Sustainable Operations Strategy in the Age of Climate Change: Integrating Green Lean Practices into Operational Excellence
Abstract
1. Introduction
2. Literature Review Methodology
2.1. Climate Change and Operational Sustainability
2.2. Rethinking Lean Systems for Climate-Driven Sustainability
2.3. Principles and Limitation of Lean
2.4. Green Operations: Scope and Strategy
2.5. Toward Green Lean: Converging Paradigms
Dimension | Lean Operations | Green Operations | Green Lean (Integrated) | References |
---|---|---|---|---|
Primary Goal | Maximize efficiency and eliminate non-value-adding activities | Minimize environmental impact and support resource regeneration | Improve both efficiency and sustainability simultaneously | [10,39,67] |
Core Tools | VSM, Kanban, 5S, JIT, kaizen | LCA, environmental audits, ISO 14001 | Eco-VSM, Green Kaizen, Sustainable JIT | [28,29,41,67] |
Principles | Cost-based value creation, flow optimization | Pollution prevention, circularity | Integrated thinking, balanced value creation | [3,10,68,69] |
Success Metrics | Cycle time, defect rate, inventory turnover, cost savings | Carbon emissions, energy use, waste reduction, resource intensity | Combined KPIs: cost, emissions, eco-efficiency | [11,35,70,71] |
Organizational Values | Efficiency, discipline, problem-solving culture | Responsibility, ethics, long-term thinking | Systemic mindset, sustainability culture | [10,26,44,69] |
3. Conceptual Framework and Theorical Proposition
3.1. Strategic Preconditions
3.2. Core Operational Mechanism
- ▪
- Eco-value stream mapping (Eco-VSM): This enhances traditional value stream mapping by incorporating energy flows, emissions data, and resource consumption metrics alongside time and cost [82].
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- Green Kaizen initiatives: These empower employees to engage in continuous environmental improvement, fostering innovation in areas such as renewable resource utilization and circular production loops.
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- Process redesign for sustainability: This involves reengineering production layouts, logistics flows, and packaging systems to reduce lifecycle emissions and align with circular economy principles.
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3.3. Propositions
4. Discussion and Theorical Implications
4.1. Redefining Operational Excellence: From Cost-Efficiency to Sustainability Integration
4.2. Extending Lean Theory Toward Strategic Sustainability
4.3. Bridging Sustainability Science and Operation Management
4.4. Embedding Organizational Resilience in Operation Strategy
4.5. Implications for Theory-Building and Research Development
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- How do trade-offs between cost-efficiency and sustainability evolve over time in different operational contexts?
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- What organizational mechanisms mediate or moderate the effectiveness of Green Lean strategies across industries and cultures?
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- Can Green Lean systems be extended to address social sustainability goals—such as worker well-being, inclusive innovation, and community resilience?
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- Under what conditions do feedback loops enable genuine strategic adaptation rather than superficial compliance?
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- How might digital technologies and AI tools interact with or disrupt the balance between lean discipline and environmental responsiveness?
4.6. Practical Relevance and Academic Significance
5. Managerial Implications
5.1. Implementation Requires Systemic Integration, Not Add-On Programs
5.2. Leadership Must Drive Strategic Alignment Cultural Adaptation
5.3. Rethinking Success Metrics and Operational Priorities
5.4. Transitioning from Control to Resilience in Operation Strategy
5.5. Summary for Practice
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- Shift from siloed execution to integrated systems design: Sustainability cannot remain the remit of CSR or compliance departments. It must be embedded across operational processes, decision hierarchies, and performance architectures.
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- Mobilize top leadership for strategic alignment: Cultural inertia is a key barrier. Without visible commitment from senior leaders—including the allocation of resources, redefinition of success, and narrative transformation—Green Lean initiatives will lack the traction needed to be scaled.
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- Redefine success through multi-dimensional metrics: Traditional KPIs fail to capture system health. Managers must adopt indicators that account not only for throughput and cost, but also for carbon intensity, material circularity, employee well-being, and long-term adaptability.
