A sustainable future relies on consumers and corporations working together to change course

This year’s policy world’s buzzword is polycrisis, per the World Economic Forum’s Global Risks Report 2023. It refers to the compounding effects of present and future global risks, where the overall impact exceeds the sum of its parts. The polycrisis is affecting all areas of public policy, including the impending crisis for our planet. While humans have coexisted with nature for thousands of years, research in the last century reveals several worrying aspects that threaten our planet’s future.

One such aspect is the overuse of biological resources and the Earth’s limited capacity to regenerate, as indicated by the annual Earth Overshoot Day. In 2022, this day fell on 28 July, revealing that human consumption from 1 January to 28 July that year surpassed the planet’s annual regeneration capacity. This worrisome trend poses a significant challenge to our planet’s sustainability.

Given our current crises, it’s critical to recognize individuals’ and households’ roles in mitigating and shaping our future. According to the UN Sustainable Development Goals Report 2022, an estimated 17% of food available to consumers (931 million metric tons) is wasted at household, food service and retail levels.

Individual consumption patterns vary greatly depending on region, culture and socioeconomic status. For example, a growing middle class and increasing consumer purchasing power in India means there's more demand for luxury products and services, including high-end fashion, gourmet food and luxury travel experiences. Notably, the Indian automobile industry witnessed a remarkable 23.1% surge in sales in 2022, with 3.8 million units sold.

Given our planet’s critical state, there must be substantial changes in consumption patterns to hedge the environmental impact of our actions. Behavioural change interventions are a powerful tool to encourage individuals to adopt more sustainable consumption patterns and foster demand for sustainable goods.

Overconsumption, wasteful uses of resources and pollution are major contributors to global environmental degradation and climate change. Conversely, sustainable behaviours, such as embracing renewable energy, reducing waste and supporting local and ethical businesses, are gaining popularity.

One country that stands out for its sustainable practices is Sweden.

The Nordic kingdom has implemented a range of policies and initiatives to reduce its carbon footprint, including investing in renewable energy, promoting public transportation and cycling and taxing carbon-intensive activities. It has also implemented a circular economy strategy to reduce waste and promote sustainable consumption and production.

Sweden’s plans provide a helpful template but it is vital to acknowledge that the challenges faced by developed and developing economies are highly diverse, necessitating tailored and customized solutions that consider varying demographics, climatic conditions and socioeconomic statuses.

Another critical aspect of the future of sustainability is corporate supply chains and global trade systems. Understanding whether companies are prepared to incorporate changes induced by altering consumption patterns is important. These changes could be financial, frameworks, logistics or capacity-related in nature. However, for them to do so depends on the correct policies and institutional capacities, with a bottom-up approach provided by the policymakers.

Often, companies can create sustainable practices for their tier-one suppliers but the entire supply network needs to be part of the cascading effect – easier said than done. A collaborative effort – with local actors taking the lead and public-private partnerships with technology driving the action – is essential to enable changes at every step of a supply chain.

Global value chains are the backbone of trade, contributing 45-55% to world trade (World Trade Organization), which is significant for economic growth worldwide. That’s why the sustainability of global supply chains should be prioritized. To understand this better, consider that plastics account for 5% of global trade, excluding embedded packaging, which implies its presence across sectors and value chains. The Forum and the UN Conference on Trade and Development (UNCTAD) recommend a trade policy, which can regulate the flow of resources, waste dumping and create better systems for circular plastics use.

Public-private partnerships can be a crucial tool in helping companies and consumers shift towards a more circular economy. For example, Kenya is working on drawing funding in the under-invested waste management sector through long-term cooperation between governments and businesses. Competition regulators could also evolve policies to ensure small businesses are not left behind. The local actors can guide the development of effective plans and strategies.

Education and awareness campaigns can increase knowledge and understanding of the benefits of sustainable consumption while nudging interventions can make it easier for individuals to make pro-environmental choices. Social influence and incentives can further reinforce the adoption of sustainable behaviour by highlighting the positive impact of these choices on individuals and society as a whole. Additionally, systemic changes that promote sustainable production and consumption practices can create an enabling environment for sustainable behaviour to thrive.

Together, these interventions can empower individuals to make sustainable choices and industries to produce better and create a more sustainable future for all.