External business environment - environmental factors Flashcards
1
Q
United Nations Framework Convention on Climate Change (UNFCCC) - areas of negotiation
A
- strategies to adopt to counteract climate change
- a reduction of greenhouse gas emissions
- finance to enable action on mitigation and adaptation
- technology development and transfer to allow green development
2
Q
Commitment of Kyoto protocol and UK
A
- Kyoto protocol, 5% reduction below 1990 levels for period of 2008-2012
- UK, 12.5% reduction (achieved as emissions reduced 27% by 2011)
3
Q
UK and EU gov responses to UNFCCC
A
- deliver on the new targets via climate change act 2008 (30% reduction by 2020 and 60% by 2050)
- create a new independent body to monitor progress of carbon reduction targets
- new commission to spearhead company investment in green technology
- introduce climate change levy 2001 which taxes businesses on every unit of energy used
- recycling legislation which puts responsibility on manufacturers for collection, dismantling and disposal of electric goods once they reach end of life cycle
4
Q
Business responses to UNFCCC
A
- new production methods investigated that use less fuel and produce less emissions
- research on less wasteful packaging
- consideration about how components of products can be recycled after finished
5
Q
Effects on business of responses to UNFCCC
A
- increased demand due to customers attracted to ‘greener’ companies
- increased costs of reconsidering design of products so materials are recycled
- increased costs of training staff on environmentally friendly methods
6
Q
Wider environmental initiatives - advantages
A
- using less packaging is ultimately cheaper
- can be used in marketing campaigns
- effective in developing customer loyalty
7
Q
Wider environmental initiatives - disadvantages
A
- more expensive (initial r and d costs for making production less wasteful), which is passed on to customers
- if not publicised well, no one will know, no benefits reaped