- ▪
- Transition from control to designed resilience: Rather than striving for operational perfection under ideal conditions, firms must be structured to bend without breaking—through redundancy, flexibility, modularity, and scenario-based planning.
- ▪
- Foster adaptive learning and institutional reflexivity: GLOE demands a culture where routines are not sacred but provisional—constantly challenged and realigned based on sustainability feedback, stakeholder expectations, and contextual evolution.
6. Future Research Agenda
6.1. Short-Term: Empirical Testing of the Conceptual Model
- ▪
- Quantitative approaches such as structural equation modeling (SEM), partial least squares (PLS), or confirmatory factor analysis (CFA) can be deployed to assess the model’s internal logic, mediating structures, and predictive potential. These methods are particularly suited to validating the propositions outlined in Section 3.3, allowing researchers to evaluate the relationships between sustainability orientation, operational innovation, and performance outcomes.
- ▪
- Qualitative methods such as embedded case studies, ethnographic fieldwork, or process tracing can uncover implementation dynamics within organizations actively pursuing Green Lean strategies. These methods are vital for capturing the tacit logic, institutional constraints, and managerial interpretations that shape real-world adoption—elements that are often flattened in purely statistical models.
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- Manufacturing (e.g., automotive, electronics), where operational efficiency is mature but environmental mandates are intensifying;
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- Logistics and distribution, where green transport and low-carbon logistics are emerging performance differentiators;
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- Energy utilities and infrastructure, where resilience, carbon reduction, and stakeholder legitimacy are deeply intertwined with operational models.
6.2. Medium-Term: Indicator Development and Contextual Adaptation
- ▪
- Industry-specific sensitivity: Each sector faces unique environmental pressures and operational structures. In logistics, indicators might focus on carbon intensity per transport unit; in packaging and consumer goods, material circularity ratios may be more salient; in energy utilities, a resilience index combining grid flexibility, renewable integration, and climate adaptation may be most relevant.
- ▪
- Strategic alignment with global frameworks: Indicators should not only serve operational goals but also reflect alignment with the UN Sustainable Development Goals (SDGs), particularly SDG 9 (Industry, Innovation, Infrastructure), SDG 12 (Responsible Consumption and Production), and SDG 13 (Climate Action). This alignment supports reporting legitimacy and stakeholder engagement.
- ▪
- Cultural and institutional adaptability: The successful adoption of GLOE metrics depends on their fit with the regulatory landscapes, stakeholder expectations, and institutional maturity of different regions. Metrics that work well in highly regulated, data-rich environments may require adaptation in emerging markets where infrastructure or reporting standards vary.
- ▪
- A validated set of multi-dimensional indicators capable of capturing the operational essence of GLOE;
- ▪
- A typology of GLOE configurations, outlining how firms adapt and prioritize different components of the framework based on sectoral, institutional, and strategic contexts;
- ▪
- Potentially, the foundations for diagnostic tools or sustainability maturity models that organizations can use to self-assess their progress along the GLOE continuum.
6.3. Long-Term: Integration with Digitalization and Broader Systems Innovation
- ▪
- The automation of green performance monitoring through IoT-enabled sensors, allowing the real-time measurement of energy use, emissions, water intensity, and material flows across the value stream;
- ▪
- The enhancement of adaptive capacity via AI-driven predictive analytics, enabling scenario modeling for supply chain disruptions, climate-related risks, and stakeholder shifts;
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- The operationalization of reflexivity through dynamic dashboards and closed-loop feedback systems that translate sustainability metrics into real-time operational adjustments—thus making continuous improvement ecologically intelligent.
- ▪
- How does GLOE shape sustainability governance across supply networks? Can the model foster synchronized Green Lean practices among suppliers, partners, and logistics providers?
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- What is the potential for sectoral or industry-wide transformation, especially in industries with high environmental intensity such as energy, construction, and heavy manufacturing?
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- Can GLOE principles inform policy frameworks, standard-setting bodies, and transnational sustainability benchmarks?
