Chapter 10

1. Chapter 10 Environmental Issues

2. Global Environmental Issues • Natural environment • The physical world, including all biological entities as well as the interaction among nature, individuals, and organizations. • Protection of air, land, biodiversity, water, and renewable natural resources. • Increasingly, companies are incorporating environmental issues into theiroverall business strategies.

3. Air Pollution - industrialization

4. Air Pollution - industrialization

5. Air Pollution - industrialization

6. Air Pollution - traffic

7. Atmospheric Issues • Air pollution arises from three different sources. • Stationary sources (factories and power plants) • Mobile sources (cars and trucks) • Natural occurrences (windblown dust, etc.) • Acid rain • Nitrous oxides and sulfur dioxides emitted frommanufacturing facilities react with air and rain. • Global warming • Carbon dioxide and other gases collect in the earth’s atmosphere, trapping the sun’s heat like a greenhouseand preventing the earth from cooling.

8. Sulfur Dioxide (SO2) Indicator

9. Methane Indicator

11. Leading Emitters ofGreenhouseGases (by 1,000 million tons)

13. Global Climate Change Initiatives • Kyoto Protocol • Multination agreement in 1997, went in to effect in 2005 • Requires industrial nations to reduce greenhouse gas emissions 5% below 1990 levels • European Union has taken lead on reducing emissions • As of 2009, 183 nations, had ratified • U.S. has not ratified, citing harm to U.S. economy

15. Participation in the Kyoto Protocol, where dark green indicates countries that have signed and ratified the treaty, yellow is signed, but not yet ratified, grey is not yet decided and red is no intention of ratifying.

16. Water Issues • Water pollution • Results when dangerous chemicals seep into rivers and oceans. • Sources include: • Disposal of of raw sewage and toxic chemicals. • Oil and gas spills. • Burial of industrial wastes. • Fertilizers and pesticides usedin farming also drain into water supplies. • Water quantity • Water usage is increasing. • Increased use changes environmental conditions.

17. Water Pollution

18. Mutated animals

19. Mutated animals

20. Climate Change Strategy

21. Land Issues • Land pollution • Dumping of residential and industrial waste, strip mining, and poor forest conservation. • Waste management • Disposing of waste in an environmentally responsible manner. • Deforestation • Destruction of natural habitats, such as the rain forest. • Urban sprawl • Cities and surrounding areasbecome too congested, chaotic,and dispersed.

22. Land Issues • Kuala Lumpur • One single person: 0.8-1.3 kg/per DAY • 3,000-3,500 tonnes of rubbish per DAY • 2 days to fill up Johor causeway • 7 days to fill up Petronas twin towers • 1 tonne of rubbish produces 1.5 litres of Leachate, a toxic goey substance • 45% of rubbish consists of FOOD • Garbage Disposal • Kuala Lumpur: RM140,000,000/year • Selangor: RM500,000,000/year

23. 20 tonnes x 150 = 3000 tonnes

24. Deforestation

25. Biodiversity • Deforestation, pollution, development, and urban sprawl have put increasing pressure on wildlife, plants, and their habitats. • Many ecologists believe that the loss of species threatens the success of entire ecosystems.

26. Extinction

27. Environmental ProtectionAgency in Malaysia • In Malaysia, environmental management at the federal level is conducted by the Department of Environment (DOE), a department under the Ministry of Natural Resources and Environment. • The DOE primarily deals with matter involving air and water quality, industrial wastes, noise levels and environmental impact assessments.

28. DOE • Issues like forestry, wetlands and marine conservation do not fall within the DOE mandate. These areas rests primarily with the respective state authorities. • The pollution control and strategy or remedial approach is implemented through the enforcement of the Environmental Quality Act (EQA), 1974.

29. Environmental Legislation in Malaysia • Control of Motor Vehicle Emissions • Control of Toxic and Hazardous Wastes • Integration of Environment and Development • Control of Substances That Deplete the Ozone Layer • Control of Agro based Water pollution • Control of Municipal and Industrial Waste water pollution • Control of Industrial Emissions • National Forestry Act (1984) • Pesticide Act (1974) • Land Conservation Act (1960)

30. Stages of corporate environmental responsibility • Clean Technology • Businesses develop innovative, new technologies that support sustainability. • Eg. Double A, New Water • Product Stewardship • Managers focus on all environmental impacts associated with the full life-cycle of a product. • Pollution Prevention • Focuses on minimizing or eliminating waste before it is created.

31. Business Responseto Environmental Issues • Green Marketing is specific development, pricing, promotion, and distribution of products that produce less harm to the environment. • Many products are certified as “green” by environmental organizations. • Consumers are increasingly being confusedby green marketing claims. • Product pricing should reflect true costs. E.g. Honda/Hybrid • Green Seal (http://www.greenseal.org/) a non-profit organization that utilizes life-cycle analysis to evaluate & certify products & services that have lesser impact on the environment & human health.

32. Recycling Initiatives • Reprocessing of materials for reuse. • Steel • Aluminum • Paper • Glass • Rubber and some plastics • The national domestic recycling rate in Malaysia is only about 5%.

33. Other Environmental Initiatives • Emissions reduction • To reduce the threat of global warming,many companies have taken steps to reduce greenhouse gases. • Socially responsible buying (SRB) • Attempts to take into account the public consequences of organizational buying.

34. Stakeholder Assessment • A process requiring acknowledging and actively monitoring the environmental concerns of all legitimate stakeholders. • Identifying and prioritizing stakeholder claims. • Managers need to conduct research, assess risks, and communicate with stakeholders about their respective concerns. • Requires accepting the fact that not all stakeholders have equal interests.

35. Strategic Approachesto Environmental Issues

36. Environmental management as a competitive advantage 1. Cost Saving Companies that reduce pollution and hazardous waste, reuse or recycle materials, and operate with greater energy efficiency can reap significant cost savings. 2. Product Innovation Companies that develop a reputation for environmental excellence and that produce and deliver products and services with concern for their sustainability can attract environmentally aware customers. 3. Technological Innovation Technological innovation can lead to imaginative new methods for reducing pollution and increasing efficiency. 4. Strategic Planning Companies that cultivate a vision of sustainability must adopt sophisticated strategic planning techniques.

37. Risk Analysis • An analysis performed by a company to identify environmental issues that relate to manufacturing, marketing, consumption, and usage patterns associated with its products. • Industry and government research support identification of risk areas. • Enables an organization to measure the cost/benefit relationship of environmental decisions.

38. The Strategic Environmental Audit • Organizations conduct an independent audit and report the results to all interested stakeholders. • Organizations developed ISO 14,000 as a comprehensive set of environmental standards that encourage a cleaner, safer, healthier world. • Promotes a common approach to environmental management and helps companies attain and measure improvements in environmental performance.