ExpertExternal Influences – Environmental and Sustainability Factors
Learning outcomes
- Identify the physical ecological dependencies of businesses.
- Understand corporate green operating initiatives and waste management metrics.
The Physical Environment
Businesses rely on the physical ecology of the planet (raw materials, water, stable climate). Environmental factors include:
- Climate Change: Extreme weather disrupting supply chains.
- Resource Depletion: Scarcity of water or minerals driving up costs.
- Sustainability: Operating in a way that meets present needs without compromising future generations.
Which of the following is an ecological environmental factor that could negatively impact a global shipping company?
Sustainability is not just PR
Students often view sustainability purely as a marketing tool. In reality, it is a core operational risk metric. Poor waste management can lead to massive legal fines and loss of operating licenses.
Green Operating Initiatives
Companies are adopting 'green' metrics: carbon footprint tracking, circular economy models (recycling products at end-of-life), and zero-waste-to-landfill policies.
What is the primary concept behind a 'circular economy'?
Exam Focus
Be prepared to link environmental factors to financial outcomes. For example, investing in energy-efficient machinery has a high capital cost now, but reduces operational costs (electricity) in the long term.
A company implements a policy to achieve 'net-zero' emissions. What does this mean?
Which of the following is a 'push' factor forcing a company to become more environmentally friendly?
What is 'greenwashing'?
Ready to put this into practice?
Ready to test yourself?
ACCA BT — Business & Technology Practice Exam 3
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