6.4. Closing Remarks and Research Potential
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- Bridges theory and practice by translating abstract sustainability principles into actionable operational systems;
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- Spans multiple industries and geographies, allowing comparative insights across varied regulatory, institutional, and cultural contexts;
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- Adapts to evolving technological and environmental conditions, enabling integration with digital transformation, climate imperatives, and stakeholder-driven sustainability governance.
7. Conclusions
Author Contributions
Funding
Institutional Review Board Statement
Informed Consent Statement
Data Availability Statement
Conflicts of Interest
Abbreviations
GLOE | Green Lean Operational Excellence |
SDG | Sustainable Development Goals |
KPI | Key Performance Indicator |
VSM | Value Stream Mapping |
Eco-VSM | Ecological Value Stream Mapping |
SEM | Structural Equation Modeling |
PLS | Partial Least Squares |
CFA | Confirmatory Factor Analysis |
CSR | Corporate Social Responsibility |
TBL | Triple Bottom Line |
ESG | Environmental, Social, and Governance |
AI | Artificial Intelligence |
SCM | Supply Chain Management |
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Phase | Key Activities | Expected Output |
---|---|---|
Phase 1: Strategic Setup | Establish sustainability vision, leadership alignment, and cultural orientation | GLOE readiness and alignment |
Phase 2: System Design | Integrate lean and green tools (Eco-VSM, Green Kaizen), map current processes | Structured hybrid system with eco-efficiency goals |
Phase 3: Implementation | Pilot Green Lean projects, embed continuous feedback mechanisms | Operational adaptation and early performance gains |
Phase 4: Scaling | Expand initiatives, link to SDGs, formalize metrics and reporting structures | Organizational legitimacy and measurable outcomes |
Phase 5: Refinement | Adjust based on stakeholder feedback and performance data | Sustained GLOE capability and excellence |
Stage | Key Activities | Success Factors |
---|---|---|
1. Strategic Alignment | Define sustainability goals aligned with lean objectives and global SDGs. | Leadership commitment; stakeholder engagement; clarity of vision. |
2. System Diagnosis | Assess current operational systems using green and lean metrics. | Diagnostic tools (Eco-VSM, carbon audits); cross-functional teams. |
3. Integration Design | Co-develop hybrid tools (e.g., Green Kaizen) and redesign workflows. | Interdisciplinary collaboration; employee involvement. |
4. Pilot Implementation | Test redesigned processes in selected units or sites. | Agile feedback loops; short review cycles; learning orientation. |
5. Scaling and Embedding | Extend implementation to other units; embed into SOPs and performance systems. | Policy integration; continuous improvement culture. |
6. Monitoring and Learning | Establish KPIs across lean, green, and resilience dimensions. | Triple-bottom-line reporting; adaptive management mindset. |
7. Institutionalization | Sustain GLOE through organizational routines, governance, and training programs. | Organizational memory; reflexivity; strategic foresight. |
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Setyadi, A.; Pawirosumarto, S.; Damaris, A. Sustainable Operations Strategy in the Age of Climate Change: Integrating Green Lean Practices into Operational Excellence. Sustainability 2025, 17, 5954. https://doi.org/10.3390/su17135954
Setyadi A, Pawirosumarto S, Damaris A. Sustainable Operations Strategy in the Age of Climate Change: Integrating Green Lean Practices into Operational Excellence. Sustainability. 2025; 17(13):5954. https://doi.org/10.3390/su17135954
Chicago/Turabian StyleSetyadi, Antonius, Suharno Pawirosumarto, and Alana Damaris. 2025. "Sustainable Operations Strategy in the Age of Climate Change: Integrating Green Lean Practices into Operational Excellence" Sustainability 17, no. 13: 5954. https://doi.org/10.3390/su17135954
APA StyleSetyadi, A., Pawirosumarto, S., & Damaris, A. (2025). Sustainable Operations Strategy in the Age of Climate Change: Integrating Green Lean Practices into Operational Excellence. Sustainability, 17(13), 5954. https://doi.org/10.3390/su17135954