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Sustainability and consumption

The high standard of living enjoyed by 'lucky countries' such as Australia comes at a cost to the environment. The production, supply, consumption and disposal of products (referred to as the 'supply chain') and their impact on the environment are closely linked. The environment has three primary functions:

• Source of raw materials and resources: The environment is the ultimate source of raw materials.  Products such as plastics and petrol are made from materials sourced from the environment. The environment is also an important source of new chemical compounds and genetic material. Natural resources are used not only in the manufacture of products, but in the transport and supply of goods, and include water, air, soil, oil, energy, plants and animals.
• Source of amenity: The natural environment is an important resource for pursuits such as fishing, bush-walking and picnicking for both individuals and sectors such as tourism and eco-tourism, commercial recreation, education and entertainment. Biodiversity (diversity of species - plants, animals, fungi and bacteria) is closely linked to amenity and is a valuable source of raw materials for many hi-tech industries such as pharmaceuticals.
• Repository for wastes: The environment is the ultimate destination for the wastes we generate. Wastes can be in the form of air and water pollution, land contamination, rubbish and other wastes or greenhouse gases

  Wastes can be generated:

  • during the production and supply phase (resource extraction, processing, manufacturing, transport and supply)
  • while the product is being consumed or 'used' by the end-user
  • once the product has reached the end of its life and is thrown away.

As materials move through the different stages of the supply chain they have a variety of environmental impacts.

Supply chain stage	Examples of environmental impacts
Resource extraction	Land degradation and biodiversity loss Soil and water contamination Impacts on local communities
Processing and refining	Air and water pollution Resource consumption (energy, water, air etc) Greenhouse gas emissions
Transport	Fossil fuel consumption Greenhouse gas emissions Noise and loss of public amenity
Manufacturing and supply	Air and water pollution Resource consumption (energy, water, air etc) Waste generation
Consumption and use	Resource consumption (energy, water, air etc) Air and water pollution. Health impacts
Disposal	Landfills and waste dumping Air and water pollution Release of toxic materials

Critically, many of the environmental costs of making, supplying, using and disposing of products are not adequately reflected in the price paid by the consumer. Reflecting environmental impacts in the price of products is a hotly debated issue both in Australia and overseas.