1. Explain what businesses can do to help society achieve a low carbon
economy. What evidence is there that we need a low carbon economy?
Low carbon economy is an economy using power sources with low carbon emission. It will result in low emission of greenhouse gases into environment such as CO2. Greenhouse gases cause global warming which lead to drastic climate change. Businesses can also comply with low carbon strategies to help society. The companies can implement comprehensive energy reduction; the company should identify and reduce GHG emissions sources, providing environment friendly products and services.
Institutions such as EU, UN, OECD, etc. have given importance to low carbon economy, green growth and green economy after financial crisis of 2008. The United Nations Environment Program (UNEP, 2011) defines green economy as improving social equity and well-being of human by reducing ecological scarcities and environmental risks.
ICT solution has reduced the need to travel and thus reduced vehicle pollution. Additionally, travelling by train is an environment friendly option. ICCA (International Council of Chemical Associations) and WBCSD World Business Council for Sustainable Development) provides guidance to chemical industry regarding avoiding CO2 emission and green car tyres which reduce the fuel consumption per km driven.
Manufacturing companies can improve by shift in product portfolio, use of low carbon fuels, enhanced energy efficiency, and increased recycling, carbon capture and storage, use of CO2 as a raw material and bio-based production.
Green marketing is marketing of products which include modifying advertising, sustainable packaging, change in production process and product modification that is more environment- friendly. The examples of green marketing are introduction of CFL by Phillips, CNG as fuel in vehicles, energy efficient electronic products such as refrigerator, AC, fan, laptop etc. E-commerce as new supply has reduced the need of transport. The use of electronic press kit by companies which convert the information about company’s history, biographies of executive, product brochure and photo gallery into electronic files has reduced the use of paper and postage. The information can be downloaded from website. Companies have adopted eco-friendly products. Use of e-newsletter by companies reduces the use of paper.