Sustainable Supply Chain Practices in the Cement Industry: History
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Contributor:
Fathi Alarabi Yosef
,
Luay Jum’a
,
Muntasir Alatoom

Sustainable supply chain management (SSCM) is an extension of traditional supply chain management (SCM) that takes into account environmental and social concerns. Cement manufacturing has been recognized as an intensive consumer of natural raw materials, fossil fuels, and energy, as well as a major source of multiple pollutants. This entry attempted to develop a model for SSCM practices by incorporating 23 SSCM factors divided into three dimensions of sustainability: nine factors of environmental SSCM, seven factors of social SSCM, and seven factors of economic SSCM.

  • cement industry
  • CO2 emissions
  • developing country
  • sustainability dimensions
  • sustainable supply chain management

1. Introduction

Cement is a vital component of concrete, which is the most frequently used building material worldwide. However, its production significantly contributes to climate change [1][2]. The thermal and chemical combustion processes used to make clinker emit large amounts of carbon dioxide (CO2), making cement production responsible for more than 4 billion tons of CO2 emissions per year, accounting for 8% of all global CO2 emissions [3]. This is a major environmental concern, as the built environment has been recognized as a major contributor to the loss of biodiversity and should play a significant role in a sustainable world in which ecological values are enhanced [4][5]. Environmental concerns, such as global warming, and social concerns, such as health and safety, have compelled firms to consider environmental and economic concerns in supply chain decisions [6]. Recent research has focused on sustainable supply chain management (SSCM) practices that improve sustainability performance [5][7][8][9][10]. According to Cataldo et al. [5], sustainable supply chain management (SSCM) is an extension of traditional supply chain management (SCM) that takes into account environmental and social concerns. Growing environmental concerns, such as global warming, and social concerns, such as human rights and safety, have compelled many businesses to consider factors other than economics when making supply chain decisions [11]. As a result, SSCM has become an approach through which firms improve the sustainable dimension outcomes in their supply chains [2][7][12].
Sustainability is a widely recognized phenomenon, with businesses transforming themselves to be more sustainable through culture change. This enables these businesses to lead sustainability in all three dimensions: economic, environmental, and social [8][13], making SSCM vital for every business. In this case, firms plan to achieve balance among the SSCM processes and to be successful while considering SSCM dimensions. However, the implementation of SSCM is extremely challenging due to the complexity of the SSCM dimensions [14]. Firms of all sizes and industries have faced significant challenges in becoming more accountable to the environment and to society [6][15]. Similarly, striving for sustainability has been recognized as an effective strategy for dealing with some of the contemporary challenges faced by global supply chains [13]. In striving for sustainability, firms’ competitiveness and financial performance will be enhanced, which will generate more capital and mitigate potential noise risks [7][16]. Su et al. [17] mentioned that the competitive priorities in SSCM refer to the manufacturing units’ objectives. This allows firms to compete, obtain the capabilities determined for the activity, and strengthen the firms’ competitive advantage. Moreover, enterprises ensure the satisfaction of all supply chain parties, including shareholders, suppliers, customers, employees, and society [8][18]. Thus, many researchers have argued that sustainability is the future of SCM [6][7][8].
At present, there is a critical need for the manufacturing industry to preserve the environment without neglecting economic growth and social responsibility, and the cement industry is no exception [2][19][20]. The cement industry is confronted by many challenges, such as decreases in the availability of fossil fuel, a lack of raw materials, a continuously increasing need for cement, increasing environmental anxiety, and the weakness of the world economy [1]. On the other hand, the cement industry is recognized as the largest contributor to CO2 emissions among all industries worldwide. This industry consumes significant amounts of non-renewable energy and raw materials, resulting in high levels of CO2 production [21]. To mitigate the negative impact of its operations on the environment, the cement industry must adopt sustainable production practices, such as reducing energy consumption, reusing and recycling materials, and engaging in remanufacturing [21][22]. These measures can help to minimize CO2 emissions and promote a more sustainable future for the industry.
Therefore, sustainability in manufacturing, particularly in the cement industry, has received significant attention in recent years [2][5][6][8][9][10][13][20][23]. Cement manufacturing has been recognized as an intensive consumer of natural raw materials, fossil fuels, and energy, as well as a major source of multiple pollutants. In addition, cement producers are under massive pressure to reduce the environmental impacts of their products and operations; thus, the implementation of sustainability in the cement industry is critical [23][24]. Furthermore, cement is an essential commodity for economic growth, but its operations necessitate large amounts of energy and the use of natural raw materials and fossil fuels. This forces cement manufacturers to emit high levels of pollution while also facing challenges in implementing sustainable processes and manufacturing their products [2][9][23].

