Methods of Sustainable Production (Cambridge (CIE) IGCSE Business): Revision Note

Introduction to sustainable production

• Sustainable production occurs when a business produces goods and services in ways that do not harm the environment, society or future generations

  • It focuses on meeting current needs without using up natural resources or causing long-term damage

What sustainable production may involve

• These practices help protect the environment, improve a business’s reputation and may also reduce costs in the long term

Renewable energy

• Renewable energy comes from natural sources that will not run out, like the sun, wind, water and geothermal heat

• These sources are constantly being renewed by nature

How businesses use renewable energy

• Solar panels on buildings to generate electricity

• Wind turbines to produce power, especially for factories or large offices

• Hydroelectric power, if the business is located near rivers or dams

• Geothermal heating for buildings in suitable areas

• Buying green energy from suppliers who use renewable sources

Reducing resource use

• Reducing resource use means using fewer materials, water and energy when making goods or providing services

• It helps businesses cut waste, lower costs and protect the environment

• Businesses can reduce resource use in the following ways:

  • Designing products that use fewer materials

  • Reusing materials in production instead of using new ones

  • Improving efficiency, like using machines that need less electricity

  • Reducing packaging, or switching to recycled or recyclable packaging

  • Saving water, for example by using water-efficient systems

Reusing and recycling

• Reusing means using items or materials again instead of throwing them away

• Recycling is turning waste materials (like paper, plastic or metal) into new products

• Businesses reuse and recycle in the following ways:

  • Reuse packaging, containers, or leftover materials in production

  • Recycle waste, like paper, plastic, glass, or metal, either in-house or through recycling companies

  • Encourage customers to return used products (e.g. refillable bottles or old electronics)

  • Buy recycled materials to make new products

Developing environmentally friendly products

• Environmentally friendly products are designed to have less harm on the planet

  • They use natural or recycled materials

  • They are energy efficient

  • They create less waste or pollution

  • They are biodegradable or reusable

• These products help reduce environmental impact during use and after disposal

• Businesses develop environmentally friendly products in the following ways:

  • Use sustainable materials, like organic cotton or recycled plastic

  • Design products that last longer or are easy to repair

  • Replace harmful chemicals with natural alternatives

  • Offer refillable or reusable versions of existing products

Using environmentally friendly packaging

• Environmentally friendly packaging is made from materials that are recycled, recyclable, biodegradable, compostable or reusable

• It is designed to reduce waste and lower harm to the environment

• Businesses develop environmentally friendly packaging in the following ways:

  • Use paper or cardboard instead of plastic

  • Choose biodegradable or compostable bags

  • Offer refillable packaging or reusable containers

  • Use minimal packaging to avoid waste

  • Print with eco-friendly inks or labels

Advantages and disadvantages of sustainable production

• In 2024, 91% of new renewable energy projects were cheaper than fossil fuels

  • Solar was 41% cheaper and onshore wind 53% cheaper on average

  • These savings helped global businesses save up to $467 billion in fuel costs

• However, sustainable businesses often have a lot of extra work, like checking records and collecting data to make sure they pass regular audits

Evaluation of sustainable production

Greenwashing

• Greenwashing is when a business pretends to be environmentally friendly, but its actions do not match what it claims

  • For example, a company might advertise its products as eco-friendly when, in reality, they are not

• It is a way for businesses to attract customers who care about the environment, without making real changes to how they work

Problems of greenwashing

• Loss of trust

  • If customers find out the business lied, they may stop buying from it

  • Eco-conscious customers may share negative reviews or avoid the brand entirely

  • It can lead to bad publicity and complaints

• Legal trouble

  • In some countries, making false environmental claims can lead to fines or court action