BSS017-2 Sustainable Business Management

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Executive summary 

A brief overview of the report

Two-thirds of all publicly traded companies in the world are thought to be at financial material risk
from climate change. Because of this, when institutional investors interact with businesses globally,
they give the issue of climate change and its risks a top priority. The major issues that climate change
has brought about in relation to the financial industry have not, however, been fully addressed by
corporate governance frameworks. The main advancements, troubles, and impacts of climate change
on corporate governance are covered in this report. According to John Lewis, The significance of
ethical and sustainable trading has been at the core of our business since the Partnership's founding
in 1929. The relevance of this fact has been examined in this report. 

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Table of Contents
Introduction............................................................................................................................................4

Overview of the change in climate condition....................................................................................4

Discuss the causes of considering sustainability as an issue for the business...................................4

Outlining the objectives for the report...............................................................................................4

Analysis..................................................................................................................................................4

Illustrate present and potential future issues and risks and opportunities for the business (with a
macro business environmental approach)..........................................................................................4

Discuss particular sustainability strategies which can be adopted to deal with the issues................7

Conclusion & Recommendations...........................................................................................................7

Reflective...............................................................................................................................................8

Discuss how the experience in learning can be used for personal development...............................8

References..............................................................................................................................................9

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Introduction

Overview of the change in climate condition

Sustainability and climate change are interlinked with each other. Here to understand sustainability
both as a gift or threat to any business it's important to understand climate change. According to
(Walsh, 2021), climate change generally implies a long-term change in the pattern of weather and
temperatures. The shifts also are natural and also held through various changes in the solar cycle.
Since the year the 1880s, changes in individual activity have become the fundamental driver of
climate change, and primarily due to the incineration of fossil fuels like oil, coal, or gas climate
continues to change in adverse ways. As per the report (United Nations, 2022), climate change is the
reason for directly raising the severity and frequency of weather events and also pushing extra
pressure on the business as they also might be exposed to various extreme events within a short
period of time. The relationship between climate change and business and hence sustainability has
been discussed in the following with consistent opportunities to utilize and vulnerabilities to deal
with. 

Discuss the causes of considering sustainability as an issue for the business

Changes in climate, increasing waste, and use of unsustainable resources push sustainability to
change its form as a major issue to business growth. 

Outlining the objectives for the report

 To know the current and future risks for business 
 To relate the macro business environment approach with these sustainability issues
 To understand the interconnection between the business environment changes and changes in
climate 
 To measure the strategies can be used to deal with the issues

Analysis

Illustrate present and potential future issues and risks and opportunities for the business (with a
macro business environmental approach)

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According to (Harper, and Snowden, 2017), climate conditions and business environmental
conditions are related. Climate condition is not only an environmental issue but also a major issue to
business formation and growth. Before knowing the current and potential future risk factors in
business sustainability in terms of Marco's business environmental approach, it's important to know
what the macro business environmental approach is and how it works. According to (Marco-Lajara,
et al., 2022), the macro business environmental approach implies the set of conditions that exists in
the economy as a whole, and instead of a particular sector it adds different trends like environmental
changes, changes in employability requirements, changes in inflation, and also changes in relevant
fiscal and monetary measures. The macro business environmental approach is related to the business
cycle and propositions and ensures the risks and opportunities a company can face. 

Risks or challenges: 

Emission Instability: According to the macro-environmental approach, global emissions are known
as the highest contributing factor to climate change and with a rapid response to carbon emissions, a
substantial loss in business sustainability can be observed. As per the example, China is reported as
the country that contributes the highest to the carbon emission nearest 9.9 billion tonnes which is
largely due to the export of consumer goods along with its heavy reliance on coal
(worldpopulationreview, 2022). After that United states and followed by India also can be
considered as an example of sustainability risk in business due to their impact on long-term change
in the climate.

Cross-border pollution: Another risk factor in business sustainability is cross-border pollution.