2. Environmental Concerns

By addressing the environmental factor, environmental concerns have been incorporated into supply chain procedures and processes, such as product design, vendor selection, operations, and transportation, as well as the end-of-life management of used products [7][11]. The environment dimension is made up of a number of elements, some of which are discussed in depth, including alternative fuel, governmental rules and regulations, emission reduction, life cycle assessment, environmental certifications, noise and waste reduction, non-Portland cement, and recycling.
Fore et al. [25] explained that using alternative fuels to provide the high temperatures needed to facilitate calcination in the kiln would be ecologically friendly for the environment and would limit the exploitation of fossil fuel natural resources, such as coal. Moreover, waste from other industries, such as rubber production, timber saw milling, or even municipal trash, is regarded as a good alternative fuel; hence, this could result in an effective by-product synergy. Furthermore, decreasing the fossil fuel dependency by using an alternative fuel will result in decreasing CO2 emissions and production costs [21][26]. Increasing the use of alternative fuels instead of primary fuels in order to maintain the environment and control emissions is considered to be a pivotal action [14].
The government should be involved in the production of cement to ensure that the rules are followed during production to reduce environmental damage [6][27]. The government should similarly push cement producers to include corporate social responsibility and sustainable practices into their policies [27]. Sadly, emerging nations, including Jordan and the United Arab Emirates, have lagged behind in implementing clean production in their cement-manufacturing businesses. However, the USA and the UK have passed several environmental legislations, and there have been tremendous advancements in environmental quality theory and practice [25]. In reality, Pakistan must make substantial efforts in creating binding rules, regulations, and policies to forbid the creation of harmful types of pollution that could impair the environment, the economy, and the health of living things [27]. Additionally, the Chinese government is considering requiring Chinese cement firms to comply with environmental laws pertaining to the adoption of sustainable supply chain methods [28]. As a result, government regulations and legislation are critical for manufacturing companies to adopt green practices that lead to sustainability [6][29].
One of the most useful materials in the world for the construction sector is cement. Cement manufacturing releases a number of pollutants, including SO2, NOx, CO2, HF, and HCL, which have serious local and worldwide environmental consequences [25]. Therefore, lowering raw material and energy consumption is linked to limiting waste production. It can also boost productivity, which would benefit businesses financially [25][26].
According to Shrivastava et al. [21], a life cycle assessment (LCA) is an essential tool for understanding overall energy consumption, identifying opportunities for energy savings, and educating decision-makers about policies and energy-efficient investments [30]. It also aids in understanding the contained energy, environmental effects, and potential energy savings of manufactured products. Moreover, the ISO has created LCA standards including ISO 14040:2006, ISO 14044:2006, and ISO/TR 14048:2002 [21]. From the same perspective, Jayal et al. [31] stated that “LCA attempts to quantify the overall environmental and economic impact in terms of material and energy consumption and carbon footprint over the entire life cycle of a product, from material extraction to eventual disposal at the end of life”. As per Barve et al. [32], every stage of a product’s life cycle, from resource extraction through manufacturing to the disposal or recycling of the final product, has the possibility of having an effect on the ecosystem within its supply chain. In a similar vein, various environmental management practices have been adopted by various industries, including ISO 14001 certification and cleaner production throughout the entire supply chain, in an effort to reduce energy emissions and various hazardous wastes, chemical wastes, and solid wastes.
Various types of environmental management systems (EMSs) have been adopted by international and local businesses to manage the environmental impact of commercial, industrial, and service operations [33]. This is confirmed by more small and large businesses becoming aware of the benefits of EMSs for their operations in the long term, resulting in the use of EMSs to improve environmental performance, enhance compliance with environmental rules and regulations, and increase plant operational efficiency [33]. This is evident for one of the EMS standards, ISO 14001, which has been used globally [13][33][34]. Furthermore, ISO 14001-certified cement plants outperformed non-certified cement plants in both operational environmental practices [13][33][34].
Noise is thought to contribute significantly to environmental pollution and has a negative impact on society’s quality of life [26][35]. As per Vladimir and Madalina [36], after water pollution and exhaust emissions pollution, noise pollution was considered the most dangerous cause for environmental pollution. Moreover, noise has a detrimental effect on human function, leading to socioeconomic issues, psychiatric diseases, and job discontent. Therefore, regulations have been established regarding the limitation of noise exposure for industrial workers: noise levels equivalent to or less than 85 dBA are considered safe for workers. The cement industry must therefore concentrate on types of environmental pollution such as noise, which is primarily relevant as a hazardous working condition in factories [35][36].
Considerations for sustainable manufacturing operations include minimizing waste during production and utilizing inputs such as air and water at their lowest possible levels [19][37][38]. In addition, the increase in waste production and environmental contamination is mostly a result of industrialization and urbanization. Chemical discharge from industrial sources could be harmful to human health. In addition, improper waste disposal will lead to water and land contamination, aggravating the issue of industrial discharge into rivers and other waterways, which also degrades the local natural environment. In addition, society can implement waste management programs in a variety of methods, depending on the physical and chemical characteristics of the discharge [21]. Lakhani [39] argued that this makes the issue of a negative consequence vital while pursuing a zero-waste aim, including waste avoidance and limitation through clean production, as cost might be a deterrent to adopting greener methods.
One of the key processes increasing the risk of global warming is the production of Portland cement, which emits significant amounts of carbon dioxide. Therefore, cement producers must provide an ecologically friendly alternative cement with strong mechanical qualities, such as a non-Portland cement or an alkali-activated slag cement, which is thought to be a more affordable and environmentally friendly cement [40]. According to Shehab et al. [41], the most commonly used cement in daily concrete production is Portland cement, and the Portland-cement-manufacturing processes require large amounts of energy, resulting in high levels of CO2 emissions. Shehab et al. [41] stated that slag cement is an alternative product that can assist cement manufacturers in reducing the amount of Portland cement they use. As a result, it can replace a significant amount of Portland cement.
Recycling is one of the most effective waste-reduction strategies; however, it cannot be successful without the involvement and cooperation of all stakeholders. In addition to providing numerous benefits to society, recycling activities create new jobs, raise wages, and increase tax revenues for countries [42]. Similarly, industries that are highly productive and can efficiently use raw material resources benefit society, are economically competitive, contribute to national development, and protect the environment [42]. According to new research, recycling waste from cement manufacturing is, to a limited extent, highly desirable for reducing cement producers’ negative environmental impact and converting wastes into sustainable products [43].

