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 LEARNING CONTENT green marketing have focused on the conditions

Introduction: that increase the potential for consumers to act


The overview of green marketing may lead you in an ecologically responsible manner, and they
to recognize that most companies are sensitive recognize marked variety among consumer
to their offerings. Particularly in the raw interpretations of this responsibility.
materials that are being use in the production of
products. You might be wondering why food Lessons Proper:
chains are now straw less in the drinks they
Green Marketing
offer, cardboards instead of polystyrene
 is the “marketing of products
containers for their pasta or burgers, cash less
that are presumed to be
for financial institutions, paper bag for grocery
environmentally safe”
stores and eco bag for malls.
 Refers to the process of selling
These practices may lead to environmentally products and/ or based on their
friendly atmosphere in the community. Meaning environmental benefits. It is
your participation in the advocacy is much the study of all efforts to
appreciated through product planning and consume, produce, distribute,
development. promote, package, and
reclaim products in a manner
Products are flocking in the market with these that is sensitive or responsive
companies as well as consumers can see the to ecological concerns. From
difference of these products from one another. the direct materials and in direct
Consumers may tend to sensitive to the materials and indirect materials
products they are buying, while companies may used in the production to the
be sensitive to the materials, strategies they point of delivery of this product
may apply to their company. should be environmentally safe.

In order for us to understand green Social marketing adopts a different vantage


marketing, it is first important to have an point and defines green marketing as the
appreciation of marketing. The American development and marketing of products
Marketing Association defines marketing as “the designed to minimize negative effects on the
activity, set of institutions, and processes for physical environment. In contrast to the
creating, communicating, delivering, and retailing perspective the social orientation
exchanging offerings that have value for recognizes the pre and post consumption costs
customers, clients, partners, and society at to the environment. Thus, automobile
large.” This definition recognizes that marketing manufacturers attempt to raise production
is an organizational function and set of activities efficiency while simultaneously decreasing costs
undertaken to bring about exchanges of goods, associated with disassembly and reuse after
services, or ideas between people. The consumption.
definition recognizes that marketing is a
philosophical orientation to the practice of doing If we are to address the breadth of issues
business. This philosophical orientation associated with a environmentally based
emphasizes the satisfaction and value that approach to marketing, then it is essential to
customers, clients, partners, and society realize offer a definition that incorporates the logic of
due to marketing action. each of the orientations to green marketing.

As marketing has evolved, individuals In inclusion of “all efforts to consume”


operating in various parts of the field have recognizes that many entities are involved in
adopted alternative definitions of green green marketing. Green marketing is not limited
marketing. Consumer researchers addressing to government or nongovernment organizations,
nor is it solely an activity undertaken by Manufacturers. Many manufacturers have
consumers. recognized environmental concerns as a source
of competitive advantage and have developed
Manufacturers, wholesalers, retailers, and product with green image. Example: Jollibee
services firms each has opportunities to have stopped packaging their burgers Styro
contribute to green marketing. containers and now use cardboard which
comes from a renewable resource and is
Energy Star is an international standard for
biodegradable or recyclable.
energy efficient consumer products. it was first
created as a United States government Wholesalers. Products that are transported
program in 1992, but Australia, Canada, Japan, from the manufacturers in bulk, usually sold in
New Zealand, Taiwan, and the Europe Union volume to retailers. Wholesalers may have
have also adopted the program. Devices packed the products in a box wooden box.
carrying the Energy Star Logo, such as Example Mariton grocery when resellers buy
computer products and peripherals, kitchen goods from them would be placed in a carton or
appliances, buildings and other products, save box. But for consumers who buy per piece may
20%-30% on average. However, many be plastic, which violates in the contribution of
European-targeted products are labeled using a environmentally safe.
different standard, TCO Certification, a
combined energy usage and ergonomics rating Retailers. Direct selling to ultimate consumers.
from the Swedish Confederation of Professional Products are sold per pieces, most retailers may
Employees (TCO) instead of Energy Star. deliver the products in a plastic, therefore they
should be responsible in the destruction of the
The Energy Star logo is placed on energy-
environment. Retailers may also practice with
efficient products.
the use of proper bags to avoid plastic
What is your role in the advocacy of green garbage that consumers may throw
marketing? elsewhere and contribute to clogging of
drainage that can cause flood to certain
When we speak about green, it is not only mean locality.
products should be produced in an eco-
friendly manner but also how can these Service Firms
products or package can turn into Hotels, transport groups, financial institutions
something. Let’s say for instance the bottled may also observe green marketing.
drinks, what should we do in order that these  
bottles may not be garbage. Instead do some Notice that green marketing observes mutual
processes that may turn into finished product. benefit, competitive advantage, rising green
Creativity can help us into something that is demands of customers and higher profit margin.
profitable.

Green Marketing Management vs Green


Products
 Who has the opportunity to contribute to
Green Marketing? Green marketing can be differentiated in two
 How do we maintain clean and green perspectives, the green marketing management,
environment? and green products.
 Who is responsible with the destruction
 Green Marketing Management
of forest and the appearance of holes in
the ozone layer?  It is the process of planning and
executing the marketing mix to facilitate,
consumption, production, distribution, more profits. Workforce may as well work hand
promotion, packaging and products in hand with the organization to be more
reclamation a manner that is sensitive to profitable.
eco-logical concerns.
It must also nurture social performance in its
This simply means that marketers must plan for interaction with customers, suppliers,
the products to be offered especially the consumers, and the other interests groups.
materials to be used, it should be of quality and Values must integrate in all aspects so that the
eco friendly, the price must be right in order trust and confidence be given to the organization
that consumers will buy the product, determine by the external sectors.
the right promotion in order to reach out the
customers to inform, remind, and change the Survival is also contingent on the firm’s ability to
attitude of the consumers towards the product. achieve acceptable levels of environmental
Right message and vehicle to make the product performance throughput the supply cycle from
be known to the public. The products should be raw materials procurement to post consumption
available at any time and any place through the disposal. Competition may not be a detrimental
channel of distribution-place. factor for the organization to survive this must be
the reason to work harder in order to improve
Green Products the products/services to gain more consumers.

 Are recognized nationally or WHY WE SHOULD STUDY GREEN


internationally through certification MARKETING?
and eco-labeling.
Examples: Organic vegetables, Green Marketing has positive influences on
Recycled paper, Phosphate-free multiple participants in the economy.
detergents. The environment, developing economies,
consumers, corporate strategy, the product,
Strictly following green marketing will production processes, and supply chain benefits
make the organization more successful. from green marketing. This is not the sole
The indication of such is presented responsibility of the organization instead this
below. is the concern of all. If this happened all of the
participants in the economy may be benefited.
SUSTAINABILITY AND THE TRIPE Companies as well should not only think of
BOTTOM LINE profits but also for the general welfare of the
community.

Benefits:

Economic Environmental Benefits-


performance  It is obvious benefactor or green
marketing. identify or study the direct
Environment Social and in direct materials to be use in the
al
performance production anything may not be
performance
destructive to the environment
 Example. Fossil fuel consumption is a
The sustainable organization must generate major source of greenhouse gases
acceptable levels of economic performance, or associated with the climate change. Two
it will not survive. Strategies should use leading sources of climate change are
frequently in order to sustain more profits. the burning of coal for electricity and the
Workforce may use frequently in order to sustain
burning of gasoline for automobile on the company’s environmental
transportation. images.
 Investors are attracted to specialized
Developing Economies- green funds that feature portfolios of
 Refers to nations that have a relatively stocks from environmentally conscious
low gross domestic product (GDP) per firms.
capita. The low income, underdeveloped  Risk associated with finance, strategy,
assets, and economic vulnerability and operations are all affected by the
endemic to these economies results in firm’s efforts to constrain its influence on
high dependence on the agricultural the environment.
sector. Climate change limits
agricultural productivity, increases Product Benefits-
water stress, raises sea levels  It refers to components introduces into
negatively transforms ecosystem, production outputs or services designed
and thwarts human health. to benefit the consumers, whereas
process benefits refer to tools
Consumer Benefits- devices, and knowledge in
 Consumer Benefits in several important throughout technology designed to
ways through green marketing. These facilitate manufacturing and logistics.
benefits often influence consumer
decision making, and consumer will vary Production Process Benefits-
in the extent to which they value these  It focuses on organizational efforts to
benefits. Initially, consumers benefits produce the highest-quality products
from the knowledge that they are at the lowest possible cost. Process
doing their part to reduce climate benefits accrue for handling for
change. Consumers also value the products, by-products, and waste.
opportunity to be associated with the
environmentally friendly products Supply-Chain Benefits-
and organizations. Consumers also  Green marketing influences
want ecologically friendly products relationships among the firms that
without sacrificing other valuable makeup the channel from raw material
features. mining to consumption. Green strategies
that seek to eliminate waste in supply
Strategic Benefits- chain result in firms analyzing truck
 Managers of corporate realize multiple loading and route planning in delivery
benefits from a green approach to process.
marketing. Companies that incorporate
ecological consciousness into their According to Petra Partlova, Eva Cudlinova,
mission statements and strategy RNDr. ZUzanaDvorakovaLilova&Dvorak Petr.
enhance their images among, (2016). In the study they have conducted, green
consumers, employees, investors, marketing is possibly the new type of marketing.
insurers, and the general public. Recently, it has also been the most discussed
Corporate initiatives that emphasize a one by organization, companies and even
green orientation to markets have states. Green marketing is a global concern
several implications for workplace. and it is going to have a better future.
 First, potential employees may decide However, this type of marketing meets a few
whether to interview with a firm based problems such as much effort to replace
conventional products and a lack of confidence.
Many companies produce and promote such 6. Companies with low market power–
products as much as possible, In spite of this, Companies that rely on other firms for
the public is still skeptical. substantial amounts of output must
attend to the green marketing
constraints levelled by the supplier.
Green marketing is increasingly an important 7. Companies operating in highly
issue for most entities involved in marketing regulated industries- Government
whether are buyers, sellers, or regulators of an implements regulations to control the
industry. Consider how the following market manner in which an industry operates.
participants can benefits from understanding Industries that employ hazardous
green markets materials (e.g., the chemical industry)
are subject to substantial regulations
1. Consumers – customers only trust
and the increasing interest in green
companies who have good reputation
marketing fuels the need for industrial
and strictly observe offering products
standards.
which are eco friendly.
8. Companies dependent on natural
2. Governments – act as the central
resources- Industries that are highly
point in the advocacy of eco friendly
reliant on natural resources recognize
practices. Monitor in the granting of
the absolute limits in the availability of
certification of produced products that
natural re-sources. These industries
pass the standard.
include oil, fish, and forestry. Natural
3. Companies with established
production limits demand that firms
environmental reputations– adhere to
understand eco-marketing activity that
the code of ethics through the advocacy
can conserve scarce resources.
of green marketing.
4. Companies highly dependent on
scarce human capital – Services refers
to intangible activities that organizations
provide to consumers. In the United
States, services account for more than
84% of the employment in the economy.
The intangible services are provided
through human capital, and firms that
operate in this sector of the economy
must increasingly incorporate green ECO LABELLING
marketing into their product offerings.
5. Companies with high brand exposure Eco label is an environmental claim that appears
on the packaging of a product. It is a wanted to a
– In their annual reports on the best
manufacturer by an appropriate authority. ISO
100global brands, Business Week and 1420 is a guide to the award of Eco-labels.
Inter brands provide an annual estimate
of the earnings attributable to the brand. The government of India launched and Eco-marl
As brands increase in appeal, they Scheme in 1991 to increase consumer
simultaneously increase the amount of awareness in respect of environment friendly
products. The aim of the scheme is to
scrutiny they incur. In contrast to reports
encourage the customers to purchase those
of brands that have little brand equity, product which has less harmful environmental
stories that indicate the activity of impact
brands with high brand equity are likely
to be viewed as more newsworthy.
ECO LABELLING
When can you say that a company or product
practice green marketing? is there any symbols
or trademark that signifies that such observed
green marketing?
Through the mark or certification granted by
authorities to the products may guarantee that
customers are safe in using these products.

