Customer-oriented sustainability criteria for value chains in local production networks of SMEs

Today’s production sector is shaped by global supply chains and the division of labour. However, in light of recent crises showcasing the vulnerabilities of these global supply chains, a new research interest in local production has been sparked. Local value chains make it possible for the customer to be closer to where their goods are produced, which may increase people’s awareness of manufacturing circumstances. For that reason, the project Production Next Door (ProNeD) introduced the idea for the customer to be able to choose between different sustainability criteria that are used to determine the value chain through which their product will be manufactured. That way the customer is involved in the entire value creation process and may participate more actively in sustainable choices. This paper addresses the challenge of forming criteria that are relevant and meaningful to the customer but also applicable to small and medium-sized Enterprises (SME), as well as founded in standards and thus measurable. To this end, a consumer survey as well as literature on sustainability reporting is analysed to systematise key indicators for assessing sustainability within a company that meet the requirements of the European Union and its directives. This general approach is intended to also familiarise small and medium-sized enterprises (SME) with the upcoming European sustainability directives.