Meeting the Challenge of Sustainable Business - Example

Report on Meeting the Challenge of Sustainable Business Contents Contents 2 Introduction 3 2. The Outlook towards 2055 3 2 Growth in Population, Urbanization and Consumption 3 2.2. Environmental Impact on such Huge Population and Economic Growth in 2055 5 3. Present Scenario of Transportation Business 7 3.1. Challenges That Makes Sustainability of Mobility Difficult 8 3.1.1. Economic Growth 9 3.1.2. Resource Exploitation 9 3.1.3. Impact on the Environment and on Public Well-Being 11 4. Ensuring Sustainability in Transportation Business 12 4.1. Triple Bottom Line 12 4.2. Introduction of a Modernised Transport Business 12 4.2.1. String Transportation 13 4.2.2. Superconducting Vacuum Trains 13 4.2.3. Human-powered Mass Transport 13 4.2.4. High-speed, Alternative Energy 14 5. Conclusion 14 14 Reference List 15 Bibliography 17 1. Introduction Sustainability in business environment is one of the biggest challenges that the global economies are experiencing in recent times. Economic sustainability may be defined as the process through which the level of economic production can be continued at a uniform rate without any deviations. In other words, economic sustainability is the condition that aids to meet the present needs without compromising the needs of future generation (Bartelmus, 2012). Now, the level of economic production or satisfying the need of present generation highly depends on the availability and degree of utilization of economic resources. Economic resources are scarce in nature mainly due to massive economic warfare among various economies in the world for acquiring the critical resources of other economics, lack of concentration on optimum utilization of resources as well as unethical exploitation of existing resource base (Dobkowski and Wallimann, 2002). Therefore, the availability of natural resources is already shortage in supply. In such circumstances, presenting a situation of sustainable business environment in 2055 is really a critical issue and involves considerable requirement of research and analysis of the past and the present scenario of the concerned business. For the purpose of analysis, the world business scenario of transportation business will be evaluated to predict sustainability of this business in 2055 (Bass and Clayton, 2012). 2. The Outlook towards 2055 Increment of world population and consumption at a compounding rate on one hand and simultaneously, shortage of critical economic resources has necessitated the economist to identify the future issues with sustainability. Such effort of the experts has provided an outlook towards the expected economic, societal and environmental condition in 2055. 2.1. Growth in Population, Urbanization and Consumption According to the economists, the global population is expected to increase from 7 billion in 2015 to 10 billion within 2055. Among this, 98% of the growth in global population will occur in the developing and emerging nations. Moreover, it is also expected that the urban population will be double by the same timeframe. Rapid emergence of technologies, enhancement of scientific knowledge, medical innovations, and facilities such as instant communication and availability of financial assets in developing nations as well, will lead to construct a diversified demographic pattern. Social growth will be established in terms of higher infant and maternal mortality, increasing food supply and access to education. However, a certain portion of the population will remain in extreme poverty (Daly, 2014). (World Business Council for Sustainable Development, 2010) In fact, it is also expected that the global economic power will shift from the present developed countries such as France, Germany and UK to the nations which are currently at their developing phase, for instance, China, India, Brazil and Mexico (Godemann, Haertle, Herzig and Moon, 2014). (World Business Council for Sustainable Development, 2010) The middle class of the global economy will improve substantially in terms of their standard of living, per capita income and resource consumption (DeSimone and Popoff, 2010). 2.2. Environmental Impact on such Huge Population and Economic Growth in 2055 As a result of rapid population growth and expansion of urbanization, experts are predicting that individual and communities will put more emphasis on short term goals in order to accomplish self interest, rather than providing importance to the concern of greater world. Urge for continuous improvement in status quo will necessitate the future population for infrastructural investments may prove to be energy-inefficient, polluting the environment to a great extent. (World Business Council for Sustainable Development, 2010) According to the reports from The Millennium Ecosystem Assessment, 15 of the 24 ecosystem services have already degraded during the past century. Hence, it is expected that increasing ratio of greenhouse gas emission, excessive utilization of energy and other resources will severely threaten the equilibrium of ecosystem and accessibility of natural resources which in turn create scarcity in