sustainability and pm

Question 1

sustainability definition

Answer 1

meeting the needs of the present without compromising the ability of future generations to meet their own needs.

Question 2

how can poor environmental behavior affect a business?

Answer 2

-fines for pollution
-increased tax (eg. carbon tax on fuels)
-reputational loss
-low sales
-inability to secure financing
-loss of insurance cover

also reducing material, energy, water waste will reduce operating cost.
-focusing on reducing waste will improve effeciency.
-health and safety measures will reduce cost of accidents

Question 3

increased focus on sustainability - impact on accountants

Answer 3

in addition to measuring financial information, now social and environmental aspects will have to be measured, in relevant, reliable, meaningful and comparable way.
also sustainability issues across the supply chain must be considered, social and environmental practices of suppliers must be considered.

Question 4

what is the triple bottom line approach

Answer 4

it is a way to define a business’s sustainable performance.
3 elements:
-environmental: impact on natural environment eg. resource use, waste and emissions
-social: stakeholder impact. employees, suppliers, customers, local community
-economic: impact on global and national aconomy eg. jobs created, tax paid, and wealth created.