Environmental Sustainability

COA7003 BUSINESS ACCOUNTABILITY & SUSTAINABILITY

WEEK 7

0
 Class Learning Outcome
 The importance of environmental sustainability.
 The dimensions/ components of environmental sustainability.
 The implementation of environmental sustainability
practices: Issues & Challenges

1
 The Importance of
Environmental
Sustainability

 Rising issues of:

 public health,
 overpopulation,
 loss of biodiversity,
 pollution,
 scarcity of resources,
 waste disposal,
 climate change.

https://public.wmo.int/en/media/press-release/state-of-climate-2018-shows-accelerating-climate-change-impacts
2
3
Environmental Sustainability Issues: Example

4
 The Importance of Environmental
Sustainability
 Awareness of the impacts of climate change/ global warming on environmental
sustainability, and the consequences of business activities, have encouraged many
corporations to promote and participate in a number of environmental sustainability-related
activities.

 Implementation of the environmental sustainability practices offer many benefits to

corporations (e.g. enhanced corporate image, source of competitive advantages, meet
stakeholders demands, etc.)

 What does environmental sustainability mean?

Understanding the impacts of corporations on the environment.

5
Environmental Sustainability in Different Industries

6
Environmental Sustainability in Different Industries

7
 The Dimensions/ Components of
Environmental Sustainability.

 Environmental:
 Voluntary standards: Materials
GRI Energy
Water
ISO 14001 Biodiversity
Emissions, effluents and waste
Suppliers
Product & services
Compliance
Transport
Overall
Screening & assessment
Remediation

https://www.esg.adec-innovations.com/about-us/faqs/what-is-social-sustainability/ 8
The Implementation of Environmental Sustainability
Practices: Issues & Challenges
 While environmental sustainability are equally important in both developed and developing countries, their
practices are more prominent in the developed countries. Among the factors that influence the better
practices in the developed countries are:
 greater stakeholders’ demand/ pressures/ awareness
 stringent laws and regulations/ industry’s specific requirements
 access to more resources to invest in the environmental sustainability practices.

 The lack of these 3 elements, has attracted many giant brands originated from the developed countries,
such as Apple, H&M, Nike, and etc. to build their manufacturing facilities in the developing countries. With
that, they are able to reduce their production cost (e.g. offer lower wages, less benefits to the employees,
less pressure to preserve the environment and take care of the employees’ wellbeing).
Suggested Solution:
There must be a balanced in terms of the attention paid on the environmental sustainability between the developed &
developing countries. The giant brands must be responsible for their business, regardless of the location of the
factories.
Both citizens and regulators from the developing countries must be more alerted on the environmental sustainability
issues.

9
The Implementation of Environmental Sustainability
Practices: Issues & Challenges
The limited regulation that govern environmental sustainability:
Most countries made the practices as VOLUNTARY, with limited number of countries have made it
as COMPULSORY (*compulsory with different level of implementation/reporting that may hinder
comparability)
The variation in the stated regulations has made comparability of practices between countries/
industries/ companies difficult.
Cost of implementation & enforcement: training, documentations, etc.

Suggested Solution:
 Should the implementation of the environmental sustainability practices be made voluntary? Self-regulation?
 If they are to be regulated, to what extent the implementation should be regulated? Is there any differences between the
environmental-sensitive industries and the services industries? After all, the extent of impacts for every company/ industry is
different. Even the size of the company is also matters?

10
The Implementation of Environmental Sustainability
Practices: Issues & Challenges
The implementation costs & benefits from the perspective of corporation:
Do the benefits exceed the cost?
The learning curve. Not all company manage to do it right the first time.
Short vs long term benefits.

Suggested Solution:
Good support from government (e.g. provide trainings, guidelines, flexibility, incentives, etc.), as
well as the top management of the corporation (e.g. governance and macro and micro level).

11
 Conclusion
 Environmental Sustainability is about the harmony of life and eco-
system in the long term basis.
The need to think about the future generation and the
sustainability of the overall eco-system.
Effort from all levels (regulators, corporations, individuals) are vital
to ensure the success implementation of the strategies/goals.
The development may seem to be a bit slow, but with gradual and
consistent efforts, the objective of Sustainable Development may be
achieved in the long term.

12
 In group , choose a listed company

Discuss their environmental

In-Class sustainability efforts (Prepare pp slides)
Activity
(40 MINUTES)

To be presented in class (max 10

mins presentation)