3. Social Concerns

Social sustainability is the advancement of the moral and ethical principles that are pertinent to a company’s operations [44]. Social sustainability enables organizations to conduct their operations and economic activities in an ethical manner [45]. According to Carter et al. [46], social sustainability also promotes equality of opportunity and protects the needs of the community and labor force. Additionally, according to Jum’a et al. [13], social sustainability frequently includes societal pursuits, including quality of life, community development, social support, labor rights, social equity, and corporate social responsibility (CSR). Furthermore, with respect to social performance, organizations must be sustainable and should provide a healthy environment for employees, offering social obligations, local community involvement, and a variety of education and training courses, as well as employee engagement in organizational development [47]. Consequently, social sustainability can be enhanced by implementing social factors that can improve a firm’s social reputation and corporate image [13][48].
The social dimension consists of several factors. Some of these important social factors will be explored, such as workforce training, local community involvement, employee satisfaction, health and safety, sustainable product design, corporate governance, the Ministry of Labor, and job creation.
Programs for employee learning and development are a smart way to reduce work difficulties [49]. A competent workforce will be easier to recruit and maintain the introduction of improved information distribution within the business, increased workforce diversity, equitable employment opportunities for all, job security, comparable remuneration, and the career development of the employees [49][50]. The importance of human capital in training people, highlighting the value of CSR, and determining the best way to apply it makes it a criterion of organizational success. In this regard, firms must be aware that effective CSR implementation increases employees’ sense of belonging in their organizations and in society by demonstrating respect for various cultural developments and sensitivity to ideas, values, and beliefs [2][18].
The active participation of key stakeholders, such as local communities and lobbying groups, is critical to resolving environmental issues [21]. Furthermore, increased collaboration among industries and stakeholders may encourage the development of environmental and social practices that will lead to pollution reduction and community support [21]. In the same vein, the UN Global Compact emphasized the importance of stakeholder engagement, community involvement, public participation, and conservation efforts as essential components of a sustainable strategy [51].
Due to their importance in gauging an organization’s overall development, occupational health and safety are key components of social responsibility. Legislation and national law are the primary means through which health and safety regulations are enforced, and these laws directly affect the workers’ effectiveness and productivity [21]. For example, a research study by the European Agency for Health and Safety at Work revealed that increased occupational health and safety results in increased productivity and lower employment costs [21].
One of the key strategies for achieving sustainability has been thought to be sustainable product design [52]. A company must frequently cope with certain challenging technical trade-offs between conventional and environmental features that call for new design concepts and engineering requirements in order to improve the environmental performance of a product through product design [52][53]. Likewise, both the public and business sectors around the world have paid significant attention to contemporary sustainable product design [53][54]. According to the most recent Green Brand Survey conducted in 2010, which included 9000 respondents from a variety of nations, including Australia, Brazil, China, France, Germany, India, the United States, and the United Kingdom, more than 60% of respondents reported that they preferred to patronize environmentally conscious businesses [53]. Offering good value was still viewed as a key factor in making purchasing decisions by 72% of respondents, but environmental consciousness was also viewed as a significant factor by 50% of respondents [53].
A company’s management, board, shareholders, and other stakeholders are said to be involved in a complex of interactions known as corporate governance [55]. The company’s stakeholders, which include its owners, creditors, management, employees, customers, and the general public, can formulate and address issues as they arise through the use of corporate governance. Additionally, it is believed that the establishment of sound corporate governance is essential for the development of a competitive market [55][56]. In reality, good capital markets are stabilized and strengthened by good corporate governance standards, and investors are protected [56]. Moreover, corporate governance enables businesses to achieve their goals, attract investment, and protect shareholder rights in addition to assisting businesses in improving performance [55].
Labor law is responsible for improving jobs and job providers and offers an opportunity to improve the skills of the laborers. It also aids in making decisions in labor injustice cases and governs laborers’ rights in the labor market. Furthermore, in developing countries, the labor law is regulated in terms of worker protection from the different problems faced by laborers, such as an imbalance of power between employers and employees, the payment of wages, and sex discrimination [57]. Moreover, Koberg et al. [58] indicated that to be socially responsible, organizations must take into consideration local labor laws and adopt social standards such as the ISO 26000 [58].
The social sector is linked to the other sub-systems of manufacturing profit. In fact, when production costs decrease, the manufacturer’s income increases, and the willingness to invest in expansions in the cement sector increases; therefore, job opportunities also increase. In addition to the government regulation needed to support emission reduction policies that can play a positive role in creating environmental sustainability, there is a need to create more job vacancies [59]. From the same perspective, the government must encourage cement manufacturers to invest in cement substitution, which would aid in the reduction of environmental pollution and create more jobs [59].

