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The Environment and Sustainable Development
Transcript of The Environment and Sustainable Development
and Sustainable Development "The words ecology and economics derive from the same Greek word, oikos, meaning household management or home...These two fields should be companion disciplines."
-David Suzuki Externality: a side effect of the productive process + - Sustainable Development Marginal Social Costs and Benefits: How Environmental Impact can be Influenced: Is "going green" really worth it? What is "organic" ORGANIC production is a system of farming that maintains and replenishes soil fertility without the use of toxic and persistent synthetic pesticides and fertilizers.
Can it be guaranteed as chemical free? pros cons Green is "in style "
Solid business opportunities
Gives an edge over non green competition
"Feel good " component Fad?
Keeping up with the latest green technology
Triple bottom line
Being competitive Canada's Best Celestica Electronics manufacturing, Toronto
Cisco Corp. Communications, Toronto
The Co-operators Insurance, Guelph, Ont.
Cruickshank Construction Ltd. Construction, Kingston, Ont.
Delta Hotels and Resorts Hotel management, Toronto
Mountain Equipment Co-op Outdoors clothing and gear, Vancouver
TD Bank Banking and investing, Toronto Ranked #13, with a green score of 80 Company policy: "For over 20 years, we have implemented and maintained numerous programs to reduce the environmental impact related to our operations. Using energy efficiently both helps the environment and supports our strategic imperative to achieve a competitive cost structure. "
In the news: As the greenest company in Canada, according to this list, Bell has a great reputation for its environmental initiatives — even going so far as to disguise telecommunications poles as trees in rural areas, according to The Toronto Star. Bell Canada Some of the worst... L'Oréal Grade C+ - scored well for stakeholder relations, due to policies on equal opportunities, health and safety in the workplace and attention to the rights of customers and suppliers
Hermès Grade C+ - scored low on governance due to a lack of a code of ethics but scored high for having avoided negative press
Coach (leather goods) Grade C - low score for environmental factors due to a lack of reported monitoring, but scores well for lack of criticism from campaigners and the media.
Tods Grade F - scored badly due to an unwillingness to respond to research questionnaires. "There is, therefore little evidence of active considerations of its ESG responsibilities," the report concluded.
Bulgari Grade F - has the worst self-reported performance and media reputation for social and environmental responsibility and governance Fortune 500 Company Headquarters: St. Louis, Missouri, United States Products:
Agricultural and vegetable seeds Plant biotechnology traits, Crop protection chemicals
Globally: 21,183 employees, 404 facilities in 66 countries
United States: 10,277 employees, 146 facilities in 33 states What the world gets away with: History: Following Industrial Revolution in the 1800s, pollution
in our environment has been becoming larger at an increasing rate.
This has resulted in a rising concern; an in convenient truth and similar media have resulted in the birth of "ecofriendly" branding. "We do not inherit the earth from our ancestors, we borrow it from our children." ~Native American Proverb Don't blow it - good planets are hard to find. ~Quoted in Time Carrying Capacity Drawing Down of Resources In Conclusion... http://www.epa.gov/ttnchie1/conference/ei17/session3/grainer_pres.pdf -increase of surrounding property value
-reusable materials -oil spills
-toxic waste Marginal Social Cost (MSC): the additional cost to society (from rise in pollution)
Marginal Benefit (MB): the firms demand for the use of the externality; additional revenue as additional units are produced. Dell has been an outspoken company when it comes to the environment, regularly battling rivals for the title of "greenest." Its computers will be using 25% less energy by 2010, and its headquarters is powered entirely by renewable energy. It is a carbon neutral company and it leads the industry in recycling its products. Dell - GOOD Monsanto is the leading producer of glyphosate herbicides
Linked to cancer and birth defects
Creation of genetically modified crops
Listed by the EPA as being "potentially responsible" for over 50 Superfund clean up sites P.370 #1
An efficient level of output is defined as the point at which marginal cost is equal to marginal benefit. Explain why output is inefficient when external costs are not considered.
Explain why an environmentally conscious firm is at a disadvantage when it considers external costs if other firms in the industry do not. The Alberta Tar Sands: The Reality of the Effect of Pollution "In a statement earlier this year, Chief Allan Adam, a representative of the Athabasca Chipewyan First Nation said, “We live a very traditional life; we live off the land and the water. We have been told again and again that contaminants are naturally occurring, yet in the last 40 years we have seen the health of our community decline due to cancers and illness that we didn’t see before.”" -Nov 26, 2012 Diana Kwon The McGill Daily
http://www.mcgilldaily.com/2012/11/the-alberta-tar-sands-and-first-nations-health/ Third world countries are guilty
Wealthier countries have political, cultural and economic disincentives for polluters to allow their activities to affect human health on a massive scale
Not the case in third world countries trying to increase industrialization and make themselves competitive # 1 Israel:27.07 tons/cubic km
# 2 Jordan:11.53 tons/cubic km
# 3 Tunisia:11.4 tons/cubic km
# 4 Algeria:8.58 tons/cubic km
# 5 Czech Republic:7.9 tons/cubic km
# 6 Morocco:7.85 tons/cubic km
# 7 Denmark:7.13 tons/cubic km
# 8 Poland:5.85 tons/cubic km
# 9 Korea, South:5.68 tons/cubic km
# 10 Ukraine:5.52 tons/cubic km
# 11 South Africa:4.74 tons/cubic km Article 1 Dr Oz disagrees with organic? Subsidies:
Pollution Credits: a payment made by the government to reward a desired outcome
taxing firms on their pollution to discourage it (aka Pigouvian tax)
this is predominately used to prohibit extremely toxic substances, and to govern allowable amounts of other by-products.
states that private transactions will be efficient because of bargaining and negotiation; government should only act as a facilitator.
the body of law that allows a person who is injured to seek compensation.
in which credits are surrendered for amount of pollution created. Firms with surplus credits can sell the credits to other firms. Current Regulation in Canada: How to become organic? Article on Monsanto KYOTO (disbanded): -Four Canadian Provinces are partaking in Pollution Credits
-There are currently 55+ regulations in place by CEPA (The Canadian Environmental Protection Act)
-Various subsidies and taxes in place to promote environmental awareness