Agenda Item: Recommendation for One Week Tree Planting in the Neighborhood
Sponsor:
Draft Resolution
Following the current ongoing debate on climate change and the need to operate sustainably in the business environment, there is need to participate in tree planting as a means of reducing amount of greenhouse gases emission and also implement a 3R strategy that will ensure effective and efficient use of company resources as this will further curb pollution menace.
Executive Summary
This paper seeks the consent of Ashtead group plc board of directors to enable the company to conduct a one-week tree planting session in the neighborhood and to also adopt a 3R strategy in its operations. The increasing rate of greenhouse gases emission has impacted on the climate change. Consumers are increasingly becoming cautious on company’s CSR strategies.
Background
Global warming remains one of the biggest 21st-century problems that continues to shake various sectors approach towards achieving sustainable resource management.1 The climatic change affects almost all stakeholders of the company (employees, customers, suppliers) in one way or another.2 It possesses adverse health effect which cannot be ignored.
Scientists and medical practitioners have warned that a slight increase in global temperature will trigger unprecedented health risks such as the rise of infectious illnesses.3
The company operates a fleet of vehicles. Reports have shown that vehicles contribute up to 80% amount of Carbon dioxide emitted to the atmosphere annually. In March alone, the global allowable amount of carbon increased from a safety level of 350 pounds per million of carbon dioxide to 400 PPM. 4 Assumes that a single lorry owned by the company emits 3000 pounds of CO2 and 100 of such vehicles are on the roads each covering at least 400 miles a day. In one month, the amount that can be emitted by these vehicles holding other factors constant such as the amount of C02 consumed by plants, this is likely to account for at least 0.0375% of global C02 emission (See appendix 1).
Recommendations
The management came up with three other ways to manage the amount of greenhouse gases emission. They include adopting 3R strategy (Reuse, reduce and Recycle), clean and renewable energy use, and ensuring all the locomotives run efficiently by conducting efficiency check-up such as ensuring car tires are properly inflated. A study conducted in the recent past revealed that properly inflated tires enhances gas mileage by over 2.5% which in turn keep off over fifteen pounds of carbon dioxide out of the vulnerable atmosphere. 4 5
Out of the three possible measures, tree planting stood out because it was easy to conduct, finance, and maintain (See Appendix 2a). Also, it presented the best interactive opportunity for the company and the general public (See Appendix 2b). Ashtead management is optimistic this activity will improve their public image and label them not as not only a good service provider but also a good environmental conservationist. 7
Implication of non-action and of the recommendation
Inability by the company to implement the recommendation that is part of their CSR policy and pledges will certainly impact negatively on their corporate image. 8 Leasing and renting powerful machinery with a high rate of fuel consumption places the company in the limelight as major carbon dioxide emitters. Failure to publicly show that they are mindful of the environment by publicly participating in activities considered environmental friendly such as tree planting may lead to loss of revenue as some clients will cut links with the company.
On the other hand, implementing the CSR strategy will market the company and give it best corporate image. This will bring sizeable financial benefits as more people will like to identify themselves with the company’s products and services (See Appendix 3)
Bibliography
1 Shindell, Drew , 2011. Integrated assessment of black carbon and tropospheric ozone summary for decision makers. Nairobi, Kenya: United Nations Environment Programme
2 Holliday, C. O., Schmidheiny, S., & Watts, P. 2002. Walking the talk: The business case for sustainable development. Sheffield: Greenleaf.
3 Anenberg, Susan C., J. Jason West, Larry W. Horowitz, & Daniel Q. Tong, 2011. "The Global Burden of Air Pollution on Mortality: Anenberg et al. Respond." Environmental Health Perspectives 119, no. 4 : 158-159.
4 Raloff, J. (2015, May 17). Carbon dioxide levels rise fast and high. Retrieved April 17, 2016, from https://student.societyforscience.org/article/carbon-dioxide-levels-rise-fast-and-high
5 Yüksel-Mermod, A., & Idowu, S. O. (2014). Corporate social responsibility in the global business world. Berlin: Spring
6 West, J. J.. 2006. "Global health benefits of mitigating ozone pollution with methane emission controls." Proceedings of the National Academy of Sciences 103, no. 11: 3988-3993.
7 Sanford, C. 2011. The responsible business: Reimagining sustainability and success. San Francisco, CA: Jossey-Bass.
8 Hopkins, M. 2007. Corporate social responsibility and international development is business the solution? London: Earthscan.
Appendix 1: Effects of GHG Emission beyond the allowed rate on customers and revenue
Appendix 2a: Four various actionable CSR Proposals
Out of the four possible alternatives, the management resorted to implement tree planting as it is cost effective and requires less time. It will also provide the company direct opportunity to get feedback from its customers on how best they can deliver their services. The other strategies are more of business to business and will not provide instant public image impact on the people as compared to tree planting initiative
Appendix 2b: Tree planning
Appendix 3: Implication of Action Versus non Action ON company strategy, corporate governance, Risk Assessment and Finance
