Podcast
Questions and Answers
What is a significant challenge faced by fair trade initiatives?
What is a significant challenge faced by fair trade initiatives?
What does the concept of Corporate Social Responsibility (CSR) entail for corporations?
What does the concept of Corporate Social Responsibility (CSR) entail for corporations?
What is one of the components of the Triple Bottom Line (TBL)?
What is one of the components of the Triple Bottom Line (TBL)?
What must a responsible company be willing to do in relation to its customers?
What must a responsible company be willing to do in relation to its customers?
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Which initiative provides guidelines for businesses regarding their ethical responsibilities?
Which initiative provides guidelines for businesses regarding their ethical responsibilities?
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What is a common characteristic of businesses like Co-operatives and B-corps?
What is a common characteristic of businesses like Co-operatives and B-corps?
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Which factor is often prioritized over environmental objectives by most companies?
Which factor is often prioritized over environmental objectives by most companies?
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What is an essential step for companies to demonstrate environmental responsibility?
What is an essential step for companies to demonstrate environmental responsibility?
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Which policy framework is aimed at promoting global sustainable development?
Which policy framework is aimed at promoting global sustainable development?
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What is the primary challenge in implementing a Broader Social Responsibility Model in large organizations?
What is the primary challenge in implementing a Broader Social Responsibility Model in large organizations?
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Which of the following companies demonstrates values beyond just maximizing wealth?
Which of the following companies demonstrates values beyond just maximizing wealth?
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What is one aspect of environmental accounting as a policy response?
What is one aspect of environmental accounting as a policy response?
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Which of the following is NOT one of the UN Sustainable Development Goals mentioned?
Which of the following is NOT one of the UN Sustainable Development Goals mentioned?
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What are upstream emissions in the context of Scope 3 emissions reporting?
What are upstream emissions in the context of Scope 3 emissions reporting?
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Which principle emphasizes taking preventative action despite uncertainties?
Which principle emphasizes taking preventative action despite uncertainties?
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Why is environmental management considered necessary?
Why is environmental management considered necessary?
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What does eco-footprinting measure?
What does eco-footprinting measure?
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How does integrated environmental management differ from other approaches?
How does integrated environmental management differ from other approaches?
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What is a potential disadvantage of internet reporting for environmental data?
What is a potential disadvantage of internet reporting for environmental data?
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Which of the following is an example of the Polluter Pays Principle?
Which of the following is an example of the Polluter Pays Principle?
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What is the focus of the prevention principle in environmental management?
What is the focus of the prevention principle in environmental management?
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What is the main focus of BS7750, the first major environmental management standard?
What is the main focus of BS7750, the first major environmental management standard?
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What distinguishes EMAS from ISO 14001?
What distinguishes EMAS from ISO 14001?
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What is a key requirement of ISO 45001?
What is a key requirement of ISO 45001?
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What is the main advantage of incorporating sustainability managers into business governance?
What is the main advantage of incorporating sustainability managers into business governance?
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What does a sustainable business model aim to achieve beyond economic value?
What does a sustainable business model aim to achieve beyond economic value?
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What is one potential cost associated with EMAS registration?
What is one potential cost associated with EMAS registration?
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What is a core aspect of transforming dis-value into value in sustainable business practices?
What is a core aspect of transforming dis-value into value in sustainable business practices?
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Which standard does NOT require specific reporting obligations?
Which standard does NOT require specific reporting obligations?
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What is an important aspect of shifting towards circular business models?
What is an important aspect of shifting towards circular business models?
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What does ISO 26000 focus on?
What does ISO 26000 focus on?
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What was a significant outcome of the Fukushima Disaster?
What was a significant outcome of the Fukushima Disaster?
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What was one of the main consequences of the Deepwater Horizon Disaster?
What was one of the main consequences of the Deepwater Horizon Disaster?
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What does the Hydro Alunorte Disaster illustrate regarding environmental conditions?
