Sustainable Business Management: Assignment 2

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SUSTAINABLE
BUSINESS
MANAGEMENT
Assignment 2
1.0 Executive Summary

Sustainable business management is a vital cog to any organization especially with the
sustainable issues affecting all business’s regardless of its location, size and product or service
offering. It is important that organizations are aware of its surroundings and the impact that
sustainability issues can cause and affect business in the long term.
The purpose of this report is to critically evaluate the threats and opportunities to the University
of Bedfordshire in the context of sustainability issues such as climate change, resource
constraints and population growth. There is an emphasis on the regional and global issues which
in turn have an impact on the University.
According to the analysis conducted the key threats to the University in terms of climate change
are the logistical disruptions, impact and inconvenience caused to students and staff, possible
decline in future enrollment of students. Resource constraints could prompt cost increases to
energy and water for the University whereas the population growth may indicate limitations in
space for the University to operate. However, many opportunities for the university are present
where a climate adapt University can enhance its reputation and gain competitive advantage.
It is important to the University that the leadership drives the sustainable strategy with the aim
of building a resilient campus with a focus towards research and investment towards green
technology. Further inculcating a culture within the organization with a sense of ownership
towards driving the change towards a greener university and reducing the carbon footprint
impact of everyone is expressively important.

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Contents
1.0 Executive Summary ................................................................................................................... 2
2.0 Introduction .............................................................................................................................. 4
3.0 Threats and Opportunities arising from sustainability issues to UOB ...................................... 5
3.1 Climate Change ..................................................................................................................... 5
3.1.1 Logistics ......................................................................................................................... 5
3.1.2 Premises ........................................................................................................................ 6
3.1.3 Process .......................................................................................................................... 6
3.1.4 People............................................................................................................................ 7
3.1.5 Markets ......................................................................................................................... 7
3.1.6 Finance .......................................................................................................................... 8
3.2 Resource Constraints ............................................................................................................ 8
3.2.1 Energy ............................................................................................................................ 8
3.2.2 Water............................................................................................................................. 9
3.3 Population Growth ............................................................................................................. 10
4.0 Regional and Global Impact to the UOB ................................................................................. 11
4.1 Regional Impact .................................................................................................................. 11
4.2 Global Impact...................................................................................................................... 11
5.0 Recommendations .................................................................................................................. 12
6.0 Conclusion ............................................................................................................................... 14
References .................................................................................................................................... 15

Figure 1: 6 Areas of Business, BACLIAT Model ............................................................................... 5

Table 1: Threats and Opportunities :Logistics, BACLIAT Model ..................................................... 6


Table 2: Threats and Opportunities :Premises, BACLIAT Model .................................................... 6
Table 3: Threats and Opportunities :Process, BACLIAT Model ....................................................... 7
Table 4: Threats and Opportunities :People, BACLIAT Model ........................................................ 7
Table 5: Threats and Opportunities :Markets, BACLIAT Model...................................................... 7
Table 6: Threats and Opportunities :Finance, BACLIAT Model ...................................................... 8
Table 7: Threats and Opportunities :Energy ................................................................................... 9
Table 8:Threats and Opportunities :Water ..................................................................................... 9
Table 9: Threats and Opportunities :Population Growth ............................................................. 10

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2.0 Introduction

Global sustainability challenges such as climate change, resource constraints, population growth
have forced companies to rethink their long-term approach to meet expectations of
stakeholders. Therefore, factoring sustainability to an organization’s overall business strategy is
of paramount importance. Organizations believe managing risks related to social and
environment will bring long-term benefits in the form of enhanced brand reputation, cost saving,
growth and strengthened relationships with stakeholders.(The Business Case for
Sustainability,2012)(Young and Dhanda,2013)
Located in the UK, The University of Bedfordshire (UOB) was formed in 2006 merging De
Montfort University's Bedford campus and the University of Luton. With a rich history of over
100 years, UOB has over 23,000 students and 1,200 staff members, with campuses located in
Luton and Bedford and Satellite Sites in Putteridge Bury and Aylesbury. Additionally, UOB has
established its presence across the globe through its education partners. Furthermore,
recognized for its efforts in sustainability and placed 8 th from 154 Universities in UK for 2019
People & Planet Green League. (University of Bedfordshire,2020)
It is of pivotal importance that universities constantly identify threats and opportunities that arise
from sustainable challenges and take pro-active measures to mitigate risks associated with
threats and grab the opportunities available.
This report critically evaluates the threats and opportunities from sustainable issues and how
regional and global sustainability issues can impact UOB.

