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Element 6: Sustainability 2018.
Last modified by Margaret Smith on Wednesday, 7 December 2022, 10:16 AM
This document was downloaded on Monday, 1 May 2023, 12:13 PMElement 6 - Sustainability.
Learning Outcomes.
Once you have completed this element you will be able to:
1. Explain the principles of environmental sustainability.
2. Outline the role of environmental corporate social responsibility and self-regulation
3. Outline the drivers for global adoption of sustainability.
Recommended study time for this element is no less than 7 hours.Learning Outcome 1.
Learning Objectives
Explain the principles of environmental sustainability.What will be Covered in Learning Outcome 17
In this learning outcome, the following will be covered:
Pri
iples of sustainability
The definition of sustainability as given in Principle 3 of the Rio Declaration on Environment
and Development from the Rio Earth Summit,
Principles of sustainability,
The three pillars of sustainability — economic, social and environmental
The importance of sustainability and resource efficiency in decision making
Design, construction and resource efficiency with sustainability as an objective.
Precautionary principle, polluter pays as examples of drivers for sustainability.
Population growth and rising standards of living placing a strain on natural
resources (including competition for resources) and being a threat to a sustainable
future.
The principles of Ecological, Carbon and Water Footprints,
The 5 sustainable capitals and the dependencies between them.
Natural
Social.
Human.
Financial.
Manufactured/Built.
Concept of product stewardship.
Concept of ethical probity.
The need for sustainability reporting and auditing.1.0 - Definition of Sustainability.
The definition of sustainability as given in Principle 3 of the Rio Declaration on Environment and
Development form the Rio Earth Summit is:
“the right to development must be fulfilled so as to equitably meet the developmental and
environmental needs of present and future generations”.
An alternative definition was provided by "Our Common Future: Report of the World
Commission on Environment and Development by the UN:
"Development that meets the needs of the present without compromising the ability of future
generations to meet their own needs".1.1 - Three Pillars of Sustainability.
To be sustainable, there needs to be a balance of the social, environmental and economic needs
(people, planet and profit); often referred to as the three pillars of sustainability.
The Social Pillarrevolves around businesses having the support and approval of not only its
employees but the stakeholders and communities in which it operates to be sustainable. This
involves treating employees fairly, being a good neighbour and member of the community.
Examples include flexible scheduling, training programs, community fundraising, equal pay, etc.
The Environmental Pillar is about helping the environment by, for example, reducing carbon
footprints, decreasing the amount of packaging waste, tracking water usage and our overall effect
on the environment. Often, in this case, the impacts or costs are not that easy to determine.
The Economic Pillar is about creating a profitable business which will make it sustainable. This
involves compliance with laws, proper governance and managing environmental risks as well as
health and safety ones.1.2 - Sustainability & Resource Efficiency in Decision Making.
Businesses need to incorporate sustainability and resource efficiency into decision-making
processes for the benefits that they can bring:
* improved efficiency means the elimination of waste and the saving of raw materials,
helping businesses run leaner and save money.
* Public appeal - improving the customers’ perceptions of the organisation with many
customers now preferring to use sustainable brands and organisations.
* Shareholder value - this involves investors and customers rewarding sustainable
organisations with sales and value.
+ Employee recruitment and retention - an increasing number of prospective employees
are considering sustainability when looking at potential employers.
* Reduced business risk from the elimination of the undesirable outcomes from the
products and services provided by the organisation.1.3 - Design and Construction with Sustainability as an Objective.
A product or service that considers sustainability during its design phase must consider the
potential social, economic and environmental impacts throughout its life cycle.
For example, in the design phase, the following should be considered:
Reduction in raw materials.
Decrease in the usage of energy and water.
Reduction or elimination of hazardous materials.
Greater service life.
Improved recycling,
When considering construction there are many ways that buildings and other types of development
can be planned and built to help deliver sustainability goals, these include:
Provision of buildings that improve the health and well-being of those that use them
allowing them to enjoy a more sustainable life.
Developing buildings that have a long life and have a reduced environmental impact.
Using construction materials that have a low energy intensity and minimise damage to the
environment during their life cycle (extraction, production, construction, use and
demolition).
* By providing employment and delivering sustainable economic growth1.4 - Resource Efficiency & Sustainability.
The circular economy is built upon the principle of resource efficiency. it ensures that
resources are in use longer, meaning less newer resources are extracted; the principle of creating
more with less.
There are benefits for organisations to be more resource efficient which includes:
* Cost savings.
Boots economies.
Competitive edge.
* Environmental protection
Enhanced reputation with local and national communities.1.5 - Drivers of Sustainability.
Two key drivers for sustainability are the precautionary principle and the polluter pays
principle. Both are implemented into international and national laws to help to deliver sustainable
development.
The Precautionary Principle refers to the need to implement changes in the absence of absolute
scientific proof. Further delay with such issues could have a detrimental effect on society both now
and in the future. Itis vital however that the environmental benefits of such measures are more
than their economic and social costs. Ideally, such measures will have ‘no regrets’ in that they will
have other advantages whether they reduce environmental impact.
The Polluter Pays Principles identifies the need for the polluter to pay for the damage to the
environment of the pollutant that they release.
Fiscal Measures should be used to drive changes in behaviour by educating and having
awareness initiatives. The message should be put over, that energy use can become a major
contributor to greenhouse gas emissions and must be reduced. The focus should be on direct
energy in the home and workplace (electricity, gas and oil) and by transport usage. Economic
monitoring should be used to reward behaviour that helps to achieve reduction targets and
penalise any behaviour that hinders them.1.6 - Population Growth & Natural Resources.
