Journal of Cleaner Production 177 (2018) 12e18

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Journal of Cleaner Production

journal homepage: www.elsevier.com/locate/jclepro

Sustainability and innovation in the Brazilian supply chain of green

plastic
Giana de Vargas Mores a, *, Caroline Pauletto Spanhol Finocchio b, Rodrigo Barichello c,
Eugenio Avila Pedrozo d
a
Postgraduate Program in Accounting and Business, Community University of Chapeco
Region (Unochapeco
), Center for Studies and Research in
Agribusiness, Federal University of Rio Grande do Sul, 7712 Bento Gonçalves Avenue, Agronomy District, Porto Alegre, State of Rio Grande do Sul, 91540-000,
Brazil
b
Management and Business School, Federal University of Mato Grosso do Sul, 1555 Senador Filinto Muller Avenue, Campo Grande, State of Mato Grosso do
Sul, 79070-900, Brazil
c
Postgraduate Program in Accounting and Business, Community University of Chapeco
Region (Unochapeco
), 591 Senador Atílio Fontana Avenue, Efapi,
Chapeco
, State of Santa Catarina, 89809-000, Brazil
d
School of Administration, Federal University of Rio Grande do Sul, 855 Washington Luiz Street, Historic Center, Porto Alegre, State of Rio Grande do Sul,
90010-460, Brazil

a r t i c l e i n f o a b s t r a c t

Article history: Climate change has intensified the demand for better social and environmental conservation efforts,
motivating organisations to become more engaged in the development of sustainable technologies. This
study analyses the innovation process in the production of green plastic, a process which replaces a non-
Keywords: renewable resource (naphtha) for a renewable one (ethanol from sugarcane), through the lens of sus-
Brazilian industry tainable supply-chain management (SSCM). An in-depth case study was conducted with a Brazilian
Bio-based plastic
petrochemical company, including interviews with agents of the supply chain. The results show that
Green polyethylene
collaborations between the focal organisation and other agents of the supply chain are important for
Cleaner production
Sustainable supply chain management
product development. The focal organisation has created many industry-wide initiatives, such as certi-
Emerging economy fication programmes and seal of quality/approval, to support the production of green plastic and reduce
the social and environmental impact along the supply chain.
© 2017 Published by Elsevier Ltd.

1. Introduction global warming, greenhouse effects and ocean acidification. These

environmental issues, which have been primarily attributed to
Throughout history, the use of natural resources has been cen- fossil-fuel burning, has sparked interest in renewable energy
tral to economic development, generating such benefits as a wider sources (Abbasi and Abbasi, 2012; Hall et al., 2014).
variety of products available for consumption. However, while Corporations are assuming an increasingly significant role in the
industrialisation has resulted in progress and modernity, bringing quest for sustainability, seeking to minimise the social and envi-
advantages to organisations and social well-being, it has also ronmental impacts caused by production. Innovation is now un-
caused significant social and environmental problems. derstood as a way to contribute to SD (Boons et al., 2013; Carvalho
The consequences of these production and consumption pat- and Barbieri, 2012; Jansen, 2003; Matos and Silvestre, 2013;
terns have led society, particularly private, public and non-profit Seyfang and Smith, 2007; Silvestre, 2015a, b; Smith, 2010;
organisations, to take more intensive action towards sustainabil- Vollenbroek, 2002).
ity. These consequences have underlaid discussions on sustainable Sustainability-oriented innovation may include renewable re-
development (SD) from the 1970s, especially those focusing on sources, reverse logistics, eco-efficiency, green supply chain and the
involvement of the entire supply chain. It can also be considered an
environmentally friendly business strategy (Hansen et al., 2009;
* Corresponding author. Katsikeas et al., 2016). The use of renewable energy sources pro-
E-mail addresses: [email protected] (G. de Vargas Mores), carolspanhol@ vides an alternative to fossil fuels, thereby improving the envi-
gmail.com (C.P.S. Finocchio), [email protected] (R. Barichello), ronment. For example, the petrochemical industry substitutes the
[email protected] (E.A. Pedrozo).

