SFM 205 Midterm Flash Cards

What’s a main issue when it comes to the environment

• Pinpointing where, and how these environmental problems started

What are the 3 lens framework

• Industry, Impact, Tools

What’s the purpose of the 3 lens framework

• Lets consultants break any sector into smaller pieces &

• Trace indirect, and direct effects across supply chains to match right policy standards or management to solve the problem

Define Industry under the 3 lens framework

• The Sector

• Ex. Oil, Mining, Automotive

Define Impact under the 3 lens framework

• Environmental & Social risk the industry faces

• Ex. Toxicity, Water use, GHG

Define tools under the 3 lens framework

• Policies, standards tech framework, management systems that guide decisions

• Can be transferrable between sectors (same software, CSR checklist)

What does Canada use to classify industries

• A 6 digit NAICS style code

• First 2 digits is the sector, the last 4 is the major branch in sector

What does NAICS stand for

• North American Industry Classification System

Define Primary Industries

• Extracts raw materials directly from nature (Oil, Forestry)

• Carry the biggest environmental footprint (Land distribution, Deforestation)

Define Secondary Industries

• Transfers raw materials into products (Food processing, automotive manufacturing)

• Amplify the environmental impacts & add energy intensive processing

Define Tertiary Industries

• Provides services (healthcare, education, finance)

• Have an indirect footprint that’s driven by their supply chain

Define Direct Impact

• On site emissions or waste

Define Indirect Impact

• Amplified effects that’s caused by purchasing goods & services

Why is supply chain mapping important

• Will help identify where mitigating efforts will give us the biggest gains

Define Activity

• A business operation (Turning on the AC)

Define Impact

• The environmental result due to the action

Why is it important to distinguish between Action & Impact

• Avoids double counting

• Clarifies responsibility boundaries

• Ensures that mitigation targets the cause & not the symptoms

What is the global impact agenda

• What experts rank as urgent

What are the 8 pillars in the global impact agenda

1. Climate Change

2. Biodiversity Loss

3. Water Scarcity

4. Deforestation

5. Poverty

6. Water Pollution

7. Plastic Waste

8. Air Pollution

What are the 2 of the 8 pillars that are weighed the most, and why?

1. Climate Change

2. Biodiversity Loss

• Investor expectations & Regulatory pressure

What do companies do with these 8 pillars from the global impact agenda

• Align strategy with these 8 pillars

Define 1970-80 Model

• Government writes regulations (command) & enforces them by policies inspectors, etc (control)

Define Modern Model

• Companies voluntary adopt CSR tools (ISO Standards, Sustainable Reporting) to manage risk, access financing, protect reputation, improve insurance terms

Define ISO 14001

• International standards for environmental management systems agreed upon development

Define management Systems

• Organized set of interacted elements (policies, processes) that guide decision making

What are 4 common Management Systems

1. EMS (Environmental Management Systems)

2. QMS (Quality Management Systems)

3. OHSMS (Occupational Health & Safety Management Systems)

4. EnMS (Energy Management Systems)

What does EMS (Environmental Management Systems) focus on

• Reducing an organization environmental impact

What does QMS (Quality Management Systems) focus on

• Products & Services meet customer regulatory requirements

What does OHSMS (Occupational Health & Safety Management Systems) focus on

• Guidelines protecting workers health & safety by managing hazards

What does EnMS (Energy Management Systems) focus on

• Monitor, improve, optimize, energy use reducing costs & GHG emissions

What the 4 common structure of the above Management systems

• Policy → Planning → Improvement → Monitoring → Continue Improving

Define IIT Framework

• A 3 leg analytical model that links an industry & activities to their impact & tools to help address those problems

What’s the origin of IIT Framework

• Developed for consulting

What are Limitations of the IIT Framework

• Ignores power dynamics, regulatory policies & temporal changes (any shifts that happen overtime)

Applying IIT framework to the Mining sector including Issues and tools

• Issues:SO2 emissions, tailing (waste material being left over), Indigenous land rights