Increases in populations due to increases in birth rates and people living longer are putting
pressure on the vital resources needed for survival
There are rising concerns that as populations continue to grow, the Earth will no longer be able to
sustain us.
Vital resources such as clean water, clean air, biodiversity, habitats, food and shelter are in more
demand, the more the population increases.
More people need more housing, more infrastructure, more fuel, more food, more land, which is
using up the natural resources quicker than they can be replenished. There is a risk that when the
non-renewable resources are used too quickly they could be lost forever.
In 2017 the United Nations Department of Economic and Social Affairs published that the current
world population was 7.6 billion, with expectations of.
* 86 billion by 2030,
* 9.8 billion by 2050.
* 11.2 billion by 2100,
There are roughly 83 million people bon every year, all of which will require resources to sustain
them throughout their lives. Therefore, a more sustainable approach to resources, especially non-
renewable ones, needs to be implemented1.7 - Principles of Ecological Footprints.
Ccarbon Footprint
Cropland
Pasture
Buitup Land
= Fisheries
The ecological footprint is the
measure of human activity on the environment. It measures the environmental resources that a
population needs to produce the goods and services it consumes, to support a specific lifestyle.
The ecological footprint tracks the use of six classifications of productive surface areas that are
measured:
* Cropland.
Grazing land
Fishing grounds.
Built-up land.
Forest areas.
Carbon demand on land.
The ecological footprint is measured in units called global hectares (gha).
Whether a country is in ecological reserve or deficit can be worked out using the biocapacity of the
country along with its ecological footprint.
The biocapacity of a country is the area of productive land that produces resources or absorbs
carbon waste (also measured in global hectares; gha). The biocapacity per person is the total
biocapacity of a country divided by the population. The average biocapacity of the entire world is
1.7 gha
The ecological footprint per person is a country's total ecological footprint divided by the total
Population of the country.
The ecological footprint per person would need to equal the biocapacity per person to ensure that
the country lives within the means of the resources of the area. In areas where the ecological
footprint per person exceeds the biocapacity per person, there will be an ecological deficiency and
resources will be used up quicker than they can be replenished.
Below are some examples of countries ecological footprints taken from the Global Footprint
Network website:
Country Biocapacity/person (gha) Ecological footprintiperson Biocapacity reserve (+)!
(aha) deficit ()Figure 1. Table showing the biocapacity of certain countries, courtesy of the Global Footprint
Network.1.8 - Carbon Footprint.
6
Transpo oO
a= Uy wv,
Waste Reovling Gag
The carbon footprint is defined as the
total emissions caused by an individual, event organisation or product. It is expressed as a carbon
dioxide equivalent (CO,,) as it considers other greenhouse gases as well as carbon dioxide.
Electricity
e
The carbon footprint considers both the direct and indirect sources of carbon and other
greenhouse gases.
The direct sources include energy generation, transport, etc. The indirect sources include products,
services, ete.
The carbon footprint is measured in tonnes of carbon dioxide equivalent (CO,) and is calculated
by multiplying the emissions of each of the 6 greenhouse gases by its 100-year global warming
potential (GWP).
A carbon footprint considers all 6 of the Kyoto Protocol greenhouse gases:
Carbon dioxide (CO,).
Methane (CH).
Nitrous Oxide (N,O).
Hydrofluorocarbons (HFC’s),
Perfluorocarbons (PFC’s).
Sulphur Hexafluoride (SF).
According to the Carbon Trust, the main types of carbon footprint for organisations are’
* Organisational - activity emissions e.g. energy use, vehicles, etc.
* Value chain - suppliers and consumers emissions - indirect of the organisation.
* Product - emissions over the lifecycle of the product/service - from the extraction of the raw
materials to disposal.
* Supply chain - emissions from raw materials and services purchased by an organisation to
deliver its products/services.1.9 - Water Footprint.
The water footprint is defined as the total volume of freshwater used or polluted, to produce the
good and services consumed by individuals, communities or businesses.
The concept was introduced in 2002 to have:
* An indicator showing volumes of water used.
* An indication of volumes of pollution caused.
* Geographically explicit indicators of where water is used.
‘The water footprint considers both internal and external water volumes.
The internal water footprint includes the amount of water used from domestic water resources.
External water footprints consider the volume of water used in other countries to produce
goods/services which are then imported and consumed.
The information from water footprint can be used to determine how the availability of adequate
water resources is influenced by the economic choices made and processes undertaken. It also
provides a realistic ecological model of water resources across the globe.
‘The Water Footprint Network (a non-profit organisation) identifies three types of water footprints
that are recorded:
Blue water footprints - is the volume of water sourced from surface or groundwater sources. This
water has either been evaporated into a product or taken from one body of water and returned to
another or returned later.
Bluestein
[yreap)
Figure 2. The blue total water footprint of consumption per country in the period 1996-2008.
Green water footprints - is the amount of water from precipitation that, after having been stored in
the soil root zone, is either lost by evaporation or up-taken by plants.Green water
{m'iyricap]
[200-00
| s00- s018
[i 015-1400
[i +400- 2000
2000-2500
HI 2500-2000
HB - 2000
[| No data
Figure 3, The green total water footprint of consumption per country in the period 1996-2006.
Grey water footprints - is the volume of water required to dilute pollutants so that the water meets
the agreed standards for water quality.
