**7. Sustainability vs. financial sustainability**

Ever since the concept of 'supply chain sustainability' was first mooted, there has been a debate around its possible conflict with profitability. One problem is that, in some cases, there is confusion between environmental (green issues) and commercial sustainability. This phenomenon is particularly noticeable in developing countries' small transport businesses, where a typical reaction from an operator when asked about sustainability could be, 'I don't have time to worry about that green stuff, I have to concentrate on paying my bills and putting food on my family's plates' [40].

There is a genuine fear in many businesses, especially small and medium sized ones, that the short-term costs of operating in a sustainable manner will outweigh any longer-term benefits. This fear can become acute in businesses that operate in a hand

to mouth manner, i.e., those that need all their available cash to operate and pay wages and so have insufficient money with which to make provision for the future. In some cases, this fear can be very real, businesses do not fail because of lack of profitability but they will fail, sometimes very quickly, when the cash-flow dries up [41]. In other words, if there is a risk that the immediate investment needed to generate sustainable benefits could lead to business failure and even bankruptcy, there is very little chance that those investments will be made. This is particularly sad because, in many cases, strategies designed to give environmental benefits will also create operational cost reductions. For example; efficient routeing and scheduling will reduce fuel bills and allow more 'drops' to be completed in a given time [42], whilst good warehouse management systems can have a major positive impact on supply chain efficiency and effectiveness [43] and therefore on both sustainability and operating costs.

Seeking long-term benefits can also cause problems. For example, extending one's supply chain with a view to taking advantage of the low prices or variety offered by globalisation, increases the risk of failure as has been unfortunately demonstrated by supply problems encountered during the Covid-19 crisis. This has led to many companies reversing their globalisation efforts (e.g., by re-shoring) to shorten their supply chains and reduce risks, sometimes at a short-term reduction of profit or even financial loss to enhance longer term viability. Some businesses, that were unable to react quickly to the changing circumstances, failed.

Nevertheless, the key would seem to be to take a long-term view, but this can be difficult when one is fighting for survival. One way to reduce the short-term cost of implementing sustainability measures is to co-operate not just with one's own partners and suppliers but across, as well as, up and down supply chains, even with competitors. Such practices, which hitherto would have been an anathema to many businesses, have come to the fore in recent years where sharing data and even transport can be shown to be mutually beneficial to facilitate survival and enhance sustainability [44].

Green supply chain management and other sustainable concepts are slowly gaining popularity in developing countries. If sustainable supply chain management practices are to be fully adopted by all organisations, a demonstrable link between such measures and improving economic performance and competitiveness will be needed [45]. In particular it is essential that any short-term operational costs are not allowed to inhibit potentially beneficial moves towards sustainability. Perhaps the key is to be found in collaboration through technology to minimise both costs and risks, whilst avoiding cyber information risks [46].

## **8. Governance and sustainability**

One of the principles that runs through this Chapter is the need to consider sustainability of the varied stakeholders. Only when economic, environmental, and social sustainability concerns are integrated throughout the decision-making process can you achieve sustainable development [47]. One of the reflections is that despite knowledge of the need to balance these three concerns, in practice, this has been harder to achieve. Even though sustainability in principle is an inclusive concept and possesses broader stakeholder interests, some of the interests have not been sufficiently represented. Consistent with the 'leave no one behind' principle embedded in the SDG 2030, the governance framework on sustainability should be formulated to include even the least of interests. Access to accurate, immutable, and timely data on local, regional, and global supply chain networks and activities promises information symmetry that allows accountability and gives power to policymakers and society in decision making and influences the conduct of the supply chains. The same technological capabilities driving global supply chain excellence can be harnessed to facilitate sustainability in them.

Calls for governance models that decentralise and realign decision-making in a manner that drives inclusion through stakeholder engagement, empowered participation and engaged decision making have been made by researchers [48]. Sustainability governance models have taken different forms including community, state, or private-led initiatives. Debates on which approach(es) is effective ensue. Private governance is normally driven by certification processes based on standard norms that individual companies across the chain commit to adhering to. Companies are incentivised through access to premium markets using certification that is recognised and practised by both producers and buyers. According to Grabs [49], the ability of private governance initiatives to play any meaningful role, depends on whether they can be scaled and institutionalised in a given sector. Grabs' study found that, despite the advancement in the sustainable norms and institutionalisation of standard setting, integration of social and environmental externalities into production and procurement of highly priced certified products remains a challenge. Considering the complexity of global supply chains, sustainability governance presents a huge challenge. Advancement in technological tools affords an opportunity to counter this. Generation of sustainability data that can be visibly and timely circulated among the critical stakeholders can re-shape power balances and accountability in supply chains [26]. Using a sustainability matrix in the US agri-food supply chains private-ordering systems proved that continuous improvement in sustainability, can be achieved.
