Environmental Management for Sustainable Development

This document discusses the threats to business from climate change and policy, and explores disruptive innovations to address these threats. It provides an overview of four types of innovation and their impact on the industry. The document is relevant for the course [Course Name] at [College/University Name].

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1Environmental Management for Sustainable Development
Table of Contents
Introduction................................................................................................................................3
Description of threats to business from climate change and policy...........................................3
Summaries of four types of innovation......................................................................................6
Description of disruptive innovations to address threats to business.........................................9
Conclusion................................................................................................................................12
Reference list............................................................................................................................13

2Environmental Management for Sustainable Development
Introduction
The government of UK recently took some of the strategies in order to make a stable
relationship between government and private industries. Most of the companies nowadays are
not being able to capitalise their business policies due to lack of communication of the private
sectors with the government. In the modern world of business, one of the biggest challenges
that are being faced by the companies is threat to the business from the climate changes and
also threat from policy changes that is in short termed as administrative threat. However, it is
important for the companies like Abbott Risk Consulting Ltd to bring innovation that will be
able to counter the threat of policymaking as well as climatic changes. The study is
significant in the sense that from the perspective of Abbott Risk Consulting Ltd how they are
taking their management policies for the industries Nuclear, Oil and Gas, Defence, Mining
and Rail sectors.
Description of threats to business from climate change and policy
Recently, in UK the climate changes is one of the inevitable reason that most of the
business organisation is basically considering within the policymaking decisions. Climate
change risk assessment that has been taken by the government is basically showing the
amount of flooding activities that are mostly damaging the business activities within UK.
Most of the business analysts have forecasted that the damage for the business organisations
due to flooding could increase between £2bn and £12bn by the 2080s (Clark, 2019). This is
one of the important aspect that most of the business organisations in considering the
environmental changes. According to the current government estimate, about 330,000
properties are currently at risk of flooding and it has been expected that increasing rate of
environmental activities will definitely increase the damage of the property to about 6,
30,000-1.2 million by 2080 (Clark, 2019). The UK is mainly prone to the threat of water

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supply and water deficit and about 27-59 million of people will be living in the areas of water
deficit.
However, the climatic changes within UK, is forcing the economy to increase the
price and risk of water shortages. UK market is expected to grow at 5% per year and is
having high scope of growth (Clark, 2019). Most of the business organisations are planning
to adopt flood prediction models and forecasting of infrastructure process and adoption of
safety measure is gradually becoming an industry. The valuation of adaption sector is
currently about £66 billion. The company is dealing in many sectors including oil and
mineral industry, nuclear industry and rail industry. Now since the risk of flood and water
shortage is increasing, thus the company will be having more risk in management of
resources. From the perspective of Abbott Risk Consulting Ltd, the threat of the company is
more compared to other business organisation.
Among the threats that are mainly associated with the changes in climate is the
logistics and supply chain management, provision of better quality of resources and also the
shipping of the goods. This is important question for Abbott Risk Consulting Ltd (ARC) to
maintain the supply chain for the products that are related with mining industry
(Consultarc.com, 2019). It is important for ARC to identify Hazard identification (HAZID)
and various risks that includes fire, noise and even evacuation risk analysis. Provision of
better quality of resources will be depending heavily on the improvement of risk
identification tools and techniques that are being used in mining industry. It is the
responsibility of ARC to identify the gaps that are being present in the risk mitigation
technologies that are being used (Consultarc.com, 2019). Proper level of hazard identification
will be helpful for ARC to incorporate changes in the design of engineering tools and
techniques that will be related with the mining industry.

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Apart from the climatic changes threats, the threats that are coming from policies
change from government level is also having significant impact on the development of
business. Some of the threats that are linked with change in business policies are described
below
Government policy acting as catalyst
Sometimes the government takes fiscal and monetary policies that actually acts like a
catalyst behind the growth of the economy. Suppose if the government is reducing the
amount of taxation on certain activities of any business unit, then the organisation will be
able to increase their revenue base as decrease in tax will automatically decrease the overall
costs of operation. For example, government can levy tax on use of carbon-based fuel that
pollutes the environment and can subsidise business for using renewable energy within their
production. This kind of policies will act as the catalyst for the business organisations
(Adomssent et al. 2014). Since ARC is mainly dealing with provision of management and
securities for various companies within the mining and oil industry, it is required for the
company to act according to the laws and regulations of the government that are mainly
associated with the management of mining industry.
On the other hand, if the government is imposing tax on the import of raw materials
and intermediate goods then it will create problem for organisations that are importing raw
materials for the production of goods. Threat on the business activities from the change in
business policy will hamper the production rate if the policy that has been taken by
government goes against the interest of business (Ahmed et al. 2014).

