Cost allocation and incentive mechanisms for the environment, climate protection and resource conservation along global supply chains

The research project “Cost allocation and incentive mechanisms for the environment, climate protection and resource conservation along global supply chains” commissioned by the German Environment Agency, analyses (dis)incentives for and barriers to the implementation of environmental measures as well as the exchange of information between different actors along selected global supply chains. The project focuses on five supply chains from raw material to the end product that represent key sectors of the German industry with a high potential for environmental and human rights risks: cotton/readymade garments; tin/tin solder; natural rubber/car tyres; coffee/coffee for consumption; iron ore/quality steel for automotive industry. This report summarises the results of the second of four work package. It aims to present the prevailing and emerging supply chain practices for environmental protection in all five selected raw material-specific supply chains. To provide the background for a supply chain specific analysis, the report describes an inventory of operational approaches to and instruments for sustainable supply chain management at the company level. In addition, the report analyses the contextual factors in which companies operate and which influence their ability to share the costs and benefits of implementing environmental protection measures and exchanging environmental data with other actors in their value chain. The methodology of the report is based on a comprehensive analysis of relevant literature, studies and reports, supplemented by qualitative interviews with company representatives from the relevant supply chains.