Student number: Module Leader: Dr.

Akunna Oledimma
Assessment title: Individual Assignment Submission date: 10/05/2023
Module title: Sustainable Logistics and Operations Management
Course code: 700887 Word Length: 4,396

The Impact of Resource Depletion to Sustainability

Course Module Sustainable Logistics and

Operations Management
Course Code 700887
Module Leader Dr. Akunna Oledimma
Assessment Title Individual Assignment
Student ID
Submission Date 10/05/2023

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Student number: Module Leader: Dr. Akunna Oledimma
Assessment title: Individual Assignment Submission date: 10/05/2023
Module title: Sustainable Logistics and Operations Management
Course code: 700887 Word Length: 4,396

Table of Contents
LIST OF FIGURES ...................................................................................................................................... 3
1.0 INTRODUCTION ........................................................................................................................... 4
1.1 SUSTAINABILITY ............................................................................................................................... 4
1.1.1 Link Between Sustainability and Triple Bottom Line ...................................................................... 5
1.2 SUSTAINABILITY ISSUE: Resource Depletion ................................................................................... 6
1.3 Unilever’s Response to Resource Depletion................................................................................ 9
2.0 PART B: PROCESS OF ADAPTATION IN RESPONSE TO SUSTAINABILITY ISSUE ................................... 9
2.1 SUSTAINABLE PROCUREMENT (SP) ............................................................................................... 10
2.1.1 Case company: Unilever.............................................................................................................. 10
2.1.2 Cost of Unilever Adopting Sustainable Procurement ................................................................ 11
2.1.3 Benefits of Unilever Adopting Sustainable Procurement .......................................................... 12
2.2 DESIGN For ENVIRONMENT (DfE) .................................................................................................. 12
2.2.1 Case Company: Reckitt................................................................................................................ 13
2.2.2 Cost of Reckitt’s Adoption of Eco-design ................................................................................... 13
2.2.3 Benefits of Reckitt’s Adoption of Eco-design ............................................................................. 14
2.3 CIRCULAR ECONOMY (CE) .............................................................................................................. 15
2.3.1 Case company: Cisco Systems Inc. (Cisco) ................................................................................... 17
2.3.2 Cost of adoption of CE by Cisco .................................................................................................. 18
2.3.3 Benefits of adoption of CE by Cisco ............................................................................................ 18
2.4 Potential impacts for companies that fail to adapt their supply chain strategies in the face of
sustainability concerns......................................................................................................................... 19
3.0 PART C: UNITED NATIONS SUSTAINABLE DEVELOPMENT GOALS (UNSDGs) ................................... 20
3.1 UNSDG 15: Life on land .................................................................................................................. 21
3.1.1 Unilever adoption of UNSDG15 (Accountability) ....................................................................... 21
3.2 UN SDG 2: Zero Hunger .................................................................................................................. 22
3.2.1 Tesco’s Adoption of Zero Hunger (Accountability) .................................................................... 22
4.0 STRATEGIC RECOMMENDATION AND CONCLUSION .................................................................... 24
References............................................................................................................................................. 25
Appendix ............................................................................................................................................... 35

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Student number Module Leader: Dr. Akunna Oledimma
Assessment title: Individual Assignment Submission date: 10/05/2023
Module title: Sustainable Logistics and Operations Management
Course code: 700887 Word Length: 4,396

LIST OF FIGURES
FIGURE 1 Triple Bottom Line Diagram ……………………….………………………….7

FIGURE 2 Projection of Worldwide Lithium Demand (2019-2030) ……….…9

FIGURE 3 Earth Overshoot Day From 1971 - 2022……………………………………11

FIGURE 4 Triple Bottom Line of Sustainable Procurement……………………….12

FIGURE 5 Design for Environment (Dfe) …………….…………………….………………13

FIGURE 6 100% Recyclable Packaging for Strepsils Herbal……………….……….14

FIGURE 7 Butterfly Diagram Depicting Circular Economy…………….……………15

FIGURE 8 Regulatory Context of Circular Economy ……………………………….…16

FIGURE 9 Kalundborg Symbiosis ………………………………………………………………17

FIGURE 10 Cisco’s Product Return, Reuse and Recycling……………………….…18

FIGURE 11 UN 17 SDGs………………………………….………………………………………...19

FIGURE 12Tesco Implementation of UN SDG 2 Using UN Blueprint ……….20

FIGURE 13 Tesco Implementation of UN SDG 2 Using UN Blueprint………...20

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Student number: Module Leader: Dr. Akunna Oledimma
Assessment title: Individual Assignment Submission date: 10/05/2023
Module title: Sustainable Logistics and Operations Management
Course code: 700887 Word Length: 4,396

PART A

1.0 INTRODUCTION

Early humans engaged in subsistence farming, utilising strenuous rudimentary tools, and
participating in a barter-based economy. Fortunately, the industrial revolution of the 19th century
eased various aspects of human life, albeit with the exploitation of natural resources, people, and
the environment for corporate gain (Chopra and Meindl, 2001), as resources depletes at an
unsustainable rate (UNEP, 2019). It is recommended that organisations adopt a holistic approach
and consider their impact on the environment as societal attention shifts towards sustainability
(Jackson et al., 2011).

