Adoption of Leather Working Group (LWG) Certification and its Effect on supply chain sustainability

This thesis explored the adoption of Leather Working Group (LWG) certification and its effect on supply chain sustainability within the global leather industry. Through qualitative analysis of 50 LWG-certified companies (see Appendix A), the study assessed how certification influenced environmental, social, governance, and traceability dimensions across diverse regions and sectors. The research aimed to understand the extent to which LWG certification contributed to improvements in sustainable supply chain management (SSCM), aligned with theoretical frameworks such as the Stakeholder Theory and the Resource-Based View. Findings discovered that LWG certification was associated with measurable environmental gains, including reductions in water and energy usage, enhanced chemical management, and broader adoption of Life Cycle Assessment (LCA) tools. Traceability and digital monitoring practices improved through the integration of blockchain, QR codes, and supply chain disclosure systems. Social outcomes such as worker safety and CSR initiatives showed progress in several regions; however, transparency on gender inclusion and labor rights remained inconsistent. Governance mechanisms, including audit rigor and policy alignment, varied significantly between multinationals and SMEs, with regional differences influenced by regulatory frameworks. The thesis concluded that while LWG certification has driven significant sustainability improvements, key challenges persist, including gaps in social metrics, uneven adoption of innovation, and limited SME access. Practical and policy-oriented recommendations were proposed to enhance the scope and impact of LWG governance. The research demonstrated that LWG serves as a valuable but evolving tool for enabling structured progress in sustainable leather supply chains.