ways of improving the industry’s environmental performance

ways of improving the industry’s environmental performance

Every person wishes to live in a safe and secure environment for one to enjoy a quality life. Unfortunately, this has become impossible since as industries strive to make more profit, they engage in some activities that pollute the environment. One such industry is the petroleum or the oil industry. The product of the oil industry, i.e., petroleum, is a significant pollutant as carbon is emitted during its combustion. The by-products of oil combustion include carbon monoxide and nitrates, which also pollute the environment resulting in a rise in global temperatures. To protect the environment, the industry should engage in activities that improve its environmental performance. This can be achieved in the following ways;

The recycling of matters is one of the most effective ways of improving the industry’s environmental performance. The industry should come with innovative recycling techniques that will help reduce natural resources used during the production of gas and oil. For instance, to reduce the amount of freshwater used during everyday operation, the industry should encourage the use of biological methods, for example, the use of iron-reducing bacteria and sulfate instead of using chemicals. This will help reduce the amount of water used and also avoid releasing chemicals to the environment.

Another strategy involves the use of environmental management systems. The objective of these systems is to create a connection between the industry and government (Nonmarket environment), thus promoting environmentally sound industrial development (Liverpool Business School, n.d.). These programs play a significant role in helping to plan for the impact on the environment from oil and gas development. They also help in addressing the effects of pollution caused by the oil and gas industry to the ecosystem where these industries are located. Lastly, these systems enable the oil and gas industry to come up with plans for unavoidable emergencies as well as the plans for the most effective cleanup methods. The systems ensure that companies in the oil industries operate with the scope of local, national, and international regulations.

As mentioned above, every individual wishes to live in a safe environment that is currently characterized as a low carbon society. In addition to making life comfortable, a low carbon society creates new opportunities for companies and businesses to thrive. One such opportunity is created for the solar and wind turbine companies. A carbon-free society discourages the use of oil since its one of the major environmental pollutants. Instead of using such nonrenewable energy sources, a low carbon society encourages the use of renewable sources of energy, such as the use of sunlight and wind to produce electricity (Hao, 2017). Therefore, a low carbon society helps to create new business opportunities for industries that use renewable sources of energy to produce energy. A report by the Bloomberg analysis revealed that the solar panel and wind turbine industry is likely to grow twice compared to other industries in the next decade (Hao, 2017).

Secondly, a low carbon society creates a good relationship between the company/business and its nonmarket environment. The nonmarket environment has significant impacts on influencing the operations of a given company. The nonmarket environment comprises of the government, non-governmental organizations, activists, and regulators. These parties are always on the lookout for actions or activities conducted by the business/company that results in pollution. For any company to create a new market opportunity for its products, it must be able to manage these nonmarket environments. Operating in a low carbon society enables the business to cooperate effectively with the government, thus allowing the business to exploit available business by avoiding potential conflicts arising from environmental issues (Liverpool Business School, n.d.). Failure to manage such issues may lead to the issues progressing to a point where they may even harm the business. Industrialist Anand Mahindra, chairman of the Mahindra Group, claims that for businesses to identify and exploit new opportunities, they need government support. For the government to support the operations of a company/business, the company should demonstrate that its operations will lead to a low carbon society (The Economic Times, 2018).

A report published in 2017 by the International Finance Corporation revealed that approximately twenty-three trillion dollars would be unlocked to create investment opportunities through the creation of a carbon-free society (Simpson, 2018). The Paris agreement championed towards the transition to a low-carbon economy has helped different companies to transform from their traditional way of conducting business to the use of modern technologies, thus creating new opportunities for investment (Simpson, 2018). The use of technology for production has helped to reduce the cost of production, thus saving many that can be used for other investments. Different companies have understood the need for sustainability, and different companies are positioning themselves so that they can enjoy the benefits of the green economy, which includes, among others, the creation of new business opportunities. This can only be achieved through the creation of emissions reductions targets aimed at creating a low carbon environment in line with science requirements.