Sustainable Business Development about Fuel - Assignment Example

SUSTAINABLE BUSINESS DEVELOPMENT ABOUT FUEL This essay shows how sustainable business practices on fuel can be effectively communicated. It also presents the various challenges and measures in ensuring that consumers attain the best quality and that environmental conservation is achieved. This paper investigates on the sustainable business development more specifically on its influence on fuel and the general environment. Among the areas of sustainability include the economic, technological, social cultural, political, environment and legal factors with a firm focus on business and its sustainability and above all the environment. Specifically, our argument will base on fuel. Environmental regulation, small and medium enterprises in relation to environment, environmental audit and green consumption are our greatest concern. Furthermore, looking on how these factors contribute to environmental sustainability. In addition, we look at how these factors contribute on the environmental impact assessment and bring fought sustainable business development. Introduction Businesses have in the past tried to stand out to be environmental sustainable. However, this is changing as companies are not as much concerned about being environmental friendly as before. Nowadays, most companies small and big are putting up efforts to save energy and reduce carbon dioxide emission and the use of sustainable materials thus streamlining their packaging. Consequently, being green is not optional but a common feature in business environment. The green environment depends on how managers lead and the people’s expectation on how management should lead to protect the environment (Alfred & Adam 2009). According to Stefan and Paul (2008), “Firms are facing growing pressure to become greener.” Sustainability refers to an effort to minimize waste in operations, their management and how to conserve the natural resources within the environment. Effective use of natural resources enhances conservation and ensures that the natural resources are not exhausted and this brings sustained economic activity of the organization. Other areas of sustainability include preserving art, culture, values and food “communities threatened by globalization and modernization” and the preservation of animal species and plants which are threatened. This paper is going to discuss on the sustainable business practices. In particular, the paper will focus majorly on fuel energy, its importance and challenges. Fuel is a consumable commodity that is used both domestically and for commercial purposes in the manufacture of goods. Literature review Sustainability Sustainability refers to ways of conserving the natural resources to lessen waste in operations. It is done by ensuring that the limited resources are effectively used and that waste or mismanagement of resources are minimized. Sustainable development concept Sustainable development requires that we go beyond efficiency, beyond green. This concept requires that businesses take a bold step to achieve higher performance. The concept stresses the importance of setting out strategies to mitigate the situation. For example, the use of renewable energy and energy saving programs to ensure effective use of energy. Sustainability brings forth a better company and it requires trust, cross-functional collaboration and requires engagement of all stakeholders like the stockholders, supplies and the board of directors. Relationship between economic growth, consumption and sustainability Economic growth refers to the increase in price of the services and goods produced by the economy over time. While consumption is making use of natural resources. Consequently, sustainability is a concept that is used to ensure that goods and services are used effectively. Therefore, there is a correlation between all these factors. Role of efficiency in achieving sustainability Efficiency ensures that high standards are attained through employee benefits, working conditions, adopting high standards of environmental protection, capacity development and relationship between various stakeholders of the company. Hence, companies can build a reputation of sustainability leaders and building a health environment in which great sustainability can be attained. How can environmental impacts of products and services be assessed? Measuring environmental impacts of products include using the life cycle analysis and carbon footprints. Life cycle analysis is a technique that is used to assess the environmental impacts associated with the service and the product. It also deals with the interpretation of results and inventory accounts of all associated energy. Carbon footprint has no clear academic meaning for the term, it may refer to the total carbon 11 oxide emissions during a life cycle. Carbon footprint can be defined as the greenhouse emissions that are associated with the product or service. Analysis of the environmental impacts of fuel Environmental impact assessment is a term used to refer to the extent in which a product or service affects the environment. In our discussion, we are looking at the various aspects of environmental impact assessment. Our environmental impact assessment examines the environmental consequences of the company by greatly focusing on its inputs and their implication as well as their outputs within a specific location (Hickmann 2014). The inputs refers to specific products that influence the production of fuel, for instance, fossil fuels which are the greater contributors or rather the source of crude oil. Crude oil is used as a form of production of gasoline, natural gases, diesel and petroleum. In a nut shell, most petroleum products come from crude oil and form the outputs which have been explained above. Most companies do environmental auditing to mitigate the environmental situation and