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Sainsbury's Environmental Policies - Case Study Example

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Sainsbury's Environmental Policies

Stern estimates that 1% of UK gross domestic product must be spent on tackling climate change, leading to a 25% cut in greenhouse gas emissions by 2050. If measures are not taken before then and temperatures increase by 5C, Stern warns, rising sea levels could put London underwater.
The UK will implement a climate change bill, proposing a 60% cut in greenhouse gas emissions by 2050 which was highlighted by the Queen's Speech during the state opening of parliament in November 2007. If global greenhouse gas emissions have not decreased by the end of 2015, then our chances of restraining climate change to within the two degrees " safety line diminish daily. The scientific data demands: the peaking of emissions within eight years, worldwide cuts of 60 per cent by 2030, and 80 per cent or more by 2050. Above two degrees, the possibility of crossing "tipping points" in the earth's system will result in the collapse of the Amazon rainforest and the release of methane from the Siberian permafrost is higher.
The prospects for carbon recycling are huge primarily through new generation clean WTE, biomass cultivation (which covers the plantation of many trees and grasses depending on local soil and weather conditions) or by directly coursing flue gases through algae cultures to generate fast growing algae by the ton (with oil, ethanol and protein for animal feed squeezed out). The result is that the carbon efficiency of the economy will continue to increase.
If regulators and conservation activists convince people that they need the environmentally friendly economy, it will be a big feast for everybody from bio-tech companies to car industry for years to come. The demand for products as diverse as high efficiency ball-bearings, 'smart meters', low energy computer monitors, financial services and household goods is driven by climate change.
Background and Customer Base
Sainsbury Chief Executive Justin King stated that the market growth of Sainsbury has enabled the company to overtake Asda. The strong performance of this retailer can result in the fulltime staff getting a bonus of around 500 pounds sterling each as a reward and King could double his salary with a 700,000 pounds sterling bonus.
Sainsbury still faces a cut-throat competition which means price deflation has risen so the company has to achieve higher volumes to stand still. The retail climate is much tougher than expected so it could still struggle to achieve its target of total sales growth of 2.5 billion pounds sterling. Profit margins remain weak. Earnings are forecast to rise from [pounds sterling] 240m to [pounds sterling] 260m in the year just ended, rising to [pounds sterling] 340m after that.

Customer base and product/service
Sainsbury's was founded John James and Mary Ann Sainsbury in 1869. They opened their first small dairy shop at 173 Drury Lane, London. Drury Lane was one of London's poorest areas and the Sainsburys' shop quickly became popular for offering high-quality products at low prices. By 1882, Sainsbury had four shops and planned to expand his business. He opened a depot in Kentish Town, north-west London, to supply this growing chain and, on the same site, built bacon kilns that ...Show more

Summary

Climate change is a complex issue that requires a multi-disciplinary and cross-sectoral response. The UK retailing industry needs to come up with a coordinated response to the climate change. Sainsbury is responsible for taking the led on this issue as it is the current market leader of this industry…
Author : ckreiger
Sainsburys Environmental Policies essay example
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