China is Testing Ground for Managing Greenhouse Gas Emissions

This is an excerpt of the original article. It was written for the September-October 2014 edition of Supply Chain Management Review. The full article is available to current subscribers.

September-October 2014

2014 marks the 10 year anni­ver­sary of the Gartner Supply Chain Top 25 ranking. This year we have a diverse set of large, global companies with mature, demand-driven supply chains. There are lessons to be learned from these supply chain leaders, many of whom have led their industries over the past decade.

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The Council on Foreign Relations is among many think tanks noting that China’s environmental crisis is one of the most pressing challenges to emerge from the country’s rapid industrialization.

Indeed, its economic rise—which has averaged around 10 percent annual GDP growth for the past decade—has come at the expense of its environment and public health. As the world’s largest source of carbon emissions, China is responsible for a third of the planet’s greenhouse gas output and has more than half of the world’s twenty most polluted cities. For U.S. companies sourcing goods and components from this country, reducing greenhouse gas (GHG) emissions are of particular concern.

But a recent report by BSR in San Francisco suggests that this crisis is finally being addressed—by the Chinese themselves. China’s 12th Five Year Plan includes an entire section on the nation’s pollution problems. This plan is the platform for government operations under China’s leader, Ji Jinping.

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