This essay initially examines sustainability, resource depletion, and Unilever's perspective. The
second part shows how organisations adapt, invests, and benefit from sustainable sourcing, eco-
design, and circular economy. It further examines the consequences for non-adapting companies.
The essay concludes by assessing the Sustainable Development Goals and two company adoptions. It
emphasises sustainability because though we cannot predict the future, but our present actions will.

1.1 SUSTAINABILITY
Sustainability places emphasis on the responsible use of resources by people and businesses,
considering the needs of present and future generations. It is the development that meets current
demands without jeopardizing the ability of subsequent generations to satisfy their own demands
(WCED, 1987). Businesses of all sizes are aware that sustainable practises can be cost-effective,
increase profit, and thus improve customer and employee satisfaction (Mincer, 2008), therefore it is
critical for organisations to consider sustainable practises at all stages of their operations; input
resources, transformation process, and output products and services (Slack and Brandon-Jones, 2019).
Thus, Carter and Rogers (2008) define sustainable supply chain management as improving an
organization's long-term financial performance through strategic, open integration and fulfilment of
its social, environmental, and economic goals through systemic coordination of important inter-
organizational business operations.

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Student number: Module Leader: Dr. Akunna Oledimma
Assessment title: Individual Assignment Submission date: 10/05/2023
Module title: Sustainable Logistics and Operations Management
Course code: 700887 Word Length: 4,396

1.1.1 Link Between Sustainability and Triple Bottom Line

Financial performance was traditionally used to gauge organisational success (Onyali, 2014). However,
John Elkington's Triple Bottom Line (TBL), Figure 1, which integrates economic (profit), social (people),
and environmental (planet) performance, fundamentally affects how organizations (and stakeholders)
evaluate their success (Purvis et al., 2019). The economic aspect includes firms' traditional financial
performance and their actual economic influence on their economic environment. For example, taxes,
revenues etc. The Social aspect refers to a firm's fair treatment of employees, the community, and its
operating environment, while the environmental line covers sustainable environmental practises that
reduce ecological footprint such as air and water quality, natural resource consumption, etc (Grant et
al., 2023). In a society that values profit over meaning, a triple bottom line strategy may seem
impractical, however innovative businesses have repeatedly demonstrated that making money while
doing good is achievable (Miller, 2020).

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Student number: Module Leader: Dr. Akunna Oledimma
Assessment title: Individual Assignment Submission date: 10/05/2023
Module title: Sustainable Logistics and Operations Management
Course code: 700887 Word Length: 4,396

1.2 SUSTAINABILITY ISSUE: Resource Depletion

Resource depletion is the consumption of resources faster than they are replaced (Grant et al., 2023).
Water, trees, and mined metals are examples of depleting resources, while population growth,
consumption, industrialization, climate change, etc are factors (Nawaz et. al., 2019). Hence, the focus
on resource depletion by stakeholders.
Material extraction involves obtaining natural resources to make commodities and services. The
manufacturing industry and its associated activities are responsible for 50% of global Greenhouse gas
(GHG) emissions and over 90% of biodiversity loss, and water stress (UNEP,2019). For instance,
Lithium mining invariably affects the environment and cause pollution (Zacune, 2013). From 25,400
to 85,000 tonnes, top producing countries' annual production of Lithium climbed 335% between 2008
and 2018 (Volkswagen, 2021), which is due to its usage in batteries to power a variety of electrical and
electronic gadgets, including mobile phones and electric vehicles. Moreover, Lithium supply faces
issues not just due to rising demand, but also because it is concentrated in only few regions, with more
than half of today's production in areas with significant water issues (Bloomberg, 2022). Figure 2
depicts that there will not be enough lithium for future use, thus, regulations should be implemented
to foster its use and preservation.

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Student number: Module Leader: Dr. Akunna Oledimma
Assessment title: Individual Assignment Submission date: 10/05/2023
Module title: Sustainable Logistics and Operations Management
Course code: 700887 Word Length: 4,396

Water is essential to the operations of many industries, with agriculture and manufacturing using 70%
and 19% of it, respectively (KPMG, 2022). Multiple players' reliance on water for varied reasons has
led to its depletion and scarcity, which 41% of Global CEOs in a 2009 PWC survey said will hurt their
economic success and lead to intense competition for freshwater. McKinsey's analysis (2023) projects
that the demand for water will surpass the available supply by 40% in 2030.