Grey water footprint
im ¥yreap]
(9) 5-100
[100-180
150-216
[EB ss -ann
300-500
500-1000
HE > 100
No wata
Figure 4. The grey total water footprint of consumption per country in the period 1996-2006.
(All water footrint images courtesy of National water footprint accounts: th green, blue and grey water fotprnt of production and
‘consumption value of water. Research Series No, 50, UNESCO-IME, Delt, the Netheriands, Mekonnen, MM & Hoekstra, AY (2011).
In February 2011 the Water Footprint Network along with other bodies, including the United
Nations launched the Global Water Footprint Standards.
In July 2014 ISO issued IS014046:2014 Environmental Management - Water Footprint -
Principles, Requirements and Guidelines, to provide guidance for undertaking a water footprint
assessment based on a life cycle analysis approach.1.10 - Sustainable Development.
According to the UK Forum for the Future Charity, sustaining an improved quality of life through
good and services is only possible if the stocks of 5 types of capital are maintained or
increased over time.
These 5 capitals are
Natural capital - the stock/flow of materials and energy needed to produce goods and services.
This capital includes both renewable and non-renewable resources; resource sinks that
absorb/neutralise/recycle wastes; processes such as climate regulation
Human capital includes the health, knowledge, skills and motivation of people to ensure a
productive workforce. Therefore, for a flourishing economy investment needs to be made through
training and education.
Social capital revolves around networks and relationships that help maintain and develop human
partnerships e.g. families, schools, businesses and voluntary organisations.
Manufactured capital involves the good or fixed assets that area part of the production process
but not an output e.g. tools, buildings, machinery, etc.
Financial capital has no real value but rather allows the other types of capitals to be owned or
traded. Examples include banknotes, bonds and shares, etc.
The world is facing a sustainability crisis as stocks of natural, human and social capital are being
consumed quicker than they can be produced,
All these capitals work together to provide a sustainable quality of life.
Natural capital is converted to products and services by businesses which enhances social capital
creating employment and increasing financial capital; leading to greater manufactured capital and
further employment opportunities.1.11 - Concept of Product Stewardship.
Product stewardship is an environmental management strategy where protection of the
environment focuses on the product itself.
Designed, producers, sellers and users of a product (everyone included in the
products lifespan/lifecycle) are responsible for reducing the products adverse
environmental impacts
Those who can affect the environmental impacts of the product over its full life cycle have the
greatest responsibility. This is the producer in most cases.
Producers need to factor in recycling or disposal in their designs. This may involve redesigning
products, using less harmful products, making products reusable and/or recyclable.
Retailers and consumers have the responsibility for ensuring that the products are properly
disposed of or recycled at the end of its useful life.1.12 - Concept of Ethical Probity.
Ethical probity is evidence of being ethical. Organisations being fair, impartial, accountable,
transparent, honest and having integrity regarding a particular process.
In some cases, it could mean that organisations go above and beyond the basic requirements of
the law.1.13 - The Need for Sustainability Reporting & Auditing.
Organisations undertaking sustainability auditing and reporting back to stakeholders shows
transparency and honesty by the organisation but also holds them accountable for the findings.
Corporate Social Responsibility (CSR) reporting and auditing is required due to:
* Legislation - some may require the publishing of a CSR.
* Standards such as Eco-Management Audit Scheme (EMAS).
* Initiatives such as the FTSE4Good scheme.
* Public demand for transparency on environmental issues.Self-Marked Practice Question.
Please find below a self-marked question for you to attempt.
The answer will be on the next page for you to see how well you did, so no peeking!
Outline the precautionary and the polluter pays principles.Self-Marked Answer.
The Precautionary Principle refers to the need to implement changes in the absence of absolute
scientific proof. Further delay with such issues could have a detrimental effect on society both now
and in the future. It is vital however that the environmental benefits of such measures are more
than their economic and social costs. Ideally, such measures will have 'no regrets’ in that they will
have other advantages whether they reduce environmental impact.
‘The Polluter Pays Principles identifies the need for the polluter to pay for the damage to the
environment of the pollutant that they release.Learning Outcome 1 Summary.
SUMMAR
In this learning outcome we have covered:
Principles of sustainability
The definition of sustainability as given in Principle 3 of the Rio Declaration on Environment
and Development from the Rio Earth Summit.
Principles of sustainability.
The three pillars of sustainability ~ economic, social and environmental.
The importance of sustainability and resource efficiency in decision making.
Design, construction and resource efficiency with sustainability as an objective.
Precautionary principle, polluter pays as examples of drivers for sustainability.
Population growth and rising standards of living placing a strain on natural
resources (including competition for resources) and being a threat to a sustainable
future.
The principles of Ecological, Carbon and Water Footprints.
The 5 sustainable capitals and the dependencies between them.
Natural.
Social,
Human.
Financial.
Manufactured/Built.
Concept of product stewardship.
Concept of ethical probity.
The need for sustainability reporting and auditing.Learning Outcome 2.
Learning Objectives
Outline the role of environmental corporate so
ity and self-regulation.What will be Covered in Learning Outcome 2?
In this learning outcome, the following will be covered:
Environmental corporate responsibility and self-regulation
* The role of corporate social responsibility in promoting sustainability.
+ Assumption of responsibility (including corporate govemance) for the environmental
burdens caused by activities, products and services.
* Action to improve own performance, as well as the performance of others, within an.
organisation's control or sphere of influence.
* Control of social irresponsibility (child labour, slavery, water abstraction, waste dumping).
