Reducing Environmental Impact (AQA A Level Business): Revision Note

Waste reduction

• Waste reduction means cutting the amount of materials, resources or products discarded during production or operations, before they become waste needing disposal

Examples of ways to reduce waste

Improving production processes

• Adjusting machinery settings, cutting offcuts more precisely, or better staff training

• This reduces the amount of material wasted during manufacturing and means less scrap needs to be disposed of or replaced

Redesigning packaging

• Using less material, simpler designs or recyclable packaging

• This cuts the volume of packaging waste created per product sold and often lowers material costs at the same time

Diverting surplus inventory to be reused rather than thrown away

• Donating, reselling or repurposing unsold or excess inventory

• This keeps it out of landfill and can generate goodwill or additional revenue instead of needing to be written off

Example

Tesco has cut food waste in its own operations by 45% since 2017 and redistributed more than 25,000 tonnes of surplus food through charities such as FareShare in 2023/24

Advantages and disadvantages of reducing waste

Resource efficiency

• Resource efficiency means using the minimum amount of inputs, such as water, energy or raw materials, to produce a given level of output

• Increasing resource efficiency reduces both environmental impact and the ongoing cost of running operations, since fewer resources need to be bought

Example

Coca-Cola has reduced the water used to make its drinks from 2.7 litres per litre of product to 1.4 litres in some factories, and aims to reach an average of 1.7 litres by 2030

Reducing emissions

• Reducing emissions means lowering the amount of harmful gases, such as carbon dioxide, released into the atmosphere by a business's operations

Examples of ways to reduce emissions

Switching to cleaner energy sources

• Replacing fossil fuels with renewable sources such as wind, solar or hydroelectric power

• This cuts the carbon dioxide released by a business's operations, alongside long-term energy savings

Improving vehicle and equipment efficiency

• Upgrading to more efficient engines, electric vehicles or better-maintained machinery

• This reduces the fuel or energy needed to do the same amount of work, lowering emissions per unit produced

Changing production methods

• Adopting processes that use less energy or fewer high-emission materials

• This reduces a business's overall emissions without necessarily reducing output

Example

Ørsted transformed itself from one of Europe's most fossil-fuel-reliant energy companies into a global leader in offshore wind power, cutting its emissions by 98% and closing its last coal-fired power plant in 2024

Reducing carbon footprint

• A carbon footprint is the total amount of greenhouse gases produced directly and indirectly by a business's activities, including its supply chain, not just its own operations

Examples of ways to reduce carbon footprint

Choosing lower-carbon suppliers

• Selecting suppliers who use cleaner energy or more efficient processes

• This lowers the emissions in bought-in materials and components, reducing a business's carbon footprint beyond its own operations

Changing transport methods

• Switching to lower-emission methods, such as rail or electric vehicles instead of diesel lorries or air freight

• This cuts the emissions created by moving materials and products through the supply chain

Example

Google has been carbon neutral since 2007 and is aiming to run entirely on carbon-free energy across all its data centres and offices by 2030

Sustainable sourcing

• Sustainable sourcing means buying materials, components or products from suppliers that meet recognised environmental and social standards, rather than from the cheapest available source

Examples of ways to source sustainably

Sourcing from certified suppliers

• Buying from suppliers with recognised certifications, such as Fairtrade or FSC

• This gives a business independent assurance that environmental and social standards are being met, without needing to verify this itself

Auditing supply chains

• Regularly checking suppliers' practices, either directly or through a third party auditor

• This helps a business confirm that standards are actually being followed and catch problems before they cause reputational damage

Building long-term relationships with responsible producers

• Working closely with the same trusted suppliers over time

• This makes it easier to maintain consistent standards and ensure reliable access to sustainably produced materials

Example

IKEA sources 96.5% of the wood used in its products and packaging from FSC-certified or recycled sources, helping protect forests from illegal or unsustainable logging

Circularity

• Circularity (or the circular economy) means designing products and processes so that materials are reused, repaired or recycled at the end of their life, rather than thrown away

  • This reduces the need for new raw materials and cuts the amount of waste sent to landfill or incineration

• Adopting a circular business model requires a shift in mindset, including

  • Involving multiple stakeholders including businesses, governments, consumers and investors

  • Rethinking business processes, product design, supply chains, and waste management practice

Principles of a circular business model

Example

Adidas has partnered with Parley for the Oceans to make trainers using recycled ocean plastic, turning waste plastic and old fishing nets into a recycled yarn used in its products