As producers of much of the world’s output, businesses have a central role to play in advancing responsible production and consumption. They can manage sustainability of their own operations by improving efficiencies, look to source more sustainable inputs, improve the sustainability of products and services at the point of use with credible sustainability information, report publicly on their sustainability performance and that of their supply chain, and take steps to ensure their products are not misused to violate human rights.

There is significant scope for business leadership on Goal 12 given the potential for increasing sustainability of production and consumption. Businesses can radically overhaul their existing models by designing and adopting responsible, circular business models. They can significantly narrow or even close the material and energy loops across own and supply chain operations using existing and new technologies and materials. They can shift to a portfolio of goods and services that require, and promote, negligible use of resources and negligible production of waste when used, including developing products and services with extended useful lifetimes, accurate sustainability labelling, and education of consumers on use phase and disposal. There is also scope for leadership in transparency and reporting, particularly by developing, implementing, and sharing solutions for tracing and reporting on sustainability of production and consumption across end-to-end operations and their impact on surrounding communities.

These leading actions can have both significant environmental benefits and major positive impacts through respecting and supporting human rights, as new business models and sustainable products and services find their way to vulnerable populations, supporting human development. Business should, however, ensure that they manage any risk of negative impact on human rights associated with new business models, ways of producing, and product designs; especially where they might impact vulnerable populations in developing countries.

The business case for leadership on Goal 12 includes substantial reductions in production costs for companies with resource intensive production processes. It is estimated that European companies alone could save €600 billion annually. Supplying products and services that are more sustainable in their use enables businesses to compete in markets where government regulations and consumer preferences are becoming oriented towards sustainability. For example, there is increasing evidence that consumers are demanding certified and traceable products. Less dependence on resources also means companies can avoid volatility in raw material prices and availability. And, at a fundamental level, advancing Goal 12 is a necessity for safeguarding long-term productivity, preserving the natural resource base for the future, and ensuring resilience in the face of environmental shocks and disease outbreaks.

Goal 12 ties the people, planet and prosperity goals together. Action on Goal 12 is strongly interconnected with outcomes on other SDGs related to resource use and the environment, as well as those focused on people. Action on Goal 12 can advance SDGs through its connection with life on land and water (Goals 14 and 15), its impact on the use and contamination of water (Goal 6), associated use of energy (Goal 7) and impacts on climate change (Goal 13). Progress on Goal 8 implies that Goal 12 becomes ever more significant, as current production and consumption rates per unit of income cannot be sustained in the future. Companies that aim to lead on Goal 12 must carefully manage risks that result from this interconnectedness. These include pressures to substitute natural resource use in production with unfair labor practices. Leading companies recognize and take account of these interconnections, especially ensuring that changing production and consumption decisions respect the human rights of potentially affected populations.