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ACCA Applied Knowledge · Business and Technology · Environmental and sustainability factors

A mining company extracts a non-renewable mineral and argues it is sustainable because it plants trees each year and reports strong profits. Which criticism best shows why this claim is weak under the principles of sustainable development?

The claim is weak because extracting a finite resource reduces what future generations can use, conflicting with the principle of not compromising their needs. Tree planting and profits may help, but they do not replace the depleted resource, so sustainability is not demonstrated.

  1. ADepleting a finite resource may compromise future generations' ability to meet their needs, so offsetting actions may not be enoughCorrect
  2. BPlanting trees is prohibited under environmental regulation
  3. CStrong profits automatically prove that the business is unsustainable
  4. DSustainability applies only to renewable energy companies

Explanation

Sustainable development concerns intergenerational equity; consuming a finite stock reduces what remains for future generations, so tree planting and profit do not on their own demonstrate sustainability. Profit does not prove unsustainability, and sustainability applies to all sectors.

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