Chapter 14 Copyright © 2008 McGraw-Hill Ryerson Ltd.1 Defining Environmental Ethic and Sustainable...

Chapter 14 Copyright © 2008 McGraw-Hill Ryerson Ltd. 1

Defining Environmental Ethic and Sustainable Development Environmental ethic: the set of values or

principles that govern a corporation’s practices relating to the environment.

Sustainable development: development ensuring that the use of resources and the impact on the environment today does not damage prospects for the use of resources or the environment by future generations.


Environmental Concerns in Business and Society Acid rain Air pollution Ecosystems Energy production

and consumption Nature and wildlife

(destruction of habitat, loss of biodiversity)

Ozone Other pollution

(noise, aesthetic) Waste management

(e-waste) Water quality and

abundance Climate change/

global warming


Government’s Influence

Government departments and agencies: Environment Canada Canadian Council of Ministers of Environment National Roundtable of the Environment and the Economy Canadian Environmental Assessment Act Agency

Regulation: Canadian Environmental Protection Act, Canadian

Environmental Assessment Act, (Kyoto Protocol) Aspirational goals: APEC 2007

APEC Statement on Global Warming APEC Leaders Adopt Global Warming Statement By VOA News

08-September-2007

Australian Prime Minister John Howard said the 21 economies on Saturday agreed to adopt what he called "aspirational" goals to reduce emissions, with all nations contributing according to their own capacities.

They did not adopt firm emission-reduction targets.

Environmentalists had called on the Asia-Pacific Economic Cooperation group to set some firm reduction targets, instead of non-binding goals. But many governments -- including the United States, China and Australia -- opposed such an agreement.

Their statement, also called the "Sydney Declaration," sets a target for reducing what is known as "energy intensity" by 25 percent by 2030. Energy intensity is a measure of the energy efficiency of a nation's economy.

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Betting on Science: Carbon Capture & Storage

CCS (sometimes ‘Sequestration’) allows firms to continue to produce GHGs, but they must capture them before they are released to the atmosphere.

CO2 is then stored underground. Some limited use of the technology in

place (Encana injects CO2 to raise oil). Science is largely unproven, very costly

and CCS seen by some as a stall.Chapter 14 Copyright © 2008 McGraw-Hill Ryerson Ltd. 5


Betting on the Market: Cap & Trade Emissions trading: A system whereby

corporations set targets for greenhouse gas reduction; if one corporation cannot meet the target, it purchases credits from those that have met their targets. Ex: Ontario Registry.

Offsets: Credits purchased from other corporations or organizations to mitigate greenhouse gases released into the environment. Ex: Bullfrog Power.


Dissenting Views on Environment / Sustainability

According to some business journalists: Concepts difficult to define and understand Means stopping or constraining economic

development (Ex: GHG release limit vs. intensity) Implies capitalism is unsustainable Apparent misunderstanding of how markets work Are executives being misled as to severity / reality

of some issues (An Inconvenient Truth?)

GHG / Climate Change Issues Summary

Is global warming / climate change real? Did human activity cause it? Social & economic trade-offs: Simply

reducing current GHG emission levels will stagnate economies and cost jobs.

Options: 1) Reduce intensity, 2) CCS, 3) Cap & Trade, 4) Non-GHG energy production (wind, solar), 5) Reduce energy consumption

Combine options: 1 + 3 + 4 + 5 = Reduction



Environmental NGO Influence Environmental non-governmental organizations

(ENGOs): groups that hold shared values or attitudes about the challenges confronting the natural environment and advocate for changes to improve the condition of the environment.

Such groups (e.g., Greenpeace) influence corporations through protests, blockades, boycotts, and annual shareholder meetings.


Managing Responses to Environmental Concerns Token response (e.g., ‘greenwashing’) Compliance with laws and regulations Comprehensive environmental management

(gaining a competitive advantage) Sustainable development

Six Sins: Telling Green from Greenwashing

http://www.terrachoice.com/ 1) Hidden Trade-off:

eco-friendly product shipped world-wide

2) No Proof: Not tested on animals? Prove it.

3) Vagueness: ‘Chemical-free’ makes no sense.

4) Irrelevance: ‘CFC-free’ is just following the law

5) Lesser of Two Evils: Hybrid SUVs

6) Fibbing: no such thing as ‘certified organic’


City of Lethbridge Initiatives Sustainable development of the city Links to provincial and federal environment

sites Environmental Tips

Office of Environmental Management and Urban Sustainability



The “Greening” of Business Functions

Financial management (environmental accountability, SRI funds

Marketing (green product marketing) Human resources (environmental

awareness in workplace, recruitment) Production (pollution, packaging waste,

design for reuse, recycle or safe disposal)


Measuring and Reporting on Environmental Sustainability Type and amount of materials used Source of energy and efficiency of use Source and quality of water Impact on biodiversity Reduction of emissions, effluents, and waste Product design that minimizes impact Compliance with environmental laws Use of efficient transportation

Source: Global Reporting Initiative, 2006


The Environment: Corporate Opportunities Reputations likely enhanced Customers attracted Investors attracted Costs reduced through recycling/conservation More competent staff attracted Better integration with local community New technologies or expertise developed More efficient ways of producing products found


The Environment: Corporate Threats Corporate image may deteriorate Revenues may suffer if customers are lost Investors may decide not to invest Material and production costs may increase Financial penalties increasing Insurance premiums can increase Potential alienation from local community Government may enact stricter legislation

Chapter 14 Copyright © 2008 McGraw-Hill Ryerson Ltd.1 Defining Environmental Ethic and Sustainable...

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