Moreover, nearly half of the world's population is expected to live in water-scarce places. With the
world's population expected to grow by 40% in the next 50 years, more water will be needed to
produce food and freshwater, especially in densely populated areas (Grant et al.,2023).
Policies need to be implemented by stakeholders to avert the looming future freshwater scarcity and
preserve available water, as organizations need resilient water management and recycling supply
chain solutions to survive. Water recycling, reuse, storage, redistribution, and regeneration are
examples of strategies for water conservation and management that must consider local conditions
of supply, demand, and environment (CAETS, 2009).

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Student number: Assessment title: Module Leader: Dr. Akunna Oledimma
Individual Assignment Submission date: 10/05/2023
Module title: Sustainable Logistics and Operations Management
Course code: 700887 Word Length: 4,396
Palm oil, used in cosmetics, biofuel, cooking oil, and more, is affordable, available, and likely the most
versatile product produced by large-scale agriculture. Palm oil production has doubled in the past two
decades to over 70 million tonnes. (Unilever, 2022a). However, it is a major cause of deforestation
(Bloomberg, 2021), and contributes to global warming through destroying forests for oil palm fields,
processing, packing, and transportation, which releases GHGs (Aydinalp and Cresser, 2008). Global
warming influences atmospheric temperatures (which encourages forest fires), soil moisture,
precipitation, and rainfall, which affect agricultural efficiency. Reduced agricultural production
increases agricultural output prices and cause famine and scarcity in affected regions. Thus,
organizations should discover alternative raw materials and promote afforestation to preserve the
natural environment essential for optimal agricultural productivity.

Also, global material consumption might climb to 190 billion tonnes by 2060 from 92 billion (UNEP,
2019). This can be attributed to population growth as it is reported that the world’s population has
doubled, and global gross domestic product has quadrupled over the past 50 years. Earth is the sole
liveable planet, thus a damage to it will be detrimental. At the current consumption rate (Figure 3),
humans will need about 1.75 Earths (Earth Overshoot Day, 2022).

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Student number: Module Leader: Dr. Akunna Oledimma
Assessment title: Individual Assignment Submission date: 10/05/2023
Module title: Sustainable Logistics and Operations Management
Course code: 700887 Word Length: 4,396

1.3 Unilever’s Response to Resource Depletion

Unilever is a renowned multinational consumer goods manufacturer established 1929. In response to
resource depletion, climate change and unprecedented economic and environmental risk,
the Unilever Sustainable Living Plan (USLP) was established in 2010 (Unilever, 2020a). However, in
2015, they faced accusation of causing illegal rainforest destruction and biodiversity loss due to their
palm oil sourcing (The Guardian, 2018). Nonetheless, Unilever has pledged 100% recyclable plastic by
2025 to combat resource depletion. In 2020, during the COVID-19 pandemic, the company introduced
a new corporate strategy called the Unilever Compass, to replace the decade old USLP (Unilever,
2020b).

With the help of the Unilever Compass and the "People and nature policy," Unilever has committed
to a deforestation-free supply chain for palm oil and other goods. 90% of their core palm oil volumes
were obtained sustainably, with 86% coming from physically verified sources such as RSPO Mass
Balance, RSPO Segregated, or an equivalent third-party standard, in addition to improving the
technical know-how of small farmers (Unilever, 2022a).
Furthermore, to combat water depletion, Unilever plants recycle and reuse 49% less water per tonne.
They joined the 2030 Water Resources Group, a multi-stakeholder organization that improves water
management in water-stressed markets. Also, to reduce domestic water use, they produced water-
smart products including sprays that clean soiled clothes and detergents and soaps that use less water
by replacing non-biodegradable ingredients with biodegradable ones (Unilever, 2022b).

2.0 PART B: PROCESS OF ADAPTATION IN RESPONSE TO SUSTAINABILITY ISSUE

Sustainable practices involve implementing strategic innovation of business processes from input,
transformation, and output. Companies who are unable to be innovative will struggle to remain
competitive in today's economy (Amui et al., 2017). The process of adaptation as companies aligns
their strategies in response to some sustainability concerns will be examined below.

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Student number: Module Leader: Dr. Akunna Oledimma
Assessment title: Individual Assignment Submission date: 10/05/2023
Module title: Sustainable Logistics and Operations Management
Course code: 700887 Word Length: 4,396

2.1 SUSTAINABLE PROCUREMENT (SP)

According to McKinsey (2021), suppliers account for 66% of environmental, social, and governance
(ESG) impact of most organizations. It therefore critical for organizations to be knowledgeable about
their suppliers’ activities. SP involves the incorporation of sustainability in all procurement processes
of an organization. It is the process of making purchases with sustainability in mind, as well as
identifying, measuring, and mitigating ESG risks along the supply chain (Grant et al.,2023). Various
drivers of sustainable procurement exist, such as customers, the public, governmental regulation,
investors, the pursuit of a competitive advantage, stakeholders' dedication, and the desire to cut costs
by minimising excess environmental harm, reputation, and legal expenses (Walker et al., 2008).

