Environmental and sustainability factors: formula sheet

Key formulas

Brundtland definition of sustainable development

Development that meets the needs of the present without compromising the ability of future generations to meet their own needs

Learn this wording closely. Exams often ask you to identify or apply it.

Three strands of sustainability

Economic + Environmental + Social

Also called people, planet, profit. Use these as headings to structure answers.

Two key ideas inside Brundtland

Needs (especially of the world's poor) + Limits on the environment's capacity

Shows that sustainable development is about balance, not stopping growth.

Triple bottom line

TBL = People (social) + Planet (environmental) + Profit (economic)

A framework, not a calculation. The three are reported separately and are not added into one number.

Percentage change in a measure

% change = (new value − old value) ÷ old value × 100

Useful for comparing year-on-year performance on any indicator, such as emissions or staff turnover.

Intensity ratio

Intensity = total impact ÷ unit of activity

For example, emissions per $1 million of revenue or waste per unit produced. It allows fair comparison as the business grows.

EMS cycle

Policy → Plan → Implement → Check → Review and improve

A continuous cycle, not a one-off project. Use it to structure any EMS answer.

Carbon footprint

Carbon footprint = Σ (activity quantity × emission factor) in tonnes CO₂e

Add up emissions from all activities. You will rarely calculate it in BT, but you must know what it means.

Three scopes of emissions

Scope 1 = direct; Scope 2 = purchased energy; Scope 3 = other indirect (value chain)

Scope 3 is usually the largest and hardest to measure.

Reporting versus integrated reporting

Sustainability report = impact on environment and society; Integrated report = value creation across six capitals

Use this line to separate the two terms.

Quick revision

• Sustainable development means meeting present needs without compromising the ability of future generations to meet theirs.
• The triple bottom line covers people, planet and profit.
• People means social impact on employees, customers and communities.
• Planet means environmental impact, such as emissions, waste and resource use.
• Profit in the triple bottom line means economic value, not only accounting profit.
• Environmental factors can create both risks and opportunities for a business.
• Stakeholders such as customers, investors, governments and employees can pressure organisations to act sustainably.
• Sustainability reporting discloses social and environmental performance as well as financial results.
• Environmental management means setting policies and systems to measure and reduce environmental harm.
• In multiple response questions, select exactly the number of answers the question asks for.
• Read the scenario for clues: who is applying pressure and which of the three Ps is affected.

Common mistakes

• Treating sustainability as only about the environment. Fix: Remember the three strands: economic, environmental and social. Mention people and finances as well as planet.
• Saying sustainable development means no economic growth. Fix: Brundtland supports development, but in a way that does not harm future generations.
• Treating TBL as three numbers you add up to one score. Fix: State that the three areas are measured and reported separately, in different units.
• Saying 'profit' means only accounting profit. Fix: Describe it as economic performance, which can include value created for the wider economy as well as the organisation's own profit.
• Classifying a new environmental law as an environmental factor only. Fix: Look at the source of the pressure. A law or regulation is a legal factor, even when its subject is the environment. Mention the link, but classify by source.
• Treating environmental factors only as threats. Fix: Always consider opportunities too, such as new green products, energy savings and an improved brand.
• Treating sustainability reporting and integrated reporting as the same thing. Fix: Remember: sustainability reporting covers impacts; integrated reporting explains value creation across the six capitals in one report.
• Saying carbon footprint means only carbon dioxide from the company's own chimney. Fix: Include purchased energy and value chain emissions, and remember it covers greenhouse gases measured as CO₂ equivalent.
• Treating sustainability as only an environmental issue. Fix: Remember it covers environmental, social and economic aspects. Include workers, communities and ethical sourcing.
• Saying sustainability always reduces profit. Fix: State both sides. Costs often come first; savings, brand value and lower risk often come later.

Exam tips

• Learn the Brundtland definition word for word. It is an easy mark in objective tests.
• In scenario questions, label effects as economic, environmental or social to find the right option quickly.
• Watch for options that say sustainability means stopping growth or only following the law. These are usually distractors.
• For multiple response questions, select exactly the number stated and pick options that show long-term thinking.
• Link sustainability to the organisation's own interests, such as risk, cost, reputation and stakeholder pressure, not only to ethics.
• Expect short scenario questions asking you to match an action or measure to people, planet or profit. Learn the keyword links.
• Know at least two sample measures for each area, for example staff turnover, tonnes of waste, and return on capital.
• Read the question for how many answers to select in multiple response questions. Selecting the wrong number loses the mark.