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3.0 Threats and Opportunities arising from sustainability issues to UOB

With the alarming projection of sustainability issues on the rise, the environmental management
system ISO-14001, was revised to ISO-14001:2015 considers organizations proactively taking
measures on sustainable resource use and reducing future impact on climate change. (da
Fonseca, 2015)
Therefore, for organizations to be proactive it is important to identify and evaluate threats and
opportunities that can arise with such sustainability issues.

3.1 Climate Change


Climate change, a defining sustainable issue in today’s context where change in climate patterns
regionally or globally poses risks, as increased average global temperature, rising sea levels and
extreme weather events (hurricanes, droughts, wildfires) (United Nations-climate change,2020)
Human activity of burning fossil fuels in the form of oil, coal and natural gas which in release
greenhouse gases into the earth’s atmosphere is largely the cause of climatic change. (Grenville
et al.,2014)
Climate change is inevitable due to greenhouse emissions of the past; therefore, steps should
not only be taken to reduce the current carbon footprint but also adopt to changes that could
occur in the future as it causes significant risks. UOB has recognized the importance on effects
of climate change and taken steps to increase awareness to students and staff by hosting events
such Model UN conferences. (University of Bedfordshire,2020)
With the aid of the UKCIP’s Business Areas Climate Impacts Assessment Tool (BACLIAT), business
operations are categorized into 6 to further understand potential threats and opportunities
present at UOB. (Exchanging knowledge &ideas | UKCIP, 2020) (Metcalf, et. al, 2010)

Logistics Premises Process

People Markets Finance

Figure 1: 6 Areas of Business, BACLIAT Model

3.1.1 Logistics
Logistics can be hindered due to climate change where Supply Chain, Transport infrastructure
and utilities are disrupted being exposed to extreme changes in the environment (floods,
landslips, drought)

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Threats Opportunities
Disruptions in utilities such as water and Adequate measures to manage and secure
electricity could halt UOB day to day utilities better- using on-site solar for electricity
activities generation. Installing bio-gas facilities to
minimize disruptions from power generated
Delivery delays and vulnerability of through solar panels during winter etc.
suppliers. It could be food ingredients to
the Universities Cafeteria. Local sourcing options to reduce impact of
supplier delays.
Table 1: Threats and Opportunities :Logistics, BACLIAT-Model

3.1.2 Premises
Infrastructure in the premises is prone to be exposed to extreme weather events such as floods,
storms, increased temperature. Therefore, building construction, design and management of
facilities is important.
Threats Opportunities
Infrastructure vulnerability to withstand Climate adapt and weatherproof
floods and storms, frequent storms could specifications taken into consideration for
potentially damage telephone and computer new constructions across the University.
networks. BREEAM level of outstanding to be used as a
benchmark.
Bedford Campus is situated in a riverside town
having high vulnerability of flooding. Refurbishment and adding elements to
current buildings and infrastructure to
Rising temperatures in summer causes withstand anticipated climate change.
uncomfortable indoor working environment Ex: University has used sedum, a type of
which UOB should maintain required internal vegetation to absorb water on rainwater
environment without adding to the emission harvesting roofs as a protective measure
of greenhouse gasses. against flooding.
Table 2: Threats and Opportunities :Premises, BACLIAT-Model

3.1.3 Process
This includes climate sensitive activities of an organization. Implications would mean loss of
productivity to the business operations
Threats Opportunities
Certain university activities such as graduation Risk management, recovery and adaptation to
research, performing arts recitals/auditions, climate change is planned and considered to
debating competitions and outdoor events all activities undertaken by the university and
could be halted due to adverse weather included in schedules.
patterns

