Sustainable consumption and production: the role of supply chains, decent work and digitalization

The document argues for stronger international coordination to manage the environmental and social footprints of global supply chains, moving beyond voluntary commitments toward mandatory due diligence and standardized verification. It emphasizes the necessity of integrating 'decent work' into green economy policies to ensure a just transition, noting that environmental policies often lack social equity. Additionally, it addresses the dual nature of digitalization, which can enhance efficiency but also significantly increase energy consumption and emissions, calling for global governance on 'green artificial intelligence' and standardized environmental footprint methodologies.

• Global environmental governance of supply chains is shifting from voluntary commitments to mandatory due diligence, with several jurisdictions implementing laws to address human rights and environmental abuses. Examples include the US Dodd-Frank Act of 2012, France's 2018 'vigilance' plan, and Germany's June 2021 law requiring large companies to report abuses.
• The European Commission has proposed regulations to ensure products on the EU market are not linked to deforestation, specifically targeting palm oil, soy, wood, beef, cocoa, and coffee, though this is expected to cause tension with producer countries like Brazil, Indonesia, and Ivory Coast.
• There is a critical need to link environmental sustainability with a 'decent work' agenda to ensure a just transition. The document notes that 'green jobs' are not automatically 'good jobs' and that some green transitions rely on supply chains involving forced labour, such as in the production of solar cells.
• Digitalization presents a paradox: while it can improve ecosystem understanding and energy efficiency, it also drives significant energy demand. Information and communications technology (ICT) emissions could potentially exceed 14% of today's total emissions by 2040.
• Artificial intelligence (AI) requires high energy for calculations and may reinforce unsustainable patterns if trained on biased data. The document suggests the need for 'sustainable algorithms' and eco-labelling for cloud providers to mitigate these impacts.
• The document identifies a lack of global consensus on environmental footprint methodologies, particularly regarding how to account for electricity production emissions related to digitalization and the impact of blockchain algorithms.

APA

Engström, M. (2022). Sustainable consumption and production: the role of supply chains, decent work and digitalization. Stockholm Environment Institute. https://www.sei.org/wp-content/uploads/2022/05/sustainable-supply-chains-stockholm50backgroundpaper.pdf

Chicago

Engström, Mats. Sustainable consumption and production: the role of supply chains, decent work and digitalization. Stockholm Environment Institute, 2022. https://www.sei.org/wp-content/uploads/2022/05/sustainable-supply-chains-stockholm50backgroundpaper.pdf.

Wikipedia

{{cite report |last1=Engström |first1=Mats |title=Sustainable consumption and production: the role of supply chains, decent work and digitalization |publisher=Stockholm Environment Institute |date=May 2022 |url=https://www.sei.org/wp-content/uploads/2022/05/sustainable-supply-chains-stockholm50backgroundpaper.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{engstrm2022sustainable, author = {Engström, Mats}, title = {{Sustainable consumption and production: the role of supply chains, decent work and digitalization}}, institution = {Stockholm Environment Institute}, year = {2022}, month = may, url = {https://www.sei.org/wp-content/uploads/2022/05/sustainable-supply-chains-stockholm50backgroundpaper.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }