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Natural Resources
Naturally occurring materials that are exploited
for need and consumption often after
processes of extraction and processing
e.g. Air, water, fishery, forestry, minerals, oil,
wind
Types of Natural
Resources
Renewable resources: resources that
have a significant rate of growth or renewal
on a relevant economic time scale; e.g.: solar, wind, tidal
energy, air, forests, fisheries
Nonrenewable or exhaustible resources: e.g. oil, coal,
natural gas, copper, iron, silver, some plant and animal
species,
Natural resources must be thought of in terms of (i) stocks
thought to exist and (ii) flow of natural resource
commodities or services being produced from these stock
Economic exploitation
Based on extraction and processes that require
energy; they change and contaminate the
eco-systems and generate by-product i.e.
waste as pollution that needs to be absorbed
by the environment
These have a private costs (which is normally
accounted for ) and social cost that has
always been seen by businesses as
externalities. This is less and less the case
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Earths Services to
Humans
Unsustainable
Business Practices Waste
Western industry and agricultural
CO2 Emissions & Air
system overall has great impact on
pollution & Toxic
global warming
substances
+
think of Union Carbide and the
Bhopal Disaster. Dec.3, 1984
exposed to lethal gas (Methyl
Isocynate) 3775 died (?); hundreds
The global fishing fleet is 2-3 times of thousands were injured
larger than what the oceans can
sustainably support.
Unless the current situation improves,
stocks of all species currently fished
for food are predicted to collapse by
Overfishing of
2048
Oceans
http://wwf.panda.org/about_our_earth
/blue_planet/problems/problems_fishi
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ng/
Volume
Oceans
1,370
97,25
Freshwater
38,71
2,75
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2,05
9,5
0,68
0,125
0,01
0,065
0,005
0,013
0,001
0,0017
Source: Jeffrey Sachsrivers
(2008)
Note: Volume measured in Millions of KM3
biosphere
0,0006
0,0001
0,00004
Climate Change
The worrying part of it is :
Anthropogenic Global Warming
Conclusions of the National Academy of
Sciences in the report titled Advancing the
Science of Climate Change: Americas Climate
Choices, 2010:
Climate change is occurring, is caused largely by
human activities, and poses significant risks for
and in many cases is already affectinga broad
range of human and natural systems
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climate change.
Warming of the climate system is unequivocal, as is
now evident from observations of increases in global
average air and ocean temperatures, widespread
melting of snow and ice and rising global average sea
level.
The temperature increase is widespread over the
globe and is greater at higher northern latitudes. Land
regions have warmed faster than the oceans.
(Climate Change 2007: Synthesis Report)
https://www.ipcc.ch/index.htm
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Water
Availability
Diseas
e
Transmissio
n
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Total
36
100
Fossil Fuels
29
81
11,5
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of which:
electricity
industry
transportation
Source:
Jeffrey Sachs (2008)
residential
Note: GT = gigatons per year
commercial
Deforestation
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6,5
18
19
18
v=jMIFBJYpSgM
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Or voluntary regulation
UN led initiatives: the UN Global Compact
launched in 2000
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EnvironEnvironmental
mental
Protectio
Protectio
n
n
Economi
Economi
c
c
Prosperi
Prosperi
ty
ty
Social
Social
WellWellBeing
Being
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Role of business:
Participate in and take responsibility for its
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Century Business
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Green Business
Green as an opportunity: Business
environmentalism
Greening as a strategy not only for reputation,
risk management, brand power and potential
innovation but also to save energy and costs
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If we have time
Pepsi facing its future
What sustainability issues is Pepsi facing?
What would you recommend to Pepsi and
why?
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