Businesses and the Environment

The necessity of business cannot be disputed has its enhance the growth of economic and social wellbeing of a region. Businesses have grown over the years as technologies keeps advancing. In a review of this it will be discussed how the environment is influencing business And how businesses affect the environment.

The roles of business towards economic building has made region neglect the effect and damages caused. In Nigeria, many industries have settled down over the years since it’s a region of rich mineral resources therefore amounting to manufacturing industries produces good which Are non-environmental friendly products.

The base of this study and report will be divided into two as my case study is from two different regions in Nigeria. Firstly we will be discussing of the southwest geopolitical zone which home the highest numbers of industries the reason for this exploration centers back on it vast area of land space and its road network which shares a border with other countries via land and water.

This state has prioritize more on industrialization due its high rate of revenue generated to run her affairs neglecting the effect on environment but us looking from two ends we would say that the environment influences business and has also high effect on the environment. In 2011 this region tend to increase in global warming which result into migration of residents to other region which ended up a declaration from the governor to firmly sensitize people on tree planting. Setting asides examples in the picture he also made decree of many in reduction of pollutant and diversion of energy. The environmental pollution decree was established and reviewed.

It also had high effect on agriculture as many plants seems not survive in this region to the high disposal of chemical waste, making food expensive to purchased and increases the standard of living. Other aspect  were really affected as tourist Centre and wildlife conversation areas were exploited by deforestation making inhabitant leave such region in mass. The way out will be reviewed at the end of this report.

HOW BUSINESS AFFECTS ENVIRONMENT

·         Heating and air conditioning systems pump greenhouse gas emissions from offices into the atmosphere and use up vast amounts of electricity. Many buildings aren’t designed to include energy-efficient systems or technology to reduce the amount of heat and air conditioning they use.

·         Many buildings are built from materials that don’t come from renewable sources.

·         Office buildings have a huge appetite for electricity to power lighting, air conditioning, computers, printers, and photocopiers. Equipment may be left on 24 hours a day, seven days a week — even when no one’s working.

·         Offices consume vast amounts of paper. Even with more offices recycling paper, a large amount of paper waste still goes to landfill sites or incinerators.

·         In addition to paper, offices produce a lot of other waste, including equipment (especially computers), because companies regularly upgrade their equipment to stay competitive. Electronics such as photocopiers and computers can end up in landfills, where they don’t break down and, even worse, can leach harmful chemicals into the ground and water.

·         Rush-hour traffic jams in towns and cities are full of people trying to get to work — wasting time and polluting the atmosphere.

·         resources such as timber, oil and metals are used to manufacture goods

·         manufacturing can have unintended spillover effects on others in the form of noise and pollution

·         land is lost to future generations when new houses or roads are built on greenfield sites

 

The unintended negative effects of business activity on people and places are called social costs and include:

·         noise

·         pollution

·         visual blight

·         congestion

HOW THE ENVIRONMENT AFFECT BUSINESSES

Top environmental issues are centered on climate change these days. Greenhouse gas emissions, which accelerate global warming, are at a level that significantly exceeds the highest concentrations in ice cores ever recorded, according to Business Insider.

As climate change continues, the costs have nowhere to go but up. This includes the cost of doing business. With top environmental issues becoming increasingly urgent, all kinds of businesses will suffer, including our own. The following five issues are the most likely to affect business going forward.

1. Demographic Displacement

Rising sea levels are one of the top environmental factors that threaten business as usual. Your marketing department has the flexibility to follow its target market from north to south, urban to rural, but vast migrations of people in coastal cities would be difficult if not impossible to track, especially when they are fleeing flooding or the threat of severe storms. Natural disasters brought about by a warming planet could cause the disintegration of your company’s client base.

Similarly, residents of areas experiencing severe drought will be displaced and forced to relocate, further disrupting your company’s carefully planned marketing outreach. In addition, theWorld Health Organization reports an increase in infectious disease due to climate change that would certainly affect consumer markets.