* Implementation of environmental risk management controls with a sustainability
perspective to avoid, assess and reduce environmental risks
* Adoption of life cycle thinking from raw materials and energy generation, through
production and use to end-of-life disposal or recovery; supply chain requirements.
+ Communicating commitments, performance and other information related to social
responsibility; concept of ‘social licences’
* The effects on business of adverse stakeholder reaction to environmental performance
concerns.
* The meaning and role of self-regulation
* The role and function of corporate governance in a system of self-regulation2.0 - Corporate Social Responsibility & Sustainability.
1SO 26000 defines social responsibility as.
“the responsibility of an organisation for the impacts of its decisions and activities on society and
the environment through transparent and ethical behaviour that contributes to sustainable
development, including health and the welfare of society”.
Therefore, from this definition, corporate social responsibility is about doing the right thing, above
and beyond legal requirements to protect the environment and society and give something back.
Those organisations that undertake corporate social responsibility are embedding environmental
and social management into their business activities and being held accountable for the
impacts they cause.2.1 - Assumption of Responsibility.
Under environmental corporate responsibility, organisations take responsibility for the
environmental impacts caused by their operations.
Organisations need to be effectively managed to ensure that they adopt sustainability
concepts into their businesses and ensure that responsibilities are established and taken
Corporate Governance is a successful means by which corporate social responsibility (CSR) can
be managed. It is a structured set of rules, processes and practices that the organisation is
directed and controlled by.
Corporate governance essentially balances all the needs of its stakeholders e.g. customers,
government, community, etc.2.2 - Action to Improve Performance.
Organisations need to take action to improve their own performance, as well as the performance of
others, within their control or sphere of influence, for example, contractors or suppliers.
Therefore, when organisations are developing their corporate social responsibilty strategy, it must
include how the organisation will control/influence its external stakeholders. This can be achieved
through supply chain management where the organisation will impose requirements on external
stakeholders to ensure they meet the standards the organisation has set,2.3 - Control of Social Irresponsibility.
Corporate social responsibility (CSR) not only requires that companies act in a socially responsible
manner but also act to control socially irresponsible behaviour.
There are different types of social irresponsibility that will affect different organisations, depending
on the activities they undertake. Some common issues of social irresponsibility include child
labour, slavery, water abstraction and waste dumping,2.4 - Social Irresponsibility - Child Labour.
hild labour is defined by the ILO as:
"work that deprives children of their childhood, their potential and their dignity, and that is harmful
to physical and mental development”.
This definition refers to work that is not only harmful to the children but work that interferes with
their schooling by not allowing them to attend, requires them to leave early or means that they
must combine their schooling with excessive work.
In the more extreme cases, child labour involves the children being enslaved and taken away from
their families, whilst being exposed to dangerous activities. In some child labour cases, it can mean.
that form an early age, children are left on the street to fend for themselves.
The ILO aims to eliminate the worst forms of child labour as a priority e.g. slavery practices and
ilicit activities etc. This is clarified in Article 3 of the ILO Convention No. 182 Worst forms of child
labour convention 1999,
Another ILO Convention that also tries to reduce child labour is Convention 138, Minimum age
Convention 1973, which sets the minimum working age as 14.2.5 - Social Irresponsibility - Slavery.
Slavery, for this qualification, will cover forced labour and human trafficking, but under ILO
guidelines, it also covers forced marriages.
ee Ua
ea
Slavery is defined as "a situation of exploitation that a person cannot refuse or leave because of
threats, violence, coercion, deception, and/or abuse of power".
The ILO defines forced labour as “all work or service that is exacted from any person under
menace of any penalty, and for which the said person has not offered himself voluntarily" _ \LO
Force Labour Convention 1930 (No.29)
According to the Global Estimates of Modern Slavery: Forced Labour and Forced Marriages, ILO<
Geneva, 2017:
"in 2016 there were 40 million victims of modern slavery, 25 million of which were under the
category of forced labour.2.6 - Social Irresponsibility - Water Abstraction.
wit
increasing populations comes a higher demand for water.
Abstracting water excessively can have serious environmental consequences as it is not often
retumed to the source.
Over abstracting water can lead to:
* A reduction in water volumes in rivers/streams.
‘+ Wetlands and aquifers drying up.
* Water tables sinking.
* Wells drying up.
* Increased pumping costs.
* Degradation of groundwater in coastal areas due to the intrusion of salt water from the sea.
* Water scarcity.
All the above points will affect aquatic species and ecosystems.2.7 - Social Irresponsibility - Waste Dumping.
Illegally dumping waste allows potentially harmful substances/materials to enter the environment
and cause harm,
he effects of illegally dumping
waste include:
Soil and ground/surface water pollution/contamination caused by leached chemicals.
Nuisance issues such as bad odours.
Loss of local visual amenities, rubbish can spoil the scenic view.
Hazards to animals which can be entangled and choked by waste.
The attraction of vermin to areas.
Dumping waste has significant effects not only on the plants and animals but humans as well,
therefore all waste needs to be stored, transported and disposed of correctly and safely,2.8 - Sustainable Environmental Risk Management Controls.
Sustainability issues must be identified, assessed and controlled effectively as part of a risk
management system and corporate social responsibilty strategy.
The implementation of a risk management system, incorporating environmental and sustainability
issues will help reduce risks and will allow key issues to be identified and prioritised for action.2.9 - Corporate Social Responsibility & Life Cycle Thinking.
Corporate social responsibility includes thinking of sustainability not only in terms of activities and
outputs but in terms of a life-cycle approach (cradle-to-grave).