Companies that practice SP increase their prospects of mitigating the occurrence of supply chain risks
through the implementation of ethical standards and labour practices which vary from country to
country. For example, Nestle USA was sued for buying cocoa from a Cote D’Ivoirian supplier that
employed child labour (The Guardian, 2015). Furthermore, companies that successfully incorporate
sustainable sourcing have seen huge benefits, including improved brand image, regulatory compliance,
reduced operational risks, and high customer retention and acquisition (CIPS, 2023).

2.1.1 Case company: Unilever

Unilever's procurement is guided by its Responsible Sourcing Policy (RSP). The 2017 RSP incorporates
the triple bottom line of procurement (Figure 4), which complements the USLP. This ensures that they
only use direct suppliers that meet their requirements. (Unilever, 2022a). This proactive approach
saves money and promotes brand image, unlike reactive approach that costs more. For instance, the
Rana Plaza incident cost Primark $12 million in compensation and damaged its brand reputation (The
Guardian, 2014).

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Student number: Module Leader: Dr. Akunna Oledimma
Assessment title: Individual Assignment Submission date: 10/05/2023
Module title: Sustainable Logistics and Operations Management
Course code: 700887 Word Length: 4,396

Palm oil is a vital raw material to Unilever. Its production sometimes results in deforestation, a
resource depletion. Unilever has pledged to a deforestation free supply chain by 2023, and currently
utilizes technology and artificial intelligence to monitor its palm oil supply chain, (Unilever, 2022a). To
further foster transparency and visibility, a report of all its suppliers, both major and minor and the
location of their palm oil mills are published for the public. In 2015, the company suspended some of
their suppliers for resource depletion, which portrayed them in a good light.

2.1.2 Cost of Unilever Adopting Sustainable Procurement

The implementation of sustainable procurement practises at Unilever necessitated significant
investments in human, financial, and technological resources by the organisation. The company
partners with smallholder oil mill owners to train and certify them and promote sustainable
agriculture through environmental conservation and restoration (Unilever, 2022a). In South Africa,
Unilever motivates the growth of hybrid crops by incentivizing farmers.

Also, Unilever uses satellite image, geo-location blockchain, and artificial intelligence to manage its
supply chain. Indicating the importance of technology in supply chain visibility and transparency

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Student number: Assessment title: Module Leader: Dr. Akunna Oledimma
Individual Assignment Submission date: 10/05/2023
Module title: Sustainable Logistics and Operations Management
Course code: 700887 Word Length: 4,396
(Unilever, 2022b). The technology costs about $1.3 million and involve ten major palm oil producers
and consumers (Reuters, 2019).

2.1.3 Benefits of Unilever Adopting Sustainable Procurement

According to a 2015 World Economic Forum analysis, sustainable sourcing practises can reduce supply
chain costs by 9% to 16%. Since 2008, Unilever has achieved a cost reduction of $1.5 billion by means
of sustainable sourcing (Unilever, 2021). A company that prioritises sustainability over profit is more
likely to succeed (McKinnon [Link]., 2012). Unilever has been a pioneer in sustainable sourcing and an
example to other companies (Unilever, 2021). Moreover, farmers are being equipped with knowledge
of sustainable agriculture and currently generates more revenue from their sustainable products.

2.2 DESIGN For ENVIRONMENT (DfE)

DFE is a technique for reducing or eliminating a product's environmental effects throughout its
lifecycle. The concept which is also known as Eco-design entails a thorough evaluation of a product's
environmental implications and iterative design changes to reduce or eliminate them (Lindhal,
2005). DfE advances manufacturers beyond manufacturing and distribution to a closed-loop life cycle,
improving product quality, cost, and environmental impact (Grant et al., 2023) as it seeks to design
durable products (with materials) that can be reused, refurbished, and recycled (Linton et al., 2007).

Organisations are changing their business strategy to include reuse (Ioannidis et al., 2021). For
manufacturers, this is essential in attaining sustainability as the design stage plays a significant role in
determining a product's lifetime emissions, accounting for as much as 80% of the total emissions
(Christopher, 2016). DfE (Figure 5) is driven by pressure from investors, stricter rules, and changing
client preferences (McKinsey, 2022), and helps reduce resource depletion by favouring recyclable
materials over virgin materials.

