Sustainable supply chain management in bio-based industries: economic and biodiversity trade-offs

Abstract The bio-based industries need to establish sustainable supply chain management practices because their operations depend on natural resources which lead to environmental harm. The study investigated how supply chains generate economic advantages in Jordan while helping to preserve biodiversity. The researchers gathered information from 24 companies which operate olive oil production facilities and medicinal plant farms throughout Ajloun Madaba and Karak Governorates. The research team used quadrats and transects to measure biodiversity indices which included plant, bird, and insect species richness and they calculated the Shannon-Wiener index. The research findings show that certified sustainable companies spent 10.5 Jordanian dinars more per tonne on supply chain costs than non-certified companies but their biodiversity index performance showed a 42.3% improvement. The 250-meter wide buffer zones enabled research teams to identify 43.5 plant species which exceeded the number of plant species found in areas without buffer zones by 135%. The width of buffer zones emerged as the main factor which determined biodiversity according to its regression model coefficient of 0.487. Certified companies showed superior financial performance because they managed to boost their profit margins to 16.8% while the non-certified companies achieved profit margins of 14.5% and their export shares reached 38.6% compared to 24.3% for non-certified companies. The analysis of different scenarios demonstrated that the combination of tax incentives and 250-meter buffer zone construction requirements would lead to a 38.5% biodiversity increase while increasing industry expenses by 7.4%. The research demonstrates that companies which invest in sustainable supply chains will achieve both environmental advantages and economic benefits through enhanced export market access and increased operational reliability. The combination of smart buffer zone design and micro-supplier empowerment provides two effective methods which help organizations achieve both their financial and their environmental objectives. The research results deliver practical advantages to industry managers and policymakers and NGOs who operate in Jordan and similar countries which require development of bio-based industries while safeguarding their biodiversity resources.

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