Organisations need to consider the environmental impacts of their
products/services/activities across the full life cycle.
‘Some significant impacts may arise from the extraction of raw materials or in the transportation of
goods rather than in their use or final disposal, as were the traditional environmental concerns that
organisations focussed upon.
Organisations should implement life-cycle thinking across their supply chain, where they can
exert influence and/or control, to ensure their supplier use recycled/recovered materials or use
materials that are renewable and have less impact on the environment.2.10 - Communicating on Social Responsibility.
A Corporate Social Responsibility (CSR) report will allow organisations to communicate their
performance on and commitment to environmental and social responsibilities, to stakeholders,
Organisations producing/publishing a corporate social responsibility report shows the community
what they are doing to not only manage their environmental risks but help society.
This can be an important activity which allows organisations to gain a ‘social licence' to operate
(Sto).
A social licence to operate revolves around how much a community accepts or approves of an
organisations operations.
Gaining a ‘social licence’ to operate can be an essential operational tool in some jurisdictions,
because if the local community does not support an organisation or its activities, then it is unlikely
that an operational licence/permit will be granted by local governments.
This type of licence is a recent development, evolving from the concept of corporate social
responsibility and social acceptability but is not a formal agreement.2.11
- Adverse Reactions to Environmental Performance Concerns.
if an organisation has a poor environmental performance, the reactions from stakeholders could
have adverse business effects.
Poor environmental performance can lead to’
The local enforcing authority issuing notices on the organisations.
Legal action being taken against the organisation, if laws have been breached.
Bad publicity for the organisation leading to fewer salesinew clients, etc.
Loss of customers who find altemative suppliers/producers with better environmental
performances.
Loss of certification to standards such as ISO 14001
Bad publicity can also lead to a decrease in share prices.
Loss of licences/permits to operate could follow, which may result in the organisation no
longer being able to operate.2.12 - Self-Regulation.
Organisations need to adopt high standards, above and beyond legal requirements, to have an
effective corporate social responsibilty strategy. Its through self-regulation, that this can be
achieved.
Environmental self-regulation includes a variety of voluntary actions taken by an organisation to
improve their environmental performance. An example of this would include the elective
participation in environmental standards such as ISO 140012.13 - Corporate Governance & Self-Regulation.
As noted previously, corporate governance is the structured set of rules, processes and
practices that an organisation is directed and controlled by.
Within a setf-regulated organisation, the practice of going above and beyond legislation and the
expectations of how this approach would be achieved would be firmly established within the
organisations’ corporate governance system.Self-Marked Practice Question.
Please find below a self-marked question for you to attempt.
The answer will be on the next page for you to see how well you did, so no peeking!
Define the term corporate social responsibilty.Self-Marked Answer.
Corporate social responsibility is:
“the responsibility of an organisation for the impacts of its decisions and activities on society and
the environment through transparent and ethical behaviour that contributes to sustainable
development, including health and the welfare of society”Learning Outcome 2 Summary.
SUMMAR
In this learning outcome we have covered:
Environmental corporate responsi
and self-regulation
* The role of corporate social responsibility in promoting sustainability.
‘* Assumption of responsibilty (including corporate govemance) for the environmental
burdens caused by activities, products and services.
* Action to improve own performance, as well as the performance of others, within an
organisation's control or sphere of influence.
* Control of social irresponsibility (child labour, slavery, water abstraction, waste dumping).
* Implementation of environmental risk management controls with a sustainability
perspective to avoid, assess and reduce environmental risks
* Adoption of life cycle thinking from raw materials and energy generation, through
production and use to end-of-life disposal or recovery; supply chain requirements.
+ Communicating commitments, performance and other information related to social
responsibility; concept of ‘social licences’
* The effects on business of adverse stakeholder reaction to environmental performance
concerns.
* The meaning and role of self-regulation
* The role and function of corporate governance in a system of self-regulation.Learning Outcome 3.
Learning Objectives
Outline the drivers for global adoption of sustainability.What will be Covered in Learning Outcome 37
In this learning outcome, the following will be covered:
Global recognition of the importance of sustainabi
* The function of the 1992 Convention on Biological Diversity (1992 Biodiversity Convention).
* The function of the Intemational Tropical Timber Agreement 2006,
* The function of the 1972 Convention for the Protection of the World Cultural and Natural
Heritage (1972 World Heritage Convention),
* The purpose of the 1992 Climate Change Convention
* The effect of adopting Agenda 21 of the United Nations Conference on Environment and
Development (UNCED), Rio de Janeiro, 1992 on UN member states.
* Overview of the UN Global Compact in respect of the environment (Principles 7-9):
© Implementation of a precautionary approach to environmental challenges (principle
7).
© Adoption of initiatives to promote greater environmental responsibility (principle 8).
© The development and diffusion of environmentally friendly technologies (principle
9).
* The purpose of the UN Sustainable Development Goals and targets.3.0 - Global Recognition of Sustainability.
With the World population continuing
to grow, there will be a greater demand for natural resources, which will not be met if sustainable
approaches are not adopted.
The importance of sustainability has received global recognition and is seen as a key
issue embraced by international institutions, Govermments, investors, etc.
Over the last 30 years, there has been an increase in the number of global treaties,
international frameworks, standards and agreements, etc. established and implemented to cover
sustainability and protect the environment.
In the following pages, we will be reviewing some of these key international laws.3.1 - Convention on Biological Diversity 1992.