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Student number: Module Leader: Dr. Akunna Oledimma
Assessment title: Individual Assignment Submission date: 10/05/2023
Module title: Sustainable Logistics and Operations Management
Course code: 700887 Word Length: 4,396

2.2.1 Case Company: Reckitt

Reckitt, a leading healthcare, hygiene, and nutrition company formed in 2007. Their "Sustainable
Innovation Calculator" (SIC) guides product development and design. The SIC streamlines Life Cycle
Assessment (LCA) by comparing product impacts on water, carbon, plastics, packaging, and
ingredients to assist them make smarter development decisions (Reckitt, 2022).
Plastic pollution in oceans is anticipated to triple in the next two decades, with packaging playing a
crucial part (Ellen MacArthur Foundation, n.d.). Reckitt has pledged to use less newly produced plastic
in their packaging by 2030. It has also pledged 100% of its plastic packaging to be recyclable or reusable
(Reckitt, 2022). They collaborated with Recyclass, a non-profit, cross-industry initiative, to enhance
their environmental design. Some products have also been formulated with eco-friendly materials,
and their packaging has undergone alterations in both form and size (Reckitt, 2022).

2.2.2 Cost of Reckitt’s Adoption of Eco-design

Reckitt have invested in their design engineers and research and development team that must ensure
that sustainable products are in their right packaging. This is paramount as selection of materials for
product design is a daunting task (Grant et al., 2023). Also, changes to Reckitt’s packaging owing to

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Student number: Assessment title: Module Leader: Dr. Akunna Oledimma
Individual Assignment Submission date: 10/05/2023
Module title: Sustainable Logistics and Operations Management
Course code: 700887 Word Length: 4,396
sustainability-driven innovations have financial implications, including LCA costs due to their
collaboration with Recyclass (Reckitt, 2022). For instance, Reckitt incorporated the recycle emblem on
their recyclable packaging to create recycle awareness to customers. Though an inspection of a variety
of the company’s products in the market using the “Impact Score App”, revealed that they need to
improve in their packaging as some of their personal care brand do not have the recycle logo.

2.2.3 Benefits of Reckitt’s Adoption of Eco-design

Reckitt received the 2022 US Environmental Protection Agency Partner of the Year award for its efforts
to the DfE Logo Redesign Coalition, which boosts the brand's reputation. Responsible products can
also raise brand value by 15% to 30% and revenue by 20% (Deloitte, 2022) as sustainability is profitable
(as recycling materials saves money, time, energy, and the environment). Reckitt's sustainable
products generated 24.4% net revenue in 2022 (Reckitt, 2023). Reckitt also uses less packaging and
develops products with fewer, more sustainable components and lower energy and water use. For
example, the new Strepsils Herbal (Figure 6) is constructed from 100% recycled material, reducing
carbon and water effect by over 17% each dose. (Reckitt, 2022).

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Student number: Module Leader: Dr. Akunna Oledimma
Assessment title: Individual Assignment Submission date: 10/05/2023
Module title: Sustainable Logistics and Operations Management
Course code: 700887 Word Length: 4,396

2.3 CIRCULAR ECONOMY (CE)

CE emphasises sharing, renting, reusing, repairing, refurbishing, and recycling to prolong things,
products, and services. It involves changes in our consumption and use of goods and services, as well
as a rethinking of consumerist tendencies in society (Chatham House, 2021). It extends product life
by boosting durability, reusability, repairability, and recyclability.
Global material use is 100 billion tonnes per year, of which only 8.6% are recycled, while the remaining
are waste (Yale Environment 360, 2020). CE (Figure 7) focuses on restoring technical nutrients like
products, components, and materials and biological nutrients like biochemical feedstock and energy
(Grant et al.,2023). It relies on a triad of principles that are propelled by design, to eliminate waste
and pollution, circulate products and materials at their highest value, and avoid resource depletion
(Ellen Macarthur Foundation, 2019), leading to economic competitiveness, resource security, and
carbon reduction. Several legislations (Figure 8) have been set up to encourage CE incorporation by
companies, with penalties for defaulters.

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Student number: Module Leader: Dr. Akunna Oledimma
Assessment title: Individual Assignment Submission date: 10/05/2023
Module title: Sustainable Logistics and Operations Management
Course code: 700887 Word Length: 4,396

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Student number: Assessment title: Module Leader: Dr. Akunna Oledimma
Individual Assignment Submission date: 10/05/2023
Module title: Sustainable Logistics and Operations Management
Course code: 700887 Word Length: 4,396
The objective of CE necessitates various approaches, such as industrial symbiosis, which facilitates
collaboration between businesses by allowing waste or by-products from one business to be used as
raw materials by another (Chertow, 2008). An example of this is Kalundborg symbiosis (Figure 9),
Denmark, in which 8 companies utilize residues of each other. The cradle-to-cradle model of CE
eliminates waste by replacing the linear economy's cradle-to-grave paradigm.