The Flower is the symbol of the European Eco- The picture depicts that before a certain
label- your guide to greener products and company is given the eco label it goes through
the stages. It is not easy to be granted the label
services.
it passes through tedious process.
It is a voluntary scheme designed to encourage The first stage determines the content, features,
businesses to market product and services that and designs of the product, while the second
are kinder to the environment and for European stage is the choosing of the product that passes
consumers- including public and private the required standard
purchases- to easily identify them.
The third stage is the issuance of certification
You can find the Flower throughout the once approved by the Bureau. You can now see
European Union as well as in Norway, how important is green marketing.
Liechtenstein and Iceland. The European Eco-
Label is part of a broader strategy aimed at
promoting sustainable consumption and
production. Criteria for Eco Mark

You should be knowledgeable to the products  Products to meet the relevant standards
that you are buying. Always read the label or of BIS.
see if there is symbol that shows that the  Manufacturers to produce documentary
product is safe. evidence in regard to compliance of
EPA. Water and Air Acts and other rule
Eco labeling lead to and regulation such as Prevention of
 Improvement of image and sales of Food Adulteration Act and rule made
products there under.
 Manufacturer’s being more  The product to display the list of critical
accountable to environment impacts ingredients in descending order of
 Consumers awareness that their choice quantity present.
of product do affect the environment as  The packaging to display the criteria
some products are less damaging to based on which the product has been
environmental than others/ labeled environment friendly.
 The material used for packaging to be
Eco labeling signals the accuracy, security and recyclable/ reusable/ biodegradable.
safety of the products because marketers are  The product to be accompanied by
accountable to the environmental impact. detailed instructions for proper use.
Manifestation of such is the ban of product of
plastic, use of eco bags, straw less for the soft Manufacturer should meet certain criteria and
drinks etc. should show documents before going into Eco-
mark. When you will have your own business
someday you should do the same so as giving
your customers the assurance that your
products are of standard.
STATUS FOR ECON-MARK DEVELOPMENT brand is compromised. Yous should be careful
Eco Marketing every time you buy the products
1. Soaps and detergents
2. Paper
3. Food items The term green is indicating of purity. Green
4. Lubricating oils means pure in quality and fair or just in dealing.
5. Packaging materials For example green advertising means
6. Paints and powder coatings advertisement without adverse impact on
7. Batteries society. Green message means matured and
8. Electrical/ electronic goods neutral facts, free from exaggeration or
9. Food addition ambiguity. Go green.
10. Wood substitutes
11. Cosmetics
12. Acrosal poperllants
13. Plastic Products
14. Textiles
15. Fire exting wisher
16. Leather

Many customers will choose products that do


not damage the environment over less
environmentally friendly products, even if they
cost more. With green marketing, advertisers
focus on environmental benefits to sell products
such as biodegradable diapers, energy-efficient
light bulbs, and environmentally sale detergents.
Through this mark customers are confident in
using such product.

There are various products that underwent eco-


mark. These products were listed in the status
for eco-mark development or published in the
newspaper to give awareness to the public.

Giving list of products that were given the eco-


mark can assure you when buying these
products customers are safe when using them.
Don’t risk your life with cheap products that did
not pass the standard. Remember you should
always check the label when buying.

Green products vs. Green Companies


Many people either know or wouldn’t be
surprised that large multinational corporations
are doing this which is why they shouldn’t be our
biggest concern. A corporation might sell their
own brand of green products, but they are by no
means a green company. Smaller, truly green
companies, who are guilty of this marketing, are
considered far more unethical even though they
are using the same tactics. If their platform is
based on sustainability and the market one of
their products as such, when its not, then the
Lesson 2 responsibility that focuses on four themes. First,
the company seeks to become carbon neutral in
Planning is very important in the 2010. The firm approaches this goal by
formulation of strategies, mission, objectives and purchasing renewable energy where possible
tactics by any small or big companies in order to and generating its own renewable energy where
survive in the market. This module will provide clean energy is not available.
you clear picture about green panning process
which will lead you to a better relationship to The second sustainability theme of the firm is
stakeholders. to design recyclable products. Recognizing that
the half-life of a shoe is rather short, the firm is
AN OVERVIEW OF STRATEGIC GREEN striving to create low-cost products that are not
PLANNING only less harmful to the environment but also
can become revenue-generating products after
the productive life of the shoe. Three years ago,
Timberland began labeling the overall amount of
energy and the amount of energy from
renewable sources associated with production
and the supply cycle. In addition, each product is
accompanied by a Nutrition Label indicating the
climate impact, chemical usage, and resource
consumption for the product? The products also
feature Green Index cards that provide an easy
way to compare the footprints of footwear
products.3

The third sustainability theme that permeates


A. Green Marketing Planning the organization concerns the environment and
surroundings of the communities and
TIMBERLAND INC. workplaces in which the company operates.
Timberland sponsors service events in which it
In the fall of 2009, Timberland began works to strengthen communities by improving
incorporating recycled rubber into the outsoles green spaces and access to the outdoors.
of its Mountain Athletics and Earth keepers lines Furthermore, it encourages employees to
of footwear.1 The company plans to make more engage in community service in their
than 200,000 pairs of shoes using recycled rub! communities.
bet. Although most shoes are still made from
virgin rubber, competitively priced recycled The final theme of Timberland’s
materials are making significant inroads into the sustainability mission concerns the workplace.
market. Timberland hopes to increase the Since the company realizes that the finished
market share of these green materials via the Timberland product is the result of efforts
introduction of recycled rubber into its footwear. throughout the supply cycle, it monitors the
entire supply chain.
The decision to incorporate recycled materials
into the product line is part of Timberland’s Timberland illustrates how a firm can take a
longstanding commitment to the environment. sustainability strategy and incorporate it
The corporate strategy is based on a throughout its marketing strategy.
sustainability perspective that permeates
everything it does. On a corporate level, the
company has a commitment to corporate social
Strategic Market Planning WHAT IS GREEN PLANNING PROCESS?

The process that outlines the manner in w/c a


business unit competes in the markets it Green Planning Process
serves. Strategic market decisions are based on
assessments of product markets and provide t e • must explicitly examine the interaction of
the environment with the corporate
basis for competitive advantage in the market.
strategy.
The plan developed through this process
provides grim for the development of the skills • the process of creating and maintaining
and resources of a business unit and specifies a fit between the environment and
the results. Each process should satisfy a objectives and resources of the firm.
certain criteria before you proceed to the next
FIT – effort to understand how the environment
process.
both influences and influenced by the
A strategic marketing plan reviews both long- marketers.
term and short-term objectives that the company
wants to meet. Also takes into consideration the The planning process begins with an in-depth
current financial position of the company as well analysis of the internal and external environment
as trends in the marketplace. of the firm. Based on this situational analysis,
the firm establishes its mission, objectives,
Strategic Market Decisions strategy, implementation, and evaluation.
Planning process - is a dynamic process that
• Based on assessment of product relies heavily on interaction with the
markets, basis of competitive advantage environment.

• Plan developed through this process Strategic marketing planning should accompany
provides a BLUEPRINT for the planning throughout all functional areas of the
development of skills and resources. firm such as financial planning, production, and
research and development. The output of the
The planning process involves anticipating planning process is a marketing plan that
future conditions and establishing strategies to provides an analysis of the current marketing
achieve objectives. Interestingly, the planning situation, opportunities and threats analysis,
process necessarily involves relating the marketing objectives, marketing strategy, action
marketing objectives of the firm to the programs, and projected income statements.The
Plan serves as the BLUEPRINT outlining how
environment. Although strategists have long
the organization will achieve its objectives. The
recognized the interaction between the firm and plan also provides insight into the allocation of
its environment, much of the research and resources and specification of tasks and
planning process focuses on the influence of the responsibilities and the timing of marketing
environment on corporate decision making. action.
Firms that incorporate sustainability concerns
into strategic planning recognize that the As outlined in Figure 2-2, the planning process
activities and programs developed by the firm is a dynamic process that relies heavily on
simultaneously influence the environment. interaction with the environment.

For example, Toyota recognizes that gasoline THE STRATEGIC PLANNING PROCESS
prices represent a facet of the environment that
THE ORGANIZATIONAL
influences consumer purchase decisions. In
ENVIRONMENT MISSION
addition, Toyota also considers the influences of
automobile production and operations on the ECOLOGICAL OBJECTIVES
environment.
SOCIAL
through formulation of contingency strategies
and a crisis management team.
ECONOMIC STRATEGIES
Management takes stock of the degree to
COMPETITIVE
which the firm has realized objectives.
POLITICAL IMPLEMENTATION
The Organizational
LEGAL EVALUATIO N AND Environment Mission –
CONTROL Ecological formulated by the
Social upper
Economic management
The organizational mission is the reason for Competitive Objectives
being, company would see to it that all the Political Strategies – top
Legal mgmt.
resources are present so as to achieve the
implementation
objective. Organizational mission reflects such Evaluation and
information as what types of products or Control
services it produces, who its customers tend to
be, and what important values it holds.

These objectives tend to focus on ways


an organization can surpass the competition in
market share, product quality, and brand
Green logistics A firm Packaging A reverse logistics
recognition. For example, if you own a comic- changes to minimization us system is put into
book store, one example of a a more incorporated as a place by FUJI
concentrat part of a firm’s XEROX to re
sales objective could be to increase your ed manufacturing process and
monthly sales by 10 percent over the course of detergent, review process. remanufacture
which. copies
the year.
Marketing waste A firm E.g. TELSTRA ( a E.g. a Queensland
So, for example, your marketing strategies improves phone company) sugarcane facility is
the gas internal rebuilt to be
would look at price, distribution, product, efficiency processes so that cogeneration
of its old telephone based, using sugar-
packaging, and promotion. There might be a manufactur directories cane waste to
specific strategy for each. HR management will ing process, (waste) are power the
which collected are operation.
have a set of strategies too. These could include lowers its turned into cat
recruitment, retrenchment, remuneration waste litter products by
output. other companies.
strategy, or training strategy.
Green promotionAn oil company runs a PR A company sets a As a part of its
Implementation -  is the process that turns campaign to highlight its green policy that philosophy the
practices in order to counter realistic product BODY SHOP co-
strategies and plans into actions in order to an oil spill getting bad press eco-benefits promotes one or
accomplish strategic objectives and should always be more social each
mentioned in year with in-shop
goals. Implementing your strategic plan is as promotional and promotional
important, or even more important, than your materials. materials

strategy. ... 95% of the typical workforce doesn't


understand their organization's strategy.
Tactical Quasi- Strategic- greening
Strategic evaluation and control - is the greening strategic
greening
process of determining the effectiveness of a
given strategy in achieving the organizational
objectives and taking corrective actions
whenever required. Control can be exercised
Targeting Ads A firm A firm launches a new Strategic • SPIRATIONAL TOOL – provides
mentioning develops a Business Unit (SUB) aimed at the
green features green brand green market. motivation, direction and insight into
are run in in addition to the company’s character
green-focused its other • Indicates the distinctive
media. brands
competencies of the company
Green design A firm Life-cycle E.g. FUJI XEROX develops its Green
switches from analysis is Wrap paper to be more eco-friendly For example, Figure 2-3 provides the
one raw incorporated from the ground up.
materials into the eco-
mission statement and values of Duke
supplier to design Energy.
another with process to
more eco- minimize
friendly eco-harm.
Figure 2-3, Duke Energy Mission And
processes. Values
Our Mission
Green E.g. a mining E.g. British E.g. the BODY SHOP pursues
positioning company runs Petroleum environmental and social change
a Public (BP) AMOCO improvements and encourages its
At Duke Energy, we make people’s lives
Relations (Pr) redesigns its consumers to do so as well. better by providing gas and electric services
campaign to logo to a sun- in a sustain-able way. This requires us to
highlights its based
green aspect emblem to
constantly look for ways to improve, to grow
and practices reflect its and to reduce our impact of the environment
view to a
hydrogen/
solar-based
OUR VALUES
future of the
energy Caring - We look out for each other. We strive
industry to make the environment and communities
around us better places to live

Integrity - We do the right thing. We honor our


commitments. We admit when were wrong.

Green Cost- savings E.g. a water A company rents Openness - We’re open to change and to new
pricing due to existing company its products ideas from our coworkers, customers and
energy switches its rather than other stakeholders. We explore ways to grow
efficiency pricing policy selling: our business and make it better.
features are from a flat consumers now
highlighted foe monthly rate pay only for us Passion - We’re passionate about what we
do. We strive for excellence. We take personal
a product. to a per-unit use of the
accountability for our actions.
of water used product.
basis. Respect - We value diverse talents,
perspectives, and experiences. We treat others
the way we want to be treated.
B. INCORPORATING A GREEN
PERSPECTIVE INTO THE MISSION Safety - We put safety first in all we do.
STATEMENT
The Duke Energy passage encompasses many
Mission statement traits associated with effective mission
statements. The mission is clearly articulated,
• Describes a firm’s fundamental, unique
relevant, and enduring. In establishing the
purpose, indicating what the
organization intends to accomplish, mission, senior management provides a sense
the markets in which it operates, and of direction to the organization. Employees and
philosophical premises that guide its business partners are inspired to pursue specific
action. It provides motivation, direction, action because the action is consistent with the
and insight into the company’s message outlined in the mission. Note that the
character. Contrary is also true-constituents are unlikely to
pursue activities that do not reflect the values
expressed in the mission statement. If the firm is • Eg. Investments on in renewable energy
to have a strategy that meaningfully incorporates is less than the money that goes into
green marketing and sustainability, then the their oil and gas divisions
mission statement must incorporate green
Environmentalists accuse oil firms of
marketing and sustainability.
greenwashing when their investments in
For example, P&G (Procter and Gamble) renewable energy are small compared with the
incorporates an external focus into its core money that goes into their oil and gas divisions.
principles for operations. The firm recognizes In the current business and regulatory climate,
that this external orientation requires the firms should also recognize that public
company to incorporate sustainability into its statements about efforts to become sustainable
products, operations, and packaging. The subject the firm to greater scrutiny. In a global
company follows through with this commitment enterprise, these statements open up the firm to
in several ways. First, P&G has adopted a criticism from consumers and government
sustainability perspective focused on improving organizations.
lives for years to come. Second, the firm has a
For example, Coke and Pepsi are two global
product safety initiative designed to enhance the
consumer products companies that each
environmental quality of products, packaging,
developed commitments to sustainability. These
and operations across the globe. Third, P&G
firms and their affiliated bottlers necessarily
has implemented a commitment to the
have to account for the manner in which water is
environment. Since detergents and other
treated in the production process. Each firm’s
products that the firm manufactures can have a
expressed commitment to sustainability has
significant influence on water and water
been accompanied by critiques in some markets
treatment plants, P&G requires all ingredients to
about water filtration and handling
pass an environmental risk assessment before
they can be integrated into products. These Sustainability should be incorporated into the
commitments to the environment flow from a mission statement of the firm, but this focus
corporate mission that emphasizes should augment other driving forces within the
environmentalism and sustainability. Although firm.
the mission statement should underscore the
For example, Adidas explicitly recognizes that
firm’s commitment to sustainability, it is critical
the company is a consumer-focused, innovative
for this statement to be consistent with the level
firm that manages a portfolio of brands that
of sustainability currently pursued by the firm.
consistently deliver outstanding financial results.
For example, in 2000 BP developed a new
The firm also affirms its desire to be a socially
symbol along with a media message that
and environmentally responsible global
claimed the firm was moving “beyond
organization. The Adidas values reflect the
petroleum?” The firm outlined a strategy that
mounting evidence of the role of green
identified efforts to pursue energy from sources
marketing within the firm. Green marketing
other than fossil fuels, but oil and gas accounted
augments the other values of the firm and its
for approximately 9800 of the firm’s revenue.
product offerings, but it is rarely the primary
GREENWASHING motivation for consumption..

