Environmental Considerations (OCR GCSE Business): Revision Note

Business impacts on the environment

• Businesses can have a range of negative impacts on the environment

• Pollution can be caused by industrial processes that release harmful gases into the air or harmful substances into the ground, which can run off into water courses

• Land and buildings can become unusable when businesses process dirty or toxic materials, leading to dereliction

• Traffic congestion can be caused by vehicles delivering materials to and from businesses, as well as by commuting employees

• Visual pollution is caused by unattractive buildings or business works that worsen inhabitants' views of their surroundings

• Consumer attitudes towards environmental responsibility have changed significantly in recent years

  • 80% of UK consumers expect companies to be environmentally conscious, and around 70% of consumers take steps to minimise their carbon footprint (Source: PwC Global Insights Pulse, 2021 (opens in a new tab)) by making more responsible buying choices

• Businesses are responding to consumer attitudes by taking steps to reduce their environmental impact

Sustainability

• Sustainability is the production of goods and services without compromising the ability of future generations to use natural resources to meet their needs

Examples of sustainable business practices

Pollution and waste disposal

• Environmentally responsible businesses take steps to prevent pollution and properly dispose of waste

  • Air pollution can be avoided in several ways:

    • The installation of filters on chimneys

    • Avoiding the use of fossil fuels or the burning of toxic materials

    • Purchasing or leasing electric vehicles for business use

  • Pollution of water courses can be minimised by:

    • Managing drainage systems effectively

    • Reducing the use of chemicals close to rivers and streams

    • Ceasing the discharge of waste water into the sea

  • Noise and light pollution can be reduced by:

    • Limiting access to business sites outside of normal working hours

    • Replacing noisy machinery

    • Installing soundproofing materials in business buildings

    • Planting trees or other noise barriers around business sites

    • Using reactive lighting systems that are powered only when used

Climate change

• Climate change is the long-term shift in global temperatures and weather patterns, caused in part by human behaviour

  • Temperature and sea levels are rising

  • Rainfall is increasing

  • Weather systems have become less predictable

• Businesses are likely to face significant negative impacts as a result of climate change:

  • Energy supplies and logistics may be disrupted due to unprecedented weather events, such as floods, hurricanes, typhoons or excessive temperatures

  • Food producers may face supply shortages as farming yields fall and land becomes unfit for use

  • Increased disease or illness related to climate change may create labour shortages

• Climate change may, however, create business opportunities

  • Changes in weather patterns may make previously unattractive areas suitable for tourism

  • Demand for insurance to protect against the impact of climate change is likely to increase

  • Construction companies involved in civil engineering projects, such as the building of dams or flood protection, are likely to receive more contracts

The impact of environmentally responsible behaviour

• There are some significant costs associated with operating in an environmentally responsible way, such as the cost of replacing equipment and implementing greener ways of working

• However, businesses that are environmentally responsible often benefit from long-term cost savings, reduce their level of risk, achieve a competitive advantage and gain an improved reputation

Evaluation of environmental responsibility in businesses