ensure that their products meet the regulatory standards. The regulatory standards have been set out by relevant agencies and by doing research and development by various institutions of higher learning. Research is a kind of auditing has it used to check on the effectiveness of the organization. Environmental management systems (EMS) can also be certified by the relevant agency that is ISO 14001 standard as a result of an external audit that had been carried. Through the certification, it shows that all the requisite requirement and healthy standards have been met thus attaining sustainability. Businesses use the environmental audit so as to respond to stakeholders needs by ensuring that they are accountable regarding to the environment. However, environmental reporting is largely perceived to be voluntary because no proper legislation has been used to compel organizations to report on their environmental impact and its suitability. An analysis of the environmental impact involve using various techniques which are; carbon footprint, life cycle assessment and water footprint. Carbon footprint refers to a measure of carbon dioxide emissions from the direct consumption of fossil fuels which is used for energy consumption and energy transportation. High emissions of carbon 11 oxide of this product can bring about global warming. Global warming is an occurrence whereby the temperatures of the world keep on increasing above the expected range. Global warming has affected the ozone layer leading to United Nations calling for a convention to discuss this issue. The issue at one time brought a heated debate in Copen Hagen in Denmark where carbon emission was discussed. There was a lot of blame game as major industrialized nations like Japan were not willing to take responsibility of their unregulated emissions of gas to the atmosphere. Carbon footprint can also be emitted by greenhouse gases. Greenhouse gases could be emitted through manufactured goods, consumption of food, materials, roads, land clearance, building, production and gas emitted through transport (Chung & Meltzer 2009). In the US, average emissions from carbon footprint come indirect sources in the US household. For instance, the fuel used to produce goods far away from the consumer. Life cycle assessment is a technique used to assess the environmental impact associated with service, process or product by compiling an inventory that has relevant energy together with material inputs as well as environmental releases. In our case, we are dealing with fuel. Life cycle also involves the inventory account of all associated energy, material inputs and release of my fuel. It also deals with all the impacts associated with all inputs and releases. It as well involves the interpretation of the results so as to make an informed decision with regard to bringing a reduction of environmental impact. Life cycle assessment also involve goal definition and scope. Goal definition entails how the business intends to use this cycle to attain a sustainable business development and provide a land map on how sustainability can be attained. In addition, we also deal with inventory analysis which is concerned with the stock that is available and how effective it should be used to attain success. Lastly, we deal with the impact assessment and its interpretation. Impact analysis is concerned with the outcome and its interpretation is concerned with its sustainability (Life Cycle Assessment 2006). Below is a diagram that shows the life cycle assessment. The life cycle is the most important of all as it demonstrates effectively how it contributes to sustainable business development. In particular, it effectively assesses how carbon 11 oxide emission can be reduced to manageable levels. How environmental impacts can be mitigated Environmental impact can be mitigated through various for instance the impact can be avoided through ignoring take part in an action that has negative impact. It can be mitigated by minimizing or limiting the degree of an action. The impact can also be rectified through rehabilitation, restoring or repairing the affected environment. It can as well be mitigated by replacing the impact by an alternative which can be called a compensating effect. Other important factors for mitigation include participation and to volunteer in decision making on factors that enable environmental sustainability, and sharing of resources effectively in the community. Furthermore, embracing sustainable travel and choosing of sustainable services and products. Besides, using water and energy efficiently as well as eating health diets and lastly using of products that are eco-friendly. Types of actors who could help alleviate the environmental impacts Various actors in the economy can help alleviate the environment impacts of fuel include; government, Non-governmental organizations, consumers, businesses and groups. All these actors are important and we are to look on how each factor is impact. Business In business, the business should be the role model in the assessment by conducting activities through corporate social responsibility. The business could also use these techniques to prevent emission and encourage effective use of fuel. The businesses can change attitude by altering an approach in which they engage with green consumers. Green consumers are mainly those consumers who are interested in eco-friendly environment and how they relate with others. Through that, green marketing would entail the firm creating demand for sustainable products by communicating both environmental and practical benefits. Besides, they develop services and products that balance between the environmental impacts and the products quality (Cronin Smith, Gleim, and Ramirez & Martinez 2011). Government The government can contribute in the impact through legislation. Proper guidelines should be set out on the on the environmental impact