 

2. Shifting Food Supply

Agriculture and fisheries depend upon specific climatic conditions, according to the EPA. Warming seawater is bringing about shifts in ocean ecosystems. If you own a restaurant, provide food service or cater executive events, scarcity of shellfish, salmon, halibut, tuna and other ocean catches will force menu changes and ultimately make it more difficult for you to supply your clientele.

Climate change affects crop yields, too, causing shortages in the food supply chain as well as losses for farmers. Business Insider reports that as much as 63 percent of the world’s top wine-growing regions may be in jeopardy by mid-century because grapes are extremely sensitive to changes in temperature.

Drought conditions are already driving changes in agricultural regions. Over the next few decades, global warming will negatively affect most crops and livestock, according to the U.S. Department of Agriculture. Farmers will be forced to adjust to the warming environment by making changes in the crops they grow. The stress of increasing temperatures is likely to influence the growth, fertility and performance of livestock raised for food. Costs for comestibles will rise, and supplies are likely to become scarce. Business owners will need agility to keep pace.

3. Inflation

Direct and indirect increases in the cost of food and goods typically follow supply shortages, and inflation affects all aspects of the economy.

Time magazine reports that researchers project a 23 percent drop in the average salary by 2100 due to climate change. It follows that the average business will experience a drop in revenue as well. Throughout the world, productivity depends on a climate that fosters those conditions where people perform the best. Rising temperatures are likely to affect how well people can do their jobs, how hard they are able to work and how effective they can be.

The choice right now is not one of the economy or the environment. Instead, it is a matter of protecting the environment to safeguard the future economy. If the federal government took steps now to mitigate future inflation due to a changing climate, it might be able to minimize economic crisis. If it does nothing, it will pay double once the economy reacts to the disruption of warming temperatures.

4. Uncertainty

The uncertainty that climate change brings about is one of the most compelling ways the environment will affect your business, according to Triple Pundit. With business and industry unable or unwilling to reduce their greenhouse gas emissions to the level that would significantly slow climate change, the future is uncertain and risky. The type, timing, locations and magnitude of changes due to global warming are difficult to predict and even harder to prepare for. Many businesses are likely to hunker down until these effects become clear, slowing the economy and precluding growth. Others may take leaps of faith that do not pan out, thus experiencing significant losses.

Civil unrest will increase with the uncertainty of a changing climate. Compounded with rising sea levels that cause displacement and drought that exacerbates famine and disease, civil unrest disrupts business as usual with looting, theft and destruction of property. If your establishment is a storefront, it could suffer physical destruction. If it is online, it could be hacked and your customers’ sensitive personal information stolen. When crisis triggers people’s survival instincts, fear and uncertainty drives aberrant behavior and lawlessness.

5. Expense

Depending upon the kind of business you own, you may need to budget for equipment upgrades or retrofits to make it cleaner and greener, according to Investopedia. Throughout the world, leaders are pledging to reduce those emissions that insulate the earth and accelerate climate change. If you own a delivery business, for example, you may face replacement of your fleet with hybrid or electric vehicles to reduce carbon emissions. If you are in manufacturing, you may have to retrofit your machinery to comply with stricter environmental regulations. For more ideas on making your business greener

The U.S. alone must cut 80 percent of its greenhouse gas emissions, and that represents a big expense for taxpayers, according to the National Resources Defense Council. It projects that the cost of water for the nation will near the trillion dollar mark by the year 2100, an over four-fold increase compared to today. The expense of real estate losses will multiply by a factor of 10 and storm damage by a factor of 40.

My second case study was from the north central region which is also a business hub but the environment influencing business as people and investors to migrate more into this region for the increase in job creation and fast growth of business, though a home of agriculture many industries prefer more to produce environmental friendly products which have her consumers around making a real increase in production. Physical observation as towards afforestation which reduces desertification and reduces wind break. In years to come more migrant are likely to come in due to what makes the environment influences business.

