Group4_C | SDG 12: Sustainable Consumption and Production
SDG-12: Sustainable Consumption and Production
The 12th
Sustainable Development Goal of Sustainable Consumption and Production was
brought about because the world believed that greater economic growth could
come only from greater exploitation of environmental resources. But is that really
true?
In this blog, we are going to analyse why sustainable consumption and production is extremely important in modern society and why companies across the world should adopt SCP policies as part of their business processes. Now the question that arises is- Does having less mean having less capability? Not necessarily. More and more multinational companies have started to come up with ideas on how to extract the maximum potential from the limited resources that they have. This means that companies have started thinking about long-term sustainability rather than short-term economic viability. But then, one might wonder- Will it mean businesses would have to compromise on financial gains? While the implementation of such practices might initially seem like a hassle, often, it has proven to have positive impacts on business practices in the long run.
To diminish the divide between the rich and the poor and to alleviate the global economy in the long run, we need to pay greater attention to the life cycle of products and services that we produce as business units and consume as customers. Are our activities in any way contributing to the degradation of our environment? Is my lifestyle sustainable? Is this really the only way to carry out my business or can we adopt an eco-friendly approach? Such questions are of paramount importance given the fact that should the global population reach 9.6 billion by 2050 as estimated, we would require resources equivalent to three Earth-like planets, to sustain our current lifestyles!
Sustainable consumption and production (SCP) aim to answer the above questions by integrating environmental sustainability with economic growth by doing more and better with less. It is about increasing resource efficiency by promoting sustainable lifestyles which focus on minimizing detrimental environmental effects from consumption and production systems.
What relevance does this hold in India?
India is working to implement the 10 Year Framework of Programmes on Sustainable Consumption and Production (10 YFP), which is an international agreement to promote the transition to sustainable consumption and production in both developed as well as developing countries. There are six programme categories for the 10 YFP, namely sustainable public procurement, sustainable construction and buildings, sustainable tourism, including eco-tourism, sustainable food systems, consumer information, sustainable lifestyles, and education. In the corresponding sectoral initiatives and projects, the government has adopted crucial 10-YFP strategies.
Seven national-level indicators have been selected to measure India's performance towards the Sustainable Consumption and Production Goal, which captures three out of the ten SDG targets for 2030 identified under this Goal. The SDG Index Score for Goal 12 ranges from 30 to 100 for states and from 39 to 77 for the union territories. Among states and union territories, Nagaland and Chandigarh are the best performers. Nagaland scored a 100, rendering it an Achiever. In the Front Runners category, six states and four union territories secured a place with an Index score greater than/equal to 65. Seven states and three union territories fell behind in the category of Aspirants with an index score of less than 50.
Along with efforts to raise millions of people out of poverty and at the same time, preserve the natural resources needed to sustain growth, India is facing a daunting challenge. Efforts are being made to incorporate and implement environmental sustainability initiatives, which, by changing the trends and practices of production and consumption of goods and resources, will help to reduce the ecological footprint of economic progress. SDG 12 intends to encourage sustainable consumption and production, resources and energy conservation, and the development of sustainable intra-workplace infrastructure. Through their corporate strategies, Indian organizations are increasingly incorporating activities set out in the Sustainable Development Goals of the United Nations.
Humankind has made tremendous progress over the last century. Businesses and private enterprises have played an essential role in driving innovation and technological advancements to improve human living standards. Unfortunately, science and technology's tremendous progress has come at the cost of unsustainable production and consumption practices throughout the world.
The business implications of unsustainable production and consumption practices are tremendous. As per Global Resources Outlook 2019, published by the International Resource Panel, resource extraction has increased threefold since 1970, with a fivefold increase in non-metallic minerals and a 45% increase in fossil fuels. This indicates that we are gobbling up Earth's limited resources at an alarming rate. The growing resource scarcity has led to adverse consequences across various industries culminating in negative economic impacts on business stability, ranging from increased costs of procurement, relocation of operating plants, business interruptions, and slowdown.
