BTEC BUSINESS UNIT 32

Youssef Heiba

15/10/2024
Sustainability is a pressing challenge in today's world, as the growing population and depleting natural

resources necessitate a shift in how we interact with our environment. This report aims to define

sustainability, highlight its importance, and explore the impact of human activities on the planet.

Ownership

Sole trader

• A sole trader is a self-employed person who owns and runs their own business as an individual.

• Have unlimited liability, which means that the owner is responsible for any debts of the

business, which may lead to the sale of personal assets e.g., Car, Furniture, Devices etc.

• To set up as a sole trader, you need to tell HMRC (HM revenue & customs) that you pay tax

through self-assessment. A sole trader will also need to file a tax return every year.

• Since the owner has full control over the business, they keep all the profits generated from the

business

Examples – Plumbers, private tutors, Freelance workers (web designers, photographers)

Benefits & Drawbacks

✓ Owner has full control over the business which means they make all decisions

✓ Owner keeps all profits

✓ Low startup costs

✓ Starting up is simple and requires less paperwork

➢ Unlimited liability, which means that the sole trader is responsible for any debts involved with

the business if the company is unable to repay it

 ➢ Capacity to raise capital is limited

➢ Lots of pressure on the owner as they oversee all operations within the business

Partnership

• A legal arrangement that allows two or more people to share responsibility for the ownership of

a business

• Owners are usually between two and twenty people

• When creating a partnership, the owners must first narrow down roles, responsibilities, and

liabilities. They must then establish a partnership agreement, which is a legally binding contract

that establishes each partner’s roles and responsibilities.

• The owners get to decide how to split profits, but all partners must agree on the profit-sharing

ratio.

Examples – GoPro & Red Bull, Adidas & Kanye west, Starbucks & Nestle

Benefits & Drawbacks:

 ✓ More capital is available to start up the business

✓ Larger range of skills available

✓ Additional knowledge

➢ Unlimited liability, meaning that each partner is jointly liable for the partnership’s debts. Each

partner is liable for their share of the partnership debts

➢ Conflict may occur between partners

➢ Owners must split profits

➢ Loss of autonomy (the condition of self-government)

Private Limited Companies (Ltd.’s)

• A private limited company is a type of limited company that does not publicly sell shares and

instead gives shares to close friends or family

• Limited to a maximum amount of 50 shareholders

• Set up by registering the company under the company’s house, which operates as a separate legal

entity to its owners and shareholders.

• Profits are split depending on the amount of shares owned by a shareholder or owner

Examples – John Lewis, Gym Shark

Benefits & Drawbacks:

 ✓ Owners have limited liability, which means that the shareholders and owners are separate entities

to the business and are not responsible for any debts. This means that the owners are legally

protected from being held personally responsible for the company’s debts or financial loss

✓ Any shareholders can only be invited, which protects the business from outside influence

✓ Money can be generated through share capital

➢ Lots of paperwork involved

➢ Very time consuming to set up

➢ Shared ownership

➢ Shareholders are paid dividends, meaning that owners do not keep all profits for themselves

Public Limited Companies (Plc’s)

• A company that is legally allowed to sell shares to the public on the stock market

• Have limited liability. This refers to a legal structure that limits the financial liability of

shareholders to the amount they have invested in the company. In other words, if a PLC

encounters financial difficulties or faces legal liabilities, the personal assets of the shareholders

are protected, and they are not personally responsible for the company's debts beyond their

initial investment.

• Must have at least two people but it can grow to as many as the business desires

• Profits are split depending on the amount of shares owned by a shareholder or owner
Examples – Apple, Amazon, Nike Inc, Marks & Spencer’s, Tesco

Benefits & Drawbacks:

✓ Owners have limited liability, which provides financial security to shareholders

✓ Capital can be raised through share capital

✓ Increased negotiation opportunities with suppliers in terms of prices as bigger companies can

achieve economies of scale

✓ Gives a business prestigious profile

➢ Very expensive to set up

➢ Lots of paperwork involved

➢ Greater risk of takeovers by competition as the company cannot control who buys shares

➢ Shareholders are paid a percentage of profits through dividends

➢ Shareholders may clash when making decisions about the business

➢ Owners have less control if they own less than 50% of the business

Co-operatives

• Group of people who agree to work together and pool their money together to buy “bulk”

• Minimum of 10 people is required to form a co-operative business

• Profits are shared equally between members

Examples – finance, utility, insurance, housing, and health care co-operatives.