https://doi.org/10.1016/j.jclepro.2017.12.138
0959-6526/© 2017 Published by Elsevier Ltd.
 G. de Vargas Mores et al. / Journal of Cleaner Production 177 (2018) 12e18 13

use of green plastic, which is the topic of the present research. other documents and bibliographies related to this issue. Regarding
Green plastic (green polyethylene [PE]) differs from traditional the third and fourth stages of the supply chain, we performed in-
plastic in terms of sustainability, as green PE helps reduce green- terviews with key informants, which provided information on
house gas (GHG) emissions along the production chain. The culti- business strategy necessary to this research. Based on the theo-
vation of sugarcane, which sources green PE production, also aids in retical background, two scripts were designed for the semi-
the capture and sequestration of carbon, which contribute to structured interviews: one for the focal organisation (third stage)
climate change mitigation. Green PE is the first certified plastic and another for the manufacturers (fourth stage). These interviews
made from a renewable source worldwide, making the petro- were conducted in-person and online, depending on the in-
chemical industry a pioneer in this field. terviewees’ availability (Table 1). The average duration of each
Another concept emerging from green production is sustainable interview was 65 min.
supply-chain management (SSCM). In general, SSCM involves We conducted interviews with seven agents involved in the
characteristics of business sustainability (i.e. economy, environ- supply chain of green plastic. This sample size was determined by
ment, society, stakeholders, volunteers, resilience and long-term the concept of saturation, which refers to when the collection of
goals) and supply-chain management (SCM) (i.e. flow, coordina- new data does not add more information related to the issue under
tion, stakeholders, relationships, value, efficiency and performance) investigation (Mason, 2010). The sample size, although low,
(Ahi and Searcy, 2013; Diabat et al., 2014). The discussions on allowed for a satisfactory overview of the relationships between the
innovation, SD and SSCM provide a backdrop for modifications agents of the supply chain. The interview transcripts totalled 34
made in the petrochemical production chain over recent years, pages. After transcribing the interviews, we organised the material
including the use of raw materials (as renewable energy) for green in preparation for the content analysis, which followed three
plastic production. These modifications are especially observed in phases: analysis and material exploration, treatment of results and
Brazil, an emerging economy, which has positioned itself as a global interpretation (Bardin, 2016).
leader in sustainable energy and agriculture through technological
innovation (Hall et al., 2011). 2.1. Green plastic
In consideration of the arguments presented, the present study
analyses the innovation process in the production of green plastic, a The present research explores the production of plastic resins as
process which replaces a non-renewable resource (naphtha) for a part of the petrochemical industry, focusing on green plastic. Green
renewable one (ethanol from sugarcane), through the lens of SSCM. plastic is also known as green polyethylene (PE), green polymer,
Many previous studies (e.g. Ahi and Searcy, 2013; Carter and biopolyethylene, biopolymer, polymer resin or green resin.
Rogers, 2008; Diabat et al., 2014; Dubey et al., 2017; Gosling et al., The chemical industry is one of the leading industries world-
2017; Reefke and Sundaram, 2017; Seurer and Muller, 2008; wide, and the petrochemical sector is one of its most significant
Svensson, 2007) have developed frameworks for the study of components. The global industry of plastic resins is formed by
SSCM, but each provides only a brief description of the enterprise- multinational, vertically integrated chemical organisations. The FO