• Tools: ISO 14000, emission pricing, traceability database

Applying IIT framework to Finance sectors

• kit direct impact, but massive leverage can influence capital with ESG, IFRS sustainable reporting, sustainability linked bonds

Applying IIT framework to Fashion including issues & tools

• Issues:Agricultural emissions, Labour rights

• Tools": Supplier audits, Worker training programs, Supply chain transparency

How do you use the IIT Framework

• Pick a focus

• A specific issue (Water Scarcity)

• An Industry (Aviation) or a tool

What are Primary Industries mentioning Core Activity, Example, Reason

• Core Activity: Resource extraction

• Example: Quebec Mining & Alberta Oil

• Reason: Direct land disturbance, High emissions

What are Secondary Industries mentioning Core Activity, Example, Reason

• Core Activity: Material transformation

• Example: Ontario Automotive plants

• Reason: Energy intensive processes

What are Tertiary Industries mentioning Core Activity, Example, Reason

• Core Activity: Service Delivery

• Example: Toronto Municipal Utilities (Water)

• Reason: Indirect emissions waste generation

Tools vs Concepts

• Tools: are actionable

• Concepts: are non actionable

• Rule of the thumbs: if you can use it daily then its a tool

Example of Tools and what they are

• Emissions Policy: Directly influences day-to-day financial decisions

• ISO 14000 EMS: Auditable Management system you can certify

• Life Cycle Assessment (LCA): Generates quantitative footprints for products

• Traceability Platforms: Enables verification of source materials

• IFRS Sustainable Accounting standards: Concrete reporting rules for investors

Example of Concepts and what they are

• ESG: A framework not a specific procedures

• Planetary Boundaries: Scientific limit setting not day level control

• Circular Economy: Broad philosophy no operational set up

• Sustainability Development Goals (SDG): Goal Setting not a mechanism

Define Operations

• The functions that execute a firm’s strategy through routine work

Factors of a good operations & Examples

• Speed & Timing: Zara turns a design into store shelf in 4 weeks

• Logistics & Efficiency: McDonalds kitchen layout minimizes movement

• Customer Service & Responsiveness: Healthcare wait time show every that 5 mins waiting, decrease in customer satisfaction

• Feedback Loop: Store managers feed sale data to Zara headquarters, allowing for fast adjustment

• Availability: Consistent product & service standards create brand trust across sectors

Things Operations don’t encompass

• Product design/ Engineering: Making the product/service

• Marketing & Branding: Shaping customer perception & demand

• Accounting & Finance: Tracking money & investment decision

• Human Resource: Recruiting, compensation, labour relations

• Strategic Planning: Setting long term direction

Why does Management systems focus a lot on operation

• That’s where policies become actions

What are Guiding Principles of well run operations

• Deep Knowledge of Customer needs: what they say vs what they mean

• Intense focus on quality: Quality drives cost saving & Revenue

• Adaptability: Ability to pivot when supply chain, market or regulatory conditions shift

• Continual Improvement: On going, directional progress

• Employee Appreciation: Engaged staff execute processes Reliably

• Relevant KPI: A few meaningful metrics give clear directions

• Supply Chain Respect: Integrated & monitor upstream/ downstream partners

• Avoid Unnecessary Complexity: Simple well documented steps to reduce errors

What does every operational element have

• A policy & its environmental counterpart

Examples of Policies and environmental counterparts

• Policy → Environmental policies: Commitments to emissions waste

• Procedure → EMS Procedures: Spill response steps

• Training → Environmental training: Hazard warnings & Reporting

• Metrics KPI → Environmental KPI: Energy intensity, waste per unit

• Conformance → Regulatory Compliance: ISO 14001, local status

• Continual Improvement → Environmental Continual Improvement: Periodic Audits, corrective actions

• Efficiency → Environmental Efficiency: Accounting for inputs (Energy & Raw materials) & Outputs (Emissions & Waste)

What are the oil & gas industry environmental impact (Upstream, Midstream, Downstream)

• Upstream: Exploration & Drilling - Creates land disturbance, water use & Occasional spills