Benefits & Drawbacks:

✓ All members have equal rights

✓ All workload and decision making are equally shared

✓ No limit for number of members

➢ Profits are shared

➢ Limited resources due to limited supply of capital

➢ Hard to manage

Public companies (public sector)

• Companies that are government owned

• Ownership can be by central, state, or local government bodies

• Main motive of public sector organisations is to serve the general public

• Profits are shared depending on the amount of shares owned by a shareholder

Examples – ADNOC, public transport companies, Burjeel Hospital, NHS

Benefits & Drawbacks:

✓ Provides essential public goods and services with charging little to no prices

✓ Maintains economic stability

✓ Enforces safety or security within a country

➢ Public services and goods are financed through taxes

➢ Difficult to manage
 ➢ Misuse of power, which may lead to conflict

Sectors

Primary Sector

The primary sector involves the extraction and harvesting of natural resources directly from the Earth.

This sector forms the basis of an economy and provides the raw materials for the other sectors.

Key Characteristics

• Relies heavily on natural resources and the environment

• Often requires lots of manual labour

• Highly affected by weather and environmental changes

Examples

Agriculture: Cultivation of crops and raising livestock for food production

Mining: Extraction of ores/minerals such as coal, gold, and diamonds.

Forestry: Harvesting wood for construction and paper products.

Secondary Sector

Focuses on the transformation of raw materials sourced from the primary sector into finished products.

This sector adds value through manufacturing processes.

Key Characteristics

• Often requires significant investment in machinery and technology

• Emphasises quality assurance and product efficiency and includes quality control
 • Provides a wide range of employment opportunities in manufacturing and construction. E.g.,

Nike factories in Vietnam.

Examples

Manufacturing: Production of goods such as electronics, vehicles, furniture etc.

Construction: Building infrastructure like roads, bridges, and homes.

Food Processing: Converting raw agricultural products into consumable goods, such as canning and

freezing.

Tertiary Sector

It provides services rather than tangible goods and plays a crucial role in supporting both the primary

and secondary sectors.

Key Characteristics:

• Focuses on customer satisfaction and service delivery

• Includes a wide range of industries, from retail to healthcare.

• Often evolves with changing customer needs and technological advancements.

Examples

Retail: Selling consumer goods through various channels, including physical stores and online platforms.

Healthcare: Offering medical services and treatments in hospitals/clinics.

Education: Providing knowledge and skills through schools and universities.

Financial Services: Transactions, savings, and investment through banks and insurance companies.
Quaternary Sector

This sector includes knowledge-based activities that focus on services related to information, research,

and development. The quaternary sector is essential for innovation and technological advancement.

Key Characteristics:

• Relies on intellectual capabilities rather than physical labour

• Requires advanced skills and expertise in certain fields

• Prioritises R&D to drive progress

Examples:

Information Technology: Developing software's and applications that support various industries that

may be reliant on IT services.

Research and Development (R&D): Conducting scientific research to innovate new products and

processes.

Locations
Local Business

Local businesses are small-scale enterprises that typically serve a specific geographic location, often a

town or city. Examples can include a local grocery store, restaurant, or hairdresser. They often serve a

limited catchment area and may depend heavily on local demographics and consumer behaviour. Local

business owners often live in the same area, which can give them a stronger understanding of their

consumers’ needs and preferences.

National Business

• A national business is a company that operates in a particular country and provides goods or

services to its domestic market. National Businesses can be found in every industry and niche,

including retail, healthcare, banking, manufacturing, etc.

• For example, the Bank of England is a national business as it only operates in the UK and is its

central bank. As opposed to operating in a localised market, national businesses cater to

customers across the entire nation, resulting in a significantly larger target market.

• Typically, national businesses have more resources, larger operations, and stronger brand

recognition compared to local businesses. However, operating on a national scale also brings

challenges, including increased competition, higher operational costs, and more complex

management requirements. There is also a risk of losing touch with local customer preferences

in the pursuit of a smaller and more cultural approach.

Some characters of a national business include:

• They operate within the boundaries of the country.

• They have multiple locations within a single country.

• They understand the culture of the country in which they are based.

• They have access to a larger market due to their scale and multiple locations.
Global Business

A global business is a company located in one country but has operations and employees in other

countries. It may be a multi-national corporation with many different subsidiaries or an independent

company with operations in multiple countries.

