Degree

Master of Science in Management

Faculty / School

School of Business Studies (SBS)

Department

Department of Management

Date of Submission

Fall 2025-9-5

Supervisor

Dr Rameez Khalid & Dr. Umair Choksy, Department of Management

Committee Member 1

Dr. Hatim Fassi Fihri, Assistant Professor, Department of Management

Committee Member 2

Dr. Abdul Basit, Assistant Professor, Department of Management

Project Type

MS Management Research Project

Access Type

Restricted Access

Keywords

Sustainability-resilience trade-off, carbon emissions, Red Sea crisis, Global Value Chain, FMCG

Abstract

The Red Sea that has emerged as a critical maritime chokepoint, with escalating instability since late 2023 disrupting the global trade flow severely. For European fast-moving consumer goods (FMCG) companies, these disruptions created a tension balancing supply chain resilience and meeting decarbonisation commitments. This research project examines how firms navigated through this dual challenge by adopting short-term crisis responses while being constrained by long-term sustainability goals.

This study aims to apply GVC (Global Value Chain) framework by using a systematic literature review of academic studies, industry reports, and policy documents published between 2020 and 2025, to analyse four areas. Firstly, it assesses the operational and cost impacts of rerouting and delays. Secondly, this research evaluates the increase in CO₂ emissions per TEU from diversions and modal shifts, particularly the greater reliance on air freight. Thirdly, it nvestigates the alignment between crisis-driven operational strategies and corporate decarbonisation targets. Finally, it explores the adoption and feasibility of low-emission alternatives, including green corridors and biofuel-powered shipping initiatives.

The findings of this research highlight that while resilience measures such as rerouting and modal shifts secured supply chain continuity, they also drove significant emissions rise, often conflicting with the firms’ publicly stated sustainability commitments. Green shipping initiatives offered potential mitigation, but their uptake remained limited due to high costs, weak port infrastructure, and uneven supplier capabilities. The study contributes to the literature by demonstrating that resilience and sustainability, often assumed to be complementary, can instead stand in direct conflict under crisis conditions. It also provides practical insights for FMCG firms and policymakers aiming to balance operational continuity with the need to advance long-term decarbonisation objectives.

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