2.4 Environmental Factors

• What are environmental factors in business terms?

  Natural world influences
• Environmental factors are within the direct control of a business.

  False
• Climate change can create new market opportunities for sustainable products
• How does resource availability impact businesses?

  Influences material sourcing
• Sustainable practices are adopted to comply with environmental regulations.
• Climate change affects supply chains and production costs
• Why is resource availability important for businesses?

  Influences sourcing strategies
• Pollution increases compliance costs and legal liabilities
• Match the environmental factor with its key impact:

  Pollution ↔️ Increases compliance costs

  Climate Change ↔️ Affects supply chains

  Environmental Regulations ↔️ Shapes operational processes
• What does scarcity of raw materials force businesses to do?

  Seek alternative sourcing
• Sustainable practices are adopted to mitigate the impact of climate change.
• Arrange the key types of environmental regulations:

  1️⃣ Emissions standards

  2️⃣ Waste management policies

  3️⃣ Carbon taxes

  4️⃣ Resource extraction quotas
• Environmental regulations spur innovation in cleaner technologies
• How does adhering to environmental standards improve brand reputation?

  Increases public trust
• Match the environmental impact with its business response:

  Compliance costs ↔️ Invest in pollution control equipment

  Innovation ↔️ Develop energy-efficient appliances

  Market opportunities ↔️ Sustainable fashion brands gain popularity
• Sustainable practices reduce environmental impact and enhance economic performance.
• What is the purpose of sourcing sustainable materials?

  Using eco-friendly raw materials
• Sourcing sustainable materials enhances customer loyalty
• Patagonia sources recycled materials to enhance its brand image.
• What are the key components of climate change as an environmental factor?

  Rising temperatures, extreme weather
• Arrange the key benefits of environmental regulations:

  1️⃣ Shapes operational processes

  2️⃣ Spurs innovation

  3️⃣ Increases compliance costs
• Climate change affects supply chain stability
• What does depletion of minerals influence in business?

  Production costs
• Match the environmental factor with its mitigation strategy:

  Climate Change ↔️ Sustainable practices

  Pollution ↔️ Advanced filtration systems
• Environmental regulations aim to minimize pollution and conserve resources.
• Compliance costs increase as businesses invest in meeting regulatory standards
• How does adhering to environmental standards improve brand reputation?

  Increases public trust
• Innovation is spurred to develop cleaner technologies and sustainable practices
• Adhering to environmental standards improves a company's brand reputation
• Match the impact with its description:

  Compliance Costs ↔️ Operational expenses to meet standards

  Innovation ↔️ Develop greener technologies

  Market Opportunities ↔️ Competitive advantage through eco-friendly offerings

  Brand Reputation ↔️ Enhances public image
• A manufacturing company adopting an advanced filtration system reduces air pollution
• What are sustainable practices in business designed to minimize?

  Environmental impact
• Minimizing waste is a key sustainable practice.
• Order the key sustainable practices from most to least frequent in daily business operations:

  1️⃣ Reducing energy consumption

  2️⃣ Conserving water

  3️⃣ Minimizing waste

  4️⃣ Sourcing sustainable materials
• Energy efficiency reduces operating costs and lowers emissions
• What is improved by water conservation in businesses?

  Brand image
• Match the sustainable practice with its description:

  Energy Efficiency ↔️ Using energy-saving technologies

  Water Conservation ↔️ Managing and reducing water usage

  Waste Reduction ↔️ Implementing recycling programs

  Sustainable Materials ↔️ Sourcing eco-friendly materials
• What is the primary driver of consumer demand for sustainable products?

  Environmental awareness
• Consumers favor businesses that adopt eco-friendly practices.
• Consumers support businesses with strong environmental commitments