Environmental Considerations & Sustainability

Businesses have a significant impact on the environment. Growing consumer awareness, government regulations, and the threat of climate change mean that environmental sustainability is no longer optional — it is a business imperative.

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How Do Businesses Impact the Environment?

Impact	Description
Carbon emissions	Burning fossil fuels for energy, transport, and manufacturing
Pollution	Air, water, and land pollution from industrial processes and waste
Resource depletion	Using up non-renewable resources (oil, gas, minerals)
Deforestation	Clearing forests for agriculture, raw materials, or construction
Waste and landfill	Generating waste that ends up in landfill or the ocean
Water usage	Excessive use of water in manufacturing and agriculture
Loss of biodiversity	Business activities destroying habitats and reducing species diversity

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What Is Sustainability?

Sustainability means meeting the needs of the present without compromising the ability of future generations to meet their own needs. For businesses, this means operating in a way that minimises environmental harm and ensures resources are available for the future.

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How Can Businesses Become More Sustainable?

Strategy	Description	Example
Reducing carbon emissions	Using renewable energy, improving energy efficiency, electrifying transport	IKEA investing in solar and wind energy
Reducing waste	Minimising waste, recycling, and using circular economy principles	Patagonia's "Worn Wear" programme (reselling used clothing)
Sustainable sourcing	Using responsibly sourced raw materials	Cadbury using Fairtrade cocoa
Eco-friendly packaging	Reducing plastic, using recyclable or biodegradable packaging	Lush cosmetics using "naked" (package-free) products
Sustainable supply chains	Ensuring suppliers also meet environmental standards	Unilever's Sustainable Living Plan
Carbon offsetting	Investing in projects that absorb CO2 to compensate for emissions	Airlines offering carbon offset programmes
Circular economy	Designing products to be reused, repaired, or recycled at end of life	Apple's recycling programme for old devices

graph LR
    A[Sustainability Strategies] --> B[Reduce emissions]
    A --> C[Reduce waste]
    A --> D[Sustainable sourcing]
    A --> E[Eco-friendly packaging]
    A --> F[Circular economy]
    B --> G[Renewable energy, efficiency]
    C --> H[Recycle, reuse, reduce]
    D --> I[Fairtrade, responsible materials]
    E --> J[Less plastic, biodegradable]
    F --> K[Design for reuse and repair]

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Why Should Businesses Care About the Environment?

Reason	Explanation
Consumer demand	Customers increasingly prefer environmentally responsible businesses
Legal compliance	Environmental regulations are becoming stricter (e.g. carbon taxes, plastic bans)
Cost savings	Reducing energy use and waste can lower operating costs
Brand reputation	Being seen as environmentally responsible builds trust and loyalty
Investor expectations	Investors increasingly consider ESG (Environmental, Social, Governance) criteria
Future-proofing	Sustainable practices prepare the business for future regulations and resource scarcity
Employee attraction	Many workers prefer to work for environmentally responsible employers

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The Challenge of Greenwashing

Greenwashing is when a business makes misleading claims about its environmental practices to appear more sustainable than it really is.

Examples include:

• Vague claims like "eco-friendly" without evidence.
• Highlighting one green initiative while ignoring larger environmental harms.
• Using green imagery and language in marketing without substance behind it.

Consumers and pressure groups are increasingly able to identify and call out greenwashing, which can seriously damage a brand's reputation.

Exam Tip: Environmental questions often ask you to evaluate whether sustainability is beneficial for businesses. Always consider the short-term costs versus the long-term benefits, and discuss the risks of both action and inaction.

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Summary

• Businesses impact the environment through emissions, pollution, waste, and resource depletion.
• Sustainability means operating in a way that does not compromise future generations' needs.
• Strategies include reducing emissions, minimising waste, sustainable sourcing, and circular economy approaches.
• Businesses benefit from sustainability through customer loyalty, cost savings, legal compliance, and brand reputation.
• Greenwashing — making misleading environmental claims — can backfire and damage trust.

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UK Case Study: Greggs' Journey to a Low-Carbon Bakery

Greggs is a British institution — a high-street bakery chain founded in Newcastle in 1939, now with over 2,500 shops across the UK. For decades its environmental footprint received little attention — the focus was on tasty, affordable food like sausage rolls, steak bakes, and (from 2019) the famous vegan sausage roll. But in the past decade, Greggs has quietly become one of the UK's most ambitious mid-market retailers on sustainability.

The targets. Greggs committed to becoming a net-zero carbon business by 2035 and setting science-based targets approved by the Science Based Targets initiative (SBTi). It also committed to making 100% of packaging reusable, recyclable, or compostable by 2025.

Key actions taken:

1. Renewable energy. Greggs switched 100% of its UK electricity supply to renewable sources in 2019. It installed solar panels at its Balliol Park bakery in Newcastle — generating part of the site's own electricity.
2. Electrifying fleet. Its delivery lorries are being replaced with electric and alternative-fuel vehicles. A large proportion of company cars are now electric or hybrid.
3. Food waste. Unsold food at the end of each day is donated to charity through the FareShare network or converted to energy through anaerobic digestion, rather than going to landfill.
4. Packaging. Greggs removed plastic drinks cups in favour of compostable cups and introduced a reusable cup discount scheme. Brown paper bags replaced many plastic wrappers.
5. Vegan expansion. The surprise hit of the vegan sausage roll (launched 2019) showed there was mass-market demand for plant-based alternatives — lower-carbon because they avoid meat production. Greggs has expanded its vegan range in response.
6. Sustainable sourcing. Greggs sources 100% of its palm oil from Roundtable on Sustainable Palm Oil (RSPO) certified sources and works with British farmers for key ingredients including flour and pork.