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1) What is Sustainability and what are its factors?

( 8 marks)
Sustainability means that a process or state can be maintained at a certain level for as long as
is wanted.
Sustainability factors
The definition of sustainability may be taken further and it is widely accepted that to achieve
sustainability we must balance economic, environmental and social factors in equal harmony.
This may be illustrated with a sustainability Venn diagram, as shown below:

Fig:Sustainability Venn Diagram


So to achieve true sustainability we need to balance economic, social and environmental
sustainability factors in equal harmony. These may be defined as:
Environmental Sustainability: Environmental sustainability means that we are living within
the means of our natural resources. To live in true environmental sustainability we need to
ensure that we are consuming our natural resources, such as materials, energy fuels, land,
water...etc, at a sustainable rate. Some resources are more abundant than others and therefore
we need to consider material scarcity, the damage to environment from extraction of these
materials and if the resource can be kept within Economy principles. Environmental
sustainability should not be confused with full sustainability, which also need to balance
economic and social factors.
Economic Sustainability: Economic sustainability requires that a business or country uses its
resources efficiently and responsibly so that it can operate in a sustainable manner to
consistently produce an operational profit. Without an operational profit a business cannot
sustain its activities. Without acting responsibly and using its resources efficiently a company
will not be able to sustain its activities in the long term.
Social Sustainability: Social sustainability is the ability of society, or any social system, to
persistently achieve a good social wellbeing. Achieving social sustainability ensures that the
social wellbeing of a country, an organization, or a community can be maintained in the long
term.
Taking these three pillars of sustainability further if we only achieve two out of three pillars
then we end up with:
Social + Economic Sustainability = Equitable
Social + Environmental Sustainability = Bearable
Economic + Environmental Sustainability = Viable
Only through balancing economic + social + environmental can we achieve true
sustainability and a truly circular economy.

2) What are the different framework that are used to achieve sustainability in
Business? (10 marks)
Triple Bottom Line
Loosely based on the three pillar of sustainability, businesses generally follow the
principlesof ‘Triple Bottom Line’ (TBL) framework. Put forward by John Elkington as a new
measure
of corporate performance which inculcated environmental and social concerns, TBL is “an
accounting framework that incorporates three dimensions of performance: social,
environmental and financial. The TBL dimensions are also commonly called the three Ps:
people,planet and profits.”
Economic variables that are part of the framework include the usual financial concerns of
thebusiness including expenditures, taxes, business climate, etc. and need not to be delved
uponfurther. The environmental variables should essentially be represented in the use of
variousnatural resources and the subsequent effects of business activity on nature such as air
andwater quality, energy consumption, solid and toxic waste, land use and similar effects on
nature. The social aspects of a community including measurements of education, health and
wellbeing, access to social resources, quality of life and social capital are used as indicators
ofsocial sustainability.
Natural Capitalism
‘Natural capitalism’ is another such framework that can act as a guiding principle for firms
wishing to walk down the sustainability path. It focuses on the significance of human capital
(labour, talent, intelligence)and natural capital (natural resources and ecosystem services)
which usually gets ignored as firms only focus on building financial capital (cash and
investments) and manufactured capital.
Natural capitalism lays stress on four principles that are more or less linked with each other:
radical resource productivity, bio mimicry, service economies and reinvestment. Radical
resource productivity indicates the efficient use of resources that are limited in nature so that
the process of resource depletion can be slowed down. Example of this process include
energy conservation processes, a shift towards renewable energy use and taking proper care
of waste through reuse, recycling and composting. Bio mimicry, also referred to as ‘redesign
of industrial processes’ is based on the concept of ‘waste equals food’. In fact, it forms the
basis of ‘cradle to cradle design’ where waste generated through any industrial or consumer
process is recovered and used in some other form. Reinvestment refers to the investment of
profits or interests from efficient use of resources back in natural capital while service
economies “emphasize meeting consumer needs with services and viewing goods as means of
service delivery.”