• It refers to situations in which there is a The firm needs to incorporate its development of
significant gap between the expressed a green strategy as a facet of the value
and genuine commitments to proposition.
sustainability.
C. INTEGRATING A GREEN MISSION INTO Generate out own renewable energy on-site
OBJECTIVES, STRATEGY, AND MARKETING where we can’t purchase clean energy from the
TACTICS electric grid.
Purchase renewable energy credits to offset
emissions and help develop local renewable
Timberland apparel to illustrate the planning energy projects.
process. The firm’s mission is to equip people to
make a difference in their world. Timberland
pursues this mission by creating outstanding
products and by trying to make a difference in Implementation
the communities. Where employees live and Wood floors and cash register wrap made from
work. Importantly, the firm views volunteering in reclaimed lumber.
communities: and designing ecologically friendly Wall fixtures made from recycled fiber.
products as ways to reduce the company’s Wall paints and floor finishes with very low or no
influence on the environment. This illustrate in volatile organic compound content.
figure 2-4.
Energy-efficient light fixtures
Glass, an abundantly available material
Figure. 2-4 The Timberland Planning Process
Evaluation and Control
Men tons of carbon emissions
Renewable energy as percentage of energy
usage
Metric tons of emissions for footwear factories.

Organizational Objectives
 are desired or needed result to be
achieved by a specific time and emerge
from the development
Organizational Mission
Our mission is to equip people to make a Corporate Strategy
difference in their world. We do this by creating  Outline the direction the firm will pursue
outstanding products and by trying to make a within its chosen environment and
guides the allocation of resources and
difference in the communities where we live and
effort. For, Timberland, the strategy
work.
emphasizes third-party verification of
Objective energy use, efficient operations, use of
clean renewable energy, and the
Committed to becoming a carbon neutral
purchase of energy credits to offset
enterprise by 2010 and making the outdoor
emissions.
environment better for all of us to enjoy today
and tomorrow. Implementation
 The implementation process refers to
the stage at which the firm directs
Strategies
specific effort the realization of
Verify greenhouse gas inventory with a third-
objectives.
party vendor. Reduce energy demand through
 Includes determination of action plans
energy efficiency improvements. Purchase
and related tactics designed to enable
whatever clean, renewable energy we can from the firm to realize objectives.
electric utilities.

Evaluation and Control


 At this point, management takes stock Timberland, some of these tactics include the
of the degree to which the firm has types of fixtures installed at retail locations
realized objectives. Importantly, the
criteria that emerge from the plan are Some organizations are not CONSISTENT with
the factors incorporated into evaluation. the level of sustainability.
These evaluative criteria should logically
complement the mission and objectives.
Again, if the mission and objectives do D. THE INTERACTION BETWEEN STRATEGY
not incorporate sustainability, then the AND THE ENVIRONMENT
evaluation and control systems will not
address these concerns. The
commitment to sustainability must
therefore accompany every phase of the
strategic planning process.

For Timberland one objective is environmental


stewardship whereby the company is committed
to becoming a carbon-neutral enterprise by
2010.This goal embodies three essential
elements of objectives.

First, the objective precisely specifies the goals


of the organization. If the objective is not precise
and clear, employees will be less likely to
achieve the desired outcome. Second, the The presentation of strategic planning as a static
objective is measurable and in this Case leads step-by-step process facilitates presentation of
to exact mechanisms for assessing pursuit of the model. Nevertheless, the step-by-step
this objective. Objectives must be measurable if process does not capture the manner by which
the firm is to assess the level of success in a planning occurs in many organizations. The
meaningful way. Third, the objectives must entail multiple phases of this process are going on
action commitments specifying the behaviors simultaneously. Senior management is
associated with achieving the objectives. If the reevaluating the tactical plans while employees
relevant action is understood, management can are implementing specific facets of the plan.
convert the objective into specific action
A primary need for constant reassessment of
associated in the marketing plan and strategy.
strategic planning is the interaction with the
Clearly articulated strategies based on environment. For example, as energy prices
measurable objectives enable management to escalate, senior management must consider
develop specific implementation plans. Although costs of reimbursement to sales representatives
senior management establishes objectives and while sales representatives likely re-assess their
strategy, it is rarely involved in the sales call schedules and routes. Because the
implementation process. Thus, it is essential that environment is subject to change that has a
management relay a message of sustainability significant influence on marketing activity, it is
throughout the strategic planning process. essential for the marketing organization to
monitor the environment. Thus, marketers
The action plans provide schedules and evaluate the ecological, competitive, economic,
milestones, whereas the tactics refer to the social, political, and legal environments.
specific activities that the firm will engage in to
ensure that objectives are realized. For An increasing awareness in society is the
recognition that marketing influences the
environment. Marketers are increasingly
monitoring their influences on the environment. many ways. Consumers influence the action of a
For example, McDonald’s historically used a firm when they elect to buy to organization’s
polystyrene container known as a clamshell to product offerings or choose to purchase
package hamburgers and other sandwiches.”
products from competitors. Individuals operating
These clamshells
created a difficult form of solid waste, were in the marketplace are important source of new
economically unattractive for recycling, and product opportunities for the firm. Consumers
produced chloroflourocarbons (CFCs) that were provide feedback on their experiences with the
harmful to the ozone. In I989, McDonald’s began firms product and these comments influence
collaborating with the Environmental Defense other consumers as well as corporate product
Fund(IDF) to address waste management. At decisions.
the time, McDonald’s employed 500,000 people
in 11,000 stores serving 22 million customers
SUPPLIERS
per day. The alliance prompted McDonald's in
Companies are increasingly finding that their
1990 to replace the polystyrene with quilted
suppliers influence efforts to achieve
paper Madefrom polystyrene and paper. The
sustainability.
new wrapper was less bulky, cheaper, required
less energy to produce, and discharged less
EMPLOYEES
pollution.
The employees of the firm play a strategic role in
The EDF-McDonald’s alliance illustrates how the implementation of any strategy. As
marketing activity has a dynamic influence on stakeholders, employees are important sources
the environment. McDonald’s, its franchisees, of sustainable new product ideas. Employees
and their customers each play a significant role often have industry-specific knowledge and
in the waste management for the restaurants’ understanding of the market, which enables
packaging and products. The collaboration with them to offer insight into product development.
EDF enabled the company to strike a win-win
strategy that reduced waste and pollution while COMPETITION
simultaneously lowering McDonald’s production The competitors in the market have a strong
costs. influence on the activities to the firm. Companies
must proactively monitor the action performance
E. DELIVERING VALUE TO ALL of their competition.
STAKEHOLDERS

LEGAL SYSTEM
Stakeholders The counts and legal system are stakeholders
that influence the firm via the enforcement of
• refers to the individuals, organizations,
laws governing sustainability.
and groups that have an interest in the
action of an organization and have the
FINANCIAL INSTITUTIONS
ability to influence it.
Banks, other lending agencies, and insurance
• The development of corporate strategy firms are significant stakeholders because they
demands consideration of the number of determine the availability and cost of funds to an
entities that are influenced by the action organizational. Financial institutions are
of the firm. increasingly embracing sustainability as an
Primary stakeholders include the following: important facet of corporate strategy, and they
are developing financial systems to facilitate
CONSUMERS implementation of the strategy.
The purchase and users of a firm’s product are
important stakeholders that influence the firm in GOVERNMENT
Government influences the action of firms via f. FINANCIAL INSTITUTIONS –
the regulations established to ensure product availability and cost of funds
safety throughout production, use and post g. GOVERNMENT – regulations
established to ensure product safety
consumption.
h. MEDIA – to frame public perception
i. STOCKHOLDER/ OWNERS – investors
MEDIA j. SCIENTIFIC COMMUNITY
The Valdez disaster offers evidence that media k. NGO
are strategically poised to frame public l. General public
perception of the events involving the firm.
Increasingly, firms recognize that they must F. How This Text is Organized to help You
manage their interaction with the media in a Understand Green Marketing
proactive.
The goal of this text is to drive marketing
decision making toward action that is sensitive
STOCKHOLDERS/ OWNERS
to the environment. Our general model of the
Investors with a variety of levels of ownership in
context surrounding marketing action is provided
the firm are increasingly taking action to
in figure 2-5. Marketing action is at the core of
influence the extent to which firms pursue
this model, and is surrounded by environmental
sustainability causes. Individuals influence
considerations, Industrial activity, and marketing
companies by engaging in dialogue, voting
strategy.
proxies, attending shareholders meetings, are
filing resolutions. We define marketing action as any behavior
associated with the procurement, purchasing,
NONGOVERMENT ORGANIZATIONS (NGO’s) sales, consumption, and postconsumption of
NGO is a team used to describe a broad family product offerings. Notethat all this marketing
of organization that is profit oriented and actions reflects situations in which there is some
supported by government. sort of exchange between two parties. The
purchase of a cup of coffee in a reusable
GENERAL PUBLIC thermos,for instance,involves the exchange of
The public at large are also stakeholders that currency for a beverage. Both entities that are
influence operations. involved in the exchange activity are driven by
the desire to increase value. The valuecan
DELIVERING VALUE TO ALL beexpressed in terms of the three related
STAKEHOLDERS
outcomes.
STAKEHOLDERS
Figure 2-5 Factors Surrounding Marketing Actions
• The individuals, organization and groups
that have an interest in the action of an
organization and have the ability to
influence it.

a. CONSUMERS – new product


opportunities
b. SUPPLIERS – provide environmentally
safe products reduce the buyers
ecological influences
c. EMPLOYEES – implementation of the
strategy, new product ideas
d. COMPETITION – monitor the action and
performance of competitors
e. LEGAL SYSTEM – enforcement of laws
Today, there is unequivocal evidence of climate
change, and human action is a primary driver of
this change.4 The Earth’s temperature has
raised O.74°C in the last century, and the best
estimate for warming over this century is 1.8 to
4.0°C. Change of this magnitude will have an
enormous influence on many aspects of life. If
firms and individuals wish to quell or stop this
trend in climate change, then it is essential to
understand our current environmental situation
and identify marketing factors that influence the
To varying degrees, exchange activity provides environment.
economic, social, and environmental value. The A. Interaction between Environment and
coffee consumer, for example may identify Consumption
economic and environmental value from
purchasing coffee in a reusable container,
whereas the ambiance and service offered by
the restaurant employees may yield social value
to the consumer. It is not only meaningful to
consider the triple bottom line of the consumer,
but it is also increasingly essential for
companies to recognize that they must pay
The Ashkelon Desalinization Plant and One
attention to the economic, social, and
of its Employees Enjoying the Fruits of the
environmental value of their product offerings. Labor.