2.3.1 Case company: Cisco Systems Inc. (Cisco)

Cisco is a multinational firm that develops, manufactures, and distributes networking software,
hardware, telecommunications devices, and other high-tech products and services. In 2001, Cisco
Certified Refurbished Equipment (CCRE) was launched to deliver high-quality refurbished goods to
consumers. In 2015, CCRE became Cisco Refresh, offering certified refurbished equipment with the
same warranty as new devices. Cisco Refresh products can be used independently to purchase certain
parts and quantities, however, when combined with new Cisco equipment, they become much more
valuable. To tackle resource depletion and waste generation, End-of-life Cisco hardware can be
returned for free, through Cisco’s Take Back and Reuse Program. The refurbished equipment are sold
through Cisco Refresh (Cisco, n.d).

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Student number: Module Leader: Dr. Akunna Oledimma
Assessment title: Individual Assignment Submission date: 10/05/2023
Module title: Sustainable Logistics and Operations Management
Course code: 700887 Word Length: 4,396

Cisco has committed to net zero emissions by 2040, 10 years ahead of the United Nations 2050 target
and are committed to circular product design. This is done by incorporating circularity in different
stages of their supply chain such as the Design, Make, Deliver, Use and Reuse (Cisco, n.d.). According
to Slack and Brandon-Jones (2016), designing a product with circularity in mind is vital as products will
require fewer resources for manufacturing and usage and be easier to reuse and repair.
Cisco has pledged 100% of the company's new products and packaging will be circular by 2025. They
also vowed to use 50% recycled plastic in their goods. For instance, in 2022, Cisco Meraki accessories
were distributed in 70% recyclable paper packaging. Also, instead of plastic wrapping, some power
cords now have scannable covers (Cisco, 2022).

2.3.2 Cost of adoption of CE by Cisco

Cisco collaborates with partners and customers in various capacities which requires significant
financial investments. For example, in 2020, a special financing programme worth $2.5 billion was
initiated for partners and customers (Panettieri, 2020). Moreso, Cisco also pays for LCA on new
products and ISO 14040 audits as part of their CE implementation (Cisco, 2022). In addition, financial
investment has been made on employees and assets, to drive circularity. Furthermore, the company
developed schemes for customers to exchange old products for new ones.

2.3.3 Benefits of adoption of CE by Cisco

Today's commodities can serve as tomorrow's resources, but at the cost of yesterday's resource prices
(Stahel, 2013). Cisco's Take Back incentive allows them to reuse or recycle 99.8% of returned products
(Figure 9), minimising their use of virgin resources (Cisco, 2022). Also, in 2018, Cisco was named the
most sustainable company in USA with an 80% score. In 2021, Cisco met its 2025 goal of reducing
virgin plastic by 20%. According to Accenture (2015), CE could yield $4.5 million by 2030. Cisco saved
$24 million from their circularity (Romero-Hernández and Romero, 2018) and saved 202,953 pounds
of plastic wrap, or 16 million high-density plastic shopping bags, by using reusable pallet wraps from
2019 through 2022 (Cisco, 2022).

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Student number: Module Leader: Dr. Akunna Oledimma
Assessment title: Individual Assignment Submission date: 10/05/2023
Module title: Sustainable Logistics and Operations Management
Course code: 700887 Word Length: 4,396

2.4 Potential impacts for companies that fail to adapt their supply chain
strategies in the face of sustainability concerns.

Sustainable practises can improve a company's finances, stakeholder relations, and

management (WEF, 2018). This suggests that companies that fail to incorporate sustainability into
their operations risk losing customers, investors, market share, and ultimately bankruptcy.
Unsustainable companies may experience these impacts:

Loss of Customers, which is due to the increased awareness on sustainability and the will to pay more
for sustainable items (HBS, 2020). Over the past five years, products with ESG claims grew 28%, while
those without grew 20% (McKinsey, 2023). Also, unsustainable companies spend more since
sustainability is cost-effective, resulting in loss of revenue.

In addition, sanctions or lawsuits may also affect unsustainable companies. This can result from
unsustainable sourcing, waste, resource depletion, etc. For instance, Coca Cola, the world's largest
plastic polluter, was sued by Earth Island Institute in June 2021 for greenwashing (falsely promoting
that it is sustainable and eco-friendly) ([Link], 2022). Moreover, unsustainable companies may
face reputation risks. This is due to the adverse effect of their operations on the TBL.