The Natural Step Framework (TNSF)


The framework that presents a morespecific ‘what-to-do’ manual for firms is The Natural
Step Framework (TNSF). TNSF is based on four key principles or ‘system conditions’ that
form a definition ofsustainability which provides solid guidelines to a company pursuing
sustainability.
According to TNSF, a sustainable business is one that:
1. Causes no systematic increases in environmental concentrations of substances fromthe
Earth’s crust,
2. Cause no systematic increases in environmental concentrations of syntheticsubstances.
3. Causes no systematic increases in ecosystem degradation.
4. Creates no systematic barriers to people meeting their own needs.

3) Explain the different Sustainability Factors/Determinants (10 marks)


Supply Chain:
Sustainability along the supply chain has gained particular significance as companies look
toreduce their overall emissions through their suppliers. Byusing energy responsibly and
making sparing use of natural resources, Suppliers can reduce greenhouse gas emissions in
their own production operations
Waste and Recycling:
E-waste is the world’s fastest growing type of wasteand not surprisingly, the ICT sectors
most significant source of waste. With landfills considered to be an unsustainable source of
disposing waste, manufacturers have had to focus their efforts on proper disposal and more
importantly, recycling of the products. Retake and recycling of products is one of the most
important aspects of the sustainability portfolio of the modern firm, particularly those
belonging to the ICT sector. Not only do companies fulfil a criterion which is gaining
significance with regard to the environment, they are managing to generate profit from
through well-developed retake programs.
Product Design:
Recycling and take-back programs are more effective if the product design issustainable and
is in line with the concept of ‘dematerialization’. Broadly defined,dematerialization a product
delivers similar benefits but with a decrease in the number ofmaterials used in the process.
Most of them focus onthe need to redesign products with a focus on innovation.
Fig: Design hierarchy
Sustainable companies are moving on from the traditional three R’s of reduce, reuse
andrecycle and have incorporated ‘redesign’ and ‘reimagine’ in their design requirements
Packaging and Logistics
Sustainable packaging and an essential part of the product mix for a company aiming to
‘gogreen’. The essence of sustainable packaging lies in ensuring that it provides the required
benefit in the best possible way while keeping in line with the Natural Step’s four system
conditions of a sustainable society. A smaller amount of packaging material (by removing
unnecessary layers) usedalso saves GHG emissions in the long run by affecting the transport
space required for thosepackages.These emissions can be further reduced byswitching to a
more environmental friendly source of transport i.e. ocean vessels instead ofairfreight since
the latter is more carbon-intensive.
Power consumption
The telecommunicationssector too, therefore, has gained importance over time with respect to
the difference it canmake in reducing worldwide emissions and promoting sustainability.
Energy consumption ofproducts form this sector, during the ‘use’ phase is particularly
significant in this regardbecause it consumes a major chunk of the energy from the product’s
lifecycle. The demand forenergy efficient products sprouts from a desire to make their
products environmental friendlyand reduce GHG emissions as well as due to increasing
pressure from various stakeholdersincluding customers and regulators. Therefore power
consumption plays an important role in sustainability

4) Explain the different Environmental Regulations that the Companies in the


telecommunication industry are subjected to? ( 6 marks)
REACH (Registration, Evaluation, Authorization and Restriction of Chemical substances)
was implemented in June 1, 2007 and aims to “improve the protection of human health and
the environment through the better and earlier identification of the intrinsic properties of
chemical substances.”Through the process of phasing out harmful substances, REACH also
helps in focusingcompanies to search for alternatives that are not hazardous and do not pose
any harm to theenvironment in general.
RoHS (Restriction of Hazardous Substances Directive) directive restricts theuse of six
hazardous substances in electronic and electric equipment including lead (Pb),mercury (Hg),
cadmium (Cd), hexavalent chromium (CrVI), polybrominated biphenyls(PBB) and
polybrominated diphenyl ethers (PBDE)
WEEE (Waste Electrical and Electronic Equipment). It deal with regulated disposal and
recycling of electricand electrical equipment and outline responsibilities of those involved in
this process.