What does the Hydro Alunorte Disaster illustrate regarding environmental conditions?
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What health issues were linked to the Texaco (Chevron) Disaster in Ecuador?
What health issues were linked to the Texaco (Chevron) Disaster in Ecuador?
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Which disaster raised concerns about safety standards in nuclear production?
Which disaster raised concerns about safety standards in nuclear production?
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In relation to environmental pollution, what issue did the Hydro Alunorte disaster expose?
In relation to environmental pollution, what issue did the Hydro Alunorte disaster expose?
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What major health concern resulted from the Union Carbide - Bhopal India Disaster?
What major health concern resulted from the Union Carbide - Bhopal India Disaster?
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What kind of environmental damage was primarily caused by the Deepwater Horizon spill?
What kind of environmental damage was primarily caused by the Deepwater Horizon spill?
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What is the primary goal of the European Green Deal?
What is the primary goal of the European Green Deal?
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Which of the following is NOT considered an ethical strategy for investment?
Which of the following is NOT considered an ethical strategy for investment?
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What does the EU Eco-Management Audit Scheme (EMAS) require that ISO 14001 does not?
What does the EU Eco-Management Audit Scheme (EMAS) require that ISO 14001 does not?
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How does the EU Taxonomy help investors?
How does the EU Taxonomy help investors?
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Which aspect of environmental risk assessment is primarily evaluated?
Which aspect of environmental risk assessment is primarily evaluated?
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What is a key characteristic of ethical/sustainable investment?
What is a key characteristic of ethical/sustainable investment?
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What is the primary function of the European Sustainability Reporting Standards (ESRS)?
What is the primary function of the European Sustainability Reporting Standards (ESRS)?
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What does ethical investment primarily depend on?
What does ethical investment primarily depend on?
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Study Notes
Sustainability Management
- Treating the planet as if we intended to stay
- Effects of current business practice -> short-term focus on financial/economic goals rather than long-term focus on environmental and social issues
- Trying to change business practices to reduce problems -> Environmental accounting, altering priorities, and environmental management
- Developing businesses that include the social and environmental aspects -> fair trade, EM, and reporting, measuring environmental impacts, and ethical/sustainable investments
- Understanding the business implications of environmental issues
- Sustainability Management is needed because the current situation/world is not perfect and mainstream accounting and finance theory fails to include environmental and social impacts and risks.
- Systems Theory: everything is interlinked, therefore we can't fully understand business without understanding nature and an overall interdisciplinary understanding of social, environmental, and economic issues.
Economics of Renewable Energy
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Solar Power
- New utility-scale solar PV has lower generation costs than new coal & natural gas plants => solar is becoming more economical (LCOE = Levelized Cost of Energy) => competitive
- Energy Payback < 1.5 years
- Benefits: very low GHG emissions, renewable resource/“unlimited supply,” higher efficiency/less wasted energy (compared to fossil fuels and wood), avoids hidden costs (e.g., respiratory disease, toxic waste, etc)
- China is currently the largest producer and installer of PV panels
- Lots of potential for installation expansion in India
- US is the leader in “thin film” technology (First Solar)
- Solar panels are more economical/popular in sunnier and warmer areas (e.g., Spain, Greece, Chile, Florida, Arizona, Nevada, etc)
- Environmental Impacts
- Significantly lower impacts than coal, oil, natural gas
- Toxic chemicals are used in solar cell production -> concerns with recycling/disposal
- Possible conflicts with water use and land use
- Low emissions in air/water during operation; still emissions in production
- Types of Solar: Photovoltaic panels (thin-film, silicon-based, etc); solar thermal; passive heat; rooftop solar
- PV requires "daylight" not "sunlight"
- Solar panels have more pure substances, which make them easier to recycle than wind turbine blades
- Many interests to balance (Climate crisis, secure energy supply, affordable electricity prices, avoid loss of nature, geopolitical issues, local needs, and priorities)
-
Wind Power
- New onshore wind installations have lower generation costs than new coal & natural gas plants
- On-shore wind is often slightly cheaper than Solar PV (unless in a prime location for solar)
- On-shore wind is currently more economical in Canada/Northern Europe (where there is less sun and more snow)
- China is the biggest installer of wind power, and has 4 of the top 5 wind manufacturers (e.g. Goldwind and Envision)
- Vestas and Siemens Gamesa are large European wind manufacturers (GE Renewable Energy is another top manufacturer (US/France))
- The US is the second leading wind power installation country (on-shore)
- Benefits: low GHG emissions, enough wind potential to power all global electricity needs, economically competitive, relatively fast and easy to construct, low environmental externalities
- Approximately 30% capacity/load factor => efficiency of electricity generation (solar PV is more efficient -> less energy loss)
- Many different sizes of turbines; currently developing larger off-shore turbines and onshore too
- Testing alternatives like floating wind or airborne wind too.