led initiatives. The present study applies the concept of SSCM under analysis integrates the first (basic petrochemicals) and the
within a specific context: green plastic production by an important second (thermoplastic resins) generations of the production pro-
organisation in the Brazilian petrochemical industry. In addition, cess for traditional and renewable plastics. The FO has a thermo-
this study aims to demonstrate the importance of engaging supply- plastic resin and basic chemical production capacity of 16 million
chain agents in the sustainable development of the product. tonnes per year (information gathered from a report by the FO).
This article is organised into five sections, beginning with the Global demand for renewable products has initiated the devel-
introduction. In the second section, we present the methodology. opment of innovative products within the chemical industry. Bio-
The third section outlines the theoretical background. In section plastics, also known as bio-based polymers or biodegradable
four, we analyse the results obtained from the data collection. polymers, are currently available on the market (European
Finally, section five concludes our research and provides recom- Bioplastics, 2016). In Brazil, bioplastic production using sugarcane
mendations for future studies. is possible due to the nation's climatic advantages and the extent of
land available for this crop. In response to the debates on global
2. Materials and methods warming and GHG emissions, renewable resources serving as raw
material for manufacturing plastics have emerged as an alternative
The present study is classified as exploratory and descriptive, to fossil fuels and assist with carbon-dioxide capture. The FO cre-
focusing on a qualitative approach and using data collected through ates and enhances biodegradable polymers from renewable re-
field research. A case study of a Brazilian petrochemical company sources, the most notable of which is green plastic made from
that develops green plastic was conducted. To preserve anonymity, sugarcane-derived ethanol. In this case, sustainability is mainly
the company's name and precise location has been withheld. achieved through a renewable resource, which promotes a low-
There are five main stages in the production chain of green carbon economy.
plastic. The first stage consists of sugarcane cultivation. The sug- From sugarcane cultivation to the production of green poly-
arcane produced is sold to power plants that supply ethanol, which ethylene, each kilo of green polyethylene produced captures about
is the second stage. The petrochemical company (the focal orga- 3.09 kilos of CO2 (the life cycle assessment of green polyethylene
nisation) is involved in the third stage of the supply chain. The cited by the FO), which is a calculation that considers the CO2 gains
fourth stage includes manufacturing by third-generation organi- and losses in all stages of the production process. The importance of
sations within the plastic industry, which transforms green PE into green plastic is demonstrated in a comparison to previous data on
various products. The fifth stage, which is not analysed in this naphtha, a traditional polyethylene.
research, is consumption, which involves wholesalers, retailers CO2 is captured from the atmosphere during sugarcane culti-
and/or the final consumers, depending on the sales strategy of each vation and remains fixed during the entire life cycle of green plastic
manufacturing industry. products. To ensure that the green plastic produced is renewable,
To better understand the organisational dynamics of the first the world leader in analysing carbon isotopes conducts dating tests
and second stages, we analysed the Code of Conduct for Ethanol of the products across all lots at the FO (information gathered from
Suppliers of FOs (information gathered from a report by the FO) and a report by the FO).
14 G. de Vargas Mores et al. / Journal of Cleaner Production 177 (2018) 12e18