assessment that could bring about sustainability. Proper rules would significantly help mitigate the situation. Through those rules and enabling citizen participation and bringing forth campaigns to teach the general public on the on maintaining a sustainable environment. Various governments usually mandates there environment authorities to mitigate situations and ensure proper business sustainability is attained (Parker, Redmond & Simpson 2009). By use of economic instruments which are price signals in order to bring about environmental friendly behaviors. It can as well use provision of information. Non- Governmental organizations (NGOs) These are organizations that are not supported by the government but they provide essential services to the community. They are involved in education matters and doing research on various issues. In our case, for business sustainability, they provide the knowledge that they acquire through research and workshops. In our case, fuel sustainability in the business (Darnall, Seol, & Sarkis 2009). Consumers Consumer groups are concerned that consumers get quality goods and services. The consumers are to make informed decisions about business sustainability on our topic of fuel (Fuchs & Lorek 2005). Through that, proper education on fuel and emission of carbon 11 oxide is minimized. Consumers in most cases are concerned with environmental issues but quite often, they don’t trust business claims on the company brands and their claims on sustainability. The question to ponder is about who the consumer would trust in providing them with information. What measures could reduce the environmental impact of fuel Variable factors can be used to mitigate the effects of fuel. To attain sustainability, some of the factors to consider include doing sustainable market for the product, doing sustainable procurement which enhances that proper tendering process was done. Eco-labelling and certification of the product that it meets the required standards, sustainable transport as well as proper waste management. Sustainable resource management, design for sustainable D4S and cleaner production and resource efficiency. Reducing greenhouse emission from vehicles Transport is a major contributor of greenhouse emission thus a long term goal of reducing greenhouse emissions is the goal of every government. By use of ultra-low emission vehicles, for instance plug-in hybrid, electric and hydrogen powered vans and cars will help minimize air pollution and greenhouse gas emissions. To attain this, the government can help by funding research and development which promote emission. In addition, the government can also provide grant to those who purchase ultra-low emission vehicles. Another factor is the government continuous ambitious standards of reduction of vehicles that produce high levels of gas. Reducing greenhouse emissions from shipping Through the international maritime organization, greenhouse emission from shipping is reduced through technical, market based and operational measures to reduce emissions from ships. Biofuels It is done through sustainable biofuels which have low greenhouse emissions to the environment. They help reduce the emissions on transport (Medina 2013). Air quality It refers to air with low levels of harmful substances to health and the environment. Local Sustainable Transport Fund, ultra-low emission vehicles and green bus fund help reduce pollution of air on transport. Through sanctions By use of sanctions, those who do not follow the set rules and regulations are punished. This may take the form of trade sanctions which is a barrier for a given country to trade with others. As a result, business sustainability will be attained as every state and organization will be keen to follow the guidelines so that they be fit in the market Legal basis Legal basis is a system of direct control over the activities of the organization by imposing strict rules to defaulters and ensuring that the regulation set by specific regulatory bodies and regulatory inspection agencies are followed. Have any relevant measures been applied already Some of the measures that have been taken is through bills and legislation by various governments of the world. For example, the biofuel legislation which has been done in various parts of the world a case example is Renewable Transport Fuels Obligation (RTFO) that came into force in 2007 in the United Kingdom. Other United Kingdom legislations include The Renewable Transport Fuel Obligation (Amendment) Order 2009 and The Renewable Transport Fuel Obligation (Amendment) Order 2011. Could technological innovation make Fuel more sustainable? Yes, because innovation always comes with safe and new ways of doing things. For instance, the invention of clean diesel technology is able to bring efficiency. The role of clean diesel technology is to help minimize environmental effects and improve efficiency through efficient methods of mining resources, transporting of people and freight, providing power and growing plants. By use of clean diesel technology in their day to day activities; individuals, businesses and governments help improve performance and reduce the effect of the world around them. This technology makes operational sustainability and minimize on environmental costs thereby bringing social and economic security. Clean diesel can contribute to sustainability in a number of ways ranging from, construction, mining, farming and heavy duty off-road equipment’s can enhance sustainability using cleaner operations of supply chain. It improves sustainability by being cost effective as compared to others, easy availability of fuel and an improved transport system. Using that renewable fuel diesel helps reduce imports of oil hence cutting on cost. Consequently this brings sustainability through the technological advancement. As a result, employee motivation is enhanced. Could fuel become more