- Off-shore wind: higher operating costs (maintenance), but popular because of stronger winds, more space, and less opposition -> large potential (in the US), and costs are coming down
Fair Trade and Social Responsibility
- EU Social Taxonomy: decent work, adequate living standards and wellbeing for end users, and inclusive and sustainable communities and societies
- Modern slavery -> illegal cheap labor for profit-maximizing companies
- Difficult to quantify (definition of slavery, documentation, etc), but is present in every country
- Common in cocoa, cotton, and other agricultural industries & manufacturing
- Abuse of human rights
- Slavery is worse in some regions because of a cultural tradition of slavery/forced marriage (e.g. the Middle East)
- What can be done:
- Buying fairtrade products
- Improving education
- Fighting poverty
- Insisting on fairness and social responsibility in business
- Enforcement from police and customs against human-trafficking
- Providing honest and good job opportunities for poor people
Environmental Management Accounting and Investment
- Ethical Investment: approach to investing that includes ethical/environmental goals in addition to conventional financial criteria
- Sustainable Investment: uses the EU environmental and social taxonomy to define a sustainable fund
- Socially Responsible Investment (SRI) = investing money in companies that have a positive social (including environmental) impact -> promotes environmental management and reporting
Environmental Policy, Objectives, and Reporting
- Business matters a lot!
- Company/Firm Objectives -> three different views
- Shareholder Model/Theory = maximizing the value for shareholders
- Stakeholder Model/Theory = considers the interests of other groups that impact or are impacted by the firm, not just shareholders/investors
- Broader Social Responsibility Model/Theory = firm should overall benefit society instead of damaging it for profits
- Environmental Responsibility of Business: recognize problems, take steps to mitigate harm, reduce/restrain use of resources, operate in an ecologically sustainable manner, etc.
- Any size firm can do sustainability reporting.
- Global, Regional, and National Policy
- Agenda 21 (United Nations - Sustainable Development Policy)
- UN Sustainable Development Goals (address massive social and environmental challenges)
Environmental Management
- Environmental accounting can focus on the national, firm, or division level
- Environmental issues affect accounting, management accounting, and financial accounting
- Environmental costs:
- Direct costs
- Indirect costs
- Hidden costs
- Contingent costs
- Image/relationship costs
- Societal costs
- Full cost accounting: attempt to measure ignored environmental costs
- Material Flows of a company/product
Environmental Policy Reporting and Related Standards
- Compliance
- Performance against law, codes of practice and ethical / environmental policy
- Reporting
- Uniform reporting standards
- Many/many companies are reporting
- Reporting standards/directives (e.g., EU Eco-Management Audit Scheme (EMAS), Global Reporting Initiative (GRI), EU Corporate Sustainability Reporting Directive (CSRD), etc)
- Environmental management systems
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Description
This quiz explores the principles of sustainability management, emphasizing the importance of integrating environmental and social considerations into business practices. It delves into the impact of current financial-focused strategies and highlights the need for responsible, long-term business approaches that prioritize environmental health and social equity.