ASHKELON DESALINATION PLANT


Lesson 3
The Middle East offers a perspective on the
Introduction: increasing need to take water conservation more
seriously. This region of the world is one of the
We are now on our third week and you can now most and arid areas and is largely devoid of
say that despite this pandemic you are still drinking water. In Israel and other counties in the
kicking doing a great job. Before we proceed to region, water is viewed a natural resource of
our new lesson may have first a recap on the utmost importance. Israel has bed a chronic
last week’s topic. You have read and understood water shortage for years, and there is
about the strategic green planning and you were speculation that will be difficult to supply
able to relate how this process incorporate the municipal and household water requirements In
mission, objective tactics used by TIMBERLAND the near future. The current cumulative deficit
INC. Their platform gave you an idea of how in Israel‘s renewable water resources
such should be applied in order to have amounts to about two billion cubic meters-an
sustainability. For this week’s module it is amount equal to the annual consumption of the
essential to recognize that all commerce and country. Human and nonhuman factors
consumption operate within natural boundaries. contribute to the country’s water resource
Although some natural assets such as wind problem. The water deficit has developed due to
power are renewable, others (e.g., crude oil) are drought conditions as well as to low precipitation
not sustainable. Sustainable resources can be levels. In addition, salt and other pollutants have
regenerated, and they offer ecological invaded existing water sources. Increases in
advantages that limit the firm’s reliance on scare growth and development call for an additional
resources. Consequently, effective green need for about 60% more water by 2020.2 In
marketers increasingly favor adoption 0 2000, the Israeli government launched a master
sustainable technologies and assets. plan designed to alleviate the water problem.
The Ashkelon Desalinization Plant was
Lesson Proper: completed in 2005 at a cost of $212 million. The
facility uses a reverse osmosis technology in
which seawater is pushed at high pressure directly affect the environment. As a starting
through a membrane that filters out salt point, we outline the influence of marketing
molecules and produces clean water. The activity on climate change, energy, the
facility also has an on-site power plant that atmosphere, water, and land. Our discussion of
enables it to avoid production disruptions the atmosphere addresses ozone depletion and
incurred on a grid-based power system. Up to air pollution. Our examination of water includes
96% of the energy associated with concentrated reviews of freshwater, oceans and fisheries, and
saltwater at the end of the purification process water purity. Our analysis of land examines
can be captured and used to generate power. urban expansion, land degradation,
The use of the advanced technologies enables deforestation, desertification, and waste
the utility to provide water at 52.7 cents per management.
cubic meter, making the plant one of the world’s
cheapest producers of desalinated water. We distinguish among climatic, atmospheric,
water, land, and biodiversity facets of the
How did the recognition of interrelationship environment to provide background on trends in
between the environment and humankind the environment. These environmental issues
influence the need to develop the Ashkelon are interactive rather than independent.
Desalinization plant? The Ashkelon facility Moreover, factors that have a primary influence
illustrates how governments and organizations on one facet of the environment likely also
can augment interaction with the environment. influence others.
To stimulate interest in making further
modifications to our interaction with the For example, ozone depletion is an aspect of the
environment, we identify current trends in the atmosphere, but it influences water and
environment. If we have an understanding of our biodiversity
current situation, then we can monitor
environmental conditions to track progress. B. Human Activity and Climate
Furthermore, if we can identify action that
influences the environment, we are equipped to
act to reduce our influence. It is essential to
recognize that all commerce and consumption
operate within natural boundaries. Although
some natural assets such as wind power are
renewable, others (e.g., crude oil) are not
sustainable. Sustainable resources can be
regenerated, and they offer ecological
advantages that limit the firm’s reliance on scare
resources. Consequently, effective green
marketers increasingly favor adoption 0
sustainable technologies and assets. Change in 2007, the United Nations reported
that 11 of the last 12 years ranked among the
warmest years in global surface temperature
since 1850. This report underscores the critical
level of climate change faced 0n the planet.
Indeed, climate change is shaping up to be the
biggest environmental issue that business has
ever faced.

Climate change

 Is shaping up to biggest environmental


issue that business has ever facet.
 Refers to a change is climate attributed
directly or indirectly to human activity
that alters to composition of the global
Although many people now agree that climate atmosphere.
change is occurring, few recognize how
commerce, industrial activity, and consumption
Greenhouse gases b) Decline in the quantity and quality of
freshwater.
 Block the radiation from escaping,
resulting in the natural greenhouse Rising temperatures influence the level of
effect, which raises the Earth’s moisture in the air. Warmer atmospheres hold
temperature by approximately 30 C and more moisture and produce more precipitation,
is essential for life. especially in the form of heavy cloudbursts. In
addition, greater heat speeds up evaporation.
The Earth is surrounded by a natural blanket of Together, these changes in the cycling of water
gases that keeps the planet warm enough to reduce the quantity and quality of freshwater
sustain life. Solar energy in the form of visible supplies across all major geographic regions.
light that hits the Earth’s surface warms the
planet. The Earth emits energy back out to c) Increased health risk.
space in the form of thermal radiation.
Although climate change likely reduces the
Since the beginning of the Industrial Revolution, number of deaths due to exposure, it generally
increasing emissions of greenhouse gases have has a negative effect on health. Climate change
been making the blanket thicker. This artificial alters distribution patterns of malarial
influence on the environment is known as the mosquitoes and other carriers of infectious
enhanced greenhouse effect. The Earth must rid diseases. It also affects the seasonal distribution
itself of energy at the same rate at which it of allergy-causing pollen.
receives energy from the sun. As the blanket of
greenhouse gases thickens, less energy is lost d) Rising sea levels.
to space. The system primarily restores balance Climate change associated with higher
through global warming of the Earth’s lower temperatures is resulting in higher sea levels.
atmosphere and surface. Thus, increases in Evidence indicates that the Antarctic and
greenhouse gases lead to increases in the Greenland ice sheets are losing mass and
Earth’s surface temperature. contributing to rising sea levels. The rise in sea
levels over the last 20 years is twice as fast as
Climate change has several critical
the average over the 20th century, and the 20th
influences on the environment that include
century experienced a growth rate substantially
the following:
greater than that of the previous two millennia.
a) Higher temperatures and increased These rising sea levels increase coastal flooding
risk. and erosion.

The climate takes time to respond to emissions,


and the response can take decades.
Furthermore, oceans absorb and release heat e) Threats to biodiversity.
more slowly than the atmosphere does. The Biodiversity refers to the animal and plant life
result of these effects is higher temperatures for that surround us. Climate change over the last
centuries after stabilization of greenhouse 30 years has modified the distribution and
gases. location of many species. Increases in average
temperatures are associated with increasing
A substantial portion of the strain is associated
levels of species extinction such that 20 to 30%
with higher and more frequent
of species face an increased risk of extinction.13
B. Human Activity and Climate temperature This trend is attributed to shifts in vegetation
spikes such as those that Europe faced in the zones, shifts in ranges of individual species,
summer of 2003. Excess mortality in France interaction between climate Change and habitat
alone for the August 1 to 15 periods was 11,435 fragmentation, and changes in ecosystem
deaths. Evidence also suggests that human functioning.14 Species extinction is likely to
influence has more than doubled the risk of occur across regions on the planet.
European mean summer becoming as hot as
f) Affects the most vulnerable.
2003, with the 1likelihood of such events to
increase a hundredfold over the next four Exposure to climate change is greatest among
decades. the poor and those with limited resources to
invest in mitigating and preventing effects of Consumer demand for products that
climate change. reduce energy costs or eliminate the
need to rely on carbon-based fuels will
g) Displaced people and environmental received greater attention
refugees.
Given its strong influence on the environment, it
Changes in climate have potential to force is essential to examine factors that accelerate
departures from the Arctic climates due to lack the extent of climate change. We distinguish
of biodiversity and degradation of habitat. among three types of gases that influence the
Simultaneously, climate change may force environment.
departures from tropical areas where inhabitants
live just above sea level. These trends will lead Climate change is a terrible problem, and it
to increased displacement and higher numbers absolutely needs to be solved. It deserves to be
of environmental refugees.” a huge priority.

Climate change also has several direct Gases with a direct influence on climate change
influences on business that include the include naturally occurring gases and synthetic
following: gases that are the result of industrial activity.

a) Agriculture. Rising temperatures and The natural gases include:


volatile weather patterns adversely
affect the agricultural sector and 1. carbon dioxide (C02),
complicate efforts to speculate on future 2. methane (CH4),
values of agricultural-based 3. nitrous oxide (N20)
commodities (e.g., frozen orange juice,
pork bellies). Synthetic gases include
b) Tourism. Winter and summer-based 1.hydrofluourocarbons (HFCs)
tourism sites stand to lose considerably 2. perflourocarbons (PFCs)
due to climate change. Rising 3. sulfur hexafluoride (SFG).
temperatures eliminate ski resorts and
rising sea levels drown beaches. In Note: These fluorinated gases are also referred
addition, severe thunderstorms are to as F gases.
problematic for airlines and other
transportation systems. Some gases do not have a direct effect on
c) Insurance. The insurance industry is global warming but influence the formation and
particularly susceptible to climate destruction of other greenhouse gases, including
change. As the premiums and costs carbon monoxide (CO), oxides of nitrogen
associated with underwriting policies (NOX), and nonmethane volatile organic
become more difficult to assess, costs compounds.
increase and the number of providers
decreases. Carbon Dioxide
d) Transportation and related costs. As  Carbon Dioxide (C02) accounts for
climate change increases, government more than 80% of the greenhouse
will likely act to control greenhouse gas emissions worldwide. Since 1750. global
emissions. Consequently, industries that atmospheric concentrations of carbon
have heavy transportation needs (e.g., dioxide have increased in about 35%.
automobile production) face higher Currently, China has the largest
costs of operation. Similarly, industries emissions of any country, yet the United
that use petroleumrelated raw materials States has the largest emissions per
(e.g., plastics production) face greater capita. The two countries alone account
costs. the 40% of carbon dioxide emissions,
e) New product/solution development. with Europe providing an additional 15%
Although climate change has many  In the United States, emissions have
negative consequences, it presents risen by 15. 8% over the 1990 to 2004
enormous opportunities for period.“ Factors that contribute to this
entrepreneurs that develop increase include a growing domestic
technologies, services, and products. economy as well as significant
increases in emissions from electricity emissions are substantially lower than
generation and transportation. What those of carbon dioxide, nitrous oxide is
is the role of fossil fuels in climate 310 times more powerful than C02 in its
change? The burning of fossil fuels ability to trap heat in the atmosphere.
represents the largest source of Since the Industrial Revolution (i.e.,
greenhouse emissions in the United about 1750), nitrous oxide emissions
States. Coal used to generate electricity have increased by approximately 25%.
represents the single largest contributor Fertilizer applications and related soil
to carbon dioxide emissions. Petroleum management practices account for 68%
used in transportation also contributes of N20 emissions in the United States.
substantially to carbon dioxide. Iron and Historical data do not indicate long-term
Steel production and cement increases or decreases in this source of
manufacture also contribute significantly emissions. The second source of nitrous
to carbon dioxide emissions. Reductions emissions is in mobile combustion. Over
in domestic product of pig iron, sinter, the last decade, control technologies
and coal coke contribute to a 40% have been developed that yield a
reduction in iron steel-related carbon Steady drop in N20 emission associated
dioxide emissions since 1990. By with mobile sources.
contrast, carbon dioxide emissions
associated with cement production have Fluorinated Gases
men 37% since 1990.  Fluorinated Gases or F-gases is a
collective term that describes
Fluorinated Gases hydrofluourocarbons (HFCS),
 Refers to the second-largest perflourocarbons (PFCS), and sulfur
contributor to greenhouse gas hexaHuoride (SF6). In contrast to the
emissions. Methane is more previous three gases, Which occur
than 20 times as effective as naturally in the atmosphere, F-gases are
carbon dioxide at trapping heat produced almost exclusively Via
in the atmosphere. Since 1750, industrial activity. These gases
methane emissions have represent about 2.000 of US. emissions,
increased by 143%. Landfills but they have global warming potentials
represent the largest manmade that range from 140 (HFC-152a) to
sources of methane emissions 23,900 times the potential for carbon
at 25% of U5. output. Although dioxide. In addition, sulfur dioxide and
the amount of solid waste PFCs have long atmospheric lifetimes
continues to increase, methane that result in nearly irreversible
levels are declining due to the atmospheric accumulation once emitted.
portion that is captured and The largest and fastest growing source
burned at land. fills. Similarly, of HFCs and PFcs is via their use as
methane emissions from natural alternative to ozonedepleting subtances
gas systems (6% of total CH4) (ODS). Emissions of these gases have
are in decline due to increased markedly since the Mentreal
improvements in technology and Protocol came into effect, requiring the
management practices. phase-out of ODSs.
 Enteric fermentation refers to
intestinal processing of methane C. Understand Sources of Energy and
associated With the digestion Their Use across International
process for cattle. This source is Regions The examination of energy use
also in decline due to decreases complements the analysis of climate change
in populations of beef and dairy because many of the antecedents to climate
cattle as well as improved feed change are energy related.
quality for cattle.”

