Sustainable Industry Hotspots Analysis
The automotive industry is the selected industry to focus on analyzing sustainable industrial hotspots. The first significant sustainability issue in the automotive sector is carbon emissions. The automotive industry is responsible for around 17% of global greenhouse gas emissions, contributing substantially to climate change (Statista Research Department, 2022). According to Wise (2021), the greatest CO2 is produced per vehicle by recently registered luxury brands. Climate change is arguably the most significant effect carbon emissions have on the environment. The atmosphere naturally changes as the world’s average temperature rises by getting warmer. Extreme weather conditions, including tropical storms, periods of drought, heat waves, and wildfires, are brought on by global warming.
The second significant sustainability issue in the automotive industry is the massive vehicle waste build-up. Industrial waste may become contaminated if hazardous waste is not adequately treated and disposed of and leak into the environment (Veolia, 2022). The automotive industry produces an equivalent amount of garbage as it does water and energy usage. About 34.5 million automobiles utilize 700,000 tons of lubricating oil annually in the United Kingdom (“Automotive Waste Disposal,” 2022). Poor waste management significantly influences numerous species and ecosystems and contributes to atmospheric pollution and global warming. Waste containers release toxins into the earth as they deteriorate over time (Webber, 2020). These substances leak underground, polluting nearby water supplies before finally reaching the ocean, where they ruin marine ecosystems.
The third significant sustainability issue in the automotive industry is the exploitation of workers. The manufacture of electric cars has increased, which is essential for the shift to a low-carbon economy. Raid (2021) asserted that cobalt utilization will skyrocket over the next 30 years due to the COP26 climate agreement to achieve net-zero world emissions by 2050. According to Human Trafficking Search (2022), two-thirds of the 30 auto companies reviewed in December 2020 did not submit sufficient information for conducting human rights due diligence. Numerous employees are subjected to unjust treatment daily by their employers, who expertly recruit them for their positions. Surprisingly, those employees are turning into victims of society when their low incomes result in customers paying less for goods.
The fourth significant sustainability issue in the automotive industry is unsafe work practices. While the car sector continues to play an essential role in driving India’s GDP and work opportunities, others claim that large businesses’ hesitation has led to terrible employee injuries, particularly to their hands and fingers (Bhatnagar, 2020). The most frequent risks connected with the manufacture and maintenance of cars include heat stress, exposure to toxic chemicals, fumes, and metal dust (“Car manufacturing & service safety,” 2020). Bhatnagar (2020) reported that in the 2019–2020 fiscal year, 1,873 employees in Indian car industries suffered injuries. When individuals are exposed to toxic chemicals can result in kidney and liver problems. Lead dust inhalation may result in permanent neurological impairment.
The fifth significant sustainability issue is tax evasion. Djankov (2021) argued that manipulating pricing is one method multinational firms use to evade taxes. Increased production costs due to price hikes by a supply-chain participant lower the profit subject to taxation in the jurisdiction of the following facility. All economies experience the phenomena of tax evasion and tax avoidance. Tax evasion drastically reduces government revenue, which impacts the amount of public spending. Tax evasion might have an impact on this process in an economy where the development of human capital is dependent on public expenditure.
The sixth significant sustainability issue is the depletion of natural resources. The extent of natural resource exploitation has not yet been thoroughly examined, despite the life cycle impact narrative giving much attention to the possible effects of resource use. According to a study by SOMEONE, the resources needed to make newer models of vehicles are more than twice as much as those required to produce gasoline-powered vehicles. Before the worst effects of global warming, the depletion of scarce resources like oil, energy, potable water, or mineral deposits is expected to impact the global GDP. Together, the two are anticipated to substantially impede global food production, especially in nations with high population concentrations or little arable land.
The seventh significant sustainability issue is unfair trade practices. According to SOMEONE, Ford was sued for allegedly violating the Competition Act, and the plaintiff sought $1.5 billion in damages. Unfair trade practices imposed by the more powerful party in a contract can significantly impact how the market functions, raising costs and decreasing profits for the parties affected. False statements, fraudulent branding or reflection of a good or service, connected marketing, phony free-gift or prize offers, misleading billing, and failure to comply with manufacturing standards are examples of unfair commercial practices.
