader in collection and
reutilization of post-consumer waste, have been developing in Brazil, a program
that will enable the transformation of thousands of discarded packages in
products that replace raw materials in manufacturing processes. This action
encourages the collection of post-consumer packages, regardless of their size
and brand. The goal is to give a sustainable destiny to these materials,
allowing them to be reused as raw material in the production of new products
such as purses, bags, backpacks and cases, to be sold in the market.
Concerning the environmental
responsibility, in summary, there is a leveling of the understanding of its
importance, demonstrated by the obtained data in the search. This is totally
understandable because the companies’ leaders are constantly driven by rules,
regulations and laws, that is, all the necessary regulatory aspects to become
companies and markets suppliers which require a pro-active and effective
behavior in preserving the environment and in the use of alternative energy
sources.
They
perfectly understand that a purchase of their product may be decided by the
consumer, when analyzing whether the company acts in a "green" way in
its general scope.
7.
FINAL
CONSIDERATIONS
In
view of the studied organizations and collected data, many of the answers,
regarding the comparison between the segments and the degree of reached
maturity, direct efforts, improve activities and enhance procedures for
correcting routes.
Surveyed
companies seek to become a working model, because they are operating in a
highly competitive segment, where market niches which were before despised,
currently, make a difference to the maintenance of top position.
All
surveyed companies walk toward excellence in performance, however, the
indicators currently still reflect a non-appropriate proactivity in relation to
the speed with which responses are required for the purpose of preserving the
environment, as well as the importance in viewing competitive differentials,
particularly with respect to technological aspects.
Research
has shown that one way of working, creating and maintaining sustainable
features within the industrial aspects, in order to find a solution to this
environmental crisis faced by civilization is focusing on leading companies and
encourage them to be proactive on the GHG (greenhouse gases) issue. Thus, companies can get the
advantage of becoming the first to move into the post-carbon economy, which
would make them highly competitive.
It
is, specifically, observed that; the spread of sustainable logistics between
these companies can be encouraged emphasizing the aspect of reducing GHG
emissions in the supply chain and in the process.
8.
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