A method for assessing green value chain readiness

¹ Professional Engineering Program, Widya Mandala Surabaya Catholic University, Surabaya, Indonesia
² Industrial Engineering Department, Widya Mandala Surabaya Catholic University, Surabaya, Indonesia

^* Corresponding author: ivangunawan@ukwms.ac.id

Abstract

Sustainable industrialization is the 9th goal of the 17 Sustainable Development Goals (SDGs) agreed by the United Nations. Green business practice is a fundamental concept that is important for the realization of sustainable industrialization. In a business practice, there is a value chain involved. The value chain is a series of activities to increase the added value of products/services so that the business practice has a competitive advantage. The first initiative towards green business is to conduct a descriptive and diagnostic analysis of the readiness of each activity in the value chain to become green. A suitable method is needed to perform accurate descriptive and diagnostic research. This article proposes a technique for measuring the readiness of the green value chain. The measure green value chain readiness method will use STEER (Sociocultural, Technological, Economic, Ecological, and Regulatory) as the measurement dimension. STEER has been widely used for macro analysis in business investment. The proposed method captures the existing condition of a business through the green readiness of each activity in the value chain. This measurement method is built through a literature review and uses a questionnaire as a data collection tool. Simple mathematical equations will be involved in indicating the level of readiness. The measurement results with the proposed method can map the green readiness of each activity in the value chain so that the company can start an initiative for a green strategy to become a sustainable industry.