In an era of rising crises, businesses face multiple challenges and regulatory requirements aimed at enhancing sustainability while remaining resilient despite disruptions and shocks. The role of legislative frameworks varies significantly across regions, particularly between the European Union (EU) and China. Given the interconnectedness of the global economy and supply chains (SCs), legislation in one region can impact others. Against this backdrop, this thesis examines and compares the role of selected European and Chinese legislative frameworks on sustainability and their role on supply chain resilience (SCR). The analysis reveals that while the EU aims to strengthen sustainability through comprehensive, stringent and extraterritorial legislation, it also seeks to reduce critical dependencies to enhance its strategic autonomy, competitiveness and domestic market. Conversely, China’s strive for global leadership and its long-standing focus on resilience and long-term planning integrates sustainability within its economic strategies. Despite significant bilateral trade relations, geopolitical considerations increasingly outweigh purely economic interests in both regions, leading to progressive de-coupling. The study identifies synergies and conflicts between these goals, concluding that integrated, long-term strategies are essential to manage these trade-offs effectively. This research contributes to the current debate by providing insights for businesses and policymakers on developing adaptive strategies that ensure both sustainability and resilience in a globalized economy.
Table of Contents
- Outline
- List of abbreviations
- Abstract
- 1 Introduction
- 2 Literature Review
- 2.1 Conceptual outlines
- 2.1.1 Sustainability and supply chain resilience
- 2.1.2 Legislation in the EU
- 2.1.2.1 Corporate Sustainability Reporting Directive
- 2.1.2.2 EU Taxonomy Regulation
- 2.1.2.3 Circular Economy Action Plan
- 2.1.2.4 Critical Raw Materials Act
- 2.1.2.5 Sustainability and SCR in the European framework
- 2.1.3 Legislation in China
- 2.1.3.1 Environmental Protection Law
- 2.1.3.2 Green Bond Catalogue
- 2.1.3.3 Circular Economy Promotion Law
- 2.1.3.4 14th Five-Year Plan for Economic and Social Development
- 2.1.3.5 Sustainability and SCR in the Chinese framework
- 2.2 Comparative analysis of the EU and China
- 2.2.1 EU's approach to sustainability and SCR
- 2.2.2 Legislative impact on sustainability and SCR in the EU
- 2.2.3 China's approach to sustainability and SCR
- 2.2.4 Legislative impact on sustainability and SCR in China
- 2.1 Conceptual outlines
- 3 Future outlook of bilateral economic relations
- 3.1 Potential for consensus
- 3.2 Controversial debates
- 4 Discussion
- 4.1 Theoretical implications
- 4.2 Managerial implications
- 4.3 Limitations and further research
- 5 Conclusion
- Bibliography
Objective & Thematic Focus
This thesis fundamentally examines and compares the role of selected European Union and Chinese legislative frameworks on sustainability and their impact on supply chain resilience (SCR). Through a comparative analysis, it explores the motivations, practical implications, and broader economic, strategic, and geopolitical contexts shaping these legislative measures.
- Comparative analysis of EU and Chinese legislative frameworks.
- Impact of policies and regulations on sustainability.
- Impact of policies and regulations on supply chain resilience (SCR).
- Geopolitical and economic contexts shaping these frameworks.
- Identification of synergies and conflicts between sustainability and resilience goals.
- Development of adaptive strategies for businesses and policymakers.
Excerpt from the Book
Sustainability and supply chain resilience
The concept of sustainability was first introduced in The Ecologist's 1972 publication, "A Blueprint for Survival” (Basiago, 1995, p. 109). While it is considered to emerge from practical examples within an existing normative framework, sustainability varies across societies and transcends rigid definitions (Brown et al., 1987; Ramsey, 2015). Nevertheless, the World Commission on Environment and Development's publication, “Our Common Future” defines sustainability as the practice of managing resources in a manner that fulfills current needs without jeopardizing the capacity of future generations to satisfy theirs (Brundtland, 1987, p. 24). This notion of sustainability is acknowledged for its complexity and multifaceted nature, gaining significance in the realms of governance, policy discussions and business (Ahi & Searcy, 2015). In practical terms, sustainability initiatives have been guided by the Triple Bottom Line (TBL) theory, which emphasizes the three pivotal sustainability dimensions: environmental, economic, and societal (Burki et al., 2018). Driven by concerns over reputation, investor and society expectations and particularly by national and international regulations and policies, corporations are increasingly integrating social and environmental responsibility into their strategies and management systems (Werbach, 2009). Thus, sustainability has evolved into a crucial strategic perspective for industries, extending its influence beyond the confines of individual organizations to encompass their entire operations (Engert et al., 2016).
