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Due to the different institutional pressure such as those from market, regulations and competitors, companies have implemented green supply chain management (GSCM). Unfortunately, tens of GSCM practices exist. Whether all companies should implement GSCM and how to achieve both environmental and economic performance are still not clear for many companies. The purpose of this paper is to develop models that can be helpful for companies to identify right GSCM practices and implement GSCM effectively and efficiently.

Based on about 18 years of study on GSCM with four surveys in China in 2001, 2005, 2012 and 2016, as well as numerous site visits and interviews mainly in China but also in Japan, Germany and Canada, this paper explores institutional drivers as well as opportunities and challenges using theoretical analysis and case studies. GSCM is defined considering a product life cycle. A key three-step GSCM approach is theoretically developed considering opportunities and challenges through life cycle analysis (LCA) of a product and position of a company.

All companies should implement GSCM practices to avoid risks. To effectively implement GSCM practices, a company should understand the life cycle of its product and its position in the supply chain. A key three-step LCA-based approach can help companies to identify the critical GSCM practices.

A key three-step LCA-based approach for GSCM implementation is originally developed based on theoretical analysis and eight years of study.