The size of the international market is one of the key factors for assessing whether a business can be

classified as a global business. An international market consists of countries distant from each other, so

there are long distances between them, which requires transportation and communication expenses. A

large international market also means more competition for profits.

Additionally, a company's geographic diversity can help it have access to different markets and products

that are not available in its home country, which can increase its global reach.

Some characteristics of a global business include:

• They have access to larger markets and potential for greater profit,

• They provide consumers with more choice and access to various products.

• They are less worried about a competitor entering a particular community as they could focus

on other markets worldwide.

Urban Business

Urban business are companies that mainly operate within large cities or central business districts (CBD).
Operating in these cities means that urban businesses can target a diverse customer base, due to the
large populations that reside within these cities. Additionally, urban businesses typically have access to
many resources due to proximity to suppliers, skilled labour, and advanced infrastructure.
Off-Shore Business

Characteristics:

The term offshore refers to a location outside of one's home country. The term is commonly used in the

banking and financial sectors to describe areas where regulations are different from the home country.

Off-shore locations are island nations, where entities set up corporations, investments, and deposits.

Companies and individuals (typically those with a high net worth) may move offshore for more

favourable conditions, including tax avoidance, relaxed regulations, or asset protection. Although

offshore institutions can also be used for illicit purposes, they aren't considered illegal.

Examples:

Manufacturing plants: Factories established in countries with lower labour costs to produce goods for

global markets (e.g., electronics produced in Southeast Asia).

Offshore financial services: Banks and investment firms operating in tax havens to provide financial

services and asset management.

Call centres: Customer service operations based in countries like India or the Philippines, serving clients

from other nations.

Impact of business activities on the environment

Any business activity will impact the environment, either through the natural resources it uses or the

waste products it produces.

A business can carry out a green audit to measure the environmental impact of its activities. For

example, this may involve measuring its carbon footprint. The four main environmental issues most

likely to influence a business's activities are climate change, pollution, sustainability, and waste

reduction.

Raising Revenues by Cutting Costs

Resource Efficiency - Businesses may streamline processes to cut costs, which can lead to more efficient

use of resources (e.g., energy, water). This can reduce waste and lower the carbon footprint.

Use of Cheaper Materials - To save money, companies might opt for cheaper, less sustainable materials.

This can lead to increased pollution and resource depletion.

Outsourcing - Companies may outsource production to regions with less stringent environmental

regulations to save costs. This can result in higher emissions and environmental degradation in those

areas.

Short-term Focus - Cutting costs may prioritize short-term profits over long-term sustainability. This can

lead to practices that harm the environment, such as neglecting proper waste disposal.
Complying with Operational Legislation

Environmental Regulations - Compliance with environmental laws can lead to improved sustainability

practices. Businesses may invest in cleaner technologies and waste management systems.

Reporting Requirements - Many operational legislations require businesses to report their

environmental impact. This can promote transparency and encourage companies to adopt eco-friendly

practices.

Penalties for Non-Compliance - Companies that fail to comply with environmental regulations may face

fines and penalties. This can incentivize businesses to adopt practices that minimize their environmental

impact.

Increased Costs - Compliance can lead to higher operational costs in the short term.

However, it can result in long-term savings and a positive brand image, which can benefit the

environment.

Issues facing the environment from business activity

Deforestation

Deforestation refers to the decrease in forest areas across the world that are lost for other uses such as

agricultural croplands, urbanization, or mining activities. This issue has continuously worsened in the

past few years due to increasing demand for multitudes of products. An estimated 1.98 million hectares

(4.89 million acres) of forest were cleared in 2022, a 21% increase from 2021. It was the worst year for

deforestation since 2004, according to Amazon Conservation's Monitoring of the Amazon Project
(MAAP), which analysed satellite readings from Global Forest Watch. The primary causes of

deforestation are logging activities, livestock grazing, and the construction of roads. Deforestation is a

particular concern in tropical rain forests because these forests are home to much of the world's

biodiversity.

Below are a few activities that lead to deforestation:

• Procuring land for cultivation and agriculture.

• Building of houses and factories.

• Infrastructure expansion such as road building and urbanization.

• Making furniture, using wood as fuel.

• Natural causes such as forest fires and droughts.

• Mining and desertification of land.