• Midstream:Pipelines & transports

• Downstream:Refining & Distribution, heavy water contamination, chemical processing

What are some Social issues that sustainable development targets:

• Poverty & Hunger: lack of basic resources, esp in resource dependent communities

• Unfair labour practices: Unsafe conditions, child labour, wage gaps

• Income & Racial Inequality: Systematic barriers to equitable wealth distribution

• Education Access: Low literacy messes community resilience

• Corruption & Government Gaps: Undermine fair resource allocation

• Clean Water & Health: Essential for dignity & productive life

Define Command-and-Control

• Government writes enforceable laws, compliance is monitored by inspectors & courts

Define Voluntary era

• Firms adapt self regulated systems to demonstrated responsibility

Define Organization Centre

• Aim to improve company’s own operations & disclosure performance

• Ex. EMS, Sustainable Reporting

Define Product Centric (Supply Chain)

• Force firms to map upstream suppliers

• Ex. LCA, Eco labelling, traceability

Describe the Case study of Deep Water Horizon (Cause, Management Failures, Impact, Lesson)

• Cause: failed cement job on well casting, misread pressure data & Malfunctioning equipment

• Management Failure: poor risk assessment, last minute design change, bad communication & decision making

• Impact: 11 Crew death, 4.9 mil barrels of oil was lost in 87 days, massive marine loss, $18 billion settlement

• Lesson: Operational controls & clear communication are essential to prevent environmental catastrophe

Describe the Case study of DeepWater (Cause, Operational Failures, Root Findings, Impact, Lesson)

• Cause: E coli entered drinking water supply

• Operational Failures: Missed water quality test results, untrained operators (lack of certifications)

• Root Findings: Insufficient funding, poor recording keeping, inadequate staff training

• Impact: 11 Deaths ~ 2,500 illness, town shut down, 2 officials sent to jail

• Lesson: Good & Well followed procedures & Skilled operators protect the environment

Define Company

• A legal entity formed by a group of individuals to engage in & operate a business

• Can be organized in different ways for tax & personal liability

Define CAC

• Criteria Air Contaminations

• Common air pollutants regulated by the government

• “Criteria” limits are set on how much can in the air we breathe

• One of the six federally regulated pollutants (PM, SO₂, NOₓ, CO, VOCs)

Define ECCC

• Environmental Climate change & Canada

• Responsible for: National weather service, Great Lakes, oceans, climate data reporting

Define Facility

• An activity at a site or location for a particular purpose

Define NPRI

• National Pollutant Release Inventory

• Canadas public data base of what facilities release to air, water & land

What is NOx

• Nitrogen Oxide

• Includes NO2, N2O

Define Industry

• A firm or branch of economic or commercial activity

NPRI Sector overviews

1. Aluminum

2. Electricity

3. Metal ore mining

4. Oil sand extraction

5. Pulp&paper

6. Waster Water

What are common air contaminants

• Sulphur Dioxide

• Carbon Monoxide

• Nitrogen Oxide

• PM

• Ammonia

• Ground level Ozone

• VOC (Volatile Organic compound)

Define PM (Particulate Matter)

• Smaller particles within the category PM10 & PM 2.5

• Which are <10 micrometers and <2.5 micrometers

What are some air contamination categories

• CAC

• Toxic pollutants

• Heavy metals

Define VOC (Volatile Organic Compounds)

• Over 1000 organic substances that evaporate easily & react with sunlight in the atmosphere

• Leads to: ground level ozone & PM which together gives us smog

What are the NPRI Training & What they cover

• NPRI 101: What NPRI is & its rate, how data is collected & managed & the amount reporting cycle

• NPRI 201: Covers 6 main data types, how to pick the right one & how to navigate & read data correctly

Define Polluter-pays principle

• The party that generates pollution bears the cost of preventing,, mitigating, or compensating for that pollution

Define Pollution taxes

• Fees paid to the federal or provincial treasury for each tonne emitted

Define Compensation schemes

• Funds used to treat health impacts or restore ecosystem

Define Highly operations-oriented

• Energy & resource efficiency (process optimisation, heat‑recovery)

