Introduction
This study looks to address the issue of carbon emissions that are broadly polluting the environment. It has been observed that the USA has been affected by the Carbon emission issue which is the emission of the CO2 from the burning of fossil fuels and the cement manufacturer. This carbon emission leads to global warming and causes climate change that adversely impacts human life. It is the emission of carbon dioxide gas into the atmosphere when natural gas, coal and oil are burned. Along with this, this study has efficiently conducted the PESTLE analysis of the country to observe the affecting factors of the external variables. Moreover, it also elaborates on the relevance of the issue with the United Nations Sustainable Development Goals as well as discusses the MNE’s responsibility in this particular issue.
Discussion
Background of the issue
This study addresses the issue of carbon emissions that have broadly affected the country USA by increasing environmental pollution. From the previous report, it has been analyzed that in USA the the emission of greenhouse gases increased to 5% in the year 2021, compared to the year 2020 (epa.gov., 2023). In the year 2021, the increment in greenhouse gas emissions has been driven largely by the increment of CO2 emissions from the burning fossil fuel.
Along with this, in the year 2021, the CO2 emission has also increased by 7%, which has significantly affected the living organisms and the environment. Moreover, the CO2 emissions from coal consumption have increased by 15% from the year 2020 (epa.gov., 2023). There are various companies in the USA involved in increasing the carbon emissions issue for their regular activities such as American Electric Power, Southern Company, Coca-Cola, Energy Capital Partners, Duke Energy and others (Kreibich and Hermwille, 2021). These companies produce such waste products that emit CO and CO2 into the atmosphere detrimentally impacting the environment.
PESTLE Analysis
Political
It has been explored that the country USA enjoys a strong political climate. In recent times, some challenges can be observed in this political climate. The USA positions itself as a great destination for foreign direct investment because of its advanced infrastructure and stable political environment (Wang et al. 2021).
Economical
The changing global economic landscape is a major challenge for the companies of the USA. It is estimated that in the year 2050, the country may possess the third position in the global ranking in terms of gross domestic product purchasing (Debnath et al. 2021).
Social
The cultural diversity of the USA for its ethnicity and racial backgrounds positively impacts the industries and companies. Police violence and crime have been a grave concern in the country that can adversely impact the business process.
Technological
Many companies in the USA have a fascination for technology. For instance, Google, Apple, Microsoft, and Facebook have greatly addressed the technological demands of Americans. It has been noticed that the USA has always been at the forefront of the utilization of new technologies in its business (Casañ et al. 2021). With the help of this advanced technology, the company has reduced their production cost.
Legal
The last element of the PESTLE analysis includes the legal environment. The industry and companies of the USA come under the regulatory environment in their operating state. The USA has been found to uphold equal treatment for foreigners and nationals. The industries and companies of the USA provide a strong legal system to protect their Intellectual Property Rights.
Environmental
The USA faces several challenges for the toughest weather conditions in the world. It has been explored that the USA has a diverse climate, geography and wildlife. It is one of the charming towns that attracts the attention of millions of tourists and helps to increase the profitability of the industries and companies (Debnath et al. 2021). On the other hand, natural disasters, and financial damages detrimentally affect the companies of the country.
Relevance to United Nations Sustainable Development Goals (SDGs)
The United Nations has set some major standards and goals for sustainable development for society which need to be adhered to by businesses properly to enhance their business sustainability (Alamoush et al., 2021). Among the 17 Sustainable Development Goals, few goals directly relate to the chosen issue of this study. The study has assessed the growing environmental pollution issue in the US which is led by enriching carbon emissions. The 11th goal of the United Nations Sustainable Development Goal speaks about sustainable cities and communities. It resembles and refers to a greener and more eco-friendly society (Pizzi et al., 2020). Thus, the chosen issues have been found to adversely affect this goal as growing environmental pollution from carbon emission is deteriorating sustainable society and communal standards (Ajibade et al., 2021). Besides this, the 13th goal of the Sustainable Development Goal speaks about climate action (Alamoush et al., 2021). Besides this, it is also enriching possibilities of massive natural disasters such as tsunamis, heavy floods earthquakes etc. (Kumar, 2021). Besides this, the enriching environmental pollution of the US has also been explored to be threatening 14th and 15th goals of the United Nations Sustainable Development Goal which refers to Life below water and Life on Land respectively (Pizzi et al., 2020).