WHAT MAKES THE ENVIRONMENT INFLUENCES BUSINESS

·         Ethical businesses are careful to minimize the impact of their behavior on the environment.

·         Government laws are used to protect the environment. For example, firms must apply for planning permission before building factories or offices on Greenfield sites. Grants are available to encourage firms to locate on brownfield sites, run down areas in need of regeneration. Environmental Protection According to the U.S. Environmental Protection Agency, industrial facilities in the U.S. produce and dispose of around 7.6 billion tons of industrial solids annually. Air pollution from factories has been the main culprit for damage to vegetation and crops and health issues for humans. Waste discharged into bodies of water might be toxic for some organisms in large amounts. The U.S. utilizes the world’s resources at a disproportionally high rate to maintain its standard of living, and the EPA creates standards, publicizes regulations and enforces laws to protect the environment. Business owners must follow these laws, which were designed according to business sector.

·         Social benefits are business activities that have a beneficial or favourable impact on people or places. For example, a business start up can have a multiplier effect. Suppliers will win new trade from them and the new workforce will become customers in the local shops. A proposed project often generates both costs and benefits. For example, building a new factory on a Greenfield site creates social benefits in the form of new jobs. However, the loss of open land is a social cost. Building is justified only if the benefits exceed the costs.

·         Short and long-term environmental effects Some business activity can cause short-term environmental costs which can be put right in the longer term. For example, the impact of cutting down forests for timber is much reduced if young trees are planted in their place and left to grow into maturity. Some trees, such as pine, grow quickly and can be considered a renewable resource. Other resources, such as mahogany, take hundreds of years to grow and so are non-renewable in our lifetime. Resources like oil that can only be used once are non-renewable.

·         Reduction of business activity that will make the environment unsustainable. Sustainable growth means meeting the needs of the present without compromising the ability of future generations to meet their own needs.

·         Consumer Attitude: Due to consumers' increasing environmental awareness, eco-labeling, environmentally friendly products and green packaging are big movers in the market. Companies create these products to preserve and prevent degradation of the environment. A 2008 survey conducted by Yale University shows most Americans are willing to purchase products that are environmentally friendly, such as automobiles, computer printer paper and laundry detergent. Although these consumers also consider the quality and price of the product, many Americans are willing to pay more for green products.

·         Green Management Practices: Small businesses are adopting environmentally sound business practices to reduce environmental impact and increase operating efficiency. These practices include complying with environmental regulations, conserving water, reducing greenhouse emissions and practicing reduce, reuse and recycle. Many business owners also are implementing environmental management systems. EMS encourages a company to continuously improve its environmental performance. Through this program, company employees become more aware of environmental issues, which improves the company’s image with investors, regulators and the general public.

 

Conclusion

Top environmental factors that will affect your business include storms, loss of resources, inflation, and scarcity of food and water. These economic concerns are likely to be secondary to the risks to human health. As NRDC states, the longer people wait to address these factors, the more expensive a final solution will be – for the economy, for society and for the earth itself

Many business operations depend on the environment, as it can be the primary source of raw materials and can affect business processes. Companies around the world are integrating environmental interest with business and are becoming proactive in finding ways to reduce environmental impact. Additionally, consumers are favoring businesses that contribute to protecting natural resources. How your company addresses environmental issues affects the turnout of your business.

In 2005, Hurricane Katrina, the costliest and one of the deadliest natural disasters in the history of United States, struck Louisiana, Florida, Mississippi, Alabama, Georgia and other U.S. states and Canadian provinces. It prompted a gas and oil shortage, disrupted air travel and caused big damage to insurers. Due to high energy prices, companies spent less for hiring. It was a big blow to the U.S. economy, with a total property damage amounting to almost $100 billion. As a business owner, you must recognize the need to be prepared for such events, whether they may affect you directly, your suppliers or your customers.