Se ele
Question 3
From the following list of costs, consider how these environmental casts can impact on
decisions for sustainability spending?.
Equipment purchased to reduce emissions $200 000
Monitoring emissions $50 000
Estimated fines for breaching environmental $500 000
regulations
Estimated future costs—the need to dispose of firm $550 000
products which contain hazardous material
Purchase of recyclable material $130 000
On-going clean-up costs 300 000
Estimate of potential ability—oil spi $600 000
Purchase of recyclable packaging matenial $25 000
Estimate of lost business—adverse te! n publicity $110 000
Auditing eneronmental isk $25 000
‘Auditing supplier performance 50 000
Employee medical costs fallowng a chemical spillage $5000
Fines for enwiranmental damage 20 000
Co ing up plant following » le $90 000
Costs to reduce pollutants dunng manufacture ‘$100 000,
Cost of emplayee trainin ‘ss0 000
of testing equip $20 000
in testing and monito $10 000
ated lost sales revenue $600 000
‘ost of occupational health and safety clair $10 000
{cleaning up polluted sites $100 000
What other factors should be considered when considering sustainability spending?