How environmental considerations influence business activity

Any business activity will have an impact upon the environment, either through the natural resources that it uses or the waste products that it produces.

A business can carry out a green audit in order to measure the environmental impact of its activities. For example, this may involve measuring its carbon footprint. The four main environmental issues that are most likely to influence the activities of a business are climate change, pollution, sustainability and waste reduction.

Climate change

Climate change refers to long-term changes to weather patterns. Scientists believe that business activity contributes to this global warming through the burning of fossil fuels and the cutting down of trees.

Pollution

Pollution commonly refers to the contamination of air or water with harmful chemicals. Air pollution can cause a number of health-related issues, and animals and plants that live in seas and rivers are affected by water pollution. Business activity may also cause disturbance through noise pollution.

Sustainability

Working in a sustainable way means that business activity does not use up or destroy natural resources. To achieve this, a business may use renewable energy, recycle materials such as paper and ink cartridges, or use devices that save energy and water.

Waste reduction

Traditionally, waste has either been incinerated or sent to landfill sites. However, these are not environmentally friendly ways of dealing with waste.

Instead, businesses can reduce the amount of waste that they produce, which reduces costs and means that there is less waste to dispose of. Many businesses also look for ways in which waste materials can be reused.

The advantages of being environmentally friendly

Being environmentally friendly can bring a number of benefits. For example:

• Subsidies

  and

  grants

  – The government offers money to businesses willing to

  invest

  in
  environmentally friendly production methods. This can help to reduce costs.

• Lower costs

  – Changes to business activities that lower a business’ impact on the environment can often also lower the
  business’ costs. For example, retailer Marks and Spencer has introduced driver performance software in its delivery vehicles
  that has reduced the consumption of fuel by 2.3 litres per hour.

• Increased sales

  – Concerned customers who are very aware of environmental issues are more likely to buy from businesses that
  act in an environmentally friendly way.

The disadvantages of being environmentally friendly

For a business, there may also be disadvantages to being environmentally friendly. For example:

• Increased costs

  – Producing goods in an environmentally friendly way can often mean spending more money initially, as it can
  require research and investment in new production methods.

• Time consuming

  – Becoming environmentally friendly can take up a lot of time, particularly in large businesses.

• Potential for inaccurate claims

  – A business that wants to use claims about its environmental efforts must make sure those
  claims are accurate. Inaccurate claims can cause significant damage to the reputation of a business.