Sustainable Global Supply Chains Report 2022

2022
#Agriculture and food
#Trade and FDI
#Manufacturing
#Sub-saharan Africa
#Mining
#East Asia and Pacific
#South Asia
#Environment and climate change
#Social and working conditions
#Energy
#Sustainability standards
#Corporate responsibility and lead firms
#Latin America

Global supply chains affect the economy, the environment and social welfare in many ways. Worldwide, economies are experiencing global supply shortages today, affecting key industries such as automotive and consumer electronics as well as vaccine and medical supplies industries. These preoccupy policymakers, who are debating independent national production capacities and restrictions on international trade, but also large companies, which consider reshoring production and abandoning just-in-time procurement. At the same time, the greening of the global economy requires a restructuring of global production to massively decrease its environmental footprint. This creates new supply chain challenges – how to move towards circular economies and how to reorient energy-intensive industries towards renewables and green hydrogen, for example. And let‘s not forget: Consumers are increasingly demanding higher social and environmental standards. Transparency requirements and binding due diligence obligations will in particular affect countries that export raw materials and labour-intensive goods produced under problematic environmental and social conditions. All of this calls for policies that shape global supply chains in accordance with globally agreed social and environmental objectives. Policies along these lines will have to balance the legitimate interests of different countries and they may easily fail to achieve their objectives unless they are firmly grounded in a thorough understanding of the respective structures in supply chains, including the power relations between the actors. Further, the economic, social and environmental effects of alternative policy options need to be well understood. Science can make an important contribution here, especially if it maintains a constant dialogue with politics and society. This is why the international “Research Network Sustainable Global Supply Chains” was initiated by the Federal Ministry for Economic Cooperation and Development (BMZ). It currently comprises about 100 internationally leading scientists from all over the world and is jointly coordinated by our four institutes. Its tasks are: To conduct and stimulate research that contributes to making supply chains more sustainable; and to collect and synthesize the best international research on this topic and make it accessible to policy makers and other societal actors. In addition to its own research, the network organises academic conferences and discussions with policymakers, organises a blog and produces podcasts. With this report – the first in a new annual series – we present new research highlights, provide a forum to debate controversial supply chain topics and identify policy-relevant research gaps for the network‘s future work. The report is, at the same time, an invitation to participate in the discussions on how investment, production and trade will be reorganized in a global economy that has to respond to geopolitical challenges.

Contact

Tilman Altenburg

German Institute of Development and Sustainability (IDOS)

Jann Lay

German Institute for Global and Area Studies (GIGA)

Günther Maihold

German Institute for International and Security Affairs (SWP)

Melanie Müller

German Institute for International and Security Affairs (SWP)

Rainer Thiele

Kiel Institute for the World Economy

Frauke Steglich

Kiel Institute for the World Economy

Inga Carry

German Institute for International and Security Affairs (SWP)

Gideon Ndubuisi

Delft University of Technology

Markus Krajewski

University of Erlangen-Nürnberg

Clara Brandi

German Institute of Development and Sustainability (IDOS)

Robert B. Koopman

American University

Rasmus Lema

United Nations University-MERIT

Carlo Pietrobelli

Uni Roma Tre, UNESCO

Roberta Rabellotti

Department of Political and Social Sciences at the Università di Pavia

Lindsay Whitfield

Copenhagen Business School

Karishma Banga

Institute of Development Studies (IDS), University of Sussex

Deborah Winkler

World Bank

Larissa Rodrigues

Instituto Escolhas

Cornelia Staritz

University of Vienna

Gale Raj-Reichert

Bard College Berlin

Stefano Ponte

Copenhagen Business School

Janina Grabs

ESADE Business School and Environmental Policy Lab, Department of Humanities, Social and Political Sciences, ETH Zürich

Federico Cammelli

Environmental Policy Lab, Department of Humanities, Social and Political Sciences, ETH Zürich

Rachael D. Garrett

Environmental Policy Lab, Department of Humanities, Social and Political Sciences, ETH Zürich

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