Economics and Environment Journal Quiz

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Questions and Answers

What is a key focus of sufficiency-driven business models?

Increasing production regardless of sustainability

Expanding market share globally

Maximizing profit at all costs

Minimizing resource use and environmental impact (correct)

Which of the following is a common barrier to achieving degrowth in business?

Government regulations promoting sustainability

Increased public demand for sustainable products

Growing awareness of climate change

The focus on short-term profit over long-term sustainability (correct)

Which term describes business models that prioritize sustainability while adapting to market needs?

Disruptive models

Sustainability archetypes (correct)

Profit-driven models

Sufficiency models

How do large companies generally affect sustainable business model adoption?

They are often resistant to change due to profit motives Signup and view all the answers

What is one proposed advantage of a sufficiency-driven business model?

Enhanced social benefits and community focus Signup and view all the answers

Which of the following statements about sufficiency is true?

It advocates for balance between consumption and sustainability Signup and view all the answers

What is one criticism of profit-driven firms regarding sustainability?

They may neglect strong sustainability practices Signup and view all the answers

What is meant by 'degrowth' in the context of business?

An approach focusing on reducing production and consumption Signup and view all the answers

What does the term 'double materiality' refer to in sustainability reporting?

The impact of a company's operations on sustainability and the sustainability impacts on the company. Signup and view all the answers

Which of the following methods is used for assessing strong sustainability?

Context-Based Sustainability Assessment Signup and view all the answers

What is a common criticism of the CSRD draft act?

It lacks clarity on materiality definitions and responsibilities. Signup and view all the answers

Which initiative proposes a framework to set strong sustainability targets based on planetary boundaries?

One Planet Thinking initiative Signup and view all the answers

What does the report imply by the term 'authentic' in sustainability assessment?

A comprehensive and transparent evaluation of impacts. Signup and view all the answers

What is the primary goal of the Science Based Targets initiative?

To help companies calculate GHG emission targets aligned with climate science. Signup and view all the answers

Which of the following would best describe an 'eco-efficient' business?

A company that produces goods with minimal waste and energy use. Signup and view all the answers

What does 'due diligence' mean in the context of sustainability frameworks?

The assessment and management of social and environmental risks. Signup and view all the answers

What is a key characteristic of the ISO 26000 norm?

It emphasizes voluntary participation from corporations. Signup and view all the answers

What issue is highlighted regarding environmental labelling?

There is tension between the multiplication of labels and their trustworthiness. Signup and view all the answers

What do corporate climate pledges such as ‘net zero emissions’ aim to achieve?

Reduction of emissions to a neutral level. Signup and view all the answers

Which initiative is associated with pledging ‘net zero emissions’?

Race to Zero Signup and view all the answers

What is a criticism surrounding corporate climate pledges?

They are seen as potential greenwashing. Signup and view all the answers

What do mandatory information labels such as 'étiquette énergie' signify?

They provide consumers with essential energy consumption data. Signup and view all the answers

What is a potential problem with the high number of environmental labels in the textile sector?

They can create confusion among consumers due to their variety. Signup and view all the answers

What is a significant factor regarding Scope 3 emissions highlighted by PWC?

They include emissions that occur in a company’s value chain. Signup and view all the answers

What characterized the corporate environmentalism phase of the 1980s and 1990s?

A proactive integration of environmental concerns into business processes Signup and view all the answers

What is a significant trend in companies' approach to climate issues as noted in the content?

Some companies are proactively supporting carbon pricing Signup and view all the answers

Which of the following best describes the corporate response during the 2000s?

Integration of environmental and social issues within a globalized context Signup and view all the answers

What example illustrates lobbying against strict environmental regulations?

The actions of 'merchants of doubt' Signup and view all the answers

What is the purpose of environmental value-added tax as discussed?

To tax environmental damage proportionally Signup and view all the answers

What potential advantage might companies experience by transitioning to a zero-carbon world?

Access to a variety of low-carbon products Signup and view all the answers

What distinguishes the corporate environmentalism of the 1960s and 1970s?

Emphasis on regulatory compliance and legal obligations Signup and view all the answers

Which organization consists of multinational companies advocating for carbon pricing?

Carbon Pricing Leadership Coalition Signup and view all the answers

What is the primary advantage of carbon pricing for firms?

It provides a flexible and business-friendly approach to carbon targets. Signup and view all the answers

What does the term 'strong sustainable business' imply?

An organization that balances environmental, social, and economic value creation. Signup and view all the answers

How is corporate social responsibility (CSR) typically characterized?

