Lecture x - Role of Firms in response to Climate Change

Question 1

Explain firms’ role in climate change

Answer 1

• many firm now more aware they must take mitigating measure address CC impacts to ENSURE long-term sustainability of biz
• otherwise, severely compromise long-term viability of rcs, so impact biz operat n over time

Question 2

Name possible firms mitigation measures

Answer 2

• Carbon ftpt reduct n
  1. implement energy eff tech, invest in renewable energy
  2. optimise product n processes
• supply chain mgmt
  1. work w suppliers reduce emis n
  2. promote sustainable practices
• partnerships & collab

Question 3

Explain Tesla’s efforts in implementing energy efficient technologies and investing in renewable energy

Answer 3

• Tesla prevented ~ 4 mill ton CO2 fr enter atmos
• invested in supercharger network, delivered >595 gigawatt-hour renewable energy
• consumers can oso capitalise on same tech at home by invest in Tesla lithium-ion battery to store renewable energy
• many of company’s facilities powered by 50% or more renewable energy, w Nevada gigafactory achieving 100% (w 70 000 rooftop solar panel, wind turbine)
• Tesla provided disaster relief financial assistance for region experience hurricane, forest fire in 2018 & 2019, delivered clean pwr sol n to critical infra site thru solar
• HOWEVER, Tesla may hv under-reported in global carbon ftpt assessmt (disclosed 2.5 mill ton fr direct product n, but not supply chain). but in 2022 finally disclosed ~ 30.7 mill ton (15 x more)
• Tesla oso heavily criticised for lag behind other automaker in being transparent of ghg emis n (F grade fr accounting company CDP vs A by Ford Motor Company)
• manufacture, transport lithium-ion battery in Tesla’s e- vehicle oso harm environ as CO2 emitted, contribute air pollu n & CC
• lithium ion battery use nickel, cobalt, associated w adverse respiratory, pulmonary, neurological effects (harmful to man)
• lithium ion oso small chance to b recycled ( < 5%)

Question 4

Explain Beyond Meat’s efforts in optimising production processes

Answer 4

• our current appetite for meat cause vast area land deforested to make way for large scale cattle ranch, cattle primarily responsible for increase emis n methane into atmos, herald much CC occur
• Beyond meat is company that dvloped faux-meat, vegan burger fr plant-based ingredients, satisfy picky palates
• each pdt offer plant-based nutrit n thru ingredient eg pea protein, coconut oil, canola oil (hv smaller environ impact than convention raised meat, dairy)
• study by University Michigan show producing Beyond Burger use signi much less water, land, renewable energy, generate 10 x less ghg emis n than beef patty
  => less need for deforest n to make way for cattle ranch (allow more C sink remain)
• HOWEVER, public edu n, influence consumer mindset purchase vegan burger may take long while to benefit against CC
• plant-based beef alternatives eg Beyond Meat’s vegan pdt more expensive than beef due to high product n cost

Question 5

Explain Tesla working with suppliers to reduce emissions

Answer 5

• Tesla source many raw material thru ‘environ responsible, humane supply chain’ by collect data fr suppliers thru Responsible Minerals Initiatives Cobalt Reporting Template
  => designed for suppliers downstream supply chain gather, disclose sustainable sourcing of rcs
  => company ensure supply chain product n oso +ve in response to CC
• HOWEVER, questionable data since it is internal assessment

Question 6

Explain Hasbro Inc’s efforts in promoting sustainable practices

Answer 6

• Hasbro Inc. take stride to lower environ impact, conserve natural rcs
• continuously innovate packaging for max sustain by source material fr renewable, recycled sources, avoid unnecessary material, optimise shipping eff, offer innovative way for consumer recycle packaging themselves
  eg
  Hasbro Inc. removed almost all non-recyclable plastic (PVC) fr new plastic packaging, began using plant-based plastic material fr agri bypdt in 2019
  aim to reduce energy consumpt n by a quarter, halve waste sent to landfill, reduce ghg emis n by a fifth by 2025
• launched pdt recycle program in 2018 aka TerraCycle, allow used toys, games b transformed into material for contruct outdoor play space

