The Effect of sustainable supply chain management on achieving net zero emissions in chemical manufacturing firms in Nairobi Kenya

Abstract

The chemical manufacturing sector is a significant contributor to greenhouse gas emissions due to its energy-intensive processes and reliance on fossil fuels. Achieving net-zero emissions in this sector requires the adoption of sustainable supply chain practices. This study examined the influence of supply chain diversification, specifically green sourcing, transport diversification, green packaging, and reverse logistics, on carbon emission reduction among manufacturing companies in Nairobi, Kenya. The study was informed by the Natural Resource-Based View Theory, which explains how firms can integrate environmental sustainability, adaptability, and stakeholder expectations into their operations to achieve improved environmental performance. A descriptive research design was employed, targeting a population of manufacturing firms in Nairobi, with a sample drawn from registered firms. Data was collected using structured questionnaires and analyzed using descriptive statistics, Pearson correlation, and multiple regression analysis. The findings revealed that all four supply chain practices are positively associated with net-zero emissions, with green sourcing and transport diversification exhibiting the strongest statistically significant effects. Reverse logistics also contributed positively, while green packaging, though positively correlated, did not have a statistically significant independent effect. The study further found that the supply chain practices jointly explain a substantial proportion of the variation in net-zero emissions, indicating strong explanatory power of the model. The study concludes that the combined implementation of green supply chain practices is critical for achieving net-zero emissions, with integrated approaches yielding stronger environmental outcomes than isolated initiatives. The study recommends that firms prioritize strengthening sustainable procurement policies through green sourcing and invest in low-carbon transport systems due to their strong influence on emission reduction. In addition, organizations should expand reverse logistics systems to enhance recycling, waste recovery, and circularity practices. Although green packaging did not show a statistically significant effect, it should be maintained as a complementary sustainability strategy, with further innovation needed to enhance its impact. Finally, the study emphasizes the importance of fostering supplier development and industry collaboration to support the effective implementation of integrated green supply chain strategies.

Keywords: Supply chain diversification, net-zero emissions, green sourcing, transport diversification, sustainable packaging, reverse logistics.