Sustainability in Supply Chain: Measuring the Effect of Green Practices, Ethical Sourcing and Certifications on Leather Village

Abstract

The leather industry in Sialkot holds a strategic position in Pakistan’s export sector, and Leather Village (Pvt.) Ltd. represents an important example of how small and medium-sized leather firms are gradually responding to evolving international sustainability expectations. It assesses how Leather Village is positioning itself within this shifting landscape and how its current practices contribute to operational performance and future competitiveness considering the growing global emphasis on environmental responsibility, ethical sourcing, and transparent supply chains. Using a qualitative case study approach, the research is based on field observations, semi-structured interviews with management and workers, questionnaires, and a review of internationally recognised sustainability standards. The study focuses on three core areas: green supply chain practices, ethical sourcing and labour conditions, and alignment with global certification frameworks such as ISO 14001 and the Leather Working Group (LWG). The findings indicate that Leather Village has taken meaningful initial steps toward sustainability adoption. The company has implemented basic environmental control measures, including a wastewater settling system, partial chrome recovery processes, selective use of comparatively safer chemicals, and organized waste handling practices. These programs show the company's increasing environmental consciousness and have enhanced workplace organization, production flow, and operational stability. Importantly, the study highlights that Leather Village possesses a strong foundational base for further sustainability development. While current practices are largely informal and not yet fully standardized or documented, they reflect management’s recognition of sustainability as an important business priority. Instead of making sudden or disruptive changes, the organization demonstrates a willingness to improve compliance through progressive system improvement. The research also reveals that progress toward advanced international certifications is influenced by practical challenges such as financial constraints, aging machinery, limited technical expertise, and evolving regulatory enforcement. Despite these limitations, Leather Village nevertheless shows a desire to adapt its business practices to meet the demands of global consumers, especially as demand for sustainable leather goods rises. Leather Village is operating in an early but promising level of sustainability integration, according to the project's overall findings. The firm has successfully established basic environmental and ethical practices that can serve as a platform for structured improvement. With targeted investment, improved documentation, and incremental upgrades, Leather Village is well-positioned to strengthen its certification readiness, enhance supply chain transparency, and improve long-term competitiveness in international leather markets. This study provides the company with a clear understanding of its current strengths and outlines sustainability as an achievable, step-by-step strategic opportunity rather than an immediate or unrealistic transformation.