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Businesses and the Environment (Thematic Report)

by Shirin Shukhratova | 11-03-2021 23:16





All business interacts in one way or another and affects the environment. Sometimes positively, but in most cases negatively. Many businesses are reluctant to adopt new techniques and introduce environmental ethics. Some justify themselves with a lack of financial aid and some with competitors. Nevertheless, recent studies show that since 1988, only 100 companies are responsible for 71% of global greenhouse gas emissions.

However, what about that 29% of companies? Who are they? How do they take care of the environment? For example, Brothers We Stand, a British company, sells men's clothing that comes with a full breakdown of the social and environmental consequences of its production. You can easily find cheaper shirts from retailers with looser standards, but many customers are willing to pay more for the peace of mind that comes from buying something in harmony with their own values. And in August 2019, 32 fashion brands at once, including both luxury Chanel, Ralph Lauren and Prada, and mainstream H&M and Zara, signed the "Fashion Pact," aimed at reducing the industry's greenhouse gas emissions and promoting sustainability principles. Apple's 153 partners around the world recycle end-of-life electronics. The recycling program has diverted 151,504 tons of waste from landfills since 1994. The company recycles more than 70 per cent of its end-of-life gadgets and computers.

Sustainability is not only a new trend but also a vital necessity. Our planet's resources are dwindling and at rock bottom, and if we do not start trying something, it will all inevitably lead to terrible consequences. In addition, a recent study by New York University showed that it is sustainable and green products that are most popular.

Okay, we have learned that for corporations to take care of nature is necessary not only from a benefits standpoint but also from a business term. So how do we get started then? What attempts should we make? Here are a few options:

1. Investing in natural resources. Environmentally sustainable businesses should look for ways to reduce their use of fossil fuels by using natural or alternative fuels. In addition, companies should encourage employees to give up their cars and use bicycles or public transportation. 

2. Responsible Consumption.  Companies should encourage responsible consumption by educating consumers to make more informed decisions about their purchases, considering the place of origin, production conditions, ingredients, packaging, the sustainability of the product life cycle and other criteria related to environmental sustainability.

3. Resource substitution. Companies should reduce or replace their dependence on energy and materials derived from resources extracted from the bowels of the earth. This will help us solve the problem of the depletion of natural resources.

4. Replacing packages. There are 51 trillion micro plastic particles in the ocean today - 500 times the number of stars in our galaxy. Reuse or recycle packaging, replacing plastic packaging with eco-friendly materials that degrade quickly or, ideally, durable containers that can be reused will help our eco-system.

Of course, the above recommendations do not fit all businesses; they have to tailor everything individually by industry. Nevertheless, even putting just one of the recommendations into practice can make a big difference.

References: New York university survey https://fortune.com/2019/11/05/sustainability-marketing-consumer-spending/