As a series of voluntary practices by firms with stakeholder involvement. Signup and view all the answers

According to the International Institute for Sustainable Development, what does corporate sustainability aim to achieve?

Meet the needs of today while enhancing future resources for stakeholders. Signup and view all the answers

What criticism do some authors have regarding corporate environmentalism?

It may soften and hollow genuine sustainability discourse. Signup and view all the answers

What does the 'Triple Bottom Line' concept emphasize?

The integration of economic, environmental, and social considerations in business operations. Signup and view all the answers

Which statement best describes the concept of command-and-control approaches to carbon reduction?

They can contribute to deadweight loss compared to market-based solutions. Signup and view all the answers

Which aspect is considered crucial in corporate sustainability strategies?

Engaging a diverse set of stakeholders in strategic decisions. Signup and view all the answers

Study Notes

Topics in Economics and Environment Jour

The course is taught by Philippe Roman at IHEC Brussels Management School.
The course will cover topics related to economics and the environment.

What is a sustainable business?

The definition of a sustainable business is not explicitly provided.

Corporate Responsibility and Sustainability: An Introduction

The history of corporate environmentalism is discussed in three waves.
- The first wave (1960s-1970s) was focused on regulatory compliance and legal obligations.
- The second wave (1980s-1990s) focused on strategic management, with a more proactive approach to incorporating environmental concerns into process and product choices. (Examples include Bhopal and Exxon Valdez events).
- The third wave (2000s) incorporated both environmental and social issues in a globalized economy.

Companies between denial and active engagement

Many multinational companies have lobbied against stricter environmental regulations.
Some companies actively campaign for carbon pricing (Examples: Carbon Pricing Leadership Coalition and Kaya Coalition - Belgium).

Companies between Denial and Active Engagement (cont'd)

Carbon pricing is considered a preferred solution to the climate crisis.
Big companies are committing to green policies.
Carbon pricing offers a more flexible and business-friendly approach compared to command-and-control strategies.

Early Warnings and Emerging Accountability: Total's Responses to Global Warming

Total received early warnings of global warming as early as 1971.
Total's internal publications expressed concern about the potential consequences of rising carbon dioxide levels in the atmosphere including fears of partial polar ice cap melting, which can lead to sea level rise.
The article "Atmospheric pollution and climate" from 1971's Total magazine, highlighted the growing concern about carbon emissions.

Waves of corporate environmentalism (continued)

Some authors argue that companies have simplified their environmental or sustainability discourse in a way that hides or softens the original intent.
Different types of sustainability discourses exist (e.g. individualism & whataboutism, climate delay, technological optimism, social justice).

Defining corporate sustainability

The International Institute for Sustainable Development (IISD) defines corporate sustainability as business strategies and activities that meet the needs of the enterprise and its stakeholders today while preserving the resources for the future.
Upward and Jones define a strong sustainable business as one which creates positive social, environmental, and economic value across its network, thus maintaining the possibility of human and other life thriving on Earth forever.

John Elkington and the Triple Bottom Line

John Elkington developed the concept of the Triple Bottom Line (TBL) which measures a company's performance on three dimensions:
- People
- Planet
- Profit

CSR refers to decentralized and voluntary practices by firms.
ISO 26000 provides guidelines for CSR, including a diversity of stakeholders in firm decision making.
International institutions have championed CSR, but its influence on the business landscape is limited.

ISO 26000

ISO 26000 provides guidelines for social responsibility
The ISO 26000 standard is a key tool for companies committed to operating in a socially responsible manner.
The standard incorporates seven key themes which include: governance, human rights, labor practices, environment, fair operating practices, consumer issues and societal engagement.

Environmental Labeling

There is tension between the diversity and trustworthiness of environmental labels.
Brands often create their own, which can lead to complexity in the evaluation criteria for customers.
Policies (e.g., EU’s energy label, France's repairability index) mandate information for products.

Doing business in the Doughnut?

The video and document on "Doing business in the Doughnut" provides insight into 21st-century business models and current obstacles to sustainable development.

Sustainable business models (in their context)

Businesses should consider the context of its operations, taking spatial and temporal dynamics into account.

Ecologies of business models

Product design, value chains, infrastructure, business model dependency, business interactions, rebound effects must be considered during business model design.

Key questions associated with The Ecology of Business Models Experimentation (EBME) mapping

Questions for analyzing, designing, and experimenting with business models are provided to guide the process.

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Description

Test your knowledge on the interconnection between economics and environmental sustainability. This quiz includes topics like corporate responsibility, sustainable business practices, and the historical evolution of environmentalism in corporate strategy. Perfect for students of the course taught by Philippe Roman at IHEC Brussels Management School.