For example, as per a recent report by Fitch Ratings, water scarcity, arising from its unsustainable exploitation, has been designated as the greatest business risk to the mining industry. Scientists expect that global water demand will surpass supply by 40%, by 2030. Similar depletion of other vital natural resources will jeopardize the business forecasts of companies in various industries.
Furthermore, climate change can also be attributed as one of the long term impacts of unsustainable production and consumption practices. Severe weather pattern changes resulting in catastrophic floods and droughts will have an adverse economic impact on all businesses, especially businesses related to food processing, textiles, etc., that are dependent on raw materials from agriculture and other related activities.
Additionally, recycling of materials and reduced waste generation in production processes can help companies to significantly cut down their operating costs in the long run. An increasing number of companies now perform Life Cycle Assessment (LCA) before launching a new product to analyse the sustainability component of their products across different product life-cycle stages, from raw material procurement to its final disposal. Apart from the direct financial benefit of increased resource efficiency, it also provides companies the opportunity to differentiate itself from competitors and emerge as an industry leader in sustainable best practices.
Therefore, it is not a surprise that, as per a recent report by KPMG, 93% of the world's top 250 companies (by revenue) have started reporting on sustainability, with an increased focus on sustainable production practices. Coordinated business and governmental response to this SDG is vital for all stakeholders of our planet. According to a recent report of the International Resource Panel, enhanced resource efficiency by businesses can lead to a 63% reduction in GHG emissions by 2050. Improving resource efficiency through sustainable production and consumption practices will be critical if we are to save our planet from the perils of climate change.
Responses of a few global firms towards Sustainable Consumption and Production SDG:
Microsoft
Sustainable consumption and production (SDG 12) references addressing underlying social, political, and economic inclusion issues. As a global firm, Microsoft invests considerably in local business partners in developing economies to ensure they push towards sustainable production. The sustainability reporting and commitment to enhanced transparency on critical issues such as global human rights, employee diversity, and carbon footprint are essential to SDG 12, which calls on companies to "integrate sustainability information into their reporting cycle" as a means to promote sustainable consumption and production patterns.
Coca Cola
With its 'World without Waste' initiative, Coca Cola has reshaped its packaging approach. It aims to collect and recycle 100% of its packaging by 2030. The company has also made significant investments in reducing the waste of not just the company but the world in its entirety.
Amazon
Reducing packaging waste and zero waste during shipment are the company's top priorities in its mission towards sustainable production and consumption. They focus on package redesign to reinvent and simplify sustainable packaging options using a science-based approach that combines lab testing, machine learning, materials science, and manufacturing partnerships to scale sustainable change across the packaging supply chain.
Since 2015, Amazon has reduced the weight of outbound packaging by 33% which has led to the elimination of 900,000 tons of packaging material.
Accenture
Accenture consumes energy from renewable sources in 92% of its offices, with a world-wide commitment is to use 100% renewable energy by the year 2023. Teleworking and work from home options have helped Accenture reduce emissions by 22% per employee since 2017 by avoiding commuting to offices. In their offices, Accenture has replaced plastic cups and spoons for paper cups and wooden spoons to prevent consuming 1.5 million plastic cups and 850,000 spoons, the equivalent of 5 tonnes of plastic a year.
Novozymes
Food systems are strongly affected by ecological and economic challenges. Novozymes solutions focus on efficient production with its products across categories from baking, nutrition, and health of animals through reduced use of resources and minimum loss in the food systems. Frontia Jade, a recently launched enzymatic solution in the corn milling industry, helps increase corn gluten meal and starch output by around 3% each, which results in increased production that conserves energy during manufacturing.
Analysis and Suggested Path Ahead
While the world around us is becoming increasingly conscious and aware about the importance of doing more with less, the question of whether we have brought in important reforms in the way we structure our production and consumption becomes extremely important. The increasing misconception that economic growth comes coupled with exploitation of environmental resources is to be eradicated for a better tomorrow. What is important, on the other hand, is to work upon improving resource efficiency by promoting and adopting sustainable business models and lifestyles.