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Student number: Module Leader: Dr. Akunna Oledimma
Assessment title: Individual Assignment Submission date: 10/05/2023
Module title: Sustainable Logistics and Operations Management
Course code: 700887 Word Length: 4,396

Furthermore, sustainable companies are attracting employees, indicating that unsustainable ones will
lose out. For instance, sustainability makes Unilever employees happy (Unilever, 2022a). 87% of
consumers think better of a company that supports ESG causes (Forbes, 2018).
Finally, Sustainable use of finite raw materials prevents resource depletion, thus unsustainable
enterprises may face bankruptcy because they ignore sustainable sourcing in their supply chains which
results in resource depletion. (Sweeny, 2020).

3.0 PART C: UNITED NATIONS SUSTAINABLE DEVELOPMENT GOALS (UNSDGs)

In 2015, the UN established the Sustainable Development Goals (SDGs), a modification of the
Millennium Development Goals. By 2030, these 17 global goals will change the planet. 169
interconnected targets make up the SDGs, which aim to promote peace and prosperity for humans
and the environment now and in the future. They acknowledge that alleviating poverty and other
deprivation needs improving health, education, inequality, and economic growth while addressing
climate change, and preserving our seas and forests, using 232 indicators (United Nations, 2015). It
provides a blueprint for companies to follow to achieve sustainable development. Unilever and
Tesco’s adoption of UNSDGs 15 and 2 will be respectively examined.

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Student number: Module Leader: Dr. Akunna Oledimma
Assessment title: Individual Assignment Submission date: 10/05/2023
Module title: Sustainable Logistics and Operations Management
Course code: 700887 Word Length: 4,396
3.1 UNSDG 15: Life on land
Living on land requires protecting humans, plants, and the environment. This goal is linked to others
since it discourages deforestation, which causes resource depletion, biodiversity loss, and climate
change. (United Nations, 2022). Several practises are endangering life on land. For instance, there was
a loss of about 100million hectares of forests from 2000 to 2020; 90% of worldwide deforestation is
driven by agricultural expansion; human encroachment on habitat is endangering about 20% of reptile
species, etc. (UNEP, 2022). Humanity's survival depends on all stakeholders undertaking deliberate
efforts to foster life on land, as it is currently the only habitable planet. Appendix 2 shows UN SDG 15
Target.

3.1.1 Unilever adoption of UNSDG15 (Accountability)

Unilever, a sustainability champion, has adopted SDG 15 (Figure 11) with its full management support.
The organisation has a thorough strategy to sustainably procure raw materials from suppliers. Its
supplier selection relies on the People and Nature Policy (Unilever, 2022b), as suppliers are critical in
a company’s quest for sustainability, thus ensuring transparency is ensured by publishing Unilever's
supplier list. However, online supplier lists are not totally efficient. This is because Unilever sources
over 60% of its palm oil from developing continents like Asia and Africa, where locals are unaware of
resource depletion owing to undereducation or illiteracy and don't know how to whistle blow for blue
washing. Also, in 2015, the company was accused of causing rainforest depletion and biodiversity loss.

In addition, Unilever’s "Regenerative Agriculture Principle" guides farmers, suppliers, and small
holders on carbon capture, land restoration, and soil and water nourishment, reinforcing its
commitment to a deforestation-free supply chain that supports life on land. (Unilever, 2022a). The
company's use of satellite images and digital sensors to monitor its supply chains to increase
transparency is noteworthy, but only Unilever can watch this. Thus, the risk of report manipulation as
it is not real time.
Furthermore, Unilever is accountable to life on land by continuously monitoring the impact of its
operations and engaging stakeholders, but it has yet to remediate the negative impact of its
operations in some Asian countries where it gets its palm oil. Palm oil growth has destroyed 128,700
hectares of forests in Aceh, Indonesia. (The Guardian, 2016).

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Student number: Module Leader: Dr. Akunna Oledimma
Assessment title: Individual Assignment Submission date: 10/05/2023
Module title: Sustainable Logistics and Operations Management
Course code: 700887 Word Length: 4,396

3.2 UN SDG 2: Zero Hunger

Zero Hunger means eliminating hunger, ensuring food security, boosting nutrition, and promoting
sustainable agriculture by 2030 to improve livelihood (Francesco et al., 2015). It focuses on ending
malnutrition and promoting sustainable food production in the community. Severe hunger is being
experienced in some parts of the world. For instance, in 2020, about 12% of the world’s population
were suffering from severe hunger while over 30% lacked constant access to enough food; 22% of
children under 5 had stunted growth while the ratio of countries with high prices of food rose from
19% to 465 (UN, 2021).
Furthermore, the COVID-19 pandemic has also worsened malnutrition, especially in children, due to
restriction of movement. The Ukraine conflict is disrupting global food supply systems, triggering a
food catastrophe unlike any since World War II (UN, 2023). Therefore, the importance of UNSDG 2
to sustainable development.

