The Implications of Supply Chain Localisation for the Evolving Sustainable Energy Products Market in the UK Built Environment

This paper was written to explore the viability of supply chain localisation as a strategy for minimising possible adverse environmental and social impacts of large-scale economic activity surrounding the production of sustainable energy goods and services. Supply chain localisation here refers to the situation of production activities close to the geographical areas in which the sustainable energy products would eventually be installed. Sustainable energy products refer to technologies and other goods and services that minimize negative environmental effects of energy use in buildings throughout their construction and habitation. The paper dwells on the outputs of a major energy-efficiency project that focuses on preparing for the Green Deal – a UK-wide housing retrofit initiative – and the attendant increase in economic and industrial
activities that it is expected to generate. As part of measures to ensure that these activities yield minimal negative environmental and social effects while optimising economic benefits, project participants recommended the localisation of the supply chain for the production, installation and maintenance of sustainable energy products. Based on the primary research conducted on the project as well as secondary research sources, the paper discusses the economic, social and environmental benefits and detriments of the supply chain localisation agenda. It also looks at the overall practicality of the implementation of supply chain localism within the context of mainstream business practices in the property, construction and energy sectors.