Greening Global Value Chains : Some Implementation Challenges
The paper aims to highlight some of the most important implementation issues associated with the greening of global value chains with special attention given to how public policies and business strategies can support each other in meeting the chall...
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2014
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| Online Access: | http://documents.worldbank.org/curated/en/2013/09/18276445/greening-global-value-chains-some-implementation-challenges http://hdl.handle.net/10986/16840 |
| Summary: | The paper aims to highlight some of the
most important implementation issues associated with the
greening of global value chains with special attention given
to how public policies and business strategies can support
each other in meeting the challenge, particularly in
developing countries. This requires a systemic view of
global value chains that includes downstream supply chains
and explicitly takes into account the relationships between
regular members (raw materials providers, component
manufacturers, and assembly plants, notably) and their
clean-tech suppliers. It also involves a careful description
of the business landscapes of global value chains as well as
reliable environmental metrics and data, carefully examining
how these can be shared among global value chain members and
their stakeholders. Certain incentives must be set within
member firms and throughout the supply chain and this
involves reviewing managerial practices -- monitoring and
auditing of environmental performance, compensation and
rewards, transfer prices, task design and allocation,
decision making processes, employee selection and training,
and organizational culture -- and framing outsourcing
contracts appropriately. To be effective, however, these
initiatives need to be encouraged by credible national
policies (which include environmental but also social
policies targeting informal businesses) and international
agreements, revealing disclosure programs, and a vigilant
civil society. On a global level, the coordination of
business and public policies is crucial as the greening of a
global value chain will certainly work best if its members
and stakeholders move in tandem. |
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