Introduction
Climate change is one of the world’s most urgent and pressing environmental concerns (Ghadge, Wurtmann, and Seuring, 2019). The phenomenon is mostly characterized by shifting weather patterns and a rise in global temperatures (UNEP, 2020). If there is no drastic action taken to adapt to these changes, it will become difficult to realize a sustainable future for humanity (United Nations, 2019).
Climate change concerns stem from the presence of high levels of greenhouse gases in the atmosphere (NASA, 2019). Kwik (2015) says that industrialization, which has spanned for almost a century, is largely responsible for this outcome. Although governments are making efforts to reverse the trend, rapid economic development in emerging economies and an increase in the global population may undermine such efforts.
This document outlines a research plan to help the world transition to a sustainable future by exploring ways to mitigate climate change risks in the management of global supply chains. Stated differently, it addresses climate change as a global environmental disaster and seeks to find solutions that would mitigate its effects through changes to supply chain processes, which support global commerce. The first section of this research plan explains the key terms used in the analysis. An annotated literature review, a brief overview of the research aim/objectives, and a discussion of the case study design are also provided. Lastly, a summary of the main findings appears as the last part of the document. However, before delving into the details of this analysis, it is important to understand the key terms used in this study.
Key Terms
- Supply chain risk management: Management of risk in the distribution of goods and services to ensure profitability (Yao and Chen, 2018).
- Climate Change: Variations in the characteristics of long-term weather conditions.
- Sustainability: Reduction of environmental degradation to maintain ecological balance.
- Greenhouse Gases: A type of gas that emits harmful radiant energy in the atmosphere.
- Risk Management: The art of analyzing unforeseen elements that could affect supply chain management processes and devising ways to address them.
Annotated Literature Review
Meijer, K. S. (2015) ‘A comparative analysis of the effectiveness of four supply chain initiatives to reduce deforestation, Tropical Conservation Science, 5(6), pp. 583-597.
The article authored by Meijer (2015) investigates the role of supply chain management in reducing the rate of deforestation, as a strategy for reversing climate change. The author explores two types of supply chain systems in Brazil and Indonesia and suggests that the concentration of several environmentally responsible actors in the model piles pressure on suppliers to adopt sustainable practices. This study is important to this review because it encourages the adoption of proven solutions for managing climate change. For example, the study contributes to the development of new ways to tackle climate change by focusing on the need to reduce the rate of deforestation.
Reckien, D. et al. (2017) ‘Climate change, equity and the sustainable development goals: an urban perspective’, Environment and Urbanization, 29(1), pp. 159-182.
The study by Reckien et al. (2017) investigated the effects of climate change on consumers and found that specific populations were more vulnerable to its effects compared to others. Particularly, the authors said that poor urban dwellers were more likely to be affected by the effects of climate change, such as flooding, heatwaves, and landslides than high-income populations. This study is important to this review because it quantifies the effects of climate change on the end-user.
Cohn, A. (2017) ‘Leveraging climate regulation by ecosystems for agriculture to promote ecosystem stewardship’, Tropical Conservation Science, 10(3), pp. 1-10.
The study by Cohn (2017) focuses on understanding current legal efforts made to reduce the impact of climate change. Particularly, the author discusses a legal framework adopted in Brazil (E4A), which aims to protect the country’s tropical forests by balancing the natural ecosystem. The author of the study also highlighted the importance of developing production-protection synergies that are relevant to different stakeholders in the supply chain system. Overall, the article is useful in leveraging the development of new climate regulations to promote ecosystem stewardship by governments and institutions alike.
Buranatrakul, T. and Swierczek, F. W. (2018) ‘Climate change strategic actions in the international banking industry’, Global Business Review, 19(1), pp. 32-47.
The study by Buranatrakul and Swierczek (2018) investigates the commitment of organizations and their managers towards the mitigation of the effects of climate change. The authors concentrate their analysis on the banking sector by evaluating management commitment towards implementing policies that promote effective supply chain management. Their findings suggest that banks reported significant levels of climate change commitment. This analysis is important in understanding the role of leadership in managing the effects of climate change from an operational standpoint.
The study by Umar, Wilson, and Heyl (2017) investigates how to improve food network resilience to protect crop yields from natural disasters caused by climate change. It supports the view that food network resilience against natural disasters could be bolstered by improving logistics coordination and collaboration among different actors in supply chain management. These findings are useful to the present study because they demonstrate the importance of improving supply chain resilience in the wake of climate change concerns that could cause disruptions in food distribution networks.
Research Questions and Objectives
Based on the insights highlighted in the annotated bibliography above, the need to understand the impact of climate change on supply chain networks cannot be underestimated because the latter provides the infrastructure for the distribution of goods and services in the global economy (Mahajan and Vakharia, 2016). Consequently, the present study aims to mitigate climate change risks in the management of global supply chain networks.