Damage to land

One main way that land is damaged from business activity is through fracking. Fracking is a drilling

process which involves injecting fluids into rock deep underground to create cracks, which eases the

extraction of oil, natural gases, geothermal energy, or water from deep underground.

Hydraulic fracturing operations are already industrializing rural landscapes and putting agricultural and
recreational economies at risk. Without rigorous safeguards, fracking could lead to poisoned water and
blighted landscapes. Fracking also uses a lot of water. Each well requires millions of gallons of water. In
arid places like the Middle East, this could mean less water for fish and wildlife.

Another big problem with fracking is that it releases substantial amounts of methane, which is a
dangerously potent greenhouse gas. According to the center of Biological Diversity, Fracked areas and
wells may have methane leakage rates as high as 7.9%, which would make such natural gas worse for
the climate than coal.
Urbanisation

Urbanisation is the transformation of unoccupied or sparsely occupied land into densely occupied
towns/cities. Urban areas can grow from increases in human populations or from migration into urban
areas. Urbanisation often results in deforestation, habitat loss, and the extraction of freshwater from
the environment, which can decrease biodiversity and alter species ranges and interactions. Human
activities in urban areas, such as the burning of fossil fuels and industrial waste also increases pollutants
in the environment that can affect the health of humans and other species.

Threats of urbanisation

• Causing habitat loss and deforestation, which can decrease species populations, ranges,

biodiversity, and alter interactions among organisms.

• The disturbance of life cycles that help species survive and reproduce in ecosystems. For

example, some bird populations living in urban environments have altered their beak shape to

be able to more effectively eat the seeds in human-made bird feeders.

• The transmission of diseases - Humans living in densely populated areas can rapidly spread

diseases due to the large concentrations of waste produced from people.

• Increasing the transport of invasive species, either intentionally or by accident, as people travel

and import and export supplies in and out of cities. Urbanisation also creates disturbed
 environments where invasive species often thrive and outcompete native species. For example,

many invasive plant species thrive along strips of land next to roads and highways.

• Increasing regional temperatures - The use of asphalt and other dark coloured materials in

urban areas increases the amount of sunlight absorbed. This results in lots of heat reflected off

these dark surfaces, whereby cities experience higher temperatures than surrounding areas.

• Paving land with concrete can increase water runoff, which decreases soil quality. This can also

decrease water quality increasing sediment(rocks) and pollutants in rivers and streams.

• Changing how much and how fast water cycles through the biosphere and atmosphere. Trees

and other plants return a significant proportion of precipitation to the atmosphere via a process

called transpiration. Thus, the loss of plant productivity and biomass decreases the amount of

water cycling through the biosphere and atmosphere, while increasing plant productivity and

biomass increase the amount of water cycling.

Intensive Farming

According to the WWF, agriculture is the leading source of pollution in many countries. Pesticides,

fertilizers and other toxic farm chemicals can poison fresh water, marine ecosystems, air and soil. They

also can remain in the environment for generations. Many pesticides are suspected of disrupting the

hormonal systems of people and wildlife. Fertilizer run-off impacts waterways and coral reefs.
Poverty

Farming is the only viable livelihood option for three-quarters of the global population living below the

poverty line. Subsidies provided by US and European governments to their agriculturalists encourage

overproduction, which drives down world prices and forces many producers in developing countries to

cut corners environmentally. Producers facing declining harvests from cleared lands expand into

surrounding wild lands that are rich in biodiversity, resulting in a cycle of more people living below the

poverty line and biodiversity loss.

Water Consumption

The agricultural sector consumes about 69% of the planet's fresh water (WWF.org). Without creative

conservation measures in place, agricultural production consumes excessive water and degrades water

quality. This adversely impacts freshwater systems throughout the world.

Climate Change

Many farming practices such as burning fields and using gasoline-powered machinery are significant

contributors to the buildup of greenhouse gases in the atmosphere. The Food and Agriculture

Organisation of the United Nations (FAO) contends that the livestock sector alone is responsible for 18%

of all greenhouse gas production. Additionally, clearing land for agricultural production is a major

contributor to climate change, as the carbon stored in intact forests is released when they are cut or

burned.

Environmental Stakeholders
Understanding the various stakeholders involved in environmental issues is essential for effective

collaboration and policy-making. These stakeholders include government organizations, agencies, and
environmental pressure groups, each playing a unique role in promoting sustainability and addressing

environmental challenges.

