Important topics Spring 2022IMPORTANT TOPICS Lesson os Intodctiontobusiness, emiroament and sataiablity Wintea sortnate onthefolowing tems Enuronmertal degradation Indust ecology 2 3. eflvents h. Secalcos. Lesson 02: Evironment and business. a a complex interaction © deny theimpactsofindustialpollstonennatua enveonment aman heath andsaclo-economicaspedts © Lesson 6: Green Marketing -ASMMarketing research fm RoperASWEmdrormertal Segrnertaton(Stte) © Green Marketing: Challenges Abene(State) Lesson o7: Enviconmental Finance —$ How tomessue and present environmental busines inieaton? Describe thetypasof enironmental oss. “Lesson of Global Climate Change Consequences ofalabalwarming in Asia, Latin America & North America Why dofrarcalinstinionsge'susainable? Lesson 09; Does it pay tobe green? Describe postive Iinkbetween enironmentl and economic performance ainkyotomechaisnsLESSON1 definitions Industrial ecology focuses on the role of industry in reducing environmental impact through lifecycle of the product Effluent: The term is widely used to describe the generation of wastes from manufacturing processes in the industrial plants. Any solid, liquid or gaseous substance, coming out of the chimney, dust or other out-let of industrial plant, is considered as industrial effluents ° Environmental degradation refers to decrease in the quality of environment resulting from the increase in water, air and land pollution. © Social Cost: These costs are incurred due to discharge of pollutants resulting in a huge impact on human health, environment and socio- economy. Notably, social costs are considered as externalities as the costs are not yet internalized.LESSON2 Impacts of Industrial Pollution on Human Health Skin disease Respiratory illness Brain and nervous system effect Diarrhea and stomach related disease Water-borne disease Effect of poisonous gas Bad smell Effect of toxicityLESSON2 Impacts of Industrial Pollution on Socioeconomic Aspects Livelihood Livestock Forest resources Water resources Export Market Quality of life Grazing land Productivity of land Risk of cyclone and tidal bore Discoloring and eroding buildingsLESSON2 Impacts of Industrial Pollution on Natural Environment Acid rain Greenhouse effect Water- logging Effect of toxicity Depleting Aquatic life Decreasing fertility of land Under ground water pollution Surface water pollutionLESSONGE: Roper ASW Environmental Segmentation CTC MeO) CeCe Ws Cae ELINA cel Pees. True-Blue Greens Greenback Greens. Sprouts Grousers _Apathetics Most committed, Willing to pay more Environmental Concerned, Inactive most active for green products fencesitters but less active (GAK Roper Consulting: Green Gauge segmentation focuses on a range of consumers” environmental 2nd concerns from Tue-Blue Greens—the most ative, to Apathetics—the least concemed ef the group. fing.htm|LESSONE: Green Marketing : Challenges Ahead Ucreen products require renewable and recyclable material, which is costly Q Requires a technology, which requires huge investment in R & D, (Jwater treatment technology, which is too costly majority of the people are not aware of green products and their uses, majority of the consumers are not willing to pay a premium for green products.LESSON7: Types of environmental costs ct environmental costs * Implementing a dust filter on a production plant * Indirect environmental costs * Costs of joint clean-up facilities ® Internal environmental costs * Costs that the firm has to bear * Le. costs for CO, emissions in tonnes * External environmental costs * Costs that other than those have to bear who caused the costs and receive the benefits * i.e. climate change adaptation costs See SCHALTEGGER, S., MULLER, K. & HINDRICHSEN, H. (2996) Corporate Environmental Accounting, Chichester, UK, John Wiley & Sons.LESSON7; How to measure and present environmental business indicators? Costing indicators * With or without externalities * Accounting indicators * Cost-benefit ® Risk indicators * Reputation risks Capital budgeting indicators . * Environmental option pricingLESSON7: Why do financial institutions go ‘sustainable’? * Personal affection by bank leaders caused by an environmental accident Sustainability as new banking principle —|\» Sustainability as public mission EDC Sustainability as a requirement of clients Sustainability as value driver and risk ik management conceptq LEsSong, NSequences of Global w, arming in AfricaLESSONB: Consequences of Global Warming in Europe * Increased risk of inland flash floods; more frequent coastal flooding and increased erosion from storms and sea level rise ® Glacial retreat in mountainous areas © Reduced snow cover and winter tourism ® Extensive species losses Reductions of crop productivity in southern Europe (source: NASA)TalTapie It biog tinea) loss, thro Hoh Species ee ion Utisappearacn Ce] in man Pe ornare changes Sin wat for areyalabilty mae ae Ulture and renergrbto5-20 Percent in ein aeackss Of rain. ed agricy it ein s € regions Increaseg fre duration of henLESSON8: Kyoto Mechanisms * Emissions Trading or Cap & Trade ® Buying and selling the right to emit CO, * Joint Implementation ~Industrialized countries invest in other industrialized countriesto reduce CO, emissions * Clean Development Mechanism (CDM) ---CDMis one of the flexible mechanisms defined in the Kyoto protocol (IPCC, 2007) to assist countries without emissions targets (ie developing Ny countries) in achieving sustainable development. Note: Intergovernmental Panel on Climate Change (IPCC) SaLESSONg: Positive Links Between Environmental and Economic Performance Figure Positive Links Between Envir.Positive Links Between Environmental and Economic Performance Table] Summary of Positive Links Between Environmental and Economic Performance 1) Bete ccs to certain ‘oe likely fr ims sling othe publ ser construction, The Quebec government now cares about he imorkels ‘energy, rasp equipment, mil products ond environment performance of ol veidesit cffice equipment and other business. bys, not nly abou the pice. ‘Ddifferetaing Mor ely when theres Toyota has announced that lis model wil rods )(edilinfamaton cou th envwamenlfctuesot | heave ahh engines in 2012 ‘the product +) Wlingnesso-poy by consumers Bai inition, Wide ong of posites. 3) Sling olin ‘Wore itely wens ceody hove RD otis. Aon bs ptted presse rex coil technologies ‘ovmspent potinng, ond that of other «ongniesPositive Links Between Environmental and Economic Performance for Reducing Costs — 44) Risk management and ‘More likely in industries thot are highty regulated ond ‘Statoil injects 1 million tons of CO, « yeor ‘relations with external ‘scrutinized by the public, such as chemical, energy, pulp ond ‘beneath the seabed ofthe North Sea, thus, stokeboders _paper, metry, voiding the Norway carbon tx ‘5) Cost of materials, ‘More likely when: BP has reduced its emissions of GHGs 10% ‘energy, and services. .c) Firms have a flexible production process ‘below their level in 1990 at no cost by +) Firms ore in highly competitive industries where “implementing on internal tradable permit optimization of resources is important mechanism (see Reinhardt, 2001). (Firms rin industries where marka-bosed environmental dese implemented A) Fims dead have R&D faces. (6) Cost of copia ‘More il for firms wth shares exchanged on stock The stock vale of Exxon went down by $47 market billion flowing the wreck ofthe Exxon Volder. Tost oflbor are ikely For: "2004 survey of Stoford MBAs found that €) ems whose emisions my fc hi worker heath 97% ol hm wee wing forgo 14% on 1) ems that ek ard your, wall educated workers average) f heir expced income fo work €)Femsloaed in orens whee sony environmen for an orgenizaton wih eter eptation comers inportnt. for corporat sal espns