Table 1
An overview of the interviewees.

Involvement in the supply chain of green plastic Role Country of origin Data collection technique

Third stage Production coordinator for the green PE manufacturing plant Brazil Personal interview
Third stage Manager of institutional relations Brazil Personal interview
Third stage Director of sustainability Brazil Personal interview
Third stage Researcher in the innovation department Brazil Personal interview
Fourth stage Coordinator in the sustainability department Brazil Online interview
Fourth stage Coordinator of innovation Belgium Online interview
Fourth stage Director of sales Germany Online interview

Source: Elaborated by the authors.

3. Theory important for managing uncertain business environments in

developing economies and for promoting learning in supply chains
According to Schumpeter's ‘vision’, development is the result of and innovation towards sustainability (Silvestre, 2015a, b).
spontaneous and intermittent changes that occur in the environ- In consideration of sustainability-oriented innovation, the
ment, which, in turn, form new combinations that represent the literature has highlighted the concept of SSCM. In general, this
generated innovations (Schumpeter, 1982). Economic development concept involves characteristics of business sustainability (i.e.
happens to the existence of the entrepreneurial act, and the economy, environment, society, stakeholders, volunteers, resilience
entrepreneur is responsible for carrying out the new combinations. and long-term goals), and SCM characteristics (i.e. flow, coordina-
In evolutionary theory and the interactive process, innovation is a tion, stakeholders, relationships, value, efficiency and performance)
complex procedure that occurs through internal organisational (Ahi and Searcy, 2013). Several authors (e.g. Carter and Easton,
effort and an organisation's intra- and inter-firm interactions. 2011; Ahi and Searcy, 2013) have suggested that SSCM is the
Organisations engaged in constant learning and innovation are voluntary integration of social, economic and environmental as-
more likely to gain advantages in competitive markets and organ- pects to create a coordinated supply chain. This supply chain
isational performance in the long run. Through product differen- manages the material, information and capital flows associated
tiation, organisations are creating products with reduced with the procurement, production and distribution of products,
environmental impact during the life cycle, which indicates the which ensures profitability, adherence to stakeholder re-
participation of and interactions between various stages in the quirements, competitiveness and organisational resilience (Dubey
supply chain (Gonçalves-Dias et al., 2012; Stucki and Woerter, et al., 2017).
2016). Based on studies by Linton et al. (2007), Ahi and Searcy (2013)
The challenge of innovation is to work with nature's limited and Leppelt et al. (2013), research by Dubey et al. (2017) defined
resources to produce economic growth and social prosperity, SSCM as SCM with an emphasis on economic, social and environ-
without compromising the needs of future generations. The call to mental stability, highlighting its use in securing sustainable, long-
better the environment motivates organisations to engage in term growth. In the present study, we focus on the concept of
research on clean and renewable raw materials. Replacing non- SSCM and its applications in traditional supply chains through the
renewable with renewable resources is a key item on organisa- views of Dubey et al. (2017), Diabat et al. (2014) and Govindan et al.
tional agendas, as well as the subject of many public and private (2016).
debates. Due to the attention they have received, renewable re- Dubey et al. (2017) identified and classified the drivers of SSCM,
sources have become an economically viable alternative to tradi- including: green warehousing; strategic supplier collaboration;
tional materials (Torresi et al., 2008). environmental conservation; continuous improvement; informa-
Since the 1970s, discussions on sustainability have become tion technology use; logistics optimisation; internal and institu-
more widespread. The main debate surrounds the three main di- tional pressures; social values and ethics; corporate strategy and
mensions of SD: economic, environmental and social. Some au- commitment; economic stability; and green product design. These
thors, such as Sachs (2008) and Pawlowski (2008), explored drivers were used to develop a theoretical framework explaining
additional dimensions (such as cultural, territorial and political the complex interactions between variables in the dynamic envi-
dimensions). The concept of SD comprises the idea that environ- ronment of SSCM.
mental, social and economic problems must be observed jointly, Faced by strict government regulations and intense global
allowing for interfacing (Boons et al., 2013; Giddings et al., 2002; competition, organisations are pressured to implement sustainable
Hopwood et al., 2005; Iyer-Raniga and Treloar, 2000). According practices that improve their environmental conservation efforts,
Steurer et al. (2005), an organisation is sustainable when it has such as launching economic welfare initiatives, paying attention to
sufficient income to pay taxes to public authorities, offer fair prices health and safety issues and encouraging employment stability
to suppliers, provide adequate salaries to its employees and (Diabat et al., 2014). The development of a more equitable, sus-
distribute interests from creditors and dividends to its tainable, post-fossil-carbon society requires the collaboration and
shareholders. engagement of a diverse group of stakeholders (Govindan et al.,
SCM promotes innovation that is based on sustainability (Carter 2016; van Hoof and Thiell, 2014). Cleaner production practices
and Easton, 2011; Carter and Rogers, 2008; Lii and Kuo, 2016; can provide advantages through supply chain relationships, in-
Linton et al., 2007; Matos and Silvestre, 2013; Pagell and Wu, novations and governance mechanisms, which can potentiate
2009; Roy et al., 2004; Seuring and Muller, 2008; Silvestre, 2015a, SSCM (Govindan et al., 2016; van Hoof and Thiell, 2014).
b; Soosay et al., 2008). One organisation should play a leading There are empirical and theoretical research opportunities
role in dictating the course of the supply chain, stimulating other concerning the operation of sustainable supply chains in a devel-
organisations to adopt SD. This organisation is referred to as the oping country, such as Brazil (Silvestre, 2015a, b). Cabralde et al.
focal organisation (FO), an inducer of innovation in the supply (2015) highlighted the interdependence of product innovations in
chains to which it belongs (Carvalho and Barbieri, 2012). FOs are external markets and the overall performance of Brazilian
 G. de Vargas Mores et al. / Journal of Cleaner Production 177 (2018) 12e18 15