The research aim discussed in this study emerges from the gap in the literature review that poorly links climate change concerns with the economic viability of global supply chain systems. Therefore, this document outlines a research plan to help the world transition to a sustainable future by exploring ways to mitigate climate change risks in the management of global supply chain networks.
Case Study Design
To meet the aims and objectives of the proposed study, I would conduct a case study on Saudi Aramco, which is the official national oil corporation in Saudi Arabia. This selection is informed by the company’s positioning as one of the most profitable organizations in the oil and gas industry and around the world (Benton, 2018). Furthermore, as one of the most impactful firms in the sector, Saudi Aramco has vast and unmatched networks of oil and gas supply in the Middle East and around the world (Benton, 2018). This network of operations means that its supply chain management processes are equally expansive. However, they are also vulnerable to several types of risks, including climate change, terrorism, and vandalism, which undermine the economic prospects of maintaining a sustainable business.
Such risks may not only affect the company’s operations but also influence its profitability by affecting the demand for its products and services (Benton, 2018). Indeed, supported by the economic theories of demand and supply, a change in the perception of the usefulness of oil and gas products may have an impact on the firm’s supply of the same yields (Rutledge, 2019). Alternatively, the demand for oil and gas is partly affected by global views on climate change and the contribution of the energy sector in increasing greenhouse gases.
For example, the rising uptake of electric and hybrid cars in the automotive industry is a manifestation of the diminishing utility of fossil-powered cars. Therefore, Saudi Aramco, being one of the biggest profiteers of the oil and gas business, is an interesting organization to study because it experiences a lot of trouble balancing its commercial and social interests to be sustainable (Rutledge, 2019).
Company and industry-related data will be critical in understanding how climate change impacts supply chain networks. Information may be obtained by conducting desk research to understand how the firm is adjusting to global demands for sustainability. Secondary research is the preferred mode of data collection because the Saudi Arabian government controls Saudi Aramco’s operations (Benton, 2018). Therefore, there is scanty public data relating to its operations. However, the firm’s managers are in the process of finalizing an initial public offering (IPO), which will make the organization a public entity (Jones, 2020). Doing so would open up its books of accounts and operations to public scrutiny, thereby aiding in the data collection process.
Based on the willingness to collect secondary data, few ethical implications will be expected in the study because this type of investigation is devoid of human subjects as the primary sources of data. However, the need to properly cite the works of other authors and maintain the privacy of respondents whose views are included in the investigation will be upheld. In other words, all data used in the study will be de-identified before publication or use. Furthermore, consent will be sought from authors who require such approvals before their findings are used or referenced.
Summary
This study has highlighted the relationship between climate change and supply chain management based on their importance to the sustenance of modern society. Key terms and concepts have been discussed, including an analysis of important research articles that could be useful in evaluating the research topic. Based on the contribution of the oil and gas industry to climate change concerns, it is recommended, through the research aim that is premised on understanding the impact of climate change concerns on supply chain management, that Saudi Aramco should be the preferred case study. It offers a basis for understanding how corporations could play an integral role in minimizing the impact of climate change.
References
Benton, D. (2018) Saudi Aramco to attract more than 50 energy supply chain investors with ITKVA. Web.
Buranatrakul, T. and Swierczek, F. W. (2018) ‘Climate change strategic actions in the international banking industry’, Global Business Review, 19(1), pp. 32-47.
Cohn, A. (2017) ‘Leveraging climate regulation by ecosystems for agriculture to promote ecosystem stewardship’, Tropical Conservation Science, 10(3), pp. 1-10.
Ghadge, A. Wurtmann, H. and Seuring, S. (2019) ‘Managing climate change risks in global supply chains: a review and research agenda’, International Journal of Production Research, 2(1), pp. 1-38.
Jones, R. (2020) Saudi Aramco adds $3.8 billion to its record IPO. Web.
Kwik, G. (2015) ‘Biosecurity: the opportunities and threats of industrialization and personalization’, Bulletin of the Atomic Scientists, 71(6), pp. 39-44.
Mahajan, J. and Vakharia, A. J. (2016) ‘Waste management: a reverse supply chain perspective’, Vikalpa, 41(3), pp. 197-208.
Meijer, K. S. (2015) ‘A comparative analysis of the effectiveness of four supply chain initiatives to reduce deforestation’, Tropical Conservation Science, 5(6), pp. 583-597.
NASA. (2019) The effects of climate change. Web.
Reckien, D. et al. (2017) ‘Climate change, equity and the sustainable development goals: an urban perspective’, Environment and Urbanization, 29(1), pp. 159-182.
Rutledge, D. B. (2019) Energy: supply and demand. Cambridge: Cambridge University Press.
Umar, M. Wilson, M. and Heyl, J. (2017) ‘Food network resilience against natural disasters: a conceptual framework’, SAGE Open, 7(3), pp. 1-10.
UNEP. (2020) Climate change. Web.
United Nations. (2019) Climate change. Web.
Yao, B. and Chen, G. (2018) ‘Stochastic simulation and optimization in supply chain management’, Simulation, 94(7), pp. 561-562.