Nitrous Oxide
 It is the third-largest contributor to
greenhouse gas emissions. Although
The data outlined in Figure 3-10 also indicate
differences between energy use and forms of
energy employed in OECD countries versus the
rest of the world. Final energy use grew by 19%
in the OECD, whereas the growth in energy use
outside the region was 27%. Transportation
represents the highest percentage of energy use
in the OECD at 35%, yet the sector only
accounts for 17% of usage outside the OECD T
he manufacturing sector in the OECD uses 27%
of the energy, but outside of EOCD this
percentage increases to 38%.
Figure 3-9 illustrate: how the mix of energy
sources has evolved worldwide since 1973. Lesson 4
Although represents a smaller portion of the
energy supply than it once did, at 43.4%, oil Introduction:
remains the primary energy source used
worldwide. Oil consumption remains hi due to Atlas guys we are now on our 4th week nearing
the rising transportation sector (i.e., increasers to prelim exams! Yes we did it, especially YOU
in passenger travel and freight transport) and
my dear students! See pandemic cannot hinder
expansion in the service economy.” Coal and
gas together account for another 23.9% of you towards your goal that is to survive on your
consumption. Electricity usage is increasing and own. You see you learn, mature, and grow on
now represents 16.3% of fuel consumption. your own pacing. I hope that you are still there
Combustible renewable and waste that are don’t give up!
primarily employed in emerging economies
account for 12.9% of consumption. Before we start may we have first a recap on
last week’s topic which the consumption –
The remaining 3.5% includes geothermal, solar, environment interface. Did you understand the
wind, and heat power. Although there have been
strategy of Ashkelon Desalination Plant? That
substantial strides in these sources of energy,
they currently represents small fraction of company’s strategy can summarized the whole
consumption. Review of the data from 1990 topic. That profit should not be you focus instead
through 2005 reveals some intriguing trends. try to balance everything in order not destroy the
The data underscore the merits of contrasting environment and the people’s lives.
energy use in OECD (Organization for Economic
Co-operation and Development) countries On this module you will have the ozone
(Australia, Austria Belgium, Canada, the Czech depletion, and air pollution is facets of the
Republic, Denmark, Finland, France, Germany: atmosphere influenced by consumption.
Greece, Hungary, Iceland, Ireland, Italy, Japan,
Korea, Luxembourg, Mexico, the Netherlands, Consider first the extent of ozone depletion.
New Zealand, Norway, Poland, Portugal, the Which is the end result of consumption –
Slovak Republic, Spain, Sweden, Switzerland, environment interface
Turkey, the United Kingdom, and the United
States) and the rest of the world. The final Lesson Proper:
energy usage per unit of gross domestic product
has fallen by 26% during this era. Most of these Ozone is a form of oxygen naturally occurring in
reductions associated with structural changes the atmosphere. In contrast to the typical oxygen
and efficiency improvements are in non-OECD molecule that has two oxygen atoms, the ozone
countries. Although energy use increased by molecule contains three atoms and is labelled.
23%, the associated carbon dioxide emissions
rose by 25%. Most of the growth in energy D. Human Activity and the Atmosphere
usage and C02 emissions occurred outside of
OECD countries.
quality levels. These factors include sulfur
dioxide, nitrogen dioxide, carbon monoxide,
ozone oxygen, lead, and particulate matter
(PM). Particulate matter includes chemical
compounds (sulphate, nitrate, ammonium,
organic carbon, elemental carbon, and
Ozone is observed in two regions of the
soilheavy metals (arsenic, cadmium,
atmosphere. Approximately 10% of ozone is in
mercury), volatile organic compounds (e.g.,
the troposphere, the region closet to Earth. This
benzene), polycyclic aromatic hydrocarbons,
area ranges from the Earth’s surface to about 6
and persistent organic pollutants (dioxins
miles in altitude.” Ozone appearing in this level
and furans). Most forms of particulate matter
is an air pollutant that is harmful to breathe and
become pollutants through the burning of fossil
is harmful to crops, trees, and other vegetation.
fuels, biomass, and solid waste, whereas
Ozone is the main ingredient in smog.
ammonium as a pollutant primarily derives from
The remaining 90% of the ozone resides in the agriculture.
stratosphere. This second region ranges from
It is important to distinguish between outdoor
the top of the troposphere to about 31 miles in
and indoor pollution. Outdoor air pollution
altitude. The large amount of ozone in the
accounts for 1.4% of total global mortality and
stratosphere is often referred to as the ozone
amounts to 800,000 deaths annually. Eighty-one
layer. Ozone in this layer absorbs some of the
percent of the mortality occurs in people 60
sun’s biologically harmful ultraviolet (UV)
years of age or older. The incidence of death is
gadia6011.26 Depletion of this ozone leads to
strongly related to geography: 49% of the
increased amounts of UV radiation teaching the
deaths occur in the region that includes
Earth, which leads to more cases of skin cancer,
Bangladesh, Bhutan, Democratic People’s
cataracts, and” impaired immune systems.
Republic of Korea, India, Maldives, Myanmar,
Overexposure to UV radiation is believed to be
Nepal, or Timor Leste. Another 19% of
contributing to the increase in melanoma, the
deaths occur in Southeast Asia. In addition to
most fatal of all skin cares. UV radiation can also
the mortality data, outdoor pollution increases
damage sensitive crops, such as soybeans, and
hospitalization and emergency room visits,
reduce crop yields. The human activity that
asthma attacks, bronchitis, respiratory
contributes to ozone depletion involves use of
symptoms, and lost work days.”
gases containing the halogens chlorine and
bromine. Indoor air pollution is the more egregious
form of airborne contamination because it is
implicated in more than 1.6 million deaths
per year. In addition, indoor pollution is
associated with higher incidences of acute
lower respiratory infections, chronic
obstructive pulmonary disease, and lung
cancer. The incidence of death related to indoor
air pollution is related to geography. Indoor air
pollution is responsible for 1.2 million deaths per
year in Afghanistan, Angola, Bangladesh,
Burkina Faso, China, the Democratic Republic
Air Pollution It is a global health concern with of the Congo, Ethiopia, India, Nigeria, Pakistan,
marked influence on humans and the and the United Republic of Tanzania. Moreover,
environment. Regulatory agents use six factors in the 21 most affected countries (Afghanistan,
known as criteria pollutants to establish air Angola, Benin, Burkina Faso, Burundi,
Cameroon, Chad, the Democratic Republic of is implicated as the cause of 5% or more of the
the Congo, Eritrea, Ethiopia, Madagascar, total burden of disease.” The likelihood of
Malawi, Mali, Mauritania, Niger, Pakistan, experiencing health problems due to indoor air
Rwanda, Senegal, Sierra Leone, Togo, and pollution is associated with income, gender, and
Uganda), indoor air pollution is implicated as the age.
cause of 5% or more of the total burden of
disease. E. Human Activity and Water

The likelihood of experiencing health problems Water is essential for life, yet the influence of
due to indoor air pollution is associated with consumption on water use is not well
income, gender, and age. Electricity is used in understood. Ninety-seven percent of the
the most affluent societies and is relatively clean world’s water supply is saline, leaving 3%
and efficient. By contrast, the crop waste and freshwater.” Almost 70% of the freshwater is
wood used in emerging economies is relatively frozen in the icecaps of Antartica and
unclean and inefficient. These fuels produce Greenland. The remainder is primarily present
indoor smoke with several health-damaging as soil moisture or lies in deep underground
pollutants including particulate matter, carbon aquifers as groundwater not accessible to
monoxide, nitrous oxides, sulfur oxides, human use. Less than 1% of the world’s water is
formaldehyde, and carcinogens (chemical available for human use. This water is found in
substances that increase the risk of cancer). lakes, rivers reservoirs, and underground
In many countries, women bear the primary sources shallow enough to be tapped at an
responsibility for food preparation. In emerging affordable cost. The three primary uses of
economies, women typically cook with crop freshwater include irrigation (70%), industry
waste or wood. (20%), and residential purposes (10%)."‘

In addition to the mortality data, outdoor The availability of freshwater is related to


pollution increases hospitalization and geographic location. The World Health
emergency room visits, asthma attacks, Organization estimates that one sixth of the
bronchitis, respiratory symptoms, and lost work world’s population does not have access to
days.” Indoor air pollution is the more egregious clean drinking water, whereas two hfths of
form of airborne contamination because it is the world population lacks access to
implicated in more than 1.6 million deaths per adequate sanitation services. These water
year. In addition, indoor pollution is associated issues are particularly problematic for people
with higher incidences of acute lower respiratory living in rural areas. Sanitation coverage in
infections, chronic obstructive pulmonary rural areas is less than half that of urban settings
disease, and lung cancer. The incidence of such that 1.3 billion rural inhabitants face poor
death related to indoor air pollution is related to sanitation in India and China alone.
geography. Indoor air pollution is responsible for
Although there are deep underground aquifers
1.2 million deaths per year in Afghanistan,
that can be drilled for human use, only lakes,
Angola, Bangladesh, Burkina Faso, China, the
rivers, reservoirs, and shallow underground
Democratic Republic of the Congo, Ethiopia,
sources are renewed by rain and snowfall.
India, Nigeria, Pakistan, and the United Republic
Consequently, only this freshwater is available
of Tanzania. Moreover, in the 21 most affected
on a sustainable basis.
countries (Afghanistan, Angola, Benin, Burkina
Faso, Burundi, Cameroon, Chad, the Several critical consequences of inadequate
Democratic Republic of the Congo, Eritrea, and unsanitary water include the following:
Ethiopia, Madagascar, Malawi, Mali, Mauritania,
Niger, Pakistan, Rwanda, Senegal, Sierra a) Falling water tables. While freshwater
Leone, Togo, and Uganda), indoor air pollution derived from lakes, rivers, and shallow
underground resources is replenishable, water increase by 3 billion people by 2050, with the
from connate or fossil aquifers can' not be great majority of this increase in urban areas."
recharged.” The Ogallala aquifer in the United
States, the deep aquifer in the North China b) Poverty and low human development. Not
Plain, and the Saudi aquifer are prime examples surprisingly, the level of poverty and the extent
of such water repositories. Because these of human development are associated with the
aquifers cannot be replenished, their depletion water supply The impoverished are exposed to
means the end of irrigation and, consequently, a malnutrition, unclean water, and inadequate
marked change in or end of agriculture in the sanitation services.48 Improved education
dependent areas. constrains the influences of the environment, yet
individuals in many emerging economies do not
b) Floods and droughts. Too much water and have access to higher education.
too little water are the result of variability in the
hydrologic cycle influenced by climate change c) Food security. Refers to access by all
and alterations in land use patterns. Australia, people at all times to enough food for an active,
Bangladesh, India, China, Somalia, the United healthy life. It includes the ready availability of
States, and many European countries nutritionally adequate and safe foods as well as
experienced severe flooding during the last the assured ability to acquire personally
decade of the 20th century, and there is acceptable foods in a socially acceptable way.
evidence that the number of flood and drought Food insecurity affects one out of every six
disasters is increasing.“ people on the planets. Although food production
has increased in many parts of the world over
c) Disease. The global burden of disease the past few decades, malnutrition remains a
associated with lack of adequate water. The prob' lem due to rapid population growth and
World Health Organization estimates that 1.4 urbanization.
million children die every year due to diarrhea
acquired due to unsafe water, inadequate Oceans and Fisheries
sanitation, or insufficient hygiene.“ Inadequate
Oceans. Consumption has a marked influence
water supplies raise the number of fatalities
on oceans and fisheries. Mounting evidence
associated with malnutrition, malaria, drowning,
indicates that the arctic is warming twice as fast
and other diseases.
as the rest of the planet is, with the summer sea
d) Farmers losing to cities. The economics of ice shrinking at 9.1% a decade from 1979 to
production do not favor agriculture over other 2006.51 A1 this rate, the sea could be ice free
industries when water is considered. For as early as 2030. Nevertheless, substantial
example, it takes 14 tons of water to make a ton more heat is absorbed through water rather than
of steel worth $560, yet it takes 1,000 tons of through ice, leading to the melting of the
water to grow a ton wheat worth $200. Greenland ice sheet. As the ice melts, some
water filters through cracks j, glaciers and
Factors that contribute to inadequate and increases the break-off of icebergs into the
unsanitary water include the following: ocean.

a) Population growth and urbanization. Rivers. Over the past half century, the demand
Increases in population are highly related to for water has tripled, and the demand for
water resources. As the population increases, hydroelectric power has grown even faster.
land, clean water, and other natural resources Consequently, the worldwide number of dams
become scarce. Moreover, urbanization more than 15 meters high has increased to
exacerbates this problem because growing cities 45,000 from 5,000. These dams deprive rivers of
demand increases in the water supply. some of their flow, and the associated
Estimates suggest that the population will evaporation is 10% of their capacities.
Lakes. Are shrinking and in some cases widely spread and difficult to Identify as origins
disappearing as a result of consumption. of pollutants.
Three primary forms of nonpoint polluters are
Water Impurities fuel storage locations, chlorinated solvents,
Unless it has been distilled, water is not pure. and pesticides.

Emerge from: Diffuse point sources refers to conditions


under which there are many small point sources.
Naturally occurring substance. That occur un For example, urban runoff from small point
nature that influence water purity include sources raises levels of nitrates, ammonium,
inorganic and organic materials. and heavy metal in water.
Inorganic materials are those that do NOT
contain carbon dioxide Industry. lndustrial practices include mining and
4 Substances known to be associated with manufacturing. Mining increases multiple types
adverse health effects: at metals m water, including ansenic, antimony,
a. Flouride barium, cadmium, fluoride, and nickel.
b. arsenic Manufacturing and processing of materials
c. selenium contribute a variety of chemicals with diverse
d. nitrate properties that influence water purity.