organisations. Supply chains based on natural resources tend to be for the signatories (i.e. the industry and its suppliers), among other
more geographically limited and prone to local social demands agricultural and environmental directives. The signatories that
than traditional supply chains (Silvestre, 2015a, b). The increased complied with these directives would receive the Green Ethanol
demand for renewable products has intensified the need for Certificate, which recognises the organisation's commitment made
innovative developments in the chemical industry (Carmo et al., to environmental conservation (Torquato and Ramos, 2012).
2012), such as green plastic. From the perspective of sustainability, the mechanisation of
planting and harvesting sugarcane had some benefits, such as
4. Results and discussion ending the pollution caused by sugarcane burning, reducing pain
for field workers, increasing productivity and promoting the use of
4.1. Green plastic production and requirements straw (use of sugarcane straw for the biomass production) as a
source of energy and vegetation cover. However, investments in
The pilot plant started producing green plastic in May 2007 with mechanisation are more common in their own and administered
a capacity of 2.5 kilos per hour. After these simulations were per- areas by the mills, due to the prohibitive cost of which make up the
formed, adjustments and modifications were made to improve the harvest fronts (Torquato et al., 2015).
process for use in industrial plants. With this increase in the green
plastic production scale came a trial-and-error period, and im- 4.2. Sustainability and innovation in the FO's supply chain of green
provements and adjustments were made based on this period plastic
(according to information obtained from one interviewee involved
in the third stage [FO]). As Silvestre (2015a, b) highlighted, FOs play Proximity in the supply chain is necessary for the achievement
an increasingly significant role in managing this, encouraging of common objectives. One organisation should fulfil the role of
learning along the supply chain and promoting innovation towards leader, establishing the path to be followed by other agents of the
enhanced sustainability. supply chain. In this sense, the FOs can induce innovation
The main difference between traditional and green plastic pro- throughout the supply chain (Carvalho and Barbieri, 2012;
duction processes is the raw material used. For example, naphtha is Silvestre, 2015a, b).
used in traditional plastic, while sugarcane-derived ethanol forms The present research considered the effects triggered by the FO
green PE. In the production of green plastic, sugarcane metabolises during the upstream and downstream stages (i.e. spillovers). Sug-
carbon dioxide and produces sucrose through mechanised har- arcane planters and ethanol-producing plants operate in the stages
vesting. The sugarcane net is fermented and distilled to produce prior to the FO's involvement, while plastic manufacturers,
ethanol. Oxygen is present in the formula of ethanol, which can wholesalers, retailers and consumers comprise the demand chain
cause problems in second-generation catalysts. (i.e. following the FO's involvement).
The competitiveness of plastic depends on oil and ethanol pri- In green plastic production, the replacement of oil with sugar-
ces. Other aromatic products with market value can result from cane led to significant changes in the FO's supply chain, which had
traditional plastic as surplus of the production process. In the green to be reorganised in terms of suppliers. Rail is considered the most
plastic production process, what remains is water and contami- sustainable mode for ethanol transport. Therefore, we observed
nants that require expenditures for wastewater treatment (third- that the code of conduct implemented by the FO's ethanol suppliers
stage [FO] interviewee). is the main upstream effect.
In addition to the processing stage (first and second genera- The code includes requirements related to burning, biodiversity,
tions), the FO is studying the feasibility of merging the supply chain environmental practices, human and labour rights, and product life
into an ‘integrated plant’ that is responsible for all stages, from cycle. In 2011, the FO adopted a supplementary certification pro-
planting sugarcane to biopolymer production, to reduce the costs gramme created by a British institution, which attests whether the
incurred by the upstream stage (third-stage [FO] interviewee). One sugarcane production is sustainable. Audits are carried out on
interviewee (third stage [FO]) noted: ‘Our vision is that there will be sugarcane plantations, in ethanol plants and within the FO, which
growth, since what the market will want is not only green poly- verify the use of sustainable practices throughout the supply chain.
ethylene, but other renewable products’. Compliance is verified through a systematic audit carried out by the
Considering that the technology for producing green PE is ready, FO in the power plants (i.e. ethanol suppliers) (third-stage [FO]
the FO has initiated several biotechnological projects with strategic interviewee).
partners, including state and federal agencies. These projects seek The main downstream effect contributes to the environmental
alternatives to the use of ethanol as a renewable raw material to importance of green plastic. For organisations using the green
consolidate the company's leadership in the production of bio- plastic produced by the FO in their own products, a seal was created
polymers (third-stage [FO] interviewee). to guarantee the use of a renewable material, which can be
For the annual production of green PE (i.e. 200,000 tonnes), considered one of the major downstream spillovers. This seal at-
65,000 ha of sugarcane plantations are required, which equals 0.2% tracts consumers who recognise environmentally friendly pro-
of Brazil's arable land (third-stage [FO] interviewee). In 2003, the duction processes. In most cases, the use of green plastic adds value
end of sugarcane burning and mechanised harvesting returned to to the final product, which can offer a competitive advantage.
the public agenda, due to societal, industrial and external market An interviewee from one of the manufacturing organisations
demands (Alves, 2009). involved in the fourth stage of the supply chain mentioned that the
To respond to these demands, and meet sustainability re- choice of green plastic added value to its brand, product and
quirements, the government of Sa ~o Paulo, which is the largest industry-wide image, which helps them compete in a market with
producer of sugarcane in Brazil, signed a protocol of intent with the a growing trend towards eco-friendly design. It includes the fact
Brazilian Sugarcane Industry Association (UNICA) in 2007 and the that society undergoes a reflection period on the impact caused to
Organisation of Sugarcane Growers in the Centre-South Region of the environment, the maintenance of scarce resources and life
Brazil (ORPLANA) in 2008, called the Agro-Environmental Protocol quality. In another organisation involved in the fourth stage, green
of the Sa ~o Paulo Sugarcane Sector (Torquato and Ramos, 2012; plastic is used in 5% of total production, but when recycled mate-
Torquato et al., 2015). The Protocol established an elimination rials and other sustainable solutions are considered, this is closer to
timetable for the burning and the mechanised harvest of sugarcane 30%. The interviewee from this organisation, which produces
16 G. de Vargas Mores et al. / Journal of Cleaner Production 177 (2018) 12e18