4. Economic Concerns

The economic dimension focuses on a firm’s ability to effectively use both tangible and intangible assets, as well as profit and financial gain [60]. Additionally, the economic dimension is seen as a long-term objective, one which aims to ensure a company’s continued existence by meeting the needs of its stakeholders and enabling it to generate a cash flow that ensures enough liquidity to safeguard the company’s future development [61]. Economic sustainability aims to address conventional economic goals while taking into account their societal and environmental consequences [46][54]. Moreover, metrics including sales, earnings, ROIs, cash flows, taxes paid, personal income, jobs generated, and the cost of underemployment can be used to determine an organization’s commitment to economic sustainability [62]. In a similar vein, a company’s ability to operate well in terms of both the environment and society depends on its ability to survive in the long run [63].
In developing counties, consumer awareness regarding the fairness of employee working conditions has forced companies to acknowledge their responsibility in providing employees with good working conditions [63]. The economic dimension consists of several factors, some of which are important economic factors that will be explored, such as risk management, improving employee skills, sustainable energy, innovation, branding, tax regulation, and transportation.
A supply chain risk is any potential threat facing any part of the supply chain, beginning with the supply of raw materials, information, operations, and processes and ending with the delivery of the end product to the consumer [1][64][65].
In their discussion of supply chain risks, Rostamzadeh et al. [66] distinguished between internal and external risks. Internal risks are disruptions to a firm’s operations and its established policies. External risks are logistical challenges, supplier issues, and risks resulting from governmental actions. Each unfavorable activity poses a danger to the SCM since organizational sustainability, social responsibility, and environmental sustainability are interrelated [66]. Companies are advised to act quickly in response to both internal and external threats in order to maintain company activity, productivity, and profitability [64][67]. The supply chain must also be flexible in its reactivity, efficiency, and dependability should any disruptions or unforeseen circumstances arise [65][66]. In addition, managers of supply chains must take responsibility for decisions involving asset recovery, relationship management, sustainable sourcing and the creation of local content in order to avoid sustainability-related risks and cut costs [66]. In most cases, seriously misleading information can result from conducting a risk analysis without considering impreciseness and uncertainty; therefore, a valid risk management analysis should be considered [65][68].
Top management can encourage their employees by providing financial support, encouraging a positive attitude, and empowering their employees in rethinking the traditional manufacturing operations or processes with consideration for sustainable practices [54]. Comparatively, a company sharing values with its employees reaps valuable financial and non-financial benefits that increase employee productivity and loyalty to achieve the firm’s objectives with the lowest possible risk [69]. Wolf [70] emphasized that better sustainability practices can be achieved by adopting advanced skills and experience, such as product life cycle and product design. Wolf [70] also added that organizations’ investments in employee skills, qualifications, and training will develop the workforce’s capabilities in using sustainable techniques and tools. Such investments will generate sustainable knowledge and skills that will, in turn, enable the firm to acquire a sustainable competitive advantage [71].
As a result, a company’s ability to integrate its employees into structural changes that will improve its sustainability, economic benefits, and performance will have an impact on the firm’s sustainability performance [70][71]. Strong staff motivation and loyalty, which lead to employee commitment and increased labor productivity, are other significant advantages of adopting environmental management systems, according to Wolf [70].
