Carbon Reduction Strategies for the Leather Supply Chain: Implications for Climate Change Mitigation Policy Toward Carbon Neutrality

ABSTRACT Due to climate change, businesses are being forced to restructure their strategies to align with the United Nations roadmap for carbon neutrality. Emerging economies are under increased pressure, especially in manufacturing and processing sectors such as leather, which exacerbate climate impacts from carbon emissions and waste generation. To mitigate climate impacts, a sustainable leather supply chain must be ensured, considering carbon reduction strategies (CRSs). Yet, research on CRS tailored to this sector is scant. To fill the research gaps, this study aims to identify and analyze the contextual relationships among CRSs within the Bangladeshi leather supply chain. Sixteen CRSs are identified based on a literature review and consultation with five domain experts. A novel machine learning (ML)‐based extended trapezoidal fuzzy weighted nonlinear gauge system (TrF‐WINGS) integrated with the interpretive structural modeling (ISM) approach is proposed to determine the importance of decision‐makers, strength–interaction relationships of CRSs, and a hierarchical framework among CRSs. According to findings of the TrF‐WINGS model, the most significant CRS is “Promoting energy efficiency and cleaner conservation facility” and the most influential CRS is “Policy incentives for adopting low‐carbon technologies” for achieving carbon neutrality in the leather supply chain. The integrated ISM model confirmed three hierarchy levels, with the CRSs “Educating communities on proper waste disposal and climate change action” and “Increasing environmental and social liability awareness” positioned at the base level, indicating their potential to drive other CRSs. These findings have significant strategic implications for achieving carbon neutrality across various supply chains.