Environmental Considerations aqa

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Exam code:8132

Environmental responsibility

Pollution can be caused by industrial processes that release harmful gases into the air or harmful substances into the ground, which can run off into water courses
Land and buildings can be rendered unusable when businesses process dirty or toxic materials, leading to dereliction
Traffic congestion can be caused by vehicles delivering materials to and from businesses, as well as by commuting employees
Visual pollution is caused by unattractive buildings or business works that worsen inhabitants’ views of their surroundings
Consumer attitudes towards environmental responsibility have changed significantly in recent years
- 80% of UK consumers expect companies to be environmentally conscious, and around 70% of consumers take steps to minimise their carbon footprint (Source: PwC Global Insights Pulse, 2021 (opens in a new tab)) by making more responsible buying choices
Businesses are responding to consumer attitudes by taking steps to reduce their environmental impact

Method	Example
Increasing the amount of waste they recycle or reuse	Two-thirds of LUSH Cosmetics‘ products, including bath bombs and shampoo bars, are sold without packaging, which has saved over 4,000 tonnes of plastic t
Encouraging employees to use public transport or walk/cycle to work,	Recognising that cycling improves employees’ health and cuts time spent commuting, Great Ormond Street Hospital has hundreds of bicycle parking spaces at its site in central London and provides free bicycle maintenance to its staff
Switching to electric vehicles for staff	Construction company Tarmac has committed to converting its whole car and van fleet and will install charging infrastructure at locations across the UK by 2030
Becoming carbon-neutral	Marks and Spencer became carbon neutral in 2012 by using renewable energy, such as solar, to power their buildings and ensures that none of their internal waste goes to landfill
Improving the appearance of their surroundings	Packaging company Maxpack involved employees in the planting of hundreds of pine trees at its head office in Shropshire so as to make a positive contribution to tackling climate change

In the exam, make sure you consider the impact of business decisions related to environmental responsibility on a range of stakeholders.

For example, shareholders may be concerned about increased costs, while employees may worry about change and job security.

There are some significant costs associated with operating in an environmentally responsible way, such as the cost of replacing equipment and implementing greener ways of working
However, businesses that are environmentally responsible often benefit from long-term cost savings, reduce their level of risk, achieve a competitive advantage and gain an improved reputation

Costs	Benefits
Meeting environmental regulations can involve costs for changing processes, obtaining permits and installing pollution control equipment	The efficient use of resources such as energy, water and raw materials, and reducing waste, can lead to long-term cost savings
Purchasing environmentally friendly machinery or greener materials often requires significant capital investment	Responsible businesses avoid fines, legal action and reputational damage from environmental incidents
Running operations in an environmentally friendly way (e.g. using renewable energy, recycling and proper waste disposal) can increase day-to-day expenses	Consumers increasingly prefer environmentally responsible companies, which can boost sales and customer loyalty Green companies can access growing markets for eco-friendly products
Businesses must commit time to carrying out environmental audits, and need to produce reports on their environmental progress	Green practices can improve employee morale, recruitment and retention, as staff are often proud to work for environmentally responsible businesses