Measuring the eco-intensity of the supply chain: a novel approach

More than 80% of the environmental impacts in a typical supply chain can arise beyond the focal firm, however models quantifying the environmental performance of supply chains typically measure only direct suppliers and customers rather than extended supply chains that represent the norm in the globalized competitive environment. This work aims to introduce an innovative quantitative approach to assess the eco-intensity of an extended supply chain, allowing to relate the environmental performance of a supply chain to its economic performance. The approach is based on multiple environmental indicators and a decentralized recursive mechanism, making it applicable to non-cooperative supply chains.