Plywood is made by gluing layers of thin wood veneer together at right angles which creates a strong board less susceptible to shrinkage, expansion or warping than solid timber.
Advantages of plywood:
Strength and durability
Easy to cut
Water and chemical resistance
Flexibility or bendability
Fire resistance
Sound and thermal insulation
Plywood can be considered a rather sustainable choice, but that depends on the origin of the wood and glue used for its production. It is best if the wood is certified by Forest Stewardship Council (FSC), and the glues come from natural sources, for example, starch. The distance and mode of transportation to deliver plywood to the place where you work also matters.
Because of synthetic glues, plywood is not biodegradable. Also, some glues, which are formaldehyde-based, emit toxic gases. However, plywood can be recycled.
More sustainable alternatives are: Wheatboard, Cork.
Useful links: Cradle-to-grave assessment of plywood by Impactful Ninja.