An environmental balanced scorecard for supply chain performance measurement (Env_BSC_4_SCPM)

Abstract

Purpose – Companies need to excel in many areas to achieve a competitive advantage. This, together with pressure imposed by regulators and customers regarding sustainability concerns, leads companies to address sustainability in an integrated fashion across all management processes. The purpose of this paper is to suggest a model for the assessment of the environmental performance of a supply chain, based on four perspectives used in the balanced scorecard. Performance indicators are proposed based on the literature, as well as on the ISO 14031 and GRI standards, and were validated by a panel of experts. Design/methodology/approach – Based on a literature review on models for environmental performance management a novel model to assess the environmental performance of the supply chains (Env_BSC_4_SCPM) is proposed. Data collected from the first tier suppliers of an automotive industry case study are used to test the proposed model. Findings – The model developed was tested in a case study company, showing it ability to benchmark the company first tiers suppliers and products. The model is also useful as a decision support tool to define actions to be taken in order to improve the global environment performance of the supply chain. Research limitations/implications – The proposed model was developed to evaluate the environmental performance of supply chains. Nevertheless, the case study only takes account of the first tier suppliers, due to difficulties associated to data collecting for the other elements in the supply chain. Widening the frontiers, the next phase may include the application of this model to second, third and lower tier suppliers, as well as the final customer. Improvements in the model could also include the construction of a composite index to measure the environmental supply chain performance. Practical implications – The paper provides a model that can be used by practitioners to evaluate the environmental performance of their supply chain and to decide on actions to be taken to improve it. Originality/value – As stated by several authors, there has been limited research conducted in the field of environmental evaluation of supply chains. This paper proposes a novel model for the environmental performance of the supply chain and tests it using industrial empirical data.