Cross-border pollution is known as the higher difficulties for preventing air along with water
pollution which can be spread from the industrial units of any country regardless of any intra-
national regulations. Here for an example of cross-border pollution as a risk factor for busienss
environmental sustainability, the transboundary flow of air pollutants between Mexico, the United
States, Canada, and also between North America (Transboundary Air Pollution. 2022). This cross-
border example ensures low-quality business sustainability. Due to the fact that air and water
pollution can spread from neighbouring countries despite internal regulations, cross-border pollution
is very challenging to prevent. The origin of the CO2 molecule is irrelevant to its impact on climate,
making this externality challenging to resolve.

Industry-Specific Challenges: Although climate change poses a threat to all industries, some are
more at risk than others. Increasing global temperatures, which significantly reduce snowfall, pose a

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threat to ski resort businesses, for instance. Since 1980, the temperature in the popular skiing region
of the Colorado Rockies has increased by 3 degrees Fahrenheit, shortening the skiing season there by
nearly a month (Neri, and Mwenda, 2020). The most severe effects of climate change may also affect
the electricity, fishing industry, wine, and agrarian industries.

Opportunities: 

Although the relationship between business sustainability and climate change has been discussed as
the major risk areas, climate change can also be seen as an opportunity for businesses. Beyond high-
carbon industries like electricity and transportation, the low-carbon transition opens up possibilities
for efficiency, innovative thinking, and growth across all industries. Businesses can reduce their
renewable resource costs, satisfy the requirements of new customers, construct their reputation and
image, and improve their ability to find a way to keep their skills (Fernando et al., 2019). CSR is the
concerning factor that has relevance with the business sustainability opportunities here Carrol’s CSR
pyramid can be considered. Carroll's CSR pyramid is a framework that outlines the benefits of
corporate social responsibility and how it should be implemented. Archie B. Carroll created the
pyramid, which highlights the four most significant types of organizational responsibility, including
financial accountability, legally accountable Moral accountability, and philanthropic obligation
(Talonen, et al., 2021). These four different CSR factors have a connection to the sustainability of
the business and ensure the following opportunities. 

Managing Costs

Green operations are lean operations, and businesses with enough capital expenditure leeway to
make wise green investments can cut costs at a time when every dollar counts. In the same country
where a 2017 analysis found that Fortune 500 companies were saving $24 per metric tonne,
corporations signed power purchase agreements with renewable developers, bringing 13.6 GW of
renewable power into operation, according to the report (oliverwyman, 2022). 

Profiting from Changes in Behavior

Changes in working conditions and lifestyles brought on by the global epidemic may reveal chances
to boost green power savings. For instance, a shift to working remotely may offer chances to cut
back on travel, office use, and energy costs. However, more significant attitude changes might also
be taking place.

New Possibilities for Revenue

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Demand for new sustainable products and services worth trillions of dollars across all industries are
being fuelled by the low-carbon transition. The number of zero-emission automobiles and new
mobility solutions has grown quickly in the transport industry.

Discuss particular sustainability strategies which can be adopted to deal with the issues
Every business needs to take the initiative of implementing strategies to ensure business
sustainability by dealing with the issues. 

The first strategy is to take the causes of environmental damages under control: Here the companies
need to control the emission of carbon. Business units need to mitigate the emission of greenhouse
case from their industrial production unit including fuel switching, energy efficiency, the use of
renewable energy, combined heat and power along with other recycling materials. 

Encourage the employees: The company needs to implement a strategy to encourage the involved
individuals in business production or operation by taking public transit and carpooling into account
with significant control over climate change in an adverse way.

Deployment of the overlapping timelines: This is another possible strategy to consider as a solution
in sustainability issues across several time scales. The company needs to work with the aim to reduce
the use of plastic materials in production and ensure to adopt of recycling into their regular business
practice to ensure business sustainability (Walsh, 2021).