packaging, also mentioned that its customers are very price sen- Grande Port/RS in Brazil for export, thereby reducing production
sitive in that a limited number of customers are willing to pay at all. costs (third-stage [FO] interviewee).
The following analysis considers green plastic through the lens By analysing the third stage of the supply chain from a theo-
of SSCM, with an emphasis on the FO and changes in the petro- retical perspective, we can observe that the FO's policies on sus-
chemical industry. In the case of green PE, the technology needed tainability are based on the three main dimensions of SD (i.e.
for production was developed in the 1960s, but it had low viability economic, social and environmental), with considerations towards
due to its massive energy consumption and polymerisation of political and cultural biases, to achieve its organisational vision: to
ethene (i.e. this technology was retrieved, comprising the produc- be the world leader in sustainable chemistry by 2020.
tion of ethene from ethanol, which has been enhanced in the case The FO's business strategy is based on the principles of sus-
of green PE). In previous decades, the ethene derived from alcohol tainability. The 2020 vision, which reflects the challenges in SD,
was not very pure, which hindered its use in second-generation include ten strategic and operational performances objectives: 1)
processes (third-stage [FO] interviewee). ensure security in chemistry, work and processes; 2) produce su-
Green plastic can therefore be regarded as a process innovation perior economic and financial results, as it is one of the largest
(Marques, 2010). In 2005, studies aiming to improve the green thermoplastic resins producers in the world; 3) offer post-
plastic production process began. Research conducted by the FO consumer solutions, such as plastics recycling; 4) become a major
was motivated by its customers, receiving financial assistance from global producer of thermoplastic resins using renewable resources;
one of its customers in Asia. In April 2007, the company used vol- 5) promote water efficiency; 6) mitigate climate change by
atile raw material in its plastic resin for the first time (i.e. formula reducing GHG emissions through the use of renewable raw mate-
change, the oxygen component). Investments were made by the rials; 7) ensure efficiency through the promotion of renewable
petrochemical company and, after several attempts, an ethene energy; 8) contribute to the improvement of local human devel-
formula was reached through polymerisation (purity), and then the opment; 9) develop environmental and social solutions through
value was added to turn ethene into ethylene from a renewable such methods as customer support; and 10) strengthen practices
source (third-stage [FO] interviewee). that contribute to sustainable development (information gathered
The same process was used to produce traditional and green from a report by the FO).
polyethylene, and the final products have the same features and Climate change necessitates the development of green tech-
characteristics. However, as the catalyst used in green PE produc- nologies and the pursuit of operational efficiency to decrease GHG
tion is very delicate, the ethene must be purified, which is the main emissions. While the FO is responsible for a significant level of
difference between traditional and green processes. In addition to emissions, considering the supply chains in which it is involved, the
the benefits caused by the uptake of carbon dioxide, mainly due to FO elaborates GHG inventories concerning its productive activities
the use of renewable raw materials, the production process of green and initiates projects to improve its energy use. As a petrochemical
plastic offers another advantage in the purity of the ethene ob- company, the FO uses naphtha as its main input. However, the
tained (99.99%), resulting in green PE (third-stage [FO] inter- company actively invests in R&D for technologies and innovations