Building upon the vital need for endurance and adaptability in the face of numerous disruptions, including the Covid-19 pandemic and the climate crisis, the concept of resilience has emerged across SCs (Castillo, 2023). As a reinforcement of risk management (Pettit et al., 2019), SCR is recognized as a fundamental attribute for survival in times of uncertainty and change (Tukamuhabwa et al., 2015). Resilience, similar to the notion of sustainability, encompasses a broad spectrum of disciplines and dimensions, underlining the complexity and the diversified understandings present in the existing research (Ahi & Searcy, 2015; Tukamuhabwa et al., 2015). Adding to the multidisciplinary and multidimensional characteristic of the concept of resilience, there is an absence of a unified definition and comprehensive theoretical framework for SCR (Tukamuhabwa et al., 2015; Castillo, 2023).
Summary of Chapters
Introduction: Provides background on 21st-century challenges, the interconnectedness of global supply chains, and the increasing importance of sustainability and supply chain resilience, setting the stage for a comparative analysis of EU and Chinese legislative frameworks.
Literature Review: Defines key concepts of sustainability and supply chain resilience, then thoroughly reviews and outlines specific legislative frameworks in both the EU and China that address these concepts, followed by a comparative analysis of their respective approaches and legislative impacts.
Future outlook of bilateral economic relations: Explores the strong bilateral economic ties between the EU and China, identifying areas of potential consensus such as sustainable finance and circular economy, and discussing controversial debates including differing regulatory approaches and strategic ambitions.
Discussion: Analyzes the theoretical implications of the research findings, highlighting the cultural, political, and economic contexts influencing sustainability and SCR, and discusses managerial implications for companies operating in both regions.
Conclusion: Summarizes the comparative analysis of EU and Chinese legislative frameworks, reiterating their distinct yet interconnected approaches to sustainability and supply chain resilience, and highlights the ongoing de-coupling strategies and their implications for future bilateral relations.
Keywords
Sustainability, Supply Chain Resilience (SCR), European Union (EU), China, Legislative Frameworks, Policies and Regulations, Comparative Analysis, Green Deal, Circular Economy, Critical Raw Materials (CRM), ESG Reporting, Geopolitics, Trade Relations, Strategic Autonomy, Ecological Civilization
Frequently Asked Questions
Worum geht es in dieser Arbeit grundsätzlich?
This work fundamentally examines and compares the role of selected European Union and Chinese legislative frameworks on sustainability and their impact on supply chain resilience.
Was sind die zentralen Themenfelder?
The central thematic areas include the comparative analysis of EU and Chinese legislative frameworks, policies on sustainability, supply chain resilience, and their geopolitical and economic implications.
Was ist das primäre Ziel oder die Forschungsfrage?
The primary goal is to explore how EU and Chinese legislative frameworks address sustainability and supply chain resilience, through a comparative analysis of motivations, practical implications, and broader contexts.
Welche wissenschaftliche Methode wird verwendet?
This master thesis relies on secondary data, primarily a literature review of government documents, peer-reviewed journal papers, research reports, newspaper articles, case studies, and grey literature.
Was wird im Hauptteil behandelt?
The main body covers a literature review defining sustainability and supply chain resilience, an in-depth analysis of specific EU and Chinese legislation, and a comparative examination of their bilateral economic relations, including areas of consensus and controversy.
Welche Schlüsselwörter charakterisieren die Arbeit?
The work is characterized by keywords such as Sustainability, Supply Chain Resilience (SCR), European Union (EU), China, Legislative Frameworks, Policies and Regulations, Comparative Analysis, Green Deal, Circular Economy, Critical Raw Materials (CRM), ESG Reporting, Geopolitics, Trade Relations, Strategic Autonomy, and Ecological Civilization.
How do the EU's and China's approaches to sustainability differ, particularly regarding their scope?
The EU's approach to sustainability, as seen in frameworks like the CSRD, demonstrates a "global perspective" with extraterritorial effects, while China's "ecological civilization" primarily focuses on local action and balancing economic growth with environmental protection.
What is the "dual circulation" strategy in China and how does it relate to supply chain resilience?
China's "dual circulation" strategy, part of the 14th Five-Year Plan, aims to strengthen its domestic market and reduce dependence on foreign markets. This strategy seeks to enhance supply chain resilience by fostering indigenous innovation and domestic consumption.
What are the main implications for multinational companies (MNCs) operating in both the EU and China?
MNCs face complex regulatory environments and must navigate trade-offs between sustainability and resilience goals, manage supply chain diversification, invest in green technologies, and adapt to differing enforcement mechanisms and geopolitical tensions between the EU and China.
How does the Critical Raw Materials Act (CRMA) in the EU contribute to both sustainability and supply chain resilience?
The CRMA aims to strengthen the resilience of critical raw material supply chains and increase EU autonomy by setting benchmarks for domestic extraction, processing, and recycling, while reducing dependency on single external providers, thus linking sustainability with resilience.
- Quote paper
- Anonymous (Author), 2024, The role of policies and regulations on sustainability and their role towards supply chain resilience, Munich, GRIN Verlag, https://www.grin.com/document/1683858
