Our planet is plagued by environmental problems that deplete natural resources and strain livelihoods, many of which are exacerbated by poor industrial practices. If left unchecked, environmental problems negatively impact businesses both directly, as in supply chain disruptions, and indirectly, as in health hazards that lead to loss of man-hours and efficiency. Following are some common environmental problems that businesses need to address to ensure sustainability and long-term financial viability.

Pollution

Pollution is one of the world’s biggest environmental problems, as it tends to be a typical byproduct of modern life. Air pollution, for instance, is the result of fossil fuel combustion, as well as various gases and toxins released by industries and factories.

Below are the most common air pollutants today, as well as a discussion of their source processes and effects on health:

• Ozone – A colorless, odorless gas generated when nitrogen oxides (found in motor vehicles and industrial machinery) and volatile organic compounds (found in gasoline, paints, inks and solvents) are exposed to sunlight. Inhaling ozone can trigger health problems including chest pain, cough, throat irritation and congestion, bronchitis, asthma and emphysema.
• Carbon monoxide – A poisonous gas produced by the incomplete combustion of fossil fuels. When inhaled, carbon monoxide reduces the blood’s oxygen-carrying capacity. Exposure to high levels of carbon monoxide can cause death. Aside from being highly toxic, carbon monoxide is colorless, odorless and tasteless, therefore often referred to as the “silent killer”.
• Nitrogen dioxide – A highly reactive gas formed when fuel is burned at high temperatures (such as in motor vehicle exhaust, electric utilities and industrial boilers). Nitrogen dioxide reacts with water and oxygen to make nitric acid, one of the main components of acid rain. Nitrogen dioxide can irritate the lungs and increase susceptibility to respiratory ailments.
• Particulate matter – Very small solid particles and liquid droplets suspended in the air. Short-term exposure to particulate matter can cause irritation to the eyes, nose and throat, as well as heart and lung ailments. Prolonged exposure can lead to hospital admissions and premature death due to cardiovascular and respiratory diseases.
• Sulfur dioxide – A highly reactive and pungent-smelling gas formed by the incineration of fossil fuel at industrial facilities such as power plants. Other processes that generate sulfur dioxide are sea spray and the decomposition of organic matter. Inhalation of sulfur dioxide can cause wheezing, chest tightness and shortness of breath, as well as heart and lung ailments.
• Lead – A common ingredient in many manufactured products. Gasoline and paint are the major sources of lead emissions. Exposure to lead can cause kidney disease, nervous system disorders, mental retardation, learning disabilities, miscarriage, stillbirth, premature birth and death.

Pollution and modern living seemingly go hand-in-hand, but the costs of air pollution can no longer be ignored. According to a 2012 study by the Massachusetts Institute of Technology (MIT), air pollution cost the Chinese economy $112 billion in 2005 . In Hong Kong, medical bills and productivity loss due to air pollution amounted to HK$39.4 billion in 2013 .

The costs of pollution go beyond medical bills and loss of productivity. Heavily polluted areas make it difficult for companies located there to hire and retain workers, forcing them to pay higher wages to attract and keep employees. In addition, unchecked pollution can temper investors’ interest. To produce their products safely, companies in heavily polluted areas may need to close shop and move their operations to less polluted locations.