Skip to content

CS Professional · Environmental, Social and Governance (ESG) - Principles and Practice · Environment

Ananya Chemicals Ltd's board is told that its operations deplete a non-renewable resource and also release a waste that nature cannot absorb at the same rate. Which board response most directly reflects sustainable development as commonly defined, meeting present needs without compromising the ability of future generations to meet theirs?

The board should adopt resource-efficiency and substitution plans that reduce depletion and waste while operations continue. This balances present needs with those of future generations, whereas maximising extraction, concealing waste or abruptly shutting down each fails one side of that balance.

  1. AAdopt resource-efficiency and substitution plans that reduce depletion and waste while continuing operationsCorrect
  2. BMaximise extraction this year to raise profit and distribute it fully as dividend
  3. CShift the waste to an unmonitored site to avoid reporting it
  4. DStop all operations permanently regardless of employee and community needs

Explanation

Sustainable development balances economic activity with limits on resource use and waste so future generations are not harmed. Efficiency and substitution do that. Maximising extraction ignores future needs, hiding waste is unethical, and permanent shutdown ignores present needs.

Did you get it right without looking?

One question tells you little. A timed set on Environment shows your real accuracy, how long you take and where you lose marks.

Practise EnvironmentFree diagnostic mock

More Environment questions