International organisations are pivotal in shaping global environmental policies and initiatives. For

example, The United Nations Environment Programme (UNEP), focuses on global environmental issues

and promotes sustainable development through international cooperation. It provides a platform for

countries to collaborate on environmental matters, sets global environmental standards, and supports

developing nations in adopting sustainable practices.(11) Another significant player is the World Wildlife

Fund (WWF), which engages in conservation efforts and advocates for sustainable practices worldwide.

The WWF works on various fronts, including wildlife conservation, sustainable forestry, and combating

climate change, emphasizing the interconnectedness of environmental health and human well-being.

National level - Government organizations like the Department for Environment, Food & Rural Affairs

(DEFRA) in the UK are responsible for overseeing environmental protection, food production, and rural

affairs. DEFRA formulates policies aimed at improving air and water quality, enhancing biodiversity, and

managing waste effectively. Similarly, the Environmental Protection Agency (EPA) in the United States

enforces regulations designed to protect human health and the environment. The EPA plays a critical

role in assessing environmental risks, regulating pollutants, and ensuring compliance with

environmental laws, thereby safeguarding public health and natural resources. (12)

In addition to international and national bodies, state and local governments have a vital role in

implementing policies tailored to regional environmental needs. These agencies often focus on specific

issues such as air quality, water conservation, and waste management, reflecting the unique
environmental challenges faced by their communities. Local governments can provide resources for

sustainable processes and engage with citizens to foster environmental awareness.

Environmental pressure groups - Often classified as non-governmental organizations (NGOs), are also

vital in advocating for environmental protection and raising public awareness. Organizations like

Greenpeace are known for their bold campaigns against harmful environmental practices, including

deforestation, pollution, and climate change. They mobilize public support, engage in direct action, and

influence policy through advocacy. Another key organization is Friends of the Earth, which focuses on

sustainable development and environmental justice in the UK. This organization emphasizes the need

for equitable access to natural resources and advocates for policies that address social and

environmental injustices. (13)

Community-based organizations - These local groups often focus on specific environmental issues, such

as pollution control, habitat preservation, or urban green spaces. They engage in grassroots activism,

organizing community events, educational programs, and campaigns to raise awareness and drive local

action. Their localized approach helps empower communities to take ownership of environmental issues

that directly affect them.

Beyond these organisations, businesses and corporations are increasingly recognizing the importance of

sustainability in their operations. Many companies are adopting corporate social responsibility (CSR)

initiatives that focus on reducing their environmental footprint and promoting sustainable practices.

Industry associations also play a role in shaping environmental policy by providing guidelines and best

practices for their members, fostering a culture of sustainability within the business community.
 Measures to reduce environmental impacts

Compliance with Legislation

Ensuring compliance with environmental legislation is a foundational step for businesses aiming to
minimize their environmental impact.

Adhering to environmental laws and regulations helps businesses avoid legal penalties, fines, and
damage to their brand image. This accountability encourages organizations to prioritize sustainable
practices.

Another reason is that compliance often requires businesses to implement practices that promote
sustainability. This can include waste management protocols, emissions standards, and conservation
measures, leading to more efficient operations.

Governments and organizations in many places provide financial incentives and grants support
sustainable businesses. These incentives can help with managing the costs of implementing green
initiatives, making it easier for businesses to adopt environmentally friendly practices. Compliance can
drive firms to invest in greener technologies, leading to reduced resource consumption and lower
emissions. (14)

Finally, companies that demonstrate compliance with environmental standards often gain public trust
and enhance their brand reputation. This can lead to increased customer loyalty and a competitive
advantage in the market.

Control of Pollutants
• By reducing harmful emissions such as greenhouse gases and other pollutants, businesses can
significantly reduce their contribution to climate change and improve air quality. This can
involve using cleaner technologies or adopting best practices in production processes.

• Controlling pollutants not only benefits the environment but also protects public health.
Reducing exposure to harmful substances can lead to fewer health-related issues in
communities, enhancing the quality of life for employees and residents alike while also
improving overall health within a society.

• Another reason why controlling pollutants is important is that it can often lead to greater
resource efficiency. For instance, reducing waste and emissions can decrease the number of raw
materials needed, lowering operational costs and minimizing environmental degradation.
 • Businesses that actively control pollutants are more likely to adopt sustainable practices
throughout their operations, contributing to a culture of environmental responsibility. This can
allow a business to develop a USP which may attract a wider range of customers, therefore
encouraging competitors to also adopt environmentally friendly processes.