viewee). Approximately half a billion Brazilian Real was invested that consider the increasing demand for renewable raw materials
into the green plastic project, part of which was assigned to (information gathered from a report by the FO). The FO is con-
research and development (R&D) of renewable raw materials be- ducting research on alternative raw materials for producing
sides sugarcane (third-stage [FO] interviewee). renewable plastics in partnership with international laboratories,
The commercial launch of green PE occurred in 2010, along with universities and organisations (third-stage [FO] interviewee).
the creation of the seal ‘I'm green™’. This seal is used in products Regarding its economic development, the FO aims at increasing
using green PE and addresses plastic manufacturers and their competitiveness (i.e. in relationship with its customers and sup-
customers. It represents the added value for the agents of the fourth pliers), expanding productivity (e.g. operating industrial plants
stage in the supply chain, as green PE creates sustainable features in more efficiently), improving logistical and supply performance,
the final product, aligning with the FO's strategy to create value reducing costs and achieving financial results. The company gained
through the production of renewable polymers. The FO's marketing some achievements related to the internationalisation of its busi-
and customer control departments for renewable products monitor ness and operations, as demonstrated by its organisational capa-
the use of this seal through an agreement between all parties. bilities within the global petrochemical industry (information
Manufacturers may use the seal so long as they follow several re- gathered from a report by the FO).
quirements that ensure environmental sustainability.
The FO has also identified their prospects, especially in foreign 5. Conclusions
markets. As of 2012, the largest manufacturers using green PE were
located in France, Germany and Japan, comprised mainly of those Climate change has intensified the demand for better social and
producing packaging and automotive parts. Due to increased environmental conservation efforts, motivating organisations to
product demand, US manufacturers are increasingly interested in become more engaged in the development of sustainable tech-
green PE. About 80% of the green PE produced by the FO is exported nologies. The call for renewable products has pressured the
(third-stage [FO] interviewee). chemical industry to respond with innovative solutions. Under this
We did not identify any innovations regarding the physical backdrop, the present study sought to investigate the innovation
distribution of green PE, which is the same for petrochemical process in green plastic production, a process which replaces a non-
plastic. Due to the change of raw material (i.e. naphtha to renewable resource for a renewable one, through the lens of SSCM.
sugarcane-derived ethanol), transportation is a significant aspect of It was found that, during the first two stages of the supply chain,
green PE production, and is mostly achieved by rail. The FO has sustainability is being considered in the expansion of sugarcane
long-term contracts with its ethanol suppliers, which is the second production. For the supply chain of green plastic, a code of conduct
stage. When it comes to logistics, half of the shipments arrive was created from a series of social and environmental re-
through the Santos and Paranagua
Ports, operated by the govern- quirements, which must be followed by the FO's suppliers. From
ments of Sa ~o Paulo and Paran
a, respectively. The rail modal corre- the examples provided of the FO's practices, it was evidenced that
sponds to another part of the flow of ethanol production. Rail the FO's sustainability policies are based on the three main di-
transportation is growing significantly, more often to the Rio mensions of SD: economic, environmental and social.
 G. de Vargas Mores et al. / Journal of Cleaner Production 177 (2018) 12e18 17

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