supply of food, availability of clean water etc. Consequent weather disaster, droughts, tsunami and famine combining with all such economic insecurities will gradually cease the global village to exist (Dalkmann and Sakamoto, 2014). (World Business Council for Sustainable Development, 2010) It is implied that population growth and rapid induatrilization till 2055 will enhance the requirement of swift global transportation that should integrate and accomodate the population of 10 billion. However, it is evident from the present scenario of transportation system that the system is liable for consumption and exploiting of a number of natural resuorces such as crude oil, gas and responsible for massive emissions of CO2 which may pose huge threat to the sustainability of the planet. In the next segment, the present status of the trasportation business will be evaluated and innovative ideas will be suggested in order to ensure sustainability of the business as well as longivity of the global platform. 3. Present Scenario of Transportation Business Today’s global platform has largely necessitated the requirement of fast mobility of human and physical resources so that the universal production and distribution process remains uninterrupted. Utilization of latest technologies and making the transport system safe and affordable has facilitated the global managers to run their multinational functionalities without any interruption. However, as more and more economies are integrating in this global business, system up-gradation and maintenance of the transportation business is becoming complex year on year (Dinar, 2011). Though all the companies involved in the business operate with the agenda of minimizing the business impact on the environment, the aim of connecting regions and provinces across world is making this issue challenging. Greenhouse gas emissions (GHGs), massive exploitation of resources, rapid utilization of public revenue and more concentration on profit maximization rather than complying with environmental aspects raise questions on the sustainability of the mobility and transportation business (Centre for Climate and Energy Solutions, 2014). 3.1. Challenges That Makes Sustainability of Mobility Difficult There are certain factors that make the sustainability of global mobility and transportation difficult. (World Business Council for Sustainable Development, 2010) 3.1.1. Economic Growth Though transportation and facilities of smooth mobilization has accelerated economic growth, the unexpected side effects of transportation business creates undesirable externalities such as air and sound pollution, traffic congestion which in turn hamper the quality of life, creates health issues and other critical consequences that in turn leaves a deep scar on the face of globalization. All such externalities come with huge external costs which are borne by the society itself. For example, when a motorist enters a fully congested road, he tends to enhance the degree of congestion to an additional unit which in turn delays the travel time of the motorist. The additional congestion that delays the travel time crease an external cost is borne by the motorist only. However, in such circumstances, if the motorist decides not to travel then the externality cost becomes zero which is rarely a feasible option. Such externalities and external cost carried by global societies and tends to decelerate the economic growth to a great extent (Bohnsack, Pinkseb and Kolka, 2014). 3.1.2. Resource Exploitation Excessive exploitation of resources by the transportation business, that too at a rapid speed, has threatened the sustainability of the continuously diminishing level of existing resources in the world. A study has shown that the transportation industry is responsible for consuming 28% of the existing resources year on year (Douthwaite and Siochrú, 2006). (Centre for Climate and Energy Solutions, 2014) Considering the transport related energy and fuels, the business is responsible for high consumption of Motor Gasoline, Jet Fuel, Lubricants, Liquefied Petroleum Gases and many more. The below chart reflects the level of annual resource consumption by the transport industry in United States. (Centre for Climate and Energy Solutions, 2014) In fact, exploitation of natural resources such as land disruption and non-recyclable material are also widely practiced by the transportation system. The economists estimate that resource consumption of this particular segment will show an increasing trend will 2040 and therefore, it is also expected that the sector will continue to exploit resources at an increasing rate in 2055 as well, thus threatening the sustainability of global resources. (Centre for Climate and Energy Solutions, 2014) If the sector continues to consume the non-renewable energies and critical resources at the same or increasing speed, it will facade a serious threat to the existence of the industry as well as the global resources in 2055. Therefore, it is very important to plan for some alternative solutions to the present transportation system well in advance. 