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Cathay Pacific: Balancing Inherent Risks and ESG Concerns

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Cathay Pacific Airways Limited, a Hong Kong–based airline, aims to create sustainable partnerships and value-added collaborations with its suppliers through procurement excellence. The case explores the challenges Cathay Pacific faced in managing a large supplier base, mitigating risks, and ensuring a sustainable supply chain. The protagonist, Pierre Bastjaens, along with other stakeholders, seeks to establish resilient and sustainable supply chain operations by leveraging digital and intelligent platforms to identify and address ESG risks at early stages. The case highlights the importance of risk management, sustainability, and digital solutions in supply chain operations.

Learning Objective:

  1. Enhance students' understanding of the significance of risk management, particularly in relation to supply chain risks, and its role in ensuring business continuity
  2. Encourage students to critically analyze the scope and challenges associated with sustainability issues in the supply chain, including ESG considerations
  3. Guide students to explore the interdependencies between risk and sustainability issues and their impact on procurement management decisions
  4. Facilitate discussion on the potential involvement of various business units, such as finance, operations, and marketing, in addressing and mitigating risk and sustainability issues
  5. Encourage students to explore how digital solutions can help in supplier risk and sustainability management

Year of Publication: 2024
Ref. No.: 23/761C
Discipline: Strategy & General Management
Industry: Airlines
Country: Hong Kong SAR
Company: Cathay Pacific
Languages: English
Pages of Text: 10