What is that and how does it affect me?
Whether arnica, palm oil or coffee – the cultivation and trade of natural ingredients and products often cause ecological and social problems. It is no coincidence that there is growing concern about the working conditions and the environmental impact involved in the sourcing, manufacturing and sale of naturally derived products. Numerous case studies by the environmental organisation Greenpeace have shown that many companies abuse their power by violating human rights and environmental standards. The Greenpeace report, “Justice for People and Planet, 2018”, documents corporate misconduct related to deforestation, water and air pollution, chemical and nuclear accidents and violations of indigenous rights. But consumers also have power – the power of demand. Ultimately, what we demand as consumers and the purchasing decisions we make determine which products reach the markets. More and more people are taking personal responsibility for the products they buy. Their impact should not be underestimated: not only do these decisions affect the market economy, but also the welfare of people and the environment.
The supply chains behind products
Supply and value chains connect companies around the world, often across several continents. They are how companies purchase labour, raw materials, supplies and services for the manufacture of their products. Globally operating companies are opening up new markets and production sites, which can cause social and ecological problems along the supply chains – due to different legal framework conditions and minimum ecological and social standards. This can lead to a lack of transparency and inadequate enforcement of human rights and labour, social and environmental standards. Not only does this apply to production in developing and emerging countries, but also in more wealthy nations.
Example: Medicinal plants
Around 60,000 species of plants are used as medicinal ingredients around the world. According to WWF, more than 400,000 tonnes of medicinal plants with a market value of over 1 billion euros enter international markets every year (Heilkraft der Natur, 2015). Germany consumes about 45,000 tonnes of medicinal plants annually, occupying the top position in Europe. Four-fifths of all of these plants worldwide are collected in the wild – without certification or monitoring. But careless harvesting and handling have ecological, social and economic consequences. About 15,000 species are threatened by overexploitation and loss of habitat. If these plants become extinct, they will no longer be available for medicines in the countries of their origin, nor for the economy or for international consumers.