3.1.3. Impact on the Environment and on Public Well-Being The transportation industry not only cause for environmental imbalances due to emission of carbon dioxide gas, the emission also include other greenhouse gases such as fluorochlorocarbons, hydrofluorochlorocarbons, unburned methane (depending on the fuels used), and nitrous oxide that are responsible for creating negative impact on the environment as well as on the health of individual public. Aircrafts are also responsible for emitting black carbon. As the aircrafts also produce light-absorbing aerosols which is spread in the environment from very high altitudes, impacts of such biofuels tends to harm relatively widespread areas. All such emissions increase the tendency of having diseases such as asthma, pulmonary disease, cardiovascular disease and even cancer which in turn reduces the global mortality rate. Therefore, it is explicit that sustainability of mankind is largely doubted on account of expansion of transportation system (Balkema and Romijn, 2014). Transport related noise, health issues created by biofuel emissions and other impacts on the ecosystems leaves deep impact on the public well-being. Now, existence of transportation industry is inevitable for ensuring smooth running of economic activities in the global context. However, if mankind cease to exist due to the adverse effect dispersed by the various modes of transport systems, there will be no point for the transport business to exist. Therefore, the scientists have decided to come up with highly innovative and alternative business ideas in transportation segment that will safeguard the growing population through minimizing the negative impact of this sector and ensure sustainability of the business as well as the global environment in 2055. 4. Ensuring Sustainability in Transportation Business From the above analysis, it is explicit that bringing changes in the process and technology used in transportation business is inevitable to ensure sustainability of the business in the upcoming future and to support the planet and its growing, complex population in 2055. 4.1. Triple Bottom Line In order to incorporate sustainability in the transportation system, the global economy should obtain Triple Bottom Line Approach that deals with three major attributes of global sustainability i.e. social, environmental and financial factors. Eminent economist John Elkington defined Triple Bottom Line as an integration of three types of bottom lines, rather than emphasising only on profitability. The first bottom line includes financial aspect i.e. maximizing the profit and loss account. The second bottom line deals with people account that makes the business socially responsible and comply its activities according to the social norms. Third is the planet account that influences the industry to operate in an environmentally responsible way. Integrating the three Ps such as profit, people, planet, a business will be able to ensure sustainability in long run dynamic global environment and operate business in a cost effective way (The Economist, 2009). 4.2. Introduction of a Modernised Transport Business Observing the present unsustainable condition of transportation business the European Union has shown its effort to plan for a non- conventional transportation system, using alternative energy, technologies and substitutable fuels in order to transform the system to a more sustainable process by 2055. The plan aims to reduce high reliability on oil imports, trim down emission by 60% and cartel 50% congestion through innovating and introducing alternatives to conventionally fueled cars, mainly in urban areas by the end of 2050. In this way, the commission is planning to sustain the transportation business and at the same time, meeting the mobility needs of 10 billion world population in 2055. For example, the commission is planning to ensure use of low carbon fuels by 40% of the European Airlines through modernization of the air traffic control system in Europe. This will reduce dependency on imported oil, emission of greenhouse gas which in turn diminishes the possibility of air and noise pollution. Emphasis is also given to promote eco-driving facilities and instructing fuel-saving techniques in the time of obtaining driving licence. Use of hydrogen and hybrid technologies for long distance travels and bringing more reliance on freight services are also considered in the projected transportation system for 2055 (European Commission, 2011). In fact, for short hauls utilization of cycles and electric scooters are also promoted. Apart from that the scientist has suggested some alternative transportation systems which they are planning to implement within 2050 so that a sustainable transportation system can be guaranteed by the end of 2055. These are: 4.2.1. String Transportation It is a concept of high speed rail system in which high-tension wires are used instead of heavy-duty above the ground electrical wires. Energy consumption of such high-tension wires are considerably low and the whole 10 times less expensive as compared to the existing high speed rail system (Gizmag, 2012). 