Agriculture. The farming sector plays a Water treatment. Ironically, the efforts to treat
significant role in the quality of water because water can also contribute impurities. Chlorine is
agricultural runoff is the leading source of used as a disinfectant in the purification process,
impurities in lakes and rivers. but in excess it reacts naturally with organic
Fertilizers in the form of manure or human matter to produce unwanted by-products such
excrement increases levels of nitrates, as chloroform.
ammonium salts, and organic nitrogen
compounds, whereas chemical fertilizers Coagulants such as aluminum and iron salts
increase nitrogen levels when these nutrients are important barriers to microbiological
are used an excess. contaminants. Although these chemicals are not
significant health risks, they may lead to
Biosolids. used as fertilizer are treated residues discoloration or sediment.
from industrial or municipal waste or septic soil.
Animal practices such as feedlot: produce large Conveyors are the pipes and fittings used to
amounts of waste that also lead to higher levels transport water. The most common conveyor is
of nitrates. Pesticides refers to a broad mix of iron, a substance prone to corrosion. Corrosion
chemicals that have chemical and physical due to low alkalinity, sediment, and microbes
properties that contribute to runoff. yields to water discoloration. Lead, copper, and
lrigation and drainage transport pollutants and zinc are also conveyors that may be present in
alter salt balances in soil. water. Although lead is more likely to be present
at unacceptable levels, copper and zinc are
Ubanization. The increasing population in urban more prevalent in newer buildings. Finally,
areas is traced to three categories of polyvinyl Chloride (PVC) is a form of plastic
contaminant sources. often used as a conveyor of water. Because
Point sources refers to pollution discharged lead is often used as a stabilizer for PVC, use of
from a specific location and includes on-site this material may lead to elevated levels of lead.
sanitation waste disposal locations. These point
sources Increase levels of nitrate and F. Human Activity and Land
ammonium in mater. Nonpoint sources are
Urban Expansion Urban mansion refers to the
increasing use of land associated with increases Two factors: soil erosion and chemical
in urban populations. In 2007, the urban contamination:
population on the planet exceeded the rural Soil Erosion is catalyzed by clearing of forests
population for the first times9 Current estimates or grasslands, mining, and urban development.
project that the population in developing When these activities are improperly managed,
countries’ cities will double in the next 30 years topsoil is lost. Consequently, the area
from 2 to 4 billion people. These cities will likely experiences losses of soil organic matter,
triple their land area. By contrast, the urban nutrients, water holding capacity, and
population in industrialized countries is expected biodiversity
to grow by 11% from 0.9 to 1 billion people over
the same period. Urban land use in these areas Deforestation and Desertification
is expected to grow by 2.5 times over the next Forest are important parts of ecosystems that
30-year period. sustain life. Forests prevent soil erosion,
maintain soil fertility, support biodiversity, and
Research examining of the role of urbanization provide homeopathic and traditional medicines.
indicates that many factors are associated with Furthermore, forests support local economies
the rise in urban population. Urbanization may and provide important sources of fuel. Over the
be both the cause and the consequence of past 15 years, the global forest area has shrunk
these factors. Forces that seem to shape at an annual rate of 0.2%.
expansion include aspects of the local natural
environment (e.g., existence of drillable water Deforestation is associated with several
aquifers), demographic factors (e.g., level of factors. In many cases, trees are removed from
urbanization in a country), economics (e.g., forests for use as fuel or as raw materials) in
property taxes), prevailing transport production. Deforestation also occurs due to
systems, consumer preferences (e.g., climate change, disease, invasive species,
preference for urbanism), and metropolitan pests, and air pollution. Economic factors-
governance. notably agriculture and mining-increase the level
of deforestation. Demographic trends such as
Greenfield development refers to construction changes in population density and urbanization
on a previously unused piece of property. This raise demands for timber and firewood, and they
type of development has been implicated as a increase the demand for water resources.
factor that yields air pollution, excessive energy
use, greenhouse gas production, and traffic Desertification refers to land degradation in
congestion. Furthermore, cities draw upon rural arid, semiarid, or dry subhumid areas due to
areas for water and waste disposal. As cities climatic variations and human activities. When
increase their land masses, the interaction with individual land degradation processes combine
the environment must remain a central concern. to affect large areas of drylands, desertification
occurs. Populations living in poor countries
Land Degradation Is a collective term that suffer the most due to desertification. Across the
refers to the long-term loss of ecosystem globe, drylands cover 40% of the Earth’s land
function and services due to disturbances from surface and support more than 2 billion people.
which the systems cannot ream, unaided.” Although 90% of this population lives in
Current estimates indicate significant land developing countries, Western countries are
degradation of 12% of the global land area over also vulnerable to deforestation. Figure 3- 15
the past quarter century. This land area is home provides an overview of global drylands. One
to about 1 billion people. The direct them include third of the Mediterranean and 85% of the
losses of organic soil carbon, soil water storage, rangeland in the United States are susceptible to
nutrients, and below ground biodiversity. deforestation.
technology that relies on a non polluting,
G. Human Activity and Biodiversity renewable, and indigenous resources. The
technology can easily be integrated into
Biodiversity refers to the variety of life on Earth. irrigation and water supply projects. China, for
It includes genetic diversity among individual instance, has more than 85,000 small electricity-
beings in a population, diversity of species, and producing hydro-power plants.
diversity of ecosystems and habitats. It is the
basis of agriculture in that it enables the The potential for hydropower is massive and in
production wild and cultivated foods While also many ways an untapped re it is an important
contributing to the health and nutrition of source of renewable energy in the United
humans, animals, and plants. States, Canada, and Norway. Nevertheless,
70% of the economically feasible hydro potential
Provides provisional, regulatory, supportive, in de developing countries-and 93% of the
and cultural services to an ecosystem. potential in Africa-remains unexplored.
Hydropower can be developed on multiple
Provisional services are the supply of food, scales ranging from large-hydro plants of more
fuel or fiber made available for consumption in than 100 megawatts to picohydro plants of less
an ecosystem. For example, the annual world than 5 kilowatts. In the Meru South District of
fish catch provides $58 billion in service to the Kenya, a micro-hydro plant capable of producing
world’s ecosystems. 18 kilowatts was developed to serve 400
households in the Tungu-Kabiri comi munity.
Supporting services maintain the conditions Members of the community formed a
for life on Earth and include soil formation, soil commercial enterprise by purchasing shares
protection, nutrient cycling, and water cycling. having a maximum value of approximately
US$50. The group members also dedicated one
Cultural services refer to the spiritual, day per week to the construction of a run-ofthe-
recreational, and aesthetics afforded to an river penstock micro-hydropower system (see
ecosystem through biodiversity. For example, Figure 4-1). The community also acquired an
coral reefs for fisheries and tourism provide acre of land from the government, where it built
worldwide cultural service $30 billion. an enterprise center that receives power through
the project. The Small Grants Programme of the
Lesson 5 source. Hydropower accounts for 20% of the
world's supply of electricity, and United Nations
THE ENVIRONMENTAL EFFECTS ON also contributed US$63,700 to support project
CONSUMPTION completion.

A. Identity Environmental Action Designed The construction of this micro-hydropower


to Reduce Climate Change facility has paid substantial dividends across the
TUNGU KABIRI COMMUNITY MICRO- triple bottom line of sustainability. Revenue has
HYDROPOWER increased to the running of the micro-hydro
enterprise. Consequently, there is a demand for
The Meru South District area in central Kenya is services such as welding operations, barber
an area teeming with beautiful landscapes and shops, beauty salons, and bas changing
rich natural resources. Like much of Africa, stations. The environment simultaneously
however, this region is not adequately served benefits as grain milling is transferred from
with electrical power. One of the most viable and diesel engines to hydropower and electricity
sustainable ways to bring electrical power to the replaces kerosene used for lighting. The
region is form of hydroelectric power. notoriety of this successful venture has
Hydroelectric power is a time-proven
stimulated interest in building at least two more and implementation began on February 16,
power plants in the region. 2005. It limits emissions of greenhouse gases
(GHG) (carbon dioxide, methane, nitrous oxide,
and fluorinated gases) from the 35 industrialized
countries.

The goal of the Kyoto Protocol is to limit the


anthropogenic emission of greenhouse gases.
The protocol has been developed as an attempt
In Part III, we outline the marketing efforts of
to reduce overall emissions of greenhouse
organizations operating in these
gases by at least 5% below 1990 levels during
macroenvironments. In Part IV, we outline the
the commitment period from 2008 to 2012. In
macroenvironment of the primary users of
order to achieve this objective, countries were
energy (industry, households, services, and
designated some percentage of the base year
transportation).
as an objective for the emissions of GHGs
The environment also includes the larger forces during the 2008 to 2012 horizon. For example,
that frame the activity of the firm and other targeted emissions in the United States reflected
participants in a market. These forces include 93% of the emissions in 1990. in emissions
the natural, technological, political, associated with fuel combustion, industrial
economic, and cultural constraints on processes (es, mineral pro ducas, chemical,
operations within a market. metal production), agriculture, and waste
management.
Chapter 3 calls attention to influences of
technology and culture on the natural Importantly, the Kyoto Protocol outlines
environment. Our discussion here considers national efforts to reduce or limit greenhouse
political and economic forces that shape gases, In addition, the protocol introduced the
operations in an industry. We begin by market mechanisms that enable countries to
examining efforts to regulate climate change and engage in international commence to meet
then en gage in a discussion of efforts to emission targets. These mechanisms stimulate
influence the supply and demand for energy. sustainable development via the transfer of
technology and investment, and they encourage
Consider now macro environmental efforts the private sector and developing countries to
to limit climate change. contribute to emissions deductions.
Furthermore, they help countries to meet their
commitments by cost-effectively removing
GHGs from the atmosphere in other countries.

A central advantage of the Kyoto Protocol lies in


the designation of emissions levels for
participating countries. Designation of emission
levels created a market for the sale and
purchase of greenhouse gas emissions.

TABLE 4-1 EMISSION LIMITATIONS


ESTABLISHED BY THE KYOTO PROTOCOL
The most prominent international effort to
reduce climate change is the Kyoto Protocol.

The Kyoto Protocol was adopted by the United


Nations in Kyoto, Japan, on December 11, 1997,
CDM that involve an industrialized country and a
developing country, however, joint
implementation projects involve only
industrialized countries." Participants to JI
arrangements earn emission reduction units
(ERUS) each equivalent to one ton of carbon
dioxide that can be counted toward Kyoto
Protocol targets. For example, in 2007 New
Zealand established a joint implementation pro
gram with the Netherlands to provide a wind
farm at Te Apiti on New Zealand's northern
island. The project is expected to earn 530,000
Three Kyoto mechanisms that facilitate the EUROS.
exchange of emission credits are as follows:
JI programs offer benefits to the host country
Emissions trading Emissions trading (e.g. New Zealand) and the non host partner
(e.g., the Netherlands). The host country
It refers to the exchange of carbon trading units.
receives foreign investment and technology
If the companies attain emission levels below
transfer, while the nonhost country obtains a
targeted rates, they can sell the emission credits
flexible and efficient means for meeting its Kyoto
on an exchange. For example, the European
requirements.
Carbon Exchange (ECX) attracts more than
89% of the global exchange volume with more B. Understand Efforts to Influence the
than 100 participating businesses. If companies Supply and Demand for Energy
surpass their emission levels, they must go to a
market and buy carbon offsets.

Clean development mechanism (CDM)

The clean development mechanism enables


emission reduction or removal projects in
developing countries to earn certified emission
reduction (CER) credits. Each CER is equivalent Many countries throughout the world have
to one ton carbon dioxide. CERs can be traded, established regulations designed to enhance the
sold, or used to meet emission targets outlined sustainability and efficiency of energy
by the Kyoto Protocol. Industrialized countries consumption. The desire to conserve is not a
that finance investment projects for greenhouse new phenomenon, but it is gaining increasing
gas emission of apartments in developing interest due to climate and rising oil prices. One
countries generate credits used to meet their way to examine energy is on the basis of its
own commitments. The industrialized countries supply and demand.
reduce carbon emissions at a lower marginal
cost than domestically. Developing economies Renewable energy sources provide
gain access technology more rapidly while contributions to the supply of energy, To extent
simultaneously reducing emissions. that these sources are employed as substitutes
for fossil fuels, the enyironm does not encounter
Joint implementation (JI) the negative consequences of oil or other fossil
fuel consumption Renewable energy sources
Is similar to the clean development mechanism will increase throughout the world, but the
given that it relies on collaboration between demand for energy will also continue to rise. It is
countries to lower GHG emissions. In contrast to
therefore important to consider the mechanisms 7. Conserve the natural resource base in a
that influence the demand for energy. country
8. Provide health benefits, notably to women
Renewable Energy and children, via improved cooking facilities.
9. Contribute to economic and social
Energy consumption across the globe is
development via provision of modern energy
growing at a rapid rate, and current predictions
services, including lighting, heating, cooking,
suggest that energy consumption will grow by
cooling water pumping, transportation, and
60% in the next 25 years. Figure 4-2 20
communications.
indicates the share of energy and electricity use
10. Remain environmentally friendly because
throughout the world.
they lack nitrogen and sulfur oxides that are
Note that of the 13% associated with harmful to humans, animals, and plants, and
renewable forms of energy, 8% of this total is carbon dioxide and that contribute to climate
associated with traditional biomass. change.

Other forms of renewable energy account for 5% Due to the simultaneous potential to use local
of usage throughout the world. Renewable resources and limit climate change. Most
energy technologies have made tremendous national or state targets reflect desires for 5 to
advances over the last 20 years and offer 30% of electricity production during the 2010 to
significant advantages over conventional fuels 2012 horizon, Brazil, China, the Dominican
for meeting energy needs. Research indicates Republic, Egypt, India, Malaysia, Mali, the
that adding renewable energy to a fossil fuel Philippines, South Africa, and Thailand are
dominated energy portfolio reduces generating emerging economies that have established
costs and enhances energy security. renewable energy targets. Developing countries
have more than 40% of existing renewable
power capacity, more than 70% of existing solar
hot water capacity, and 45% of biofuel
production. China has targeted 10% percent of
total power capacity by 2010, whereas India
anticipates that 10% of its electric power
capacity will be filled via renewable energy
The Renewable Energy Policy Network source 2012.
emphasizes the following benefits to
renewable energy:

1. Use locally available, renewable resources


such as the sun, wind, biomass, geothermal and
hydropower.
2. Reduce reliance on fossil fuels and their
associated international trade consequences
3. Heighten energy security by developing a
Three types of solar power include:
diverse energy portfolio.
4. Increase price stability during volatile periods
Grid-connected photovoltaic (PV) cells, off-
for fossil fuel prices.
grid solar systems, and solar water heaters.
5. Reduce risk of future energy costs.
Grid-connected systems are connected to the
6. Increase income, revenue and job
electrical grid in an area and can sell unused
opportunities. Renewable energy supports 24
energy into the grid. For example, programs
million jobs globally.
established in Germany, France, Greece,
Italy, and Spain allow consumers to sell power United States, and Uruguay have imposed
to the national grid at roughly twice the rate (40 mandates.
to 50 Euro pean cents) they pay for it.
Biodiesel is a second type of biofuel produced
Off-grid systems refer to solar power cells from oilseed crops such as soy or from other
employed outside of regional or national vegetable sources such as waste cooking oil.
electricity grids. Many of these systems are For example, McDonald's converts used cooking
installed in developing economies. One oil into biodiesel for delivery trucks in the United
application of off-grid systems is the minigrids Kingdom and Hawaii.
designed for rural or island areas. Hundreds of
these grids operate in Sri Lanka, Nepal,
Vietnam, and India.