The availability of energy has a significant impact on the expansion of human civilization, including the economy, living standards, and population; these characteristics are connected to modifications in capacity to obtain and transform energy for beneficial purposes [6][21][26]. In fact, energy is crucial to achieving all SDGs, including those related to industrialization, water supply, health, and education, as well as battling climate change. As a result, energy plays a vital role in sustainable development. Sustainable energy typically produces and uses energy that can meet society’s present and future needs for the least amount of money and with the least negative effects on the environment, the economy, and society [13][21][26][29].
In contrast to Pitak et al. [26], Mirzakhani et al. [72] mentioned that the cement industry consumes a massive amount of energy during the production processes due to the operation of the pyro-process unit. Indeed, the cost of sustainable technologies such as wind and solar energy has largely declined as a result of increased production volumes, unit sizes, and economies of scale. This has led to a reduction in manufacturing costs due to lower energy consumption, which is important for a circular economy because it reduces the demand for resources, materials, and production parts that rely on fossil fuel-based energy, thereby lowering the carbon footprint [21][26].
Green design, green manufacturing processes, and green packaging are indicators of advanced applications and innovations in which the advancement of ICT leads to improved operations, safety, and traceability [28][73]. An innovation culture, as opposed to a bureaucratic culture, usually motivates individuals to reflect, advance knowledge and communication, and adopt novel ideas [73]. In particular, innovation is a major source of technological advancement and economic expansion, with radical innovation resulting in major shifts in product lines and processes or the development of entirely new goods and incremental innovation resulting in continuous improvements in the manufacturing process. Overall, both radical and incremental innovations improve quality and help a company maintain its leadership position in its industry [29][69][73].
When companies combine sustainability and branding, they appeal to customers who are concerned about the environment, providing the company with a competitive advantage. As a consequence, stakeholders’ perceptions of product evaluations and customer satisfaction will improve, and talented employees will be attracted [74][75]. Furthermore, sustainability initiatives, which may include social or environmental practices, can have an impact on the corporate brand by creating sustainability associations, which are typically related to values such as responsibility, social and environmental stewardship, and morality, and become part of their brand image [74]. According to Suryakumar and Ramesh [76]), cement has evolved into more than a grey powder sold in paper or plastic bags: it has evolved into a brand as a result of the decisions made by consumers and decision-makers when purchasing cement. Cement branding is critical to creating appropriate product appeal: a good image of cement is strongly related to being first-class, and quality is related to power.
Jordanian policymakers are interested in establishing a link between the tax system and economic expansion. Therefore, Jordan’s economy has grown more slowly than it did in previous years, and policymakers are still unsure of the influence of taxation on economic growth in Jordan [77]. Bani-Khalid et al. [77] underline that attaining economic growth largely depends on the type and structure of tax financing. Moreover, Bani-Khalid et al. [77] concluded that paying attention to the taxation system is necessary for ensuring sustained economic growth and that various taxes, including income and personal taxes, have a detrimental impact on Jordanian economic growth.
The supply chain largely depends on logistics. In addition to logistics, cost plays a crucial role as an economic factor in supply chain efficiency. Transportation and logistics are two factors that enable a world-class supply chain for the company [78][79]. Additionally, transportation costs represent an essential element of the supply chain in which logistics costs include transportation, warehousing, administration, and inventory holding [80]. In the cement industry, the improvement of transportation is a significant approach to energy consumption in the cement industry [79][81]. In fact, as cement is a bulky product, the logistics costs for the cement company are crucial: a 25% higher cost of beverage goods, sold as a result of optimizing transportation costs, would be critical for the cement company [82].

This entry is adapted from the peer-reviewed paper 10.3390/su15097323

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