Green and sustainable supply chains

Coca-Cola has often been accused of groundwater depletion in India. The company’s bottling plants have faced litigation and issues in southern and a few northern states of India. The company has also faced court orders to shut down some of its bottling plants because of significant usage of groundwater beyond permissible limits, resulting in water loss for farmers and communities in the region. In certain cases, absence of effluent treatment facilities and groundwater replenishment facilities have also led to closure of bottling plants. 1 With growing regulatory and consumer concerns over the environmental impact of operations and supply chains, should firms incorporate sustainability goals in their supply chains? Can greening lead to economic benefits for firms? Why are sustainability issues assuming strategic importance for firms?