What businesses need to recognize is the fact that SCP starts from Sustainable Procurement, which is why international bodies like the United Nations has been urging public enterprises from around the world to consume goods, services, and utilities in a manner that is not just economically viable but also pays regard to the entire lifecycle. This would not only be beneficial to the enterprises but also for society and the economy as a whole by reducing the burden on the environment and its scarce resources. India would benefit from learning from countries like Mauritius, where the Government and Business entities have worked hand-in-hand to bring out fundamental changes in the way not only SDG 12 but all other sustainability targets are being met.
It is vital to ensure that the organization maintains its circularity goals. Much waste generated can be reduced, reused, or recycled to ensure efficient utilization. The purpose of SCP is to ensure that we consume more efficiently and effectively while keeping in mind the mitigation of health and environmental risks.
When the United Nations brought about SDG-12 in 2015, the aim was to move further beyond just the fundamental 3Rs, waste management systems, lifecycle thinking, and enhanced resource efficiency principles that the world was already aware of. It held a much broader vision for the future- Decoupling economic growth and environmental degradation, promoting Life-Cycle Thinking in business enterprises, and encouraging new market creation in developing countries by incentivizing competitive, environmentally sound firms by providing them with higher investment and benefits.
Resource Decoupling and Impact Decoupling are crucial to meet SCP goals
Citizen-led initiatives have to complement business interventions, if we are to truly strive towards sustainable consumption. For example, as part of the Youth for Sustainability initiative, Team Aarogya developed an app that would connect chemists having medicines in stock that are very close to their expiry dates with chemists in urgent need of them, where these medicines can be utilized effectively without any wastage of resources. If it has enough traction, this process would be able to address the problem of discarding expired and unused medicines.
We, as consumers, should also question our consumerist lifestyle choices. We are changing our electronic gadgets faster than ever before. This leads to tremendous amount of electronic waste generation that has long-term implications on our planet.
Sustainable consumption is impossible without consumer behaviour changes
Another crucial fact to conceptualize is that sustainability does not necessarily have to come from the complete elimination of plastics, synthetics, and other such materials that we generally consider as hazardous to the environment, from our business processes. Sometimes, implementing these materials can be exactly what is sustainable in the long run. Consider the example of Signode India, which provides transport packaging for Hindustan Coca Cola Beverages. The company initially used Corrugated Interlayer sheets made out of paper for palletization. However, the sheets used to often get damaged as the paper is not exactly very compact for loading bottle layers one over the other. Hence the life of the sheets was often low, and they had to be replaced regularly. Hence, a study was conducted, and the sheets were replaced by Rigid Plastic sheets. They not only lasted longer but also provided greater stability and support and lessened the need for repacking. Since paper sheets don't have to be replaced, lesser trees would have to be cut down. Hence, what is important is to look at business practices and their impacts in the long run.
Hence, we believe that truly sustainable consumption and production practices can be achieved by the combined efforts of businesses, governments and citizens by planning and implementing long-term, science-backed solutions to sustainability that would increase resource efficiency, reduce waste generation at different life-cycle stages of products, increase recyclability and reusability, etc. In this regard, companies have to research and develop methodologies that would help in the optimal realization of their financial goals without ruthlessly exploiting our limited natural resources and compromising the capability of future generations to meet their own needs.
References
https://www.accenture.com/_acnmedia/PDF-119/Accenture-Memoria-ACC-Ing-17.pdf
https://sustainability.aboutamazon.co.uk/governance/unsdgs
https://report2019.novozymes.com/PDF/Novozymes_Report_2019_Sustainability.pdf
https://s3.amazonaws.com/sustainabledevelopment.report/2020/2020_sustainable_development_report.pdf
https://sustainability.aboutamazon.com/environment/packaging-and-products#section-nav-id-3
https://www.un.org/sustainabledevelopment/sustainable-consumption-production/
https://unstats.un.org/sdgs/files/report/2018/TheSustainableDevelopmentGoalsReport2018-EN.pdf
https://www.oneplanetnetwork.org/sites/default/files/briefings_on_scp.pdf
https://www.umweltbundesamt.de/en/topics/waste-resources/resource-use-its-consequences
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