Monitoring Land Waste

Monitoring land waste is critical for effective waste management and minimizing environmental impact.

By monitoring land waste, businesses can identify sources of waste generation and implement strategies
to reduce it. This can lead to a more efficient use of resources and minimized environmental footprint.

Monitoring waste helps businesses develop recycling and reuse programs. By diverting waste from
landfills, companies can conserve resources, reduce energy consumption, and lower greenhouse gas
emissions associated with waste disposal.

Regular monitoring ensures that businesses comply with waste management regulations, preventing
legal issues and penalties. This accountability also drives companies to adopt best practices in waste
handling, treatment, and disposal.

Monitoring land waste supports businesses in achieving their sustainability targets. By tracking waste
generation and disposal, companies can set measurable goals, assess progress, and implement
continuous improvement strategies.

How does Mercedes-Benz comply with environmental

policies
AMBITION 2039 AND OTHER PLANS
To protect climate and control their air pollution, Mercedes-Benz launched the ‘Ambition 2039’
initiative, where they have set the target of making their fleet of new passenger cars net carbon-neutral
over the vehicles’ entire life cycle by 2039. By 2026, they are planning to have invested more than 60
billion euros on the transformation to achieve a fully electric and software-driven mobility.

Since 2022, Mercedes-Benz's own vehicle production sites have been net-carbon-neutral, and the
company aims to cover at least 70% of its production energy needs with renewable energies by 2030.
This is to be achieved through the expansion of solar and wind energy at the company's own sites and
by concluding further corresponding power purchase agreements. By the end of 2023, solar plants with
a capacity of more than 140 MW are to go into operation. By 2025, Mercedes will invest a three-digit
million sum in the installation of energy systems. In addition, investments in new power purchase
agreements for wind turbines worth one billion euros are planned by the middle of the decade. The
consumption of water in production is also expected to fall by 33 percent by 2030 compared to 2018. (16)

Mercedes-Benz is currently implementing a green power concept in Germany with the energy supplier
Enovos and the Norwegian energy producer Statkraft. Since 2022, they have been purchasing electricity
that comes exclusively from renewable sources. A green power supply contract always ensures the
purchase of electricity from renewable energies. (17)

To facilitate this shift, Mercedes-Benz is unveiling a comprehensive plan which includes significantly
accelerating R&D. In total, investments into battery electric vehicles between 2022 and 2030 will
amount to over €40 billion. Accelerating and advancing the EV portfolio plan will bring forward the
tipping point for EV adoption.

Additionally, all of Mercedes’ German production sites are required to write an environmental
statement which includes a plan/policy prior to a decision to move forward with the environmental
action. This is done with participation in the European eco audit system (EMAS). It was established by
the European Union through the dedicated EMAS regulation, helping organisations enhance their
environmental performance, save energy, and optimise resource usage. It is a premium management
instrument to evaluate, report, and improve organisations’ environmental performance.

How does Nike comply with environmental regulations?

Understanding that if there “is no planet, there is no sport” Nike continues to make considerable inroads
in promoting their environmental sustainability initiatives.

Through the supplier climate action program, Nike ensures their suppliers and manufacturers are
committed to their goal of carbon neutrality by 2025. So far, the company announced that all of their
North American facilities, as well as 48% of their global operations, are operating on 100% renewable
energy, and 99.9% of manufacturing waste from their main suppliers have been diverted from landfills.
Under this new program, there was also a 30% reduction of fresh water used in manufacturing textiles
and materials in 2020.

To further reduce waste, Nike is introducing more sustainable materials into their product lines and
taking advantage of reusable and recyclable products. In 2020, sustainable material usage increased
from 41% to 59% in their clothing lines. Although the use of sustainable materials in their footwear was
unchanged in 2020, the company is focusing on sustainable materials such as Flyleather, a material
made with at least 50% recycled leather scraps. So far, over 4 billion plastic bottles have been
reprocessed into polyester and other textiles that are used in their products. Nike is also implementing
the usage of alternative packaging solutions that replace corrugated cardboard with reusable shipping
boxes. (15)

SURVEY
In order to investigate ways in which my chosen business (Mercedes-Benz) can become more

sustainable with all stakeholders, i carried out a 10 question survey in order to gather primary

research, below were the questions asked:

1. What is your gender? (closed)

• Male

• Female

2. What is your age (closed)

• Under 18

• 18-24

• 25-34

• 35-44

• 45-54

• 55+

3. From 1-5, how much do you care about the environment? (closed)

4. What do you believe are the most pressing environmental issues today. Rank from 1-5

• Climate change

• Deforestation

• Pollution

• waste management

• loss of biodiversity
5. Do you prefer to buy products from sustainable businesses. If so, why? (open)

6. How often do you recycle? (closed)

• More than once a week

• Once a week

• Once a month

• Very rarely

• Never

7. What changes do you think are necessary for a sustainable future? (open)

8. In your opinion, should a product be recyclable or not? (open)

9. Are you willing to pay more for products that are sustainably sourced or packaged?

(closed)

• Yes

• No

• Maybe

10. What types of products do you think should have more recyclable options available?

(open)
Analysis of survey

Based on the results of my questionnaire, i will formulate the opinions of the 23 respondents and

create suggestions for Mercedes-Benz on how they can be more sustainable. The purpose of the

questionnaire was to research people’s thoughts and opinions about the environment and

businesses as a whole.
How does the willingness to pay more for sustainably sourced or

packaged products differ across age groups?

Distribution of Responses

• Maybe: The average response for "Maybe" is 57%, indicating a moderate level of

uncertainty across age groups.

• No: The average response for "No" is 7%, suggesting a low level of unwillingness to pay

more.

• Yes: The average response for "Yes" is 36%, showing a significant portion of respondents

are willing to pay more.

Visualization of Age Group Differences

• Age Group 1 (18-24 ): All "Maybe" responses.

• Age Group 2 (45-54): A mix of "Maybe" and "Yes," with "Yes" being more prominent.

• Age Group 3 (35-44 ): High "Yes" responses, indicating strong willingness.

• Age Group 4 (25-34): Similar to Age Group 3, with a high proportion of "Yes."

• Age Group 5 (Under 18): A notable presence of "No" responses, indicating reluctance.

Conclusion and Insights

• Older age groups tend to be more willing to pay more, as seen in Age Groups 3 and 4.

• Younger age groups show more uncertainty or reluctance, particularly in Age Group 5, as

this was the only age group that included “no” responses.
Is there a trend in the types of products that respondents

believe should have more recyclable options?

Analysis of Product Categories

• Plastic: The most frequently mentioned category, with a frequency of 8, indicating a strong

demand for more recyclable options.

• General Packaging: Also highly mentioned, with a frequency of 6, suggesting significant

concern about recyclability.

• Food Packaging: Has a moderate frequency of 4, showing a notable interest in recyclable

solutions.

• Electronics: Mentioned with a frequency of 2, indicating some demand for recyclable

options.

• Clothing and Cosmetics: Both have the lowest frequency of 1, suggesting less concern

compared to other categories.

Conclusion and Insights

• Key Trend: There is a clear trend towards a demand for more recyclable options in plastic

and packaging materials.

 • Insight: Efforts to increase recyclability should prioritize plastic and packaging, as these

are the areas of greatest concern among respondents.

Correlation between age groups and their suggestions for

changes necessary for a sustainable future. Are there any

notable differences in priorities or perspectives?

Analysis of Age Group Suggestions

• 18-24 Age Group: This group emphasizes the importance of reducing carbon emissions.

Their focus is on environmental actions that directly impact climate change.

• 25-34 Age Group: This group also highlights a sense of urgency around climate change

discussions and suggests educating young people about environmental problems. They

also stress the need for governmental regulations on recycling and energy use, and the

importance of international cooperation.

• 35-44 Age Group: The focus here is on affordable electric vehicles and global coordination

to decarbonize the economy. They emphasize the role of large businesses in using

sustainable materials and the need for increased awareness to reduce waste.

• 45-54 Age Group: This group mainly suggests making recycling easier and more common,

advocating renewable energy and public transport. They also highlight the call for

international agreements and strict policies on pollution and green energy between all

governments.
 • Under 18 Age Group: Their suggestions include planting more trees and reducing plastic

use in supermarkets. They stress the need for greater awareness of daily impacts and a new

initiative against pollution.

Conclusion and Insights

• Diverse Priorities Across Age Groups: Each age group has distinct priorities, with younger

groups focusing on immediate environmental actions and older groups emphasizing

systemic changes and policy enforcement.

