Environmental risk management in supply chains: A taxonomy, a framework and future research avenues

Abstract

Risk management in supply chains has emerged as one of the most attractive research topics in the supply chain management field. However, much more is still needed towards hedging against environmental risks. The recent environmental scandals and accidents bring to light the negligence of the environmental issues by supply chains. The present study analyses both external and internal factors of environmental risk and their impact on supply chain management, as well as the mitigation strategies through the literature study. Thus, by conducting a systematic literature review and after analysing 767 abstracts and 70 full papers, we identify fourteen environmental risks, three main consequences and nineteen strategies to manage these risks. As a result, we develop an Environmental Supply Chain Risk Management taxonomy, which covers the existing body of knowledge on the topic. Moreover, a framework is also proposed to synthesise and relate the environmental risks, consequences and strategies covered by the academic research. Finally, we provide a research agenda to support future works on environmental supply chain risk management, building foundations towards the formalisation and improvement of the field.