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Identification of new process’s as alternative
options to be available for students; online
report submissions, online teaching
platforms.
Table 3: Threats and Opportunities :Process, BACLIAT-Model

3.1.4 People
Behavior and lifestyle of people are affected and influenced due to weather changes. At
University’s case it could be the heating requirement being insufficient during winter for students
to concentrate.
Threats Opportunities
Weather interruptions could challenge Advance working conditions further to
working conditions of UOB making it support the changes in the climate.
uncomfortable for students and staff to
complete tasks due to a decrease in Improved travel arrangements for staff and
productivity. students. The university has made attempts to
reduce travel times encouraging a cycle2work
Hindrance for staff and students to commute. scheme, implying that staff and students
reside near the university.
Reputational damage for the university if this
is a repetitive occurrence and difficulty to UOB should schedule its activities based on
attract students for future enrollment. seasonal changes expected not hindering the
functions of the university.
Table 4: Threats and Opportunities :People, BACLIAT-Model

3.1.5 Markets
Implications caused by the environment, could change preferences in consumers shifting the
demand for goods or service.
Threats Opportunities
Demand for Education at UOB could decline Increase future enrollment and attract
due to adverse environmental conditions in students with state-of-the-art facilities which
England. are climate adaptable.

Competitor university’s gaining an advantage Entering new market by enhancing current


due to its climate adaptability. services of UOB by adopting to climate change
such as E-lecturing platforms.
Table 5: Threats and Opportunities :Markets, BACLIAT-Model

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3.1.6 Finance
Every organization needs to be cautious of financial implications that could occur due changes in
the environment. This could be in the form of investments for future, insurance policies
implemented and other costs.
Threats Opportunities
Projected liabilities in future could occur as Investments made factoring climate change
climate change was not been considered in could reduce significant costs in the future
the investments made in the past. and enhance the reputation for the university
for pro-actively engaging in sustainability.
Costs related could be significant for actions in
the past and getting reasonable insurance
covers to minimize such risk could also be
challenging.
Table 6: Threats and Opportunities :Finance, BACLIAT-Model

3.2 Resource Constraints

Significant rise in global demand for natural resources due to the populations increase and
industrialization advancements globally. Businesses will be driven to find alternative materials or
production methodologies as competition to access both renewable and non-renewable
resources will continue to increase. Uncertainty and new risks will prevail and arise with this
intensified resource stresses. (Natural Resources in 2020, 2030, and 2040: Implications for the
United States, 2013)
Further to limitations of finite resources such as energy and water, threats and opportunities
arising from this for UOB are critically evaluated below

3.2.1 Energy
Energy is a vital element for human life, absence could affect the livelihood of people in fulfilling
needs of food and warmth. Sources of energy are to be fossil fuels as oil, coal and natural gas.
(Riddell et al., 2020)
The demand for Energy by 2030 is expected to grow by 50% according to the International Energy
Agency. Additionally, it is uncertain if energy will be available in the future to suffice demands,
despite increase in investments on energy. (Natural Resources in 2020, 2030, and 2040:
Implications for the United States, 2013)
It is pivotal that energy is utilized more efficiently now by identifying threats and opportunities
for UOB so it will reduce negative impacts caused by using energy in the future.

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Threats Opportunities
Potential rise in costs for fuel and energy due Movement towards renewable resources for
to depletion of resources. energy. UOB has 100% electricity is generated
using solar panels.
Regulations and Government control have a
severe impact if UOB doesn’t take necessary Minimizing energy and fuel usage through lift-
steps to adhere to carbon releases allowed campaign and cycle2work schemes.
due to energy usage.
Conversion of fuel-based vehicles to electric
further reducing the depletion of natural
resources. 3/9 vehicles used at UOB are
electric.
Table 7: Threats and Opportunities :Energy