efficient? Our product would be more efficient by provision of a tailored approach instead of adopting scaled back solution which were developed by large firms and by use of collective approaches that could prove to be more efficient. Solutions could be developed jointly and make them applicable. In addition, collaboration should be improved in the supply chain in order for firms to enjoy the supplier’s expertise. Through that, standardized reporting of data in relation to the environment is enhanced. Is there any possibility of rebound effect? Rebound effect refers to a reduction in expected gains that comes as a result of new technologies that that help increase efficiency in resource because of systemic or behavioral responses. In energy economics and conservation, the rebound effect also known as the take- back effect refers to a phenomenon that re-emerges because they are being controlled. In our case, there is a possibility of rebound effect as the technologies which are being used may not be effective per se. People will to use more energy and the energy you intend to save may not be their anymore. The energy to be saved may be lost due to overall increase of energy use. Rebound effect is complex as it comes through various factors. For instance, the cost of using clean diesel technology may decrease and most people may resort to use it extravagantly thus causing a rebound effect because the energy that they intend to save may not be actually be saved. Another form of rebound effect occurs as a result of changes in economic conditions. If for example the United States of America decides to reduce the consumption of energy by increasing vehicle efficiency standards, the international oil prices may decrease due to drop in demand of oil. However, the decrease of oil prices may increase the consumption of this product in some other parts of the world thus causing a rebound effect due to the macroeconomic price. Similarly, increased efficiency of energy may lead to increase in industrial growth thus bring the micro economic effect of increase in energy use thus causing a rebound effect. To sum up, a reduction of one leads to an increase of another hence contributing to micro and macroeconomic effect of the economy which is called the rebound effect. Therefore, because of the existence of rebound effect, policy makers and those passing legislation should take it into account. However, efficiency is recommended and increase in efficiency would not necessarily lead to rebound effect but would lead to improved performance. Is there any evidence that regulatory measures would be helpful? Yes, regulatory measures would be helpful because for a long time, free markets have proved not to be efficient. Hence regulatory measures and appropriate property rights would bring appropriate measures. Regulatory measures are good to prevent negative externalities which occur as a result of actions from companies or consumers. As a result of these actions, they may lead to adverse effects of another party. Some of the adverse effects that may occur for instance is poor waste disposal, if not properly regulated, the products may lead to adverse effects to the environment. These negative externalities are not usually considered from the onset because they do not feature in the budget in most times. As a result, most businesses ignore this because they do not want to incur an extra cost thus through regulation, companies are able to incorporate these costs when calculating the price of the product Masurel, E. (2007). Furthermore, the market pricing mechanisms do not feature the environmental costs in relation to economic behavior. Therefore, this calls for speedy actions by the authority concerned in environmental regulation and sustainability. Most economic activities are designed to satisfy a few individuals instead of the environmental and social benefits that should be sought after. If the regulators do not take up the challenge and come up with an amicable solution, environmental degradation will increase therefore regulation is important. The need for environmental regulation is further enhanced because of public goods which are also defined as the tragedy of commons. Public goods are those which are being used for the common interest of the community. Some of the common goods include, seas, lakes and rivers which are not traded in the conventional markets (Ostrom 2008). In most cases, these commodities are used carelessly without considering the environmental impact. In addition, it is very difficult to effectively evaluate their utility as there is no market to control their use. Consequently, as the products are jointly used, it is difficulty to exclude those who misuse the product thus undermining the long term interest. The “tragedy of commons” makes people to over-exploit the product instead of protecting it. Although there is an element of optimism as pertains the business environmental efforts through corporate social responsibility, the most likely feature is that voluntary actions fall below the environmental point of view (Gibbs 2007). Is there a need to diminish consumption of fuel? Yes, there is a need to diminish consumption due to underlying issues. In dealing with this, the society should consume a lot less by effective use of resources so as to improve the environment and mind the future generation as well. Through that, we are going to control the rebound effect that we witnessed early. It’s also important that quality fuel should be bought by consumers that is good for the environment. In this regard, consumers of fuel in developing countries are likely to pay more than in most developed countries. Therefore less consumption would bring about sustainability of the product. What alternative options exist? Alternative options involve minimizing waste and recycling which will enhance that fuel is effectively utilized. Besides, encourage