25 Convention on
Biological Diversity
YEARS | SAFEGUARDING LIFE ON EARTH
The 1992 Convention on Biological Diversity (CBD) is a legally binding international treaty which
came into force on the 29th December 1993,
This convention is often reviewed as the key intemational instrument for encouraging actions for
sustainable development and a sustainable future
The CBD ensures that "ecosystems, species and genetic resources are used for the benefit of
humans, but in a way that does not lead to a decline in biodiversity’. It also acts as a reminder that
natural resources are not infinite and why sustainable use if required.
For the first time in international law, there is a treaty that recognises that "the conservation of
biodiversity is a common concem for humankind and is an integral part of the development
process”. The treat also provides a link between the traditional efforts in conservation and the
‘economic benefits of sustainable resource use.
The CBD has three main goals:
* Conservation of biodiversity.
* Sustainable use of biodiversity.
* Fair and equitable sharing of benefits arising from the use of genetic resources.
The CBD provides decision-makers guidance based on the Precautionary Principle, where a lack
of scientific certainty cannot be used as a reason for not implementing controls which would
eliminate or reduce any threats of a significant reduction or loss of biological diversity.
Under the Convention, the following issues are dealt with:
‘+ Measuring incentives for conserving and sustaining biological diversity.
* Regulating access to genetic resources and traditional knowledge.
* Fairly sharing any results of research and development.
* Access to and the transfer of technology.
* Technical and scientific cooperation.
* Impact assessment,
+ Education and public awareness.
* Provision of financial resources.
* Coordination of a global directory of taxonomic expertise (the global taxonomy incentive).
* National reporting on efforts to implement the Treaty's commitment.3.2 - International Tropical Timber Agreement 2006.
ITTO
Tak INTERNATIONAL TROPICAL
ITT TIMBER ORGANIZATION
As Brazil alone has lost 53,167 hectares (ha) of tropical rainforest in the last 25 years (source: UN 2015,
Forest Resources Assessment) it i$ essential that controls are put in place to prevent further losses.
(One way to do this is through the International Tropical Timber Agreement, 2006, which came into
force on the 7th December 2011
The function of this agreement is
"Promote expansion and diversification of international trade in tropical timber from sustainably
managed and legally harvested forests and to promote the sustainable management of tropical
timber producing forests". (Source: intemational Topical Timber Agreement 2006).
To ensure the above functions of the agreement are achieved, the Intemational Tropical Timber
Organisation (ITTO) was established.
The strategic priorities and actions of the ITTO include:
“promoting good governance and enabling policy frameworks for strengthening sustainable
forestry management (SFM) and related trade and enhancing SFM financing and
investment;
* increase the contribution of tropical forests to national and local economies, including
through international trade;
* enhance the conservation and sustainable use of biodiversity in tropical timber producing
forests;
* reduce tropical deforestation and forest degradation and enhance the provision of
environmental services;
* Improve the quality and availabilty of information on tropical forests, forest products
markets and trade;
* build and develop human resource capacity to implement sustainable forestry management
and increase trade in forest goods and services from sustainably managed forests”.
(source: ITTO Strategic action plan 2013-2018 - ITTO Policy Development Serios No. 19)
For more information on the ITTO’s strategic action plan please click here for the full action plan
document.3.3 - Convention for the Protection of the World Cultural & Natural
Heritage 1972.
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United Nations > World
Educational, Scientific and + Heritage
Cultural Organization - Convention
This Convention partners the conservation of nature with cultural preservation and recognises how
nature is interacted with and the need to maintain the balance between the two,
For those not clear on the difference between natural and cultural heritage, please find an
explanation below,
Natural heritage comprises the components of biodiversity including flora, fauna, ecosystems, etc.
Cultural heritage includes the indicators of the way of living form previous generations. Example
include buildings and monuments, etc.
The Convention sets out duties for ratifying countries which include:
* The identification of potential sites/properties to be included in the World Heritage List.
* Providing management plans for the protection and upkeep of cultural and natural heritage.
Set up staff and services at their sites.
Undertake scientific and technical conservation research
‘Adopt measures to give the heritage a day-to-day function in the community.
Periodically report on the condition of their heritage sites.
The Convention defines what types of natural and cultural heritage can be considered for inclusion
into the World Heritage List.3.4 - Climate Change Convention 1992.
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United Nations Framework
Convention on Climate Change
In 1992, countries adopted the
United Nations Framework Convention on Climate Change (UNFCCC). This Convention provided
a framework on stabilising concentrations of greenhouse gases (GHG's) in the atmosphere, so
as to reduce/prevent climate change, whilst sustaining economic development and food
production.
The Convention acknowledged that the adverse effects from climate change are common
concems for all and requires an effective and appropriate response on a global level.
The Convention requires participating countries to:
* Protect the climate for both present and future generations.
* Take action to anticipate, reduce or eliminate causes of climate change and its effects.
+ Produce national policies on sustainable development and climate protection.
* Gather and share information on technology/policies/practices/processes that can be used
to control, eliminate or reduce GHG emissions.
* Promote sustainable management and the conservation/enhancement of environmental
sinks and reservoirs.
* Cooperate in the production of adaptions that are needed to prepare for the impacts of
climate change.
+ Promote and cooperate in scientific, technological, technical, social-economic and other
research into climate change.
+ Promote, cooperate and encourage education, training and public awareness of climate
change and the effects.Under this Convention, further developments on climate change were able to be produced with
more specific requirements. Such developments include
* Kyoto Protocol
* Doha amendment to the Kyoto Protocol.
