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ACCA Applied Knowledge · Business and Technology · Sustainable business practices

Zenta Co manufactures furniture. It has started buying timber only from certified, replanted forests, even though this raises its costs, so that supplies will still be available in the long term. Which aspect of sustainability is this decision primarily addressing?

Zenta is conserving resources so that future supply is not depleted. Buying from replanted, certified forests keeps timber available for future generations and for its own long-term operations, accepting higher costs now. This is the core intergenerational idea of sustainable development.

  1. AConserving resources so that future supply is not depletedCorrect
  2. BReducing the company's tax liability
  3. CIncreasing short-term market share through price cuts

Explanation

Using replanted timber protects the renewable resource base for future use, which reflects the intergenerational aim of sustainability. It raises costs, so it is not about short-term price competition, and it has no link to tax.

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