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Setting interest rate
Setting the required amount of interest rate that will increase the flow of monetary
circulation and currency operation is one of the important decision that is made by the
government. For example, the rise in the interest rate will definitely increase the cost of
borrowing and in that case business will not develop. Lack of growth in terms of investment
and resource channelization is acting as a threat for business organisations and this is arising
mainly of the government policies (Baranenko et al. 2014).
Threats from business policies are mostly negative in nature but in order to counter
the level of negativity of the threats the ARC Company will have to make strategy so that
they can forecast the threat. Now with the aim of minimising the threat arising from
government policies, the ARC Company need to identify policies that can address these
issues.
Summaries of four types of innovation
Innovation is one of the key fact that actually helps the business in achieving their
aims and objectives. A company will have to think the types of innovation that the company
need to do. Innovation can take various forms like process innovations, products innovations,
innovations in resources and even innovation in marketing of the products. Most of the
companies aim to identify the type of innovation that can be achievable with the resources
that are available within the reach of the organisation (Barkemeyer et al. 2014). Through the
innovation in the process and the design of the products, the companies will be able to create
a niche market for them and will fight with their competitors in a better manner. The products
innovation will definitely help the company in achieving better position within the industry.
The competition within the industry will help the price and the market to work in an efficient
manner. Generally four main kinds of innovation can be found within any business contexts

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and they are disruptive innovation, incremental innovation, breakthrough innovation and
game changing innovation.
Disruptive vs. sustaining innovation
As the name is suggesting, the development of disruptive innovation in the form of
product or services that actually creates a new marketing value within the industry. This is
mainly done by disrupting the existing market or creating a completely new market for the
product. However, in the early phases of lifecycle of innovation, disruptive level of
innovation is not going to develop the innovation level (Bennett et al. 2016). In the initial
phases this kind of disruptive innovations that are definitely going to bring new customers but
they will not bring continuous customer satisfaction. Lack of good quality of products is the
main reason behind the decrease in the level of customer satisfaction. One of the best
example, of the disruptive innovation is the transistor radio that was having low sound quality
compared to the exiting radios that was big in size.
On the other hand, sustainable innovation is one kind of innovation that instead of
creating new market value, grows within the existing market. One of the biggest example of
sustainable disruptions is the automobile industry (Baumgartner, 2014). Taking the example
of Toyota Prius, it has been seen that the car was built in the year 1997 and was launched in
the market and is still holding the design of the car same as before. Most of the automobile
companies is not changing the technologies in large scale. Through the development of these
kinds of innovations, the market sustainability as well as the industry sustainability is being
targeted.
Radical vs. incremental innovation
Use of radical innovations within any kind of innovations will definitely helping the
industry to grow. This is because, through the use of radical innovation, the companies uses

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certain level of technology to make a disruption within any market. Using new technology to
disrupt an existing market is one of the toughest thing that most of the companies face. Only
10% of the innovations are considered within the radical innovation. For example, Salesforce
was considered as the radical innovation in the market of cloud computing (Cebrián and
Junyent, 2015). They not only developed high class CRFM software but the company also
invented SAAS business model. Through the incorporation of better level of radical
innovations, the companies will be able to bring some changes within their process that will
not only allow the economic activities to flourish but will also allow the company to identify
the changes that can be sustainable in long run (Cebrián and Junyent, 2015). On the other
hand, incremental innovation allows the company to take into account small changes within
the existing models so that long run growth can be easily achieved.
Breakthrough innovation
Breakthrough innovation are those kinds of innovation that will allow the company to
reach its breakeven point. Breakeven point or break through point is such point that will
decide how far the company will be able to carry forward their production ability. This kinds
of innovation actually helps the company in bringing new products that takes the company to
identify the scope and productivity of them within the specific industry. It has been seen that
in past many industries have brought a new products and they established them within the
market completely (Chin et al. 2015). This kind of innovation can occur in products or in
process that had given those companies an opportunity to establish them as leader within the
industry.
For example, previously radio was high in demand and gradually as the time has
flown micro sd card and portable wireless radio has replaced the traditional analogue radio.
Another big example can be cited in the form of Kodak. The company was famous for the