5) What are the guidelines of The Natural StepFramework (TNSF) for sustainable
design? (4 marks)

a. Renewable, reclaimed, nontoxic and organic materials should be used and the use
ofvirgin (non-recycled) materials in the manufacturing process should be reduced.
b. The design should ensure that the storage, transportation and use phase of the productis as
carbon-neutral or minimizes carbon emissions.
c. Energy used in the manufacturing process should be renewable in nature andpetroleum
based hydraulic fluids should be replaced.
d. Design products for disassembly, remanufacturing and materials recovery
These guidelines can act as a handy tool for firms planning to redesign their products to
makethem more ‘green’

6) According to the Sustainable Packaging Coalition (SPC) what areconditions that has
to be fulfilled for packaging to be sustainable? (4 marks)

a. Is beneficial, safe and healthy for individuals and communities throughout its lifecycle
b. Is sourced, manufactured, transported and recycled using renewable energy
c. Maximizes use of renewable or recycled source materials
d. Is physically designed to optimize materials and energy
e. Is effectively recovered and utilized in biological and/or industrial cradle-to-cradlecycles

7) What are Environmental Certifications and mention the different certification


available. (4 marks)
Environmental Certifications is a seals that indicate a product meets certain standardsfor
social or environmental performance.
BREEAM (UK)Blue Angel (Germany)Energy Star (US)Eco Mark (Japan)

8) Write a note on Blue angel and Energy Star Environmental certification. (6 marks)
Blue Angel is considered to be the global leader when it comes to environmental labels
because of its progressive approach and strict criteria. Their criteria incorporates factors such
as "efficient use of fossilfuels, alternative products with less of an impact on the climate,
reduction of greenhouse gasemissions and conservation of resources" Producers'
responsibility also includes reclaimingused products from the customer for recycling
purposes. The document for digital cordless phones includes strict requirements relating to
theoperating functions including power consumption in different operation modes,
adjustment oftransmission power and range limitation. Manufacturing requirements include
restrictions onthe use of plastics and printing on circuit boards, batteries, packaging as well as
theavailability of spare parts
In 1992 the US Environmental Protection Agency (EPA) introduced ENERGY STAR as
avoluntary labeling program designed to identify and promote energy-efficient products
toreduce greenhouse gas emissions. Energy Star also covers a host of products ranging from
office equipment and lighting toheating and cooling devices for houses. Energy Star's
requirements for cordless telephones arenot as detailed and clear as those of Blue Ange
9) What is Eco-dect? What are its features? (8 marks)
Eco Dect is a series of environmental friendly phone launched by Gigaset. It is a "new
technology that reduces the power consumption andtransmission power of DECT phones".
This technology essentially relies on an energy savingpower supply which cuts down energy
use by 60% when compared to regular cordless phones.Moreover, the transmission power is
reduced to almost zero when the handset is docked;given that there is only one registered
handset. The most striking feature of the phone is theECO-mode which reduces the
transmitting power by 80% compared to conventional cordlessphones, even when multiple
handsets are registered and when the handset is not inthe charger. Another feature is The
ECO Mode Plus, which turns off the transmitting powerwhen the phone is in standby. Based
on the assumption that the phone is used for roughly 2hours every day, the Eco Dect’s power
consumption can be reduced by an average of around2 watts.
The design and manufacturing of the Eco Dect is also in line with
environmentalsustainability: The design ensures the minimum use of materials, all of them
beingenvironmental friendly while residual materials are separated and recycled in a
sustainablemanner. Not surprisingly, lead is not part of the manufacturing process of the Eco
Dect at all.
The packaging materialtoo, is given particular attention in terms of its design, size and the
potential for recycling.Logistics are given particular attention with train or ship, which result
in less emissions than air travel, being the preferred mode of transporting the product and
efficient utilization ofcargo space to make it more environmental friendly.
10) Define Green Products and mention its attributes. ( 6 marks)
The terms “green” or “sustainable” often refer to products, services or practices that allow for
economic development while conserving for future generations. We prefer to describe a
green product as one that has less of an environmental impact or is less detrimental to human
health than the traditional product equivalent. While on the topic of defining a green product,
you must realize that almost no product will ever be 100% “green,” since all product
development will have some impact on the surrounding environment. It all comes down to
degrees of impact and as we discussed above, trading off between impacts.
To understand the trade-offs you should realize that there are select attributes that describe
green products and services; we list them below to help you further understand what a green
product truly is. Green products are
Energy efficient, durable and often have low maintenance requirements.
Free of Ozone depleting chemicals, toxic compounds and don’t produce toxic by-products.
Often made of recycled materials or content or from renewable and sustainable sources.
Obtained from local manufacturers or resources.
Biodegradable or easily reused either in part or as a whole.

