Sustainability (AQA GCSE Business)
Revision Note
An Introduction to Sustainability
Sustainability means meeting our current needs without compromising the ability of future generations to meet their own needs
Businesses can contribute to sustainability by changing their operations in a variety of ways
Diagram: Improving Sustainability
Businesses can contribute to sustainability in a range of ways
Using renewables in production
More than 99% of the wood used in IKEA's furniture products is either sourced from sustainable sources or recycled
Reducing water use in industrial processes
Introduced in 2011, Levi's Water<Less programme reduces the use of water in the manufacture of the company's denim products, so far saving over 4.2 billion litres of water in shortage areas
Using green transportation, such as electric vans
Almost 40% of delivery company Evri’s London vehicles are zero-emission and the company operates e-cargo bikes across four UK cities
Avoiding the use of toxic substances
Home accessories brand Parachute uses organically-grown textiles, with no harmful chemicals used at any stage of production
Using renewable energy, such as solar
Unilever uses 100% renewable electricity across all its factories, offices, R&D facilities, data centres, warehouses and distribution centres. They also generate their own solar power at production facilities in 23 countries.
Implementing recycling
Revive Innovations Ltd recycles compact discs, turning them into beautiful items of furniture and home accessories
Global Warming
Global warming is set to cause permanent changes to the world's climate and will have long-lasting impacts on businesses
The main impacts of global warming include:
Changes in weather patterns, including more extremes in temperature
Drought and increased instances of water shortages
Rising sea levels as a result of melting polar ice caps
For businesses, global warning may have some serious implications
Businesses in high-risk areas face more frequent disruption due to floods or intense heat conditions
Insurance premiums may rise, increasing business costs
Some businesses may relocate to less exposed regions or take advantage of changed climates in previously unsuitable areas
Sectors such as tourism may experience significant change
Travel patterns are likely to change as some previously unpopular regions become more attractive to tourism and some become inaccessible
Consumer desire to reduce their carbon footprint is likely to increase demand for greener transportation and accommodation
Long-haul destinations may attract fewer visitors as consumers become more aware of the impact of emissions from air travel
The use of Scarce Resources
Many of the earth’s natural resources are finite, which means that they will eventually run out
Examples of Scarce Resources
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Water |
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Oil |
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Natural gas |
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Phosphorus |
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Coal |
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Rare earth elements |
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In response to scarcity of resources, businesses can pursue a range of strategies
Adopt circular economy principles
Resources are kept in use for as long as possible, and waste is minimised, by reusing, repairing, refurbishing and recycling materials and products
Improve efficiency measures
E.g. installing energy-efficient equipment, redesigning production processes, and conserving water
Invest in sustainable alternatives
E.g. Using renewable energy sources, such as solar or wind power and switching to more sustainable raw materials such as organic cotton
Trade-offs between Sustainability & Profits
Adopting sustainable practices can involve significant upfront costs and operational expenses
Sustainable raw materials and components may be more expensive
Adapting production processes and machinery may require significant capital investment
These additional costs can potentially reduce profitability, at least in the short term
On the other hand, prioritising short-term profits over sustainability can lead to long-term consequences, such as resource depletion and environmental damage
This can create legal issues or cause damage to a businesses reputation
These factors undermine a company's long-term viability and profitability
Examiner Tip
Businesses face frequent trade-offs in decision-making. In many cases, they make compromises. When you're making a recommendation, it is a good idea to consider the possibility of compromise in your evaluation, as it demonstrates your understanding that decisions are not always clear-cut.
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