Lately, the significant sustainability issue is excessive land clearing. According to a report by SOMEONE, the port in Diakhabia took the land from more than a dozen homes. Having arrived more than four years late and lacking agricultural land, many families have fallen farther into poverty. The ability to support a diversity of land uses and prevent overusing natural resources is improved by projects that work with communities rather than displacing them. Communities are also aware of the value of their property, and many are coming up with inventive solutions to safeguard it.
Sustainable Marketing Strategies Analysis
Technology, innovation, and sustainability are the three main focuses of the contemporary world. People’s increasing concern for the environment influences their conduct and purchasing patterns. One company using these methods is Tesla, which emphasizes its environmentally friendly image and uses a variety of channels to try to change people’s behavior. Tesla has realized the environmental effect of zero-emission transportation and energy goods through its products and sales, owing to its pioneering position in the sustainable automobile market (Tesla, 2022). Ford Motor Company is another participant in the same industry, consistently using sustainable marketing techniques. Focusing on creating environmentally friendly modern vehicles is part of Ford’s global, broad sustainability strategy (Ford, 2022). Nissan is the final participant we shall examine in this essay. Nissan is dedicated to building a sustainable future in all aspects of its business. Furthermore, they take a holistic approach to their activities, not just their environmental policies (Nissan, 2022).
A marketing mix is a tool that businesses may use to understand the components that need to be combined to achieve their goals and objectives in marketing. The four Ps of marketing—product, pricing, location, and promotion—are ultimately included in this. The sustainable marketing mix methods strongly emphasize the need to balance meeting demands with making a profit while producing, delivering, and sharing value with customers, partners, and society. Hence, while retaining economic efficiency, operations should be focused on achieving social, ethical, and environmental ideals.
The product mix and strategy in the sustainable marketing strategies of Ford, Nissan, and Tesla may be stated as follows: Ford uses sustainable fabric to produce its products. The 2008 Ford Escape was the first automobile in the United States to use entirely recycled material for seating surfaces (Ford, 2022). On the other hand, Tesla has a closed-loop battery recycling process that offers an attractive alternative to the take, manufacture, and burn method of producing energy in favor of a more circular approach that recycles used batteries for endless reuse (Tesla, 2022). Nissan has also positioned zero-emission vehicles at the forefront of its product strategy (Nissan, 2022).
Pricing that covers a business’s social and environmental expenses for each sale is a critical component of a sustainable pricing strategy. Tesla is dedicated to making a positive difference in and enhancing the local communities through its sustainable development initiatives. To boost representation and ensure job possibilities are promoted locally, these initiatives also involve building community connections, promoting environmental equality, and bringing together underrepresented populations. Workforce development and education programs that give access to the community are also included (Tesla, 2022). Nissan makes an effort to use its technologies to benefit the local community to achieve carbon neutrality and offer mobility services with a sustainable future. While responding to the growing complexity of environmental challenges, Nissan has worked with NGOs, NPOs, governments, and various other stakeholders to strengthen these efforts. Nissan has also leveraged its manufacturing skills to give in-kind support to medical facilities (Nissan, 2022). On the other hand, Ford donated $74.4 million to charity, $ 700,000 to support humanitarian causes, and 2.5 million pounds of food through its Detroit community resource centers (Ford, 2022).
Bibliography
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Bhatnagar, G. V. (2020, September 25). Despite injuries to thousands of workers, the auto sector’s safety standards remain poor. The Wire. https://thewire.in/rights/despite-injuries-to-thousands-of-workers-the-auto-sectors-safety-standards-remain-poor
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Human Trafficking Search. (2022, March 22). How child labour could be fuelling your electric car. https://humantraffickingsearch.org/how-child-labour-could-be-fuelling-your-electric-car/
Raid. (2021, November 7). Exploitation of workers in DR Congo taints electric vehicles. https://www.raid-uk.org/blog/cobalt-workers-exploitation
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