• Waste management (reuse, recycling, on‑site treatment)

• Employee training on environmental procedures

Define Adjacency to operations

• Community engagement (noise, odour, local employment, ISO 14001 stakeholder pressure)

Define Outside operations

• Product advertising – primarily a marketing function, not a core operational activity

Explain Systems views

• Whole supply chain, policy, customers

• Ex. Energy tax shift → lower plant emissions → cheaper electricity for consumers

Define Narrow framing

• One metric or competitor

• Ex. Only recycling rate reported

Which environmental exposure kills the most people

1. Air pollution

• ~7 million people died

• Why it dominates: wide geographic spread, fine particles that damage the lungs, worst in rapidly urbanizing developing cities

2. Unsafe water

• ~ 3.5 million people died

• Concentrated in low‑income regions, only water-borne disease outbreaks

3. Heavy Metals

• ~ 0.5 million people died

• Chronic exposure, lower prevalence

4. Noise pollution

• <0.1 million people died

• Mostly non‑fatal health impacts

5. Extreme weather/climate events

• <0.2 million people died

• Highly lethal when they occur, but infrequent compared with chronic air‑pollutant exposure

Define point source

• A fixed, identifiable emission outlet such as a pipe or smokestack

Define Substances

• Each chemical counted individually (e.g., mercury, H₂S, sulfuric acid)

Define Releases

• Direct discharge to air, water, or soil on‑site

Define Transfers

• Off-site hand over to licensed waste management firms for treatment, eutralisation, or incineration

Define Provincial regulation

• The primary authority for water, soil, noise, and toxic‑substance permits in Canada

Define Systems thinking

• An approach that considers interconnections across supply chains, policies, and stakeholders

Define Direct releases

• Substances emitted straight to air, surface water, or land from the facility’s stack, outfall, or spil

Define On-site disposal

• Waste placed on the facility’s own land under a permit (rare; usually a small landfill or treatment unit)

Define Off-site transfers

• Shipment of waste to an external handler (landfill, treatment plant); recorded but not a direct environmental release

What’s Inside a facility profile in the NPRI Website

• Core fields: company name, mailing vs. physical address, GIS coordinates, reporting history

• NAICS code – numeric industry classification (e.g., 321113 = sawmills); essential for confirming the actual activity when a corporate name is ambiguous

• Substance list: each pollutant, release medium, and quantity (tons for bulk gases, kilograms for highly toxic metals)

Acute vs. chronic risk

• CO – highly toxic at low concentrations; the fastest‑acting lethal agent on most lists.

• PM₂.₅ – penetrates deep lung tissue, causing chronic respiratory and cardiovascular disease.

Define Combustion signature

• The characteristic set of pollutants (CO, NOₓ, PM) indicating fuel‑burning processes

Define Threshold-based reporting

• Mandatory reporting only when emissions exceed a preset ton‑per‑year (or kg‑per‑year) limit

Define Right - to - know

Environmental policy principle that mandates public access to pollutant release data to empower communities and drive cleaner practices

Define a management system

• A documented framework that defines responsibilities, processes, and performance indicators to achieve defined objectives

How do organizations use management systems

• To align daily work with strategic goals, ensuring consistency across products, services, or processes

What’s the PDCA cycle step by step

• Plan: Set requirements, goals, and programs

• Do: Implement, train people, build the procedures, write the documentation

• Check: measure performance, find problems, and do root-cause analysis and corrective action

• Act(review): every so often, look at overall progress act on it and rethink the strategy

Why continually improvement pays off

• Efficiency & cost savings: Repeating the cycle trims waste and lowers operating expenses

• Problem Anticipation: Early checks catch issues before they cascade

• Quality & control: Standards enforce consistent output, protecting brand reputation

• Knowledge retention: Manuals and records keep expertise alive despite staff turnover

What are challenges to continual improvement

• Individuals often skip the check and review steps; organizations mitigate this by assigning dedicated audit and review roles