Question 7

Explain Hewlett-Packard Inc. ‘s efforts in promoting sustainable practices

Answer 7

hp inc oso fight CC (primary goal in coming decades
- committed eliminate 75% single-use plastic packaging by 2025 compared to 2018 lvl
- invest in dvlop energy-eff equipmt, svc to keep its pdt sustainable
eg
in 2019, company
- eliminate power cord plastic ties, doc bag in packaging
- actively shift fr plastic foam packaging cushion to ones made fr recycled molded pulp, greatly reduce need dispose >900 ton expanded plastic foam each year
- increase amt recycled plastic in printers, other equipmt, using oni ~ 9% total plastic in total product n in 2019 w goal increase amt by 30% by 2025

Question 8

Explain Hewlett-Packard Inc. ‘s efforts in partnership and collaboration

Answer 8

• in Sep 2019, hp inc launch HP sustainable forest collaborative, partnering w 2 NGOs WWF & Forest Stewardship council (FSC) to support forest protect n, restorat n, mgmt within supply chain, outside company
• hp oso work w world’s largest paper manufacturers, include International Paper, whose tonnage of responsibly sourced fiber > 7 million ton/year
• goal is printing w hp will directly increase responsible FSC-certified & recycled fiber. hp thus eliminated deforest n fr supply chain of hp paper in 2026, plans to do so for all paper-based pdt packaging by end of 2020
  Over 5 yr agreemt, hp inc will:
• contribute $11 million for WWF restore part Brazil’s threatened Atlantic forest , increase sustain mgmt state-owned farms, forest plantat n in China - ultimately protect combined area 200 000 acres
• oso amplify conserv n efforts toward International Paper, WWF’s dvlopmt of science based target for forest conserv n. Partnership provide much needed guide on qty, qlty forests needed in key region restore, protect forest eco, nature co-benefit provide for ppl, plant, animal
• support dvlopmt external tool, help companies estimate climate water, biodiversity benefits associated w various conserv effort

Question 9

Explain climate friendly policies or greenwashing

Answer 9

• some companies eg shell plc made commitmt reduce C ftpt
  BUT, no mean stop produce FF totally; means amt green energy produce cancel out impact fr FF
• oso work on ‘carbon capture’ project, try remove C fr atmos using tech, but this tech ‘geoengineering’ still not effective, cnt b relied on if we keep harming earth now
• many other companies invest in forest protect n ,afforest n, etc. but if they produce million ton C/year, need plant millions trees for many years to come, but also need time to grow b eff C sink & oso where to find space to plant. So, not feasible esp bcos profit driven
• companies share green policies, practice, seemingly look like they care for environ. BUT, ‘greenwashing’ as companies adopt green marketing deceptively used to influence, persuade public that their pdt, policies r environ-friendly

Question 10

What can be concluded from roles of firms to climate change

Answer 10

• some firm find opportun enhance, extend, their competitive positioning by create innovate pdt (eg hybrid car) exploiting climate-induced demand by lead restructuring of industries to address climate issue more effectively or educate, influence consumers’ mindsets share same green advocates to ensure long-term sustain for all stakeholder
• impt for govt step in to regulate firm C emis n, btr support firm in off-setting high cost involved in product n process due to current tech constraint (since green companies may b distracted by profit motivat n; NGOs act oso for ‘consicence’ responsibility)

Question 11

Explain some of IKEA’s responses to climate change

Answer 11

• goal use oni renewable, recycled materials by 2030
• abt 15% total wood use in FY22 recycled, leading up to goal of >= 1/3 recycled wood by FY30
  In 2023,
• strengthen climate goal, action to align w 1.5 deg C target trajectory, w halving IKEA value chain ghg emis n by 2030
• reduced amt plastic packaging of consumer goods by abt 47%, total plastic packaging by abt 44% vs baseline year FY21
• introduced plant-based hotdog in 14 markets, add more plant-based alternative to food offer