3.2.2 Water
Shortage of water is the declining of available ground water, polluted water flows, reduced basins
of water in rivers and lakes. Shortage also occurs if available water is wasted or not managed
sustainably resulting in increased global issue of water scarcity. Human activity has most often
contributed to this by pumping naturally available groundwater at a rate faster than its ability to
be replenished due to increased consumerism. (Schleifer, 2017)
Water scarcity is a concerning global sustainable issue present and by 2030 expected that there
will be a significant shortage of approximately 40% where demand for freshwater will exceed
supply. (CPA Australia, KPMG Australia & GRI Focal Point Australia,2014) UOB like any other
organization uses water for daily use for operations and creating a healthy and hygienic
university.
Threats Opportunities
Increased costs to the university to procure Minimize consumption of water by innovation
water from alternative sources in the event of and exploring creative alternatives of sourcing
water shortages in the future. water. UOB has taken steps to reduce the
water intake by installing a rainwater
Future expansions to the University need to
harvesting facility to flush toilets.
consider water consumption and availability
which may require relocation of certain
UOB could follow suit to Coventry University,
operations to minimize/avoid interruption
invest and direct students on embarking
caused by water shortages. (Pegram, 2020)
research towards purification, extraction and
management of water. (Coventry
University,2020)
Table 8:Threats and Opportunities :Water

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3.3 Population Growth

Increased life expectancy rates, accelerating migration, shifts in fertility rates, increasing
urbanization are some key reasons to a significant growth in population. (UN org,2020) Further
it is expected that the human population on this planet could increase by 20% between 2011 and
2032 with majority residing in Asia.
One of the wider concerns of sustainability is the population growth leading to issues such as
employment, healthcare ,housing infrastructure and depletion of resources. (CPA Australia,
KPMG Australia & GRI Focal Point Australia,2014)
Growth of population can have threats and opportunities for UOB such as:
Threats Opportunities
Financial investments on infrastructure, UOB has the ability of expanding its student
campus building space and equipment base as population growth can have a positive
limitations can be a challenge for the impact on the future enrollment of students.
university to cope with the increased influx of
students in the future. The increase of population can lead to the
University diversifying and expanding
UOB will find it difficult to maintain the recruitment as more candidates are available.
absolute measures of compliance
requirements by the government and
regulatory with the increase in footprint of the
university.
Table 9: Threats and Opportunities :Population Growth

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4.0 Regional and Global Impact to the UOB

All organizations will be impacted by sustainable issues across the globe irrespective of size,
market, location and type of business they are operating in. These issues will affect the natural
resources, supply chain and logistics, assets, process and all stakeholders of an organization.
(Firth, J, and Colley, M,2006)
It is important to note that UOB should not only look at the threats and opportunities that directly
affect the university in terms of sustainability issues but also how the regional and global issues
can affect the University in the future.

4.1 Regional Impact


Climatic change is expected to the region of UK, with warmer summers, colder winters, risks of
floods and droughts and rising sea levels. (Firth, J, and Colley, M,2006) Additionally, extreme
weather circumstances persistent in the UK has known to be disrupting at least 29% of the
organizations in the region. (Metcalf, et. al, 2010)
For instance, floods in 2015 in UK caused severe road damage disrupting travel and causing
households to lose power. These regional sustainability issues affect the University, especially
the campus in Bedford is exposed to a high risk of flooding as it is situated in a riverside town.
The campus in Luton region has also experienced heavy fall during the past years resulting severe
floods. Such instances have caused disruptions in logistics where students and staff are unable
to travel to the university. Halting necessary operations of utility companies in the regions which
in turn affect the university in terms of water supply etc.

4.2 Global Impact


UOB operates in a global market having international students and education partners in many
countries, hence should not only focus on regional sustainability impacts but should also look at
wider global sustainable outlook.
Organizations in the UK can be impacted and have implications even from the way climate is
expected to change outside the region. Any disruptions to the global supply chain network can
cause a shortage of supply which in turn will spike up the costs. For an instance, extreme
scenarios such as Hurricane Katrina could lead to a rise in global oil prices due to the loss in oil
refining capacity. For UOB this could mean increased costs in energy and utilities. (Firth, J, and
Colley, M,2006)
Global issues such as the Covid-19 pandemic has severe repercussions to the university and the
entire community, enforcing campus closure and a halt to the normal operations of the faculties.
The current Pandemic looming at large, leading to the worst financial crisis in the history will have
several repercussions to the higher education sector where many international and local
students will not be able afford course fees. This will affect future enrollment of the University.
(Mello and West,2020)

