Improved sustainability assessment of the G20’s supply chains of materials, fuels, and food

Abstract

Transparency in global value chains of materials, fuels, and food is critical for the implementation of sustainability policies. Such policies should be led by the G20, who represent more than 80% of global material, fuel, and food consumption. Multi-regional input–output analysis plays an important role for consumption-based assessment, including supply chains and their environmental impacts. However, previous accounting schemes were unable to fully assess the impacts of materials, fuels, and food. To close this gap, we provide an improved method to map key aspects of sustainability along value chains of materials, fuels, and food. The results show that the rise in global coal-related greenhouse gas (GHG) emissions between 1995 and 2015 was driven by the G20’s metals and construction materials industry. In 2015, the G20 accounted for 96% of global coal-related GHG emissions, of which almost half was from the extraction and processing of metals and construction materials in China and India. Major drivers include China’s rising infrastructure and exports of metals embodied in machinery, transport, and electronics consumed by other G20 members. In 2015, the vast majority (70%–95%) of the GHG emissions of metals consumed by the EU, USA, Canada, Australia, and other G20 members were emitted abroad, mostly in China. In contrast, hotspots in the impact displacement of water stress, land-use related biodiversity loss, and low-paid workforce involve the G20’s food imports from non-G20 members. Particularly high-income members have contributed to the G20’s rising environmental footprints by their increasing demand for materials, food, and fuels extracted and processed in lower-income regions with less strict environmental policies, higher water stress, and more biodiversity loss. Our results underline the G20’s importance of switching to renewable energy, substituting high-impact materials, improving supply chains, and using site-specific competitive advantages to reduce impacts on water and ecosystems.

Keywords

• multi-regional input–output analysis
• scope 3 impacts
• downstream emissions
• carbon footprint
• water stress
• biodiversity loss