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film camera but the innovation in the design of the camera and invention of digital camera
has forced the market to swipe away Kodak.
Game changing innovations
Every market is being considered as the game and the industries are acting as players
where the decisions taken by one company is having impact on another company. This is
important concept for the development of business activities in order to increase the overall
resource channelization (Eggermont et al. 2015). The concept of Stackleberg model is
important as it highlights the leaders and followers that will definitely help in the decision
making abilities. Through the incorporation of detailed and tough decision making the
competitors will have to fight for place within the market.
Description of disruptive innovations to address threats to business
Disruptive innovations are beneficial in addressing the threats to the business
sometimes by bringing in completely new products. While addressing the threats to the
business, the companies must identify the gaps that are being present within their current
model and their investment criteria. Addressing the threat to the business is important as
minimising the risk will definitely allow the company to bring better level of products that
will be having high quality of resources (Fang et al. 2014). Through the disruptive
innovations, the ARC Company must identify the ways of managing other company
especially in the mining and oil industry. One of the biggest example is the innovation in the
smart watch. The Apple Company has brought the idea of smart watch. Major threats that can
be faced by the organisation is marketing and managing the resources. Marketing of the
products by the companies will be crucial threat because of the fact that due to lack of
innovations, many companies will have problem in marketing.

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Improvement in marketing of the products is basically depending on the level of
resources and the ability of the company to identify the scope of marketing. Moreover,
through level of disruptive innovations, ARC Company will try to minimise the threat of
management. In order to increase the disruptive innovations, the company like ARC will
have to identify how their innovations can benefit the client company (Halme and Korpela,
2014). Developing Enterprise Risk Management (ERM) systems will allow ARC Company
minimise the level of risks that are associated with the customer and management supply
risks. Through the formation of better level of ERM system, the company can increase the
rate of productivity. Sometimes, creating new market value will help the company in
establishing them as one of the big players within the industry. Decision making abilities of
these firms will be mainly aiming to indulge the resource channelization that will maximise
the efficiency (Kolk, 2016). Another problem that might come in the way of most companies
is the wastage of resources.
Compared to capital resources, the human resources are more prone to get wasted.
Migration and transfer of labour resources of any company by any company is one of the
biggest threat. In order to minimise this threat it is required by the company to incorporate
better level of trainings and skill development programme for the employees so that the new
trainings will increase the skill set of the employees (Kopnina et al. 2014). In order to
incorporate the disruptive innovation, it is required to train the employees with the new
technologies. Through the new process learning the employees will be able to use their
knowledge in their work progress. Another kind of threat that most of the business face is in
the supply chain and logistics. Nowadays most of the companies are using robotics in their
warehouses in order to increase the efficiency of their suppliers.
Use of big data and artificial intelligence is mainly considered as disruptive
innovations within the information and communication industry that has minimised the level

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of human efforts (Le Blanc, 2015). The Machine learning software that are being used in
many business units so that they can have better level of auto-order taking robots. In order to
reduce the human errors, the companies like ARC are thinking to use robots in monitoring the
orders and in collection of data regarding loading and offloading of goods. Minimisation of
threats that are coming from change in climatic conditions, disruptive innovations that will be
beneficial. Most of the companies are using the system of E-mail as mode of communication
instead of traditional postal system to enhance the level of communication (Lehmann and
Joseph, 2015). This is even helping those regions where sending and receiving postal orders
would have been a costly approach for the companies to deal with. Through the mail system
the communication with various nodes and distribution centres are happening. Another form
of disruptive innovation is the introduction of air delivery of urgent packages and other
important things. Currently the design of packaging industry has gone many changes with
plastics replacing the jute packaging (Marshall et al. 2015). This replacement has surely
forced the Jute industry to fall but it has surely enhanced the scope of products getting
wasted.
Even the docks has also undergone certain changes in the form of better barging with
advanced level of technologies. Crane system are being used in the docks so that the loading
and unloading of the packages can be done in a fast and effective manner. ARC Company has
successfully tied up contracts with Royal Australian Navy in order to ensure the delivery of
process that are related with shipping of oil and natural gas. Through the development of
better working technology the company is aiming to maximise the level of services that are to
be delivered within the country. This will definitely aim in increasing the overall resource
utilisation that will allow the company to identify the growth opportunity within the UK.
Hydraulic pumps and dams will help the regions suffering from water supply shortage in
storing of water.

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Conclusion
The whole study is concluding the fact that in order to establish within any industry, it
is important for any company to face the threats that are coming in the way. Through the
various kinds of innovation, each and every business organisations will be aiming to increase
their productivity. Through the incorporation of disruptive innovation, companies like ARC
Company will look to maximise the level of efficiency in providing management and ECRM
services to its clients. Managing the threats is important because of the fact that through the
risk minimisation will help ARC Company to identify the gaps that are being present within
the industry. It has been seen that ARC Company has aimed to minimise the management of
safety and product within the oil and natural gas industry. Moreover, through the
development of better level of innovation will bring high quality of factors that will monitor
risk management.

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