The largest installed user is China with 1.5


million people using these off-grid systems in
rural areas. A second off-grid application is the
water pumps that are fueled by solar PV cells.
Off grid household solar systems represent a
third application. More than 2.5 million people
receive electricity from solar home systems.

Geothermal energy refers to energy available


as heat emitted from within the Earth's crust in
the form of hot water or steam. It is acquired
directly for heating or electricity generation after
transformation. Geothermal energy accounts for
Solar water heaters are heaters that use solar less than 0.5% of worldwide energy supply, but
energy to heat water. Active heaters use a technological advances are bringing renewed
system of pumps and controls to heat the water, interest to this energy source. More than 2
whereas passive heaters do not. Active heaters million groundsource heat pumps are used in 30
are more expensive and efficient than countries for heating and cooling of buildings. At
passive solar heaters.' China is the only major 13% of global fuel usage, biomass represents
country with a long-term plan for solar water the largest form of renewable energy in use
heaters. today.

Biofuels refers to a family of fuel products that Biomass refers to crop waste, wood, or dung
use some percentage of crops as fuel. used for home cooking or heating needs
Production of biofuels exceeded 53 billion liters Because of the health consequences associated
in 2007, upto 43% from 2005. Etha nol is a fuel with biomass, especially from indoor air
made from corn, sugar cane, or wheat that can pollution, efforts are underway to either replace
be used as a substitute for a percentage of fuel biomass consumption with other forms of energy
in a standard internal combustion engine. (eg., offgrid photovoltaic cells) or to enhance
Australia, Argentina, Bolivia, Brazil, Canada, devices employed to process biomass. In
China, Colombia, the Dominican Republic, developing economies throughout the world,
Germany, India, Italy, Malaysia, Paraguay, Peru, improved biomass techniques are being
Philippines, Thailand, the United Kingdom, the employed. The stoves are 10 to 50% more fuel
efficient.
conges- tion,and Stockholm uses a similar
Although these gains in the use of renewable pricing system in which drivers are charged
energy sources are promising, the anticipated different amounts depending on the time of day.
60% increase in demand for energy over the Bristol, UK; Copenhagen, Denmark Trondheim,
next quarter century is daunting. Fossil fuels will Norway also have integrated pricing strategies in
continue to dominate energy consumption, and place. ability, and identity of bus transit.
this consumption will have marked health,
environmental, economic, and energy security Don’t let our future go up in smoke
consequences.
Bus rapid transit systems
Transportation Bus rapid transit (BRT) systems are
Three transportation policies designed to permanently integrated systems of facilities,
influence energy consumption include tems. services, and amenities designed to improve the
Consider first the cleaner fuels and vehicles. speed, reliability, and identity of bus transit. In
cleaner fuels and vehicles, integrated urban many respects, BRT is rubber-tired light-rail
road pricing, and bus rapid transit system. transit with greater operating flexibility and
Consider first the cleaner fuels and vehicles. potentially lower capital and operating costs than
rail-based systems. 47 In addition, BRTS can be
Cleaner fuels and vehicles implemented in a fraction of the time needed to
In addition to ethanol, compressed natural gas is set up rail systems. These systems efficiently
an other alternative to gasoline gaining wider modify commuting but require investments in
attention in multiple markets. There are currently bus running lanes, stations, vehicles, routing,
11 million propane-powered vehicles operating services, and fare collection. BRT has been
in the world today. Given that there is great implemented all over the world.
growth potential for other countries to en hance
their consumption of this fuel, initiatives are in Buildings and Construction
place in several regions to in crease the use Across the globe, 30 to 40% of all energy is
of this autogas." consumed in buildings, and the lion's share of
this consumption is burned for heating, cooling,
Fleet-vehicle purchase mandates or autogas- lighting, and appliances 49 during the
fuelled public transport program are used in operational phase." Low-energy construction
Australia, China, France, Italy, Mexico, and the saves money, the climate, and human health.
United States. Three-wheeled Asian vehicles
are being converted to natural gas to reduce air The construction, maintenance, and
pollution and enhance energy efficiency. refurbishment of buildings is managed by a
complex network of stakeholders. Our focus is
on the role that government plays in pursuing
sustainable buildings. New construction
represents energy and use renewable energy
resources. For example, the city of opportunity
to use shed an efficient energy housing program
that incorporates solar and wind energy.
Integrated urban road pricing
It refers to the use of varied pricing strategies for Old construction is another opportunity to raise
toll roads based on the time of day one enters a fuel efficiency. Consider, for ex ample, the
city. These variable pricing strategies are multifamily dwellings constructed by the Soviets.
designed to reduce the amount of traffic and In 1996, Lithuania embarked on an effort to
limit green house gas emissions. Singapore's lower the fuel consumption associated with
automated system charges tolls based on city these buildings. The three primary priorities of
these programs are to ensure efficient energy for a product and assists in analyzing and
use, sustainable management, and setting standards. CLASP also designs and
modernization of housing. implements label programs along with
communications programs designed to inform
One benefit of the efforts to enhance consumers about product energy usage. CLASP
sustainability in the developing world is the also provides oversight and evaluation to ensure
potential for carbon offsets with mature the integrity of the standards For example,
economies. For example, Cape Town, South washing machines sold in the United States
Africa, is retrofitting 2,300 low-income housing must meet standards for energy supply, water
units with technological enhancements such as pressure, agitation and speed settings, and
energy efficient lighting and solar water heaters. other standards.

Appliances C. Environmental Action Designed to


At 29% of global largest contributor to Reduce Human Influences on the
appliances. Consumers are using more Atmosphere
appliances today, and many of these products
use more energy than their predecessors did.
Consequently, the demand for energy for
appliances is the most rapidly growing part of
the household sector, with a 57% increase in
consumption since 2005.

Appliances overtook water heating as the


second most energy-consuming category in the
late 1990s and now account for 21% of total Air Pollution
household energy consumption." International action focused on controlling air
pollution is implemented on a regional basis in
Large appliances include $7 refrigerators, Europe, North America, and Asia. In 1947, the
freezers, washing machines, dishwashers, United Nations established the United Nations
and televisions. Since 1990, the share of total Economic Commission for Europe (UNECE) as
energy use by all of these appliances except one of five regional commissions. This treaty
televisions has de creased in mature has been extended via eight protocols
economies. The average unit's energy identifying specific measures to be taken by
consumption has declined even though the parties to reduce air pollution. Here is a brief
refrigerators and freezers have become larger. synopsis of these protocols:
Energy efficiency gains for televisions have
been outstripped by the consumer trend toward 1. The 1984 Geneva Protocol on Long-term
larger screens, which use more energy. Total Financing of the Cooperative Programme for
energy consumption in the EU15 fell for re Monitoring and Evaluation of the Long-range
refrigerators and washing machines. For other Transmission of Air Pollutants in Europe. This
appliances, improved efficiency has been more protocol provides for international cost sharing of
than offset by higher levels of ownership and monitoring programs. The protocol calls for
use. collection of emission data for SO, NO, VOCs
and other air pollutants; air and precipitation
The United Nations works in partnership with the quality measurement; and modelling of
Collaborative Labeling and Appliance atmospheric dispersion
Standards Program (CLASP) to reduce energy
consumption associated with appliance use. It 2. The 95 Helsinki Protocol on the Reduction of
assists in the development of a testing capability Sulfur emissions. The Helsinki protocol sought
sulfur reductions of at least 30% over 1980 These protocols offer pollution standards
levels. The 21 o this protocol has reduced 1980 adopted by countries outside of Europe Canada
sulfur emissions by more than 50% and the United States have participated in
several of these protocols.
3 The 1988 Sofia Protocol Concerning the
Control of Emissions of Nitrogen Oxides. The Ozone
Sofia protocol seeks a reduction in emissions of
NOx, of 9% compared to 1987, Nineteen of the The United Nations and affiliated countries have
25 parties to the protocol have reached the been taking action to reduce ozone depletion for
target emission at 1987 (e 1978 for the united more than 20 years. In 1987, the United Nations
States) levels of reduced emissions. developed e Protocol. This directive and other
regulations banning ozonedepleting substances
4 The 1991 G Protocol Concerning the Control 78 the Montreal have reversed the destructive
of Emission of Volatile party by 1991.5 Organic trend toward ozone depletion. CFC previously
Compounds. This directive seeks a 30 reduction used in refrigerants, blowing goats, and solvents
in emissions of volatile organic compounds have been replaced with hydro fluorocarbons
(VOCs) by 1999 using a year between 1984 an (HFCS). Although HFCS also contribute to
1990 as a basis. ozone depletion, their influence is substantially
lower (88-98% less effective ozone depletion
5. The 1994 Oslo Protocol on Further Reduction than that of CFC The UN directives, however,
of Sulfur Emissions. This protoocol augments call for the long-term elimination of these
the 1985 Helsinki directive by adding criteria that chemicals well. HFCs are also used as
led to a diu ferentiation of emission reduction substitutes for CFCS. Although these chemicals
obligations of parties to the protocol. do not deplete the ozone, they contribute to
global warming. Two bromide-based halogens,
6. The 1998 Aarhus Protocol Persistent Organic halon-1211 and halon-1301, represent a
Pollutants (POPS). The goal of this protocol is to substantial portion of bromine from all source
eliminate discharges of POPS. The protocol
bans the pro duction and use of some products Earth without OZONE is like a house without a
oright (eg, chlordane), limits the use of POPs roof Save Ozone Layer
and schedules them for elimination at a later
stage (e.g., DDT). LEARNING CONTENT

7. The 1998 Aarhus Protocol on Heavy Metals. Introduction:


This protocol calls for reduced emissions for
cadmium, lead, and mercury beyond their levels YES IT’S THE END OF OUR PRELIM TERM
in 1990. It also require participating parties to YOUNG ENVIRONMENTALISTS! You made it
phase out leaded gasoline. my dear students. No mountains to high that you
cannot reach the top. Just imagine how you
8. The 1999 Gothenburg Protocol to Abate surpassed the prelim without seeing each inside
Acidification, Eutrophication, and on Ground- the classroom. But here you are still standing.
level Ozone. This protocol sets limits for sulfur, Can you now reflect what growth and
NO, VOCS, and ammonia. When the protocol is development brought about by successful
fully implemented, Europe's emissions will be manufacturers/creators/inventors which led to
cut by at least 63%, NO, emissions by 41%, the destruction of the ozone. Many
VOC emissions by 40%, and ammonia manufacturers have also made some safety
emissions by 17% compared to 1990. measure to reduce pollution or ozone depletion.
This time we move to the action designed to
reduce human influences on water
Lesson Proper: Consumption simultaneously
influences multiple factors associated with
water. We examine three related aspects of
water. These include the availability of clean
drinking water, the impurities in water, and the
oceans and fisheries as bodies of water.

2. Water impurities
Whereas the prior section examined the general
level of freshwater availability, this section
addresses procedures employed to reduce
specific impurities in the water supplies.