* Paris Agreement.
For more information on the developments please click on its title above.3.5 - Climate Change Protection Timeline.
Please find below a timeline showing the development of climate change protection.
1979
1988
1990
1992
1904
1997
2005
2009
2010
2011
2012
2014
2015
Date
Development
World Climate Change Conference (WCC) takes place for
the first time.
Intergovernmental Panel on Climate Change
(PCC) established,
IPCC and second WCC called for a global treaty on climate
change,
United Nations Framework Convention on Climate Change
(UNFCCC) developed.
UNFCCC enters into force,
Kyoto Protocol formally adopted.
Kyoto Protocol enters into force.
Copenhagen Accord - endorses the continuation of the
Kyoto Protocol and establishes a Green Climate Fund,
Cancun Agreement drafted. Sets out the Green Climate
Fund to support climate change activities in developing
countries.
Durban Platform created a roadmap for implementing
climate change initiatives to extend past the current 2020
deadline and established the second commitment to the
Kyoto Protocol
Doha Amendment to the Kyoto Protocol was adopted - this
establishes a second commitment period to run from
2013-2020. The inclusion of Nitrogen Trifluoride was added
to the list of GHG's.
Lima Call for Climate Action encourages partes to ratify the
Doha amendment whilst also providing information on the
key elements ofthe future Paris Agreement.
Paris Agreement sets limits on global temperature rise to
2°C above pre-industrial levels for this century and then
further to 1.5 °C. It also provides requirements for
participating countries to strengthen their ability to deal with
climate change impacts,
Figure 1. Showing the climate change protection timeline; courtesy of the United Nations.3.6 - Agenda 21.
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iAgenda 21 is a non-binding action
plan from the United Nations aimed at achieving global sustainable development. It was
produced under the 1992 Rio Earth Summit, where it was agreed that the local level was the best
place to start for developing sustainability
Under Agenda 21, each government must produce its own local strategy resulting from
consultations with its population, on important topics for the country.
‘Agenda 21 believes that sustainable development is only possible through involving society as a
whole e.g. community groups, minorities, businesses, etc. so that everyone is involved and backs
the plans,
Local authorities produce their own indicators of sustainability to help them measure their
sustainable successes. Indicators can include the number of parks, crime statistics, standards of
education, etc.
Agenda 21 follows the same principles of sustainable development as other similar treaties,
protocols etc and has the goal of ensuring everyone, now and in the future, has a better quality of
life by developing solutions through more efficient practices.3.7 - UN Global Compact.
¥%, United Nations
Global Compact
The United Nations Global Compact is the world’s main business sustainability initiative.
The UN Global Compact aims to "mobilise a global movement of sustainable companies and
stakeholders to create the world we want".
To achieve this, the UNGC support businesses who operate responsibly, adhering to the ten
principles they have devised and who advance social goals through collaboration and innovation.
The UNGC believes that by incorporating their Ten Principles into an organisations policies,
procedures and strategies, they are being responsible to others and the environment whilst being
sustainable and creating a better world
Even though there are Ten Principles, for this qualification the focus will be on those relating to the
environment, Principles 7-9
Principle Requirement
Principle 7 "Businesses should support a precautionary approach to
environmental challenges”
Principle 8 "Businesses should undertake initiatives fo promote greater
environmental responsibilty’
Principle 9 "Businesses should encourage the development and
diftusion of environmentally friendly technologies”
Figure 2. Showing the envionmental principles from the UN Global Compact Ten Principles.
‘We will now outline these principles in more detail
Principle 7.
Principle 7 revolves around Principle 15 of the Rio Declaration - the Precautionary Principle. It
requires organisations to ensure that risks are assessed, managed and communicated before an
event occurs which could result in serious or irreversible environmental damage.
Pri
iple 8.
This principle reiterates Chapter 30 of Agenda 21, of the Rio Earth Summit and pushes for
organisations to be more seff-regulated, above and beyond the minimum requirements and being
more transparent with stakeholders.Principle 9.
Environmentally friendly technology should protect the environment by producing less pollution and
using resources in a more sustainable manner, etc. This principle considers familiar topics such as
life cycle analysis and environmental performance reporting
Organisations adhering to these principles will reduce their environmental impacts as well as
receive economic benefits such as increased productivity, tax incentives, increased efficiency,
increased business opportunities and competitiveness,3.8 - United Nations Sustainable Development Goals & Targets.
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‘The United Nations Sustainable development goals and targets provide a blueprint for a
sustainable future and better quality of life for all.
‘The goals address current global issues, and all interlink to ensure that no one is left behind.
The United Nations has set a target of 2030 to achieve all 17 of their sustainable goals and targets.
These 17 goals are
change ete:
ted below and cover topics such as poverty, inequality and climate
* "Goal 1. End poverty in all its forms everywhere.
* Goal 2. End hunger, achieve food security and improved nutrition and promote sustainable
agriculture.
* Goal 3. Ensure healthy lives and promote well-being for all at all ages.
* Goal 4. Ensure inclusive and equitable quality education and promote lifelong learning
opportunities for all
* Goal 5. Achieve gender equality and empower all women and girls.
* Goal 6. Ensure availability and sustainable management of water and sanitation for all.
* Goal 7. Ensure access to affordable, reliable, sustainable and modem energy for all.
* Goal 8. Promote sustained, inclusive and sustainable economic growth, full and productive
‘employment and decent work for all.Goal 9. Build a resilient infrastructure, promote inclusive and sustainable industrialization
and foster innovation.