11) What are the Drivers of sustainability? (10marks)


1. Reputation and brand strength – Sustainable performance fosters a strong corporate
reputation, which has a significant effect on a company’s financial valuation. According to
the UN Global Compact, reputation accounts for 10% of the marketing value of a company,
and 45% of a company’s reputation is based on social performance. Nike is a classic
example of a company which, faced with reputational damage in 1996 due labor and
environmental practices, pioneered product-stewardship strategies and sustainability
innovation to recover its reputation.
2. Improved shareholder value – SRM can contribute to increased profits in the long term and
reduce weighted average cost of capital. Shareholders are increasingly demanding future-
proofed financial investment strategies, and the inclusion of an early warning risk
management process for risk factors such as climate change.
3. Operational efficiency – Not addressing sustainability concerns (including environmental
legislative requirements, employee engagement, supply chain issues and customer demands)
raises the risk of operational disruption through strikes, boycotts, and greater regulatory
scrutiny, with often major financial implications.
4. Financial efficiency – Appropriately managing sustainability risks can result in cost
reduction achieved through improved environmental and health and safety performance
(resulting in fewer fatalities, accidents, non-compliance fines, and lost workdays). PUMA has
recently announced that the economic value of its impacts due to water consumption and
greenhouse gas emissions is Euro 94.4 million.
5. Improved human and intellectual capital – There is increasing evidence that a company’s
environmental and social performance affects employee turnover rates
6. Business sector/Competitors’ activities- Business sector and competitors’ activities are
interlinked when it comes to the role they playin sustainability activities. The most prominent
effect is on the design and energy consumption of theproduct as companies try to outdo each
other to come up with the least energy consumingproduct.
7. Region- The area where companies are primarily conducting their business can affect its
environmentrelated actions to a considerable extent.
8.Competitive advantage and productivity – A survey of over 1,600 of the world’s largest
companies in 16 industrialized countries revealed that as many as 53% of the companies
surveyed indicated that much of their sustainability behavior is motivated by innovation.

12) What is Eco-design? Explain the categories of Eco-design tool. (8 marks)


Eco-design is an approach to designing products with special consideration for the
environmental impacts of the product during its whole lifecycle Eco-design tools can be
divided into four different categories or processes,depending on the way one perceives them
1. Analysis of environmental strengths and weaknesses
2. Priority-setting and selection of the most important potential improvement
3. Provision of assistance for idea generation, design and draft specification
4. Co-ordinate with other important criteria: cost-benefit analysis, economic feasibility.
The analysis stage involves the identification, quantification, evaluation and prioritization
ofenvironmentally harmful issues in relation to the product design. This can be done
throughLCA’s (Life Cycle Analysis) which are used to determine which particular part or
processresults in the most emission or other harmful effects on the environment. The factors
with anegative effect are first ascertained, and then their importance is determined on the
basis oftheir effect on the more fundamental environmental criteria. Other tools that can be
used at this stage are checks and matrices including the MET (Material and Energy
input/output, Toxic emissions output) matrix for analysis ofenvironmental strengths and
weaknesses, which enable estimations of the environmentalimpacts of a product within the
shortest possible time
The second part of eco-design consists of priority setting to establish which
environmentalimpacts (or consumption issues) are important and possibilities of
improvement keeping inmind regulations and stakeholder requirements. Tools that support
this activity include spiderand portfolio diagrams, decision matrices and dominance matrix
The third part consists of idea generation, design and draft specification.
The fourth part of this design process revolves around profitability, marketability
andtechnical feasibility of the design. This can be done primarily through a tool called the
Houseof Environmental Quality (HoEQ) and general cost accounting methods. HoEQ uses a
multidimensional matrix to assess the different ways in which the various product properties
andrequirements influence each other in a negative way. Environment cost accounting
methodsdetermine the costs that will be incurred during the development, production
(includingmarketing, distribution and related costs) and use phase (including recycling,
disposal costs)and balance them against the environment related improvements it provides.
13.Explain the four pillars of sustainability. 08M
14.Analyse the strategies adopted by AIRTEL / BSNL/VODAPHONE/IDEA to sustain
their operations. (6 marks)

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