On one-hand, it's a waste-stream, which means that finding a purpose for it means that the resources gone into the animals from which leather is made become more efficient.
On the other, if you believe that meat production at its current scale is bad for the environment, you're making it cheaper and subsidising it.
Then there's the impact of all the chemicals involved in leather tanning, which are not inconsequential.
I don't know what to think about leather in all honesty.
The tanning process isn't exactly environmentally friendly, but it doesn't have to be if it can reduce overall consumption by enough.
I was at the Apple WWDC, where they passed out those leather jackets with the big blue "X" on the back.
Mine didn't make it to the next WWDC, and I took great care of it.
I think that they may have had a couple of versions of the jacket. I saw it reappear, for quite a while, on the bodies of Apple favorites (I wasn't one), for many years.
Anyway I am a vegan so using animal skin as an industrial output is something I think we should make a conscious effort to end as much as possible.
One must consider the cow a miraculous piece of technology: an efficient reactor for converting cereals and grasses into valuable fats, proteins, as well as useful materials.
https://www.stand.earth/publication/forest-conservation/amaz...
We eat, on average, too much meat as it is, and with meat the negative externalities such as deforestation are completely ignored in the price.