Connection establishment among environmental sustainability, diversity, and inclusion:

With the application of this strategy, organizations need to separate their environmental
sustainability efforts by considering climate change as a necessary justice issue.

Conclusion & Recommendations

At the end of the report, the conclusion can be made that business sustainability is the major concern
for any industrial growth and prosperity. Climate changes with various reasons like increasing
carbon and greenhouse gas emissions from the production units, use and promotion of plastic
materials along with some other areas considered and become a risk for the business sustainability. 
Some strategic planning needs to be made for ensuring control over climate change and business
sustainability and that has been illustrated as the areas where businesses took control over their

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operations and management ensure business sustainability in a positive opportunistic sense.  Carroll's
CSR pyramid and the four areas of corporate social responsibility (CSR) that are mentioned provide
organizations with a conceptual framework that includes economic, legal, ethical, and philanthropic
or discretionary responsibility. Shareholders expect businesses to fulfil their economic obligation to
turn a profit. The public expects businesses to conduct themselves ethically. 

Reflective 

Discuss how the experience in learning can be used for personal development
After learning about climate change and business sustainability I found the areas on which I need to
focus for a successful career. Being a promising citizen towards environmental sustainability I
should be able to use my knowledge about the necessity to control environmental damage through
various processes in my near career. I learned the cause and way to mitigate carbon emissions, the
use of plastics, and the wastage of resources including energy, water, and others. This additional
learning helped to improve my knowledge over the limited educational boundary. 

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References

Carbon footprint by country 2022 (2022) worldpopulationreview. Carbon footprint by country 2022.
Available at: https://worldpopulationreview.com/country-rankings/carbon-footprint-by-country
(Accessed: November 26, 2022). 

Climate change is an opportunity for business to thrive (2022) Oliver Wyman - Impact-Driven
Strategy Advisors. Available at:
https://www.oliverwyman.com/our-expertise/insights/2020/oct/climate-change-is-an-opportunity-
for-business-to-thrive.html (Accessed: November 26, 2022). 

Fernando, Y., Jabbour, C.J.C. and Wah, W.X., 2019. Pursuing green growth in technology firms
through the connections between environmental innovation and sustainable business performance:
does service capability matter?. Resources, Conservation and Recycling, 141, pp.8-20.

Harper, C.L. and Snowden, M., 2017. Environment and society: Human perspectives on
environmental issues. Routledge.

Marco-Lajara, B., Zaragoza-Sáez, P., Falcó, J.M. and Millan-Tudela, L.A., 2022. Corporate Social
Responsibility: A Narrative Literature Review. Frameworks for Sustainable Development Goals to
Manage Economic, Social, and Environmental Shocks and Disasters, pp.16-34.

Neri, V. and Mwenda, M. (2020) Climate change, new risks and opportunities for businesses,
LifeGate. Available at: https://www.lifegate.com/climate-change-risks-opportunities-businesses
(Accessed: November 26, 2022). 

Talonen, A., Jussila, I., Tuominen, P. and Ruuskanen, O.P., 2021. Refining the economic dimension of
carroll's CSR pyramid by taking organization form into account. Electronic Journal of Business Ethics and
Organization Studies, 26(1).

Transboundary Air Pollution (2022) EPA. Environmental Protection Agency. Available at:
https://www.epa.gov/international-cooperation/transboundary-air-pollution (Accessed: November
26, 2022). 

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Walsh, D. (2021) 4 strategies for Sustainable Business, MIT Sloan. Available at:
https://mitsloan.mit.edu/ideas-made-to-matter/4-strategies-sustainable-business (Accessed:
November 26, 2022). 

What is climate change? (2022) United Nations. United Nations. Available at:
https://www.un.org/en/climatechange/what-is-climate-change#:~:text=Climate%20change%20refers
%20to%20long,like%20coal%2C%20oil%20and%20gas. (Accessed: November 26, 2022). 

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