4.2.2. Superconducting Vacuum Trains This Evacuated Tube Transport (ETT) will be 50 times more efficient than contemporary electronic cars and trains that will work through network of superconducting tunnels and will have the capacity to transport from New York to Beijing, only in 2 hours (Gizmag, 2012). 4.2.3. Human-powered Mass Transport The human power driven monorail system is aiming to use bicycle pods that will have the capability of transporting at a speed of 45 km/hour. Google has already invested to introduce the system in an amusement park in 2010 and the experts are also thinking of applying the system for actual transportation by the end of 2055 (Gizmag, 2012). 4.2.4. High-speed, Alternative Energy The campaign of Solar Bullet project is aiming to serve at a speed of 354 km/h through solar panels that will be able to safeguard 110 megawatts of electricity per kilometre of run (European Commission, 2014). 5. Conclusion Sustainability is a major challenge that the contemporary business environment is experiencing in the global context. The main reason behind such confrontation is the scarcity of resources and massive exploitation of such resources in the present situation. In fact, such confrontation has become most prominent in the transportation business. Therefore, the economists and experts have highlighted a number of issues and concerns, minimizing which the global economy will be able to achieve sustainability by 2055. If the global economy can implement the strategies planned by the experts, it will definitely be able to achieve sustainability within the targeted period of time. Reference List Balkema, A. and Romijn, H., 2014. Innovations in Social Entrepreneurship for Sustainable Biofuel Production: The Case of Tanzanian Outgrowers Cultivating Jatropha for the Global Biofuel Chain. The Business of Social and Environmental Innovation, 12(2), pp 63-83. Bartelmus, P., 2012. Sustainability Economics: An Introduction. London: Routledge. Bass, S. and Clayton, B. D., 2012. Sustainable Development Strategies: A Resource Book. London: Routledge. Bohnsack, R., Pinkseb, J. and Kolka, A., 2014. Business models for sustainable technologies: Exploring business model evolution in the case of electric vehicles. Research Policy, 43(2), pp. 284–300. Centre for Climate and Energy Solutions, 2014. Transportation Overview. [Online] Available at: [Accessed 22 April 2015]. Dalkmann, H. and Sakamoto, K., 2014. Transport: Investing in energy and resource efficiency. [PDf] Available at: [Accessed 22 April 2015]. Daly, H. E., 2014. Beyond Growth: The Economics of Sustainable Development. Boston: Beacon Press. DeSimone, L. D. and Popoff, F., 2010. Eco-efficiency: The Business Link to Sustainable Development. Cambridge: MIT Press. Dinar, S., 2011. Beyond Resource Wars: Scarcity, Environmental Degradation, and International Cooperation. Cambridge: MIT Press. Dobkowski, M. N. and Wallimann, I., 2002. On The Edge of Scarcity: Environment, Resources, Population, Sustainability, and Conflict. Syracuse: Syracuse University Press. Douthwaite, R. and Siochrú, E. O., 2006. The Economic Challenge of Sustainability. [Online] Available at: [Accessed 21 April 2015]. European Commission, 2011. Roadmap to a Single European Transport Area – Towards a competitive and resource efficient transport system. [PDf] Available at: [Accessed 22 April 2015]. European Commission, 2014. Urban Futures: exploring participatory, normative, backcasting approaches in developing sustainable storylines for Chinese urbanisation to 2050. London: Kogan Page Publishers. Gizmag, 2012. Radical railways: Top 10 transportation systems of the future. [Online] Available at: [Accessed 22 April 2015]. Godemann, J., Haertle, J., Herzig, C. And Moon, J., 2014. United Nations supported Principles for Responsible Management Education: purpose, progress and prospects. Journal of Cleaner Production, 62(1), pp. 16–23. The Economist, 2009. Triple bottom line. [Online] Available at: [Accessed 22 April 2015]. World Business Council for Sustainable Development, 2010. Vision 2050. [PDf] Available at: [Accessed 22 April 2015]. Bibliography Graff, G. D., 2013. How do economists define sustainability? [PDf] Available at: [Accessed 21 April 2015]. Hughes, S. R., Moser, B. R. and Gibbons, W. R., 2014. Moving Toward Energy Security and Sustainability in 2050 by Reconfiguring Biofuel Production. Convergence of Food Security, Energy Security and Sustainable Agriculture, 67(50, pp. 15-29. Oregon.com, 2014. Alternative Transportation Fuels. [Online] Available at: [Accessed 22 April 2015]. Sircar, A., 2011. Energy Sector Structure Policies & Regulations. [PDf] Available at: [Accessed 21 April 2015]. Soderbaum, P., 2012. Understanding Sustainability Economics: Towards Pluralism in Economics. Washington DC: Earthscan. Victoria Transport Policy Institute, 2014. Resource Consumption External Costs. [PDf] Available at: [Accessed 22 April 2015]. Wells, P. E., 2004. Creating sustainable business models: the case of the automotive industry. IIMB Management Review, 16(4), pp. 15-24. World Business Council for Sustainable Development, 2004. The Sustainable Mobility Project. [PDf] Available at: [Accessed 21 April 2015]. Read More