3.2.1 Tesco’s Adoption of Zero Hunger (Accountability)

TESCO is a multinational retail and grocery company founded in the United Kingdom in 1919. It has
openly committed to the "Zero Hunger" goal (Figure 12). Their ESG report highlights the company’s
efforts to reduce food waste by 50% by 2030 and support local farmers through its “Farm to Fork”
program (Tesco, 2020). They also collaborate with charitable organisations such as FareShare and
FoodCloud to donate surplus food to the needy (TESCO, 2017). According to its 2018 ESG report,

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Student number: Assessment title: Module Leader: Dr. Akunna Oledimma
Individual Assignment Submission date: 10/05/2023
Module title: Sustainable Logistics and Operations Management
Course code: 700887 Word Length: 4,396
Tesco has contributed 48 million groceries in its "Zero Hunger" project (Tesco, 2018). However, the
claim is unsubstantiated.
Tesco also mitigates risks related to SDG 2. For instance, the company invests in technology and
processes to improve inventory management and eliminate food waste in its supply chain (Brice,
2013). However, the ESG report does not explicitly address risks and challenges related to its SDG 2
activities and mitigation strategies. Despite uncertain demand, Tesco can enhance forecasting and
inventory planning to reduce waste.
Tesco also labels meat and goods with expiration dates to avoid food waste. The "reduced section"
of Tesco is designed to display high-quality perishable foods that are nearing their expiration date.
These items are discounted to help low-income people buy them.

Furthermore, Tesco collaborates with NGOs, farmers, and customers. The company promotes
sustainable agriculture, food waste reduction, and inexpensive food. (TESCO, 2022). Conversely, the
report lacks comprehensive data regarding the type and scope of stakeholder
engagement pertaining to SDG 2. Moreover, Tesco's ESG report does not identify any negative
implications on SDG2 or remediation initiatives. Positive outcomes and progress towards SDG2
targets are the report's focus.

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Student number: Assessment title: Module Leader: Dr. Akunna Oledimma
Individual Assignment Submission date: 10/05/2023
Module title: Sustainable Logistics and Operations Management
Course code: 700887 Word Length: 4,396
The UNSDGs are important to organizations, and they are asking their suppliers to comply. This
suggests that companies that don't include the UNSDGs into their logistics operations will lose out to
respectable ones.

4.0 STRATEGIC RECOMMENDATION AND CONCLUSION

All stakeholders should prioritise sustainability for human survival. Sustainable plans could involve
short-term investments and changes in organisational logistics and operations, but ESG-rated
companies outperform the market over time (McKinsey, 2014). Resource depletion is a major
sustainability issue that can be addressed with proactive sustainable initiatives like responsible
buying, eco-design, circular economy, and afforestation. Capturing an organization's sustainability
goal is valuable but requiring that its suppliers be responsible is preferable (Environmentalleader,
2007). Companies like Unilever has done this by collaborating with suppliers to ensure best
practises. This can also be applied to the FMCG sector. To reduce environmental and human rights
breaches, communities in raw material-sourcing areas must be educated.

Also, modifying material selection for product formulation and packaging to fulfil sustainability
criteria minimises resource depletion while increasing profit. Cisco's free recycling programme for
unwanted products is a model that electronics and FMCG industries should follow. In addition,
companies can partner with stores to set up collection centres for recyclables.
Companies can also reduce resource depletion and waste through strategic collaborations like
Kalundborg. It is cost-effective to responsibly share scarce resources and enforce sustainability laws
and penalties for offenders. For example, a bread mill can sell its crumbs to crispy chicken eateries.

Furthermore, the UNSDGs can reduce sustainability concerns if all stakeholders holistically adhere to
the blueprint. Both Unilever and Tesco have committed to sustainability in their ESG reports.
However, both can be improved. Implementing the supply chain control tower, can help
organizations promote sustainability as it facilitates a company's attainment of comprehensive
visibility throughout the entire supply chain process (SCMR, 2023).
Finally, achieving sustainable involves conscious collaboration of all stakeholders.

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Student number: Module Leader: Dr. Akunna Oledimma
Assessment title: Individual Assignment Submission date: 10/05/2023
Module title: Sustainable Logistics and Operations Management
Course code: 700887 Word Length: 4,396

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Student number: Assessment title: Module Leader: Dr. Akunna Oledimma
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Student number: Module Leader: Dr. Akunna Oledimma
Assessment title: Individual Assignment Submission date: 10/05/2023
Module title: Sustainable Logistics and Operations Management
Course code: 700887 Word Length: 4,396

Appendix

1. Unilever Compass for sustainable growth

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2. UN SDG 15 Targets

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Assessment title: Individual Assignment Submission date: 10/05/2023
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3. UN SDG 2 Targets

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