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Sustainability, global value chains and green capital accumulation

In: Handbook on Global Value Chains

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  • Stefano Ponte

Abstract

This chapter examines how sustainability challenges are reshaping the organizational dynamics of global value chains, leading to new spatial, organizational and technological ‘fixes’ to ensure continuous capital accumulation. Sustainability management (the set of strategies and practices that corporations put in place to address sustainability issues) is thus becoming a fourth driver of key value chain dynamics – in addition to minimizing cost/capability ratios, increasing flexibility and heightening speed. As value creation and capture possibilities are changing, sustainability management is offering new venues of ‘green capital accumulation’, including lead firms in GVCs extracting more demands from their suppliers in a ‘sustainability-driven supplier squeeze’. While sustainability management in GVCs is leading to some environmental benefits in some industries, overall pressure on global resources is increasing. Green capital accumulation and the unsustainable exploitation of nature continue to go hand in hand.

Suggested Citation

  • Stefano Ponte, 2019. "Sustainability, global value chains and green capital accumulation," Chapters, in: Stefano Ponte & Gary Gereffi & Gale Raj-Reichert (ed.), Handbook on Global Value Chains, chapter 13, pages 228-238, Edward Elgar Publishing.
    • Handle: RePEc:elg:eechap:18029_13
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    Cited by:

    1. Ogahara, Zoë & Jespersen, Kristjan & Theilade, Ida & Nielsen, Martin Reinhard, 2022. "Review of smallholder palm oil sustainability reveals limited positive impacts and identifies key implementation and knowledge gaps," Land Use Policy, Elsevier, vol. 120(C).

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