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5.0 Recommendations

Having concluded the effects of sustainability on UOB, below are some of the recommendations
the university can work towards in by mitigating the potential threats and seizing the
opportunities for Climate change, Resource constraints and Population Growth.
Enact leadership efforts and total ownership towards sustainability
Supporting actions towards a better world are known to be traits of a sustainable leader.
(Building sustainability leadership capacity with executive education — Cambridge Institute for
Sustainability Leadership, 2020) The ISO 14001:2015 framework specifies that leadership is
involved where the top management of an organization needs to ensure that the environmental
objectives are line with the overall business strategy (ISO 14001 - Environmental Management -
EMS, 2020)
Therefore, it is important that the management of UOB is involved and committed on achieving
the sustainability goals and adapting towards climate change. With the leadership setting the
tone, a total sense of ownership should be inculcated across the entire University where all
students and staff’s carbon footprint are measured and individual targets are given to motivate
and kept engaged to drive this strategy forward.
By creating such a culture, the university could drive values and beliefs to transform towards a
better sustainable world.
Collaboration and Partnerships
Collaboration refers where two or more parties are jointly working together towards a common
goal whilst encouraging each other and sharing of benefits. (Blowfield,2013)
UOB currently works with education partners across the globe. This is an opportunity where the
University can take advantage of to meet the sustainability challenge of population growth.
Furthermore, the impact on footprint is far less as it localizes the university setting to
international students. More focused investments on collaborative efforts such as these could
help the University expand its markets to mitigate sustainable threats in the future and have a
lesser environmental impact.
Building a resilient campus
Building in climatic change to the organizations risk management will reduce the exposure to
future adverse climatic changes. An organization can gain competitive advantage over its rivals
by being more climate resilient and offering adaptive solution as a company. This requires
constant focus where a team periodically evaluates the risks also engages with external experts
by preparing for the future. (Future proof: Preparing your business for a changing climate 3, 2009)
By planning in advance, UOB can effectively invest on adapting to climatic change for the future
such as the investment on how to achieve BREEAM level of outstanding for all infrastructure in
the premises.

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Efficiency & conservation of resources
It is important that the University takes more prominent steps in reducing the of natural
resources such as water, energy by increasing awareness to all members of staff and students.
In terms of addressing water scarcity, currently there is additional room for more uses of the
rainwater collected at the university apart from flushing the toilets. This could be also used for
bathing, laundry , rinsing and washing with an improved filtration in place. (Che-Ani, A. & N,
Shaari & Sairi, A.,2009)
Investment in research and green technology
UOB should increase its focus on tackling sustainable issues and engage in research activities on
green technologies. Other Universities have taken lead in research in this area. For an instance
Northumbria University have introduced the world’s first research hub for Biotechnology in the
Built Environment (HBBE) focusing on transforming sustainable design and construction.
(Northumbria University,2020)
Adopting new technology such as 3D printing at the University can lead to green initiatives of
using waste as a resource where plastic can be recycled and used within the campus which is
currently carried out by the University of Suffolk. (University of Suffolk,2020)
UOB could seize the opportunity of making strides towards implantation of Biogas for heating in
the campus which could eliminate the effects towards climate change and resource constraints.
(University of Bedfordshire,2020)

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6.0 Conclusion

In recent times sustainability concerns such as climate change, resource constraints and
population growth has paved the way for devastating adverse results to organizations and
communities across the globe.
However, with this there are many opportunities and threats for organizations where it requires
management to re-think its strategies for the future in order to capitalize and adapt towards
facing sustainability issues in the future successfully.
It is also important for organizations such as UOB to be aware of the regional and global
sustainable issues that are present and could arise in the future. As this could have an impact to
the university.
It is important that UOB takes necessary steps to address the threats in advance to mitigate risks
for the future likewise, it is important for the University to seize the opportunities available to
have a favorable impact and be ahead of other competing universities.
Furthermore, the University needs to engage the students, staff and the community to drive this
change in achieving a sustainable future.

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