Environmental Responsibility

16

THe number of FTSE100 companies that have set targets aligned with a 1.5c temperature rise.

76%

of millennials consider a company’s social and environmental commitments before deciding where to work.

The GBC requires businesses to commit to an environmental policy to demonstrate they are committed to reducing their environmental impact and continually improving their environmental performance.

About

About Mobius Capital

Mobius Capital is creating a group of independent employee owned businesses that work collaboratively to build better businesses. By helping owners transition the business to an employee owned trust, part of our commitment to the group is to help each company to build and maintain a carbon neutral supply chain.

Environmental Responsibility

Each company will have an impact to their local, national and international environment. It is the belief of Mobius Capital that when companies take responsibility for their own actions everyone is able to benefit from a cleaner environment.

When business decisions are made based on what is best for the shareholders, bad decisions can be made for the greater good.  For example, when a business produces pollutants as part of their production, as regulations change, enforcing cleaner practices, the company may be forced to look at options to upgrade their manufacturing processes, alternatively they could simply move their production to a country that has less regulations.

The impact of a decision to offshore the production to another country is that the pollutants will still be maintained, either into the air that we breath or into the waters that we all drink from.  Keeping the production in the original country may also not be a viable option and the costs of upgrades may be high.

Looking at this as a purely cost basis, moving the production to a less regulated terrirory will be the cheapest option in most cases, the company copuld reduce costs by both selling the current production machinery, but also by reducing staff costs.  Where as upgrading machines can be extreamly costly without any increase in profit or reduction in costs. 

When looking at this from a societal point of view the loss of jobs can impact the local ecomony, and the environmental costs would be maintained, therefore moving production has a negative overall affect. where as investment to help secure jobs locally has a massive long term benefit.

Green Washing

Many businesses will promote their green virtues, promoting the idea that they are safe custodians of the environment, when they are in fact part of the problem.

Not all green washing is intentional however when it happens it gives a false impression to consumers, as they become more aware of the impact of climate change on peoples lives it will become more important for them to find companies who will be honest with their impact on the environment.

An example of green washing with businesses, is when they promote their green credentials of their product range whilst ignoring their main products which cause the most polution, for example energy companies who are still pumping oil and gas causing a massive impact on the climate whilst paying for advertising about their work creating solar or wind farms that account for only a small part of their revenues.

 

Passing the responsibility to consumers

One of the main issues with the environmental responsibilities is that companies have been gaslighting consumers into making it their responsibility.  

When considering the retail industry, it is now common place to have food and goods covered in plastics, the reasoning for this is that the consumer demands the benefit of plastic wrapped food, they are able to simply select food that looks nice, clean and sterile. 

But at the same time the consumer is not allowed to take their goods home with a plastic carrier bag unless they pay more for it. 

The relaity is that the plastic packaging helps the food to arrive through its supply chain to the supermarket shelf is good condition, reducing the wastage that supermarkets had in the past with consumers selecting foods that “looked better” on the shelf.  

These savings will impact the cost of food to consumers, with it likely to increase the cost of the food by removing the packagaing but the impact to the environment could be reduced. 

At mobius we will look at the use of packaging matterial within each business and investigate methods to reduce waste at the point of the consumer. This may mean increasing waste, in which case this should also be mitigated and also reduced or reused.

Reducing Supply Chain Wastage

Removing wastage from the supply chain has to be a goal of all businesses within the group, this means finding new ways to ship products, between suppliers, looking at efficencies of production, increasing production quality and removing wastage, but also finding new products and usage for the wastage, can the packaging matterials be reused elsewhere within the group, can the waste materials be used for another purpose reducing waste.

To reduce this waste, first it needs to be monitored and tracked so that we are able to find new ways to reduce this overall as a group.

Reducing Supply Chain Carbon Footprint

Reducing the carbon footprint of an individual business can be achieved by outsourcing the polluting part of the business to another company, this has been seen to be achieved by many businesses who have outsourced operations abroad. 

However when businesses take responsibility of the carbon footprint of their supply chain decision making has to change. For example a buisness that takes the responsibility for their entire supply chain impact has to make better decisions on where to source materials, and suppliers.

If the cost of changing a supplier is less than dealing with the impact to the environment, the decision can be made on a purely cost benefit basis. 

We will also help each business to create a carbon neutral supply chain within 10 years of us becoming involved in the business.   This goal makes it a realistic change rather than expecing all buisnesses to convert too quickly and affecting the business viability.

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We are based in Sheffield but cover the whole of Great Britian

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07932 437454
Info@Mobius-Capital.com

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