the use of fuel that has been produced from an eco-friendly production as well as buying energy-efficient home appliances. These products will help reduce the production of fuel. In addition, we should adopt transport modes that use sustainable energy that is good for the economy. In light of the above, we should also strive to use less water. All these are sustainable behaviors that help in solving environmental problems and attain sustainability that is required. Sustainable lifestyle would lead to less gas emissions, pollution and waste that would support economic development. Suggested ways for mitigating environmental impacts in the context of theoretical debates about sustainability The relation between improved efficiency and sustainable development goals comes through a number of ways. Factors for consideration include self-directed and facilitated education that is tailored towards environmental needs of sustainability. Compulsory regulations which require clear communication what is needed for sustainable development and efficiency of the business. Besides, voluntary standards and regulations are needed for internally driven corporations that mind about sustainability (Hall, Jeremy, Gregory, and Michael 2010, p. 440). Financial penalties would also be used to make it unviable for organizations to evade prescribed practices. In addition to the above, environmental reviews and audits would be more effective because along with it, they provide the necessary education required hence leading to sustainability. There should be compulsory regulation that ought to be clearly communicated so as the organization attains its goal. Business help lines and advice should also be provided so that up to date information and improvements are taken into consideration. Conclusion In this paper, we have been looking at various factors that would bring business sustainability development on fuel. We mentioned many factors as regards to environmental sustainability. The issues we looked at in the literature review with regards to explanation of the meaning of terms. We discussed about the origin and meaning of sustainability and sustainable development concept where we looked at what is needed for a sustainable business. Our discussion also featured on what is the relationship between economic growth, consumption and sustainability where we realized that these factors interrelate. Of major discussion was the environmental impact of the product and the services to be assessed. Life cycle assessment and carbon footprint are the tools that we used in the assessment. An analysis of the product in our case fuel was done in which a detailed analysis of the environmental impacts were discussed. Furthermore, environmental impact assessment techniques featured greatly in our discussion as well as evaluating on the factors and discussing on which ones are more significant in relation to the others. A discussion on how environmental impacts could be mitigated and who are the actors who could help alleviate the environmental impacts. A detailed description on how businesses, consumer organizations, government and non-governmental organizations play a role in the mitigation of the environmental impacts. Besides, measures to reduce environmental impacts of fuel and looking at it keenly if some of the measures have already been applied. On the issue of technology, technological innovation ensures more sustainability due to improved features that come with the technology. The product, in our case fuel will be more efficient because of the various factors that have been looked at and their significance in bringing about more effective features on fuel, their environmental viability and any possibility of rebound effect. Rebound effect was discussed in relation to bringing about sustainability. The paper also provides evidence on the regulatory measures that would be helpful in our discussion. In addition, we found out that theirs need to diminish consumption of fuel because of existence of alternative options. Discussions on suggested ways for mitigating the environmental impacts in the context of theoretical debates on sustainability were also looked at. Summary Environmental impact entails sustainable lifestyles, waste management, sustainable resource management, design for sustainability, sustainable marketing, eco-labelling and certification, cleaner production and resource efficiency, sustainable transport and sustainable procurement. Bibliography ALFRED, A. M., & ADAM, R., F 2009, Green management matters regardless. The Academy of Management Perspectives, 23(3), 17-26. CHUNG, J. W., & MELTZER, D., O 2009, Estimate of the carbon footprint of the US health care sector. JAMA, 302(18), 1967-1972. CRONIN JR, J. J., SMITH, J. S., GLEIM, M. R., RAMIREZ, E., & MARTINEZ, J., D 2011, Green marketing strategies: an examination of stakeholders and the opportunities they present. Journal of the Academy of Marketing Science, 39(1), 158-174. DARNALL, N., SEOL, I., & SARKIS, J 2009, Perceived stakeholder influences and organizations’ use of environmental audits. Accounting, Organizations and Society, 34(2), 170-187 FUCHS, D. A., & LOREK, S 2005, Sustainable consumption governance: A history of promises and failures. Journal of Consumer Policy, 28(3), 261-288. GIBBS, D 2007, The role of ecopreneurs in developing a sustainable economy. In Corporate Responsibility Research Conference. University of Leeds. UK. HALL, JEREMY K., GREGORY A. DANEKE, AND MICHAEL J. LENOX 2010, "Sustainable development and entrepreneurship: Past contributions and future directions." Journal of Business Venturing. HICKMANN, T 2014, "Science-policy interaction in international environmental politics: an analysis of the ozone regime and the climate regime", Environmental Economics and Policy Studies, vol. 16, no. 1, pp. 21-44. Life Cycle Assessment 2006. 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