The World Health Organization (WHO) has


established guidelines designed to limit the
impurities in the water supply. The guidelines
offer health-based targets implemented by
national water authorities. The guidelines
indicate generally acceptable levels of biological
1. Access to Clean Drinking Water and chemical (i.c., anthropogenic) water
contaminants for water suppliers. For example,
• Efforts to increase the accessibility of the WHO recognizes that manganese in water
freshwater are underway in many parts supplies us an undesirable taste in beverages
of the world, yet one sixth of the world's and stains laundry. In addition, the health-based
population still does not have access to guidelines indicate procedure for monitoring of
clean drinking water. The availability of control measures for drinking water safety as
freshwater is increasingly a more well as independent surveillance systems to
significant problem across the globe, but ensure that water supplies remain healthy.
at present it is most pronounced in Asia
and Africa. In many megacities, up to Although the WHO provides the guidelines, the
70% of citizens live in slums and determination of water quality is administered on
generally lack access to improved water a national and regional basis. The quality of
and sanitation. drinking water is an increasing concern in every
region. For instance, the European Union
• In northeastern Asia, China is introduced the new Water Framework Directive
developing the Three Gorges Dam. This in 2000 with the goal that all water bodies attain
dam offers a number of environmental good ecological status by 2015. Consequently,
benefits but also challenges biodiversity. the Safe Drinking of Water water-borne Act has
The dam provides the potential for clean been modified on several occasions to curb
drinking water and reduces reliance on exposure to microbial ants and disinfectants. In
coal (and its inherent pollutants) for addition, new standards have been developed
energy. In addition, China is spending contaminants to eliminate exposure to metals
40 billion yuan (USD million) between such as arsenic.
2001 and 2010 on 150 sewage
treatment plants and 170 urban garbage Water contaminants continue to be problematic
disposal centers. in Asia despite multiple efforts to enhance water
quality. There have been attempts to reform the anthropogenic) water contaminants for water
water and sanitation sector in South Asia and suppliers. For example, the WHO recognizes
Southeast Asia, including large-scale that manganese in water sup plies us an
subsidization of water for the poor. For instance, undesirable taste in beverages and stains
Laos is developing the infrastructure to ensure laundry. Consequently, the guidelines call for a
greater access to safe water and sanitation, maximum of 0.4 mg/liter in the water supply.
especially for the rural population. Similarly,
Singapore is recycling wastewater and using E. Environmental Action Designed to Reduce
new filtration technology to bring it to acceptable Human Influences on Land
drinking standards.
Urban Expansion
The year 2007 marked the first year that the
population in urban settings exceeded the rural
population." Urban expansion is an issue on
every continent, but there are varying levels of
response to this issue. Interestingly, in Latin
America, countries with the lowest percentages
of urban citizens are witnessing the fastest
urbanization rates. The urban growth rates in
Paraguay, Chile, and Bolivia are now faster than
3. Oceans and Fisheries in Argentina, Ecuador, and Chile." Africa is the
International governance of oceans is least urbanized inhabited region, but it has the
coordinated via the United Nations Convention world's highest rate of urbanization.
on the Law of the Sea. This law outlines rights
and obligations of countries, and it further Increasing urbanization is an issue on every
provides the international basis for protection continent, but the primary impetus for change
and sustainable development of the marine and has been in mature economies. The U.S. EPA
coastal environment. The 1995 Global funds the Smart Growth Network, an
Programme of Action (GPA) for the Protection of organization focused on enhancing the quality of
the Marine Environment from Land-based living conditions in cities, Smart growth refers to
Activities provided additional incentive to a set of policy options that relates the reshaping
develop methods for preventing the degradation of urban growth to transportation priorities. This
of the marine environment. GPA provides network seeks to enhance urban lifestyles by
conceptual and practical guidance to national promoting a range of housing opportunities and
water authorities and facilitates cooper nation walkable neighbor hoods. It encourages
among nations. community and stakeholder collaboration
and fosters attractive communities that make fair
The hat at least 60% of world fisheries are either development decisions. In addition, it seeks to
fully exploited or overfished Conduct for provide transportation alternatives within cities
Responsible Fisheries has influenced many and promotes preservation of open space,
countries for Responsible the Food and farming, and natural beauty.
Agriculture Organization (FAO) of the United
Nations Code of laws. The World Health In contrast to urban sprawl that follows
Organization (WHO) has established guidelines freeways; smart growth relies on compact urban
designed to limit the impurities in the water development and revitalization of older areas in
supply. The guidelines offer health-based cities in conjunction with renewed public transit
targets implemented by national water systems. City governments and concerned
authorities. The guidelines indicate generally citizens are revitalizing older areas more than
acceptable levels of biological and chemical (i.c., building on the urban fringe.
European Union has adopted a sustainability
strategy for forest management; Eastern Europe
continues to try to limit illegal logging as well as
human-induced forest fires. Deforestation is
rampant in the Middle East, yet the balancing of
this activity with reforestation in other areas has
resulted in no major changes in the level of
deforestation over the past 15 years.
Land Degradation

Degradation of land is related to several other


facets of the environment, especially water
quality and biodiversity. One of the primary
issues on land degradation is the international
movement of hazardous materials. The Basel
Convention on the Control of the Trans-
boundary Movement of Hazardous Wastes and Efforts to curb desertification recognize that the
This convention was created to prevent the increased frequency and severity of droughts
economically motivated dumping of hazardous due to climate change) will likely exacerbate
wastes homicer to poorer countries. desertification. Consequently, the United
Nations Convention to Combat Desertification
The New Partnership for African Development offers a plat form for mitigation of this issue. This
(NEPAD) program addresses soil. Through a convention outlines necessary financing
network of regional organizations, IPAD Land information, and technology to reduce
use, rational use of rangelands, sustainable desertification, and it also outlines national
agriculture, and integrated natural promotes action programs.
sustainable resource management. In the Implementation of the UN efforts to combat
European Union, reduction in levels of industrial desertification occurs on a regional level with the
production and agricultural intensity limits the greatest attention focused on Africa, Asia, the
extent of land degradation. These materials Northern Mediterranean region, Central and
include radioactive waste, military and mining Eastern Europe, Latin America, and the
waste, and obsol, the environment remains at Caribbean. Given that two thirds of Africa is
appreciable risk. desert or drylands, its implementation plan is the
most de tailed of all regions. The plan calls for
Deforestation and Desertification adoption on a national basis of legal, political,
economic, financial, and social measures to limit
Recognizing the worldwide concerns about desertification.
deforestation, the United Nations has developed
some nonbinding instruments for the Asia faces similar problems due to the high
management of forests. The UN calls for the percentage of land that is desert. About 27% of
reverse of loss of forest cover worldwide through China is desertified, and nearly 400 million
sustainable forest development and for people live in these areas. China has
enhancement of forest-based economic, respondent environmental threat by passing
social, and environmental benefits. In laws and drawing up a national plan to limit
addition, it calls for increases in the area of desertification. The Latin American regional plan
protected forests as well as increases in funding outlines the need to eliminate unsustainable
for sustainable forest management." Despite this practices such as excessive irrigation and
initiative, subregional issues continue to limit the inappropriate agricultural practice inadequate
amount of forestation. For example, the legal issues, inappropriate use of soil,
fertilizers and pesticides overgrazing, and nature conservation in Europe. The EU
intensive exploitation of forests. Commission on a European Biodiversity
Strategy seeks to anticipate, prevent, and
F. Environmental Action Designed to Reduce attack causes of reduction or loss of biodiversity
Human Influences on Biodiversity at the source. It focuses on the reversal of
present trends in bio diversity reduction or
losses. It also provides a clearinghouse that
facilitates public access to information
relevant for biodiversity.

G. The Role of Energy Conservation Efforts


to Limit Climate Change and Pollution

Energy conservation refers to efforts to limit


the amount of resources employed in
Biodiversity concerns variation among species consumption. Conservation efforts provide a
of plant and animal life. In 1992, member of the complement to the Kyoto Protocol Efficient
United Nations signed the Convention on usage examines the extent to which
Biological Diversity. This document sought to organizations and individuals engage efforts to
conserve biodiversity, promote sustainable use reduce, reuse, or recycle resources. Although
of the components of biodiversity, and share the this strategy often associated with reductions in
benefits of utilization of genetic resources in a pollution, efficient energy use also has important
fair manner. The Convention offers guidance implications for climate change. Since a
based on the precautionary principle that where substantial amount of resources are employed
there is a threat of significant reduction or loss of to refine and process materials consumed by
biological diversity, lack of full scientific certainty individuals, firms, and other organizations,
should not be used as a reason for postponing reductions in the amount of material required
measures to avoid or minimize such a threat. limit the need for greenhouse gas emissions.
For example, use of hybrid automobiles reduces
The Convention on Biodiversity provides the need for fossil fuels by 30 to 60%.
guidelines for implementation on a regional or
national level. Due in part to rapid development
in the region, the Asia Pacific region has
encountered tremendous pressure on
ecosystems over the past two decades. Despite
this affiliation, East Asia and South Asia dis
charge more than 85% of their wastewater
directly into the sea. In the South Pacific, local
communities are collaborating through locally
managed marine areas designed to protect
coastal areas. Reuse of material also constrains energy
requirements because there is limited need to
The EU initiatives to deter biodiversity loss are process materials that are reused. For instance,
more stringent than those established by the UN Xerox developed a program in 1995 that used
convention. The Pan-European Ecological components from leased copiers as high-
Network (PEEN) is a nonbinding framework that quality, low-cost parts for new machines.
promotes cooperative action across Europe, This strategy enables Xerox to provide lease
contributing to the evolving international process customers with the latest technologies while also
of developing a stronger strategic compo pent to reducing production costs. 107 Similarly,
recycled materials gain economic advantages
over new materials to the extent that the costs to
process the recycled materials are lower than
the costs for new resources. For example,
excess aluminium from Ford's Chicago
stamping plant is recycled by Alcan. This
process requires 5% of the energy used to
produce the primary aluminium and reduces
GHG emissions by 95%.

Most developed countries promote recycling.


The amount of municipal solid waste (MSW) recovered There are several important business consequences
in 2007 was 33% (85 million tons of the total MSW associated with reduce-reuse recycle strategies. In
generated. American recyclers increasingly pass many cases, organizations must attend to conservation
their materials on to overseas buyers. China, India, efforts because of legal requirements. Organizations
and other Asian economies are propelling the markets cannot be reckless with hazardous waste, and most
for re cycled paper, metals, and plastics to near-record countries have laws dictating how these materials may
prices. In addition, they provide a 109 needed outlet be stored. For example, European Union members
for other goods such as newsprint. must adhere to union legislation for the disposal of
hazardous waste. 16 Second, reductions in the amount
of consumption and waste lower the firm's overall costs.
Shell Oil lowers its waste levels by pumping carbon diox
ide into 500 Dutch greenhouses. This action reduces
emissions by 325,000 tons per year and saves
greenhouses from having to burn millions of cubic
meters of gas needed to produce carbon dioxide. 117
Thus, costs are reduced for Shell and the greenhouses.

Although efforts to reuse-reduce-recycle are


promoted in multiple nations, sev eral issues
limit the viability of these programs. Economic
analyses of household re- cycling indicate that it Although there are some lingering issues with the
usually does not pay for itself. Research success of reuse-reduce-recycle strategies, they remain
illustrates that the typical costs of processing important mechanisms that limit climate change and
reclaimed materials exceed the revenue reduce pollution. Consequently, in the coming chapters
generated from the reclaimed goods. 10 addressing various types of consumers, we incorporate
Second, electronic equipment and computers discussion of efficient usage into analyses of household,
that contain lead, mercury, chromium, cadmium, services, transportation, and manufacturing consumers.
and other toxic material are an increasing gold
that raise concern for disposal when the product
is no longer useful. In the United States, only
10% of the 2.5 million tons of electronic waste is
recycled, per 70% of the heavy metals in
landfills are from this waste.
7.  Coke and Pepsi are two global consumer
products companies. These firms and their
affiliated bottlers necessarily have to
account for the manner in which water is
treated in the production process. Each
firm’s expressed commitment to
sustainability has been accompanied by
critiques in some markets about water
filtration and handling. What is their
commitment? Sustainability
Quiz 2.
8.  According to research reports, Starbucks
1. A mission statement is a statement of the Coffee has used all of the following growth
organization’s: purpose strategies to fuel its growth and expansion
2.  The purchase of a cup of coffee in a EXCEPT: deep discounting to
reusable thermos, for instance, involves the wholesalers
exchange of currency for a beverage. Both 9.  P&G (Procter and Gamble) incorporate an
entities that are involved in the exchange external focus into its core principles for
activity are driven by the desire to increase operations. The firm recognizes that this
value. What type of action in green external orientation requires the company
planning is illustrated? Marketing to incorporate sustainability into its
3.  What is our business?” and “Who is the products, operations, and packaging. What
customer?” are generally answered in a is the commitment of Procter and Gamble?
company’s: Incorporating a green perspective
mission statement into the mission statement
10.  The purpose of strategic planning is to find
4. Adidas explicitly recognizes that the
ways in which the company can best:
company is a consumer-focused, innovative
use its strengths to take advantage of
firm that manages a portfolio of brands that
consistently deliver outstanding financial attractive opportunities in the environment
results. The firm also affirms its desire to be
Quiz 3
a socially and environmentally responsible
global organization. What the commitment 1. What is the second source of nitrous
of Adidas is illustrated? Green marketing emissions? mobile
5.  McDonald’s historically used a polystyrene combustion
container known as a clamshell to package 2.  As the premiums and costs associated with
hamburgers and other sandwiches. These underwriting policies become more difficult
clamshellscreated a difficult form of solid to assess, costs increase and the number of
waste, were economically unattractive for providers decreases. What type of direct
recycling, and produced influences on business is illustrated?
chloroflourocarbons (CFCs) that were Insurance B. Agriculture
harmful to the ozone. What type of 3.  This occurs due to climate change, disease,
strategic green planning is presented? invasive species, pests, and air pollution.
The interaction between strategy and the Deforestation
environment 4.  This is in the form of manure or human
6.  Honda has designed a program for working excrement increases levels of nitrates,
closely with its suppliers to help them ammonium salts, and organic nitrogen
reduce their costs and improve quality. This compounds. fertilizers
form of program becomes part of Honda’s 5.  This type of development has been
_____________. implicated as a factor that yields air
value delivery network
pollution, excessive energy use, greenhouse
gas production, and traffic congestion.
Greenfield development
6.  As climate change increases, the
government will likely act to control
greenhouse gas emissions, consequently:
industries that have heavy transportation
needs (e.g., automobile production) face
higher costs of operation.
7.  Climate change associated with higher
temperatures is resulting in __ higher
sea levels
8.  How do you call the intestinal processing of
methane associated with the digestion
process for cattle? Enteric
fermentation
9.  What is the role of fossil fuels in climate
change?
can increase carbon dioxide that may lead
to thinning of ozone
10.  This prevents soil erosion, maintain soil
fertility, support biodiversity, and provide
homeopathic and traditional medicines.
Forest
11.  In many cases, trees are removed from
forests for use as fuel or as raw materials) in
production. What
Deforestation
12.  Which of the following is described as
treated residues from industrial or
municipal waste or septic soil? biosolids
13.  Where do F-gases usually produce?
industrial activity
14.  Which of the following statement is true
about gases?
Some gases do not have a direct effect on
global warming but influence the formation
and destruction of other greenhouse gases.
15.  Overexposure to UV radiation is believed to
be contributing to the increase in _____.
melanoma

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