• Common Themes: Despite differences, common themes include the need for increased

awareness, governmental action, and international cooperation to achieve a sustainable

future.

Link between environmental concern and recycling frequency

Recycling Frequency Analysis

• Weekly Recycling: This was the most common response, with 13 individuals recycling

weekly.

• Very Rarely Recycling: 7 individuals reported recycling very rarely.

• Monthly Recycling: The least common response, with 3 individuals recycling monthly.

Relationship with Environmental Concern

• Bar Chart Observations: The distribution chart shows a clear preference for weekly

recycling. The environmental concern chart indicates a positive correlation between

recycling frequency and environmental concern.

Conclusion and Insights

• Recycling Frequency: Most respondents recycle weekly, indicating a strong commitment

to recycling.

• Environmental Concern Correlation: There is a positive relationship between how often

individuals recycle and their level of concern for the environment. Those who recycle more

frequently tend to care more about environmental issues.

Recommendations for Mercedes-Benz

Based on the data gathered from my survey, several recommendations can be made to enhance

sustainability within the organization.

Short term Practices

One of the most effective strategies is to enhance waste management practices. Mercedes-Benz can
collaborate with other businesses that encourage recycling by providing discounts on their products. For
example, ADNOC are partnered with companies such as Carrefour, H&M, and new balance and they give
10% discounts on their online stores when customers recycle a specific number of bottles. Mercedes-
Benz could do the same, which can positively affect the brand's image as it would be seen as supportive
of the environment and allow customers to possibly look at other products sold by Mercedes-Benz other
than their vehicles.

Another short-term recommendation is to improve energy efficiency. This can be achieved by upgrading

lighting systems in factories and offices to energy-efficient LED lights, which will reduce overall energy

consumption and lower operational costs. Furthermore, promoting internal campaigns that remind

employees to turn off lights and unplug devices when not in use, especially in production areas, could

lead to further energy savings.

Mercedes-Benz should also consider accelerating the development and promotion of electric vehicles

(EVs) as a strategic initiative to address climate change. This can be achieved by implementing a

campaign about EV awareness, which would be aimed at educating both employees and consumers

about the benefits of EVs in reducing carbon emissions and promoting sustainable transportation.
The campaign can include informational seminars and workshops for employees to familiarize them with

the advantages of electric vehicles, such as lower operating costs, reduced environmental impact, and

advancements in battery technology. Additionally, Mercedes-Benz could provide test drive events to

allow employees and customers to experience the performance and benefits of their electric vehicle

offerings firsthand. Furthermore, the company can enhance its EV infrastructure by installing more

charging stations at its facilities and partnering with local municipalities to expand public charging

networks. This would not only support employees who drive electric vehicles but also encourage wider

adoption of EVs in the community by making charging more accessible.

Long term practices

Mercedes-Benz should consider implementing a ‘Green Mobility Program’ that creates incentives for

employees who choose to bike, walk, or use public transportation to commute to work. Providing bike

storage and shower facilities at various locations will encourage this behavior. Additionally, developing a

communication platform for employees interested in carpooling can significantly reduce the overall

carbon footprint associated with commuting.

Investing in renewable energy is another crucial long-term recommendation. Installing solar panels at

manufacturing plants will allow Mercedes-Benz to reduce its reliance on non-renewable energy sources,

ultimately lowering operational costs over time. Moreover, transitioning to suppliers that offer

renewable energy options for all facilities will contribute to decreased greenhouse gas emissions,

making a substantial impact on the environment.

Establishing sustainability goals is vital for continuous improvement. Mercedes-Benz should set

measurable targets across various areas, such as waste reduction and energy consumption, and

regularly report on progress to maintain accountability. Forming a dedicated sustainability task force

responsible for overseeing the implementation of sustainable practices will ensure that the organization

continuously strives for improvement across all divisions.

In conclusion, by adopting these recommendations and implementing both short-term and long-term

strategies, Mercedes-Benz can significantly enhance its sustainable environmental practices. The survey

data serves as a valuable foundation for identifying specific areas of focus and guiding the company's

efforts toward a more sustainable future. Engaging stakeholders at all levels, including employees,

suppliers, and customers, will be crucial for the successful execution of these initiatives, ultimately

fostering a culture of sustainability within Mercedes-Benz and the automotive industry.

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