Regional Policy and
Sustainable Supply
Chains
Martin Rhisiart
Cardiff Business School
Sustainable development
Sustainable development is
development that meets the need of the
present without compromising the ability
of future generations to meet their own
needs
Brundtland definition
Sustainable Development and
regional policy
Incorporating a medium- to long-term
perspective in regional policy making,
balancing and making effective use of
economic, social and environmental
resources
Sustainability & sustainable
development
 Growing importance attached to
sustainable development
 Multiple layers of application




Global summits, e.g. Johannesburg
EU, e.g. EU Sustainable Development
Strategy
State
Regional
Stimuli for more sustainable
products
 Regulatory




Global
EU
National
Regional
 Consumer demands
 Customer companies-supply chains
Sustainable development
ENVIRONMENT
ECONOMY
SOCIETY
Regional policy tools & supply
chains
 Regional policy can be a powerful way of
stimulating desired, sustainable
outcomes


Procurement
Channelling support to programmes that
promote sustainability
 Associations/clusters based on
principles of sustainability
 Quality standards
Society
 Quality of life
 Skills/employment
 Relationship with
community
Environment
 Waste
 Use of materials
 Environmental
management
systems, e.g.
ISO14001
 Company
environmental policy
Economy
 Best value
 R&D
 Strategic planning
 Intelligence
 NPD
 Skills
How can regional policy determine
which supply chains are
sustainable?
Complexity
+
Future-oriented
decisions
Technology
Social and economic
trends
Major challenges for policy-makers!
Non-sustainable scenario?
‘Foreign Direct Investment
opportunity’
Low skill, competition on
labour cost per unit
Pressure to create
employment
Regional financial
aid
Production starts...
…3 years later
Difficulties in markets
Pressure on parent
company
Closure of production facility
Migration of facility to
lower cost economy
Pressure to create employment…
www.sustainableregions.net