Supply Chain Localisation As A Social And Environmental Business Value: How Applicable Is This In Practical Terms?

This paper was written to explore the viability of supply chain localisation as a strategy for minimising possible adverse environmental and social impacts of large-scale economic activity surrounding the production of sustainable energy solutions. Supply chain localisation here refers to the situation of production activities close to the geographical areas in which the sustainable energy solutions would eventually be installed. Sustainable energy solutions here refer to goods, services, and technologies that minimize negative environmental effects of energy use in buildings throughout their construction and habitation. The paper dwells on the operations of the Sustainable Housing Action Partnership (SHAP), a major network of organisations that is focusing on preparing for the Green Deal – a UK-wide housing retrofit initiative – and the attendant increase in economic and industrial activities that it is expected to generate. As part of measures to ensure that these activities yield minimal negative environmental and social effects while optimising economic benefits, the SHAP programme recommended the localisation of the supply chain for the production, installation and maintenance of sustainable energy solutions. This paper explores the SHAP program and its different outputs before focusing particularly on the concept of supply chain localisation being advocated by SHAP. Based on the primary research conducted on the SHAP program as well as secondary research sources, the paper discusses the economic, social and environmental benefits and detriments of the supply chain localisation agenda. It also looks at the overall practicality of the implementation of supply chain localism within the context of mainstream business practices in the property, construction and energy sectors.