Goal 10. Reduce inequality within and among countries.
Goal 11. Make cities and human settlements inclusive, safe, resilient and sustainable,
Goal 12. Ensure sustainable consumption and production patterns.
Goal 13. Take urgent action to combat climate change and its impacts.
Goal 14. Conserve and sustainably use the oceans, seas and marine resources for
sustainable development.
Goal 15. Protect, restore and promote sustainable use of terrestrial ecosystems,
sustainably manage forests, combat desertification, and halt and reverse land degradation
and halt biodiversity loss.
Goal 16. Promote peaceful and inclusive societies for sustainable development, provide
access to justice for all and build effective, accountable and inclusive institutions at all
levels.
Goal 17. Strengthen the means of implementation and revitalize the global partnership for
sustainable development".
Source: Transforming our world: the 2030 Agends for Sustainable Development, The United Nations.Self-Marked Practice Question.
Please find below a self-marked question for you to attempt.
The answer will be on the next page for you to see how well you did, so no peeking!
Identity the requirements that the Climate Change Convention puts on participating states.Self-Marked Answer.
The Climate Change Convention requires participating countries to:
Protect the climate for both present and future generations.
‘Take action to anticipate, reduce or eliminate causes of climate change and its effects.
Produce national policies on sustainable development and climate protection.
Gather and share information on technology/policies/practices/processes that can be used
to control, eliminate or reduce GHG emissions.
Promote sustainable management and the conservation/enhancement of environmental
sinks and reservoirs.
Cooperate in the production of adaptions that are needed to prepare for the impacts of
climate change.
Promote and cooperate in scientific, technological, technical, social-economic and other
research into climate change.
Promote, cooperate and encourage education, training and public awareness of climate
change and the effects.Learning Outcome 3 Summary.
SUMMAR
In this learning outcome we have covered:
Global recognition of the importance of sustainability
* The function of the 1992 Convention on Biological Diversity (1992 Biodiversity Convention).
* The function of the Intemational Tropical Timber Agreement 2006.
* The function of the 1972 Convention for the Protection of the World Cultural and Natural
Heritage (1972 World Heritage Convention).
* The purpose of the 1992 Climate Change Convention
* The effect of adopting Agenda 21 of the United Nations Conference on Environment and
Development (UNCED), Rio de Janeiro, 1992 on UN member states.
* Overview of the UN Global Compact in respect of the environment (Principles 7-9):
© Implementation of a precautionary approach to environmental challenges (principle
7).
© Adoption of initiatives to promote greater environmental responsibility principle 8).
® The development and diffusion of environmentally friendly technologies (principle 9)
* The purpose of the UN Sustainable Development Goals and targets.Element 6 - Lesson Summary.
CUTS)
In this element we have covered:
Pri
iples of sustainability
* The definition of sustainability as given in Principle 3 of the Rio Declaration on Environment
and Development from the Rio Earth Summit,
* Principles of sustainability
© The three pillars of sustainability — economic, social and environmental
© The importance of sustainability and resource efficiency in decision making
© Design, construction and resource efficiency with sustainability as an objective.
© Precautionary principle, polluter pays as examples of drivers for sustainability;
© Population growth and rising standards of living placing a strain on natural
resources (including competition for resources) and being a threat to a sustainable
future.
* The principles of Ecological, Carbon and Water Footprints,
* The 5 sustainable capitals and the dependencies between them.
© Natural
° Social
© Human,
© Financial
© Manufactured/Built,
* Concept of product stewardship,
* Concept of ethical probity.
* The need for sustainability reporting and auditing,
Environmental corporate responsibility and self-regulation* The role of corporate social responsibility in promoting sustainability.
* Assumption of responsibility (including corporate governance) for the environmental
burdens caused by activities, products and services.
* Action to improve own performance, as well as the performance of others, within an
organisation's control or sphere of influence.
* Control of social irresponsibility (child labour, slavery, water abstraction, waste dumping).
* Implementation of environmental risk management controls with a sustainability
perspective to avoid, assess and reduce environmental risks.
+ Adoption of life cycle thinking from raw materials and energy generation, through
production and use to end-of-life disposal or recovery; supply chain requirements.
+ Communicating commitments, performance and other information related to social
responsibility; concept of ‘social licences’
* The effects on business of adverse stakeholder reaction to environmental performance
coneems.
* The meaning and role of self-regulation
* The role and function of corporate governance in a system of self-regulation
Global recognition of the importance of sustainability
* The function of the 1992 Convention on Biological Diversity (1992 Biodiversity Convention).
‘* The function of the International Tropical Timber Agreement 2006.
* The function of the 1972 Convention for the Protection of the World Cultural and Natural
Heritage (1972 World Heritage Convention)
+ The purpose of the 1992 Climate Change Convention.
* The effect of adopting Agenda 21 of the United Nations Conference on Environment and
Development (UNCED), Rio de Janeiro, 1992 on UN member states.
* Overview of the UN Global Compact in respect of the environment (Principles 7-9):
© Implementation of a precautionary approach to environmental challenges (principle
7)
© Adoption of initiatives to promote greater environmental responsibility (principle 8).
© The development and diffusion of environmentally friendly technologies (principle
9).
* The purpose of the UN Sustainable Development Goals and targets.Question to Submit to Tutor.
Please find below a question to submit to a tutor for feedback on your answer and understanding
of the command word.
Click on the submit button to bring up the email address to send your answer to.
Describe the five capitals model of sustainable development (12).