The growing percentage of carbon in the air can enrich global warming in the US resulting in enriching humidity and eventually can bring heavy floods or Tsunamis etc. (Kumar, 2021). Besides this, diseases such as Allergies, rashes, breathing disorders, Nasal disorders and Asthma will increase in the US due to growing environmental pollution.
Figure 1: United Nations Sustainable Development Goals (SDGs)
(Source: nationalgeographic.org, 2024)
MNE’s responsibility in this issue
Multinational Enterprises possess some social responsibilities that must be performed efficiently to enrich business sustainability (Albitar et al., 2023). The big-shot MNEs of the US such as Coca-Cola, Apple, Amazon, and Google must adhere to some protocols and standards to help lower environmental pollution in the US. The usage of plastic in packaging products must be reduced by MNEs such as Apple, and Coca-Cola (Kumar et al., 2021). Besides this, Google must look for clean energy resources, electrification and reduced carbon facilities to lower their carbon footprints in the markets. Besides this, MNEs like Amazon can look to make investments in renewable energy and scaling solutions (Erdogan et al., 2023).
Actions taken, further solutions and its adjacent challenges
According to Sustainability. Google (2024), the goal of Google is to reduce carbon emissions to zero. For this reason, the company invested in nature-based and technology-based carbon removal solutions to neutralize carbon emissions. The company is focusing on three ways to decrease emissions on the value chain, using carbon removal, advancing carbon-free energy and other methods to manage our residual emissions.
According to Sustainability.aboutamazon.com.(2024), Amazon is focusing on reducing carbon emissions and they have invested in scaling solutions, renewable energy, and collaborating with others. By using different types of strategies Amazon can help in reducing the carbon emission.
The study of Tesla.com. (2020), stated that Tesla uses some strategies for achieving net zero carbon. The company is focusing on reducing fossil energy demand. Fossil energy is also responsible for carbon emissions that can be harmful to the environment.
Coca-cola.com. (2024), opined that as the distribution trucks fleet is responsible for approximately four per cent of the value chain emissions, Coca-Cola wants to lower its emissions of greenhouse gases.
As per An et al (2023), the MNEs have to focus on the Sustainability workshop and training thats helps the employees to educate about environmental issues and the process of reducing carbon footprint. On the other hand, according to Villanthenkodath and Mahalik, (2022), the MNEs can focus on eco-friendly initiatives such as donation programs in sustainable projects, encouraging employees and so others.
According to Sun et al. (2020), the MNEs have to use tactics aimed at decarbonizing the supply chains. MNEs are also contributing to low-carbon technologies and making “green” investments, which are making them more and more important in the fight against climate change. On the other hand, Ahmed Ali et al. (2020) opined that MNEs have to create climate change mitigation plans that can help to reduce carbon emissions.
Costing issue: For those with limited means, it might be quite difficult to invest in carbon removal technology and pay for internal research and development aimed at lowering carbon emissions (Bayer and Aklin, 2020).
Government policy, regulations and incentives: There are various government regulations present across the whole world that are affecting the initiatives for reducing carbon emissions (Rhodes et al, 2021).
Conclusion
The essay has widely focused on exploring one of the major social issues of the US, which is environmental pollution. The rising environmental pollution in the US is highly impacted by the growing carbon emissions of businesses. The study has focused on highlighting how the United Nations SDGs have been threatened by this chosen issue. As part of this healthcare assignment, the responsibilities of the US’s MNEs in resolving this issue have been explored, along with the role of each company that can help in lowering carbon emissions, leading to lower environmental pollution.
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References
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