The Role of Green Risk Management Approaches in Promoting Green and Sustainable Supply Chain Management

Year 2024, , 33 - 54, 30.10.2024

Xinhua Hu Suguna Sinniah

https://doi.org/10.28978/nesciences.1569144

Abstract

This study assesses how advanced technologies like AI, blockchain, and big data facilitate green risk management in the automotive and electronics industries in the EU. When applied to environmental risk assessment, green purchasing, and eco-design activities, these technologies will optimize Economies of Scale (EoS) and contribute to advancing GSSCM in companies. This review uses systematic literature review and thematic analysis and focuses on using various peer-reviewed sources to understand how these technologies support GSSCM and also reveal gaps and challenges such as the integration of innovative waste disposal technologies and sustainable partnership schemes. Research proves that actual assessment of environmental risk is possible through the implementation of AI in risk assessment; On the other hand, blockchain makes sustainable procurement and reverse logistics more transparent. Thus, some problems like high costs, limited time, and problems with the alignment of stakeholder goals remain. It is recommended that these gaps be overcome by innovating, partnering with industries, and implementing policies that can further improve the position of information systems as the foundation of GSSCM. Thus, policymakers have been urged to explore options like grants or subsidies in an attempt to promote the adoption of these technologies as a way of creating a circular economy. Consequently, this research offers insights that may be beneficial for industry managers and policymakers seeking to improve sustainability within the EU automotive and electronics sectors.

Keywords

Green risk management, sustainable supply chain management, information systems, artificial intelligence (AI), blockchain technology

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