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Environmental considerations

Study Environmental considerations in the Pearson Edexcel A Level Business specification, with the knowledge and exam application needed for accurate mark-scheme responses.

Syllabus
First assessment 2019
Course
Business XBS11/YBS11
Level
A2

Exam points

  • Apply Environmental considerations accurately, using relevant evidence and clear links to the question context.

4.3.4.2b - Environmental considerations question 1

[Maximum number: 8]

Extract A Finnish dairy business Valio is feeding the future Valio is a dairy and food business based in Finland. It has been producing milk since 1905, when it was founded by a small group of family-owned Finnish dairy farms. Today, Valio produces a wide range of food and dairy products. It is Finland's biggest food exporter, selling products in 60 countries around the world including the EU, the US and China. The business employs about 4,200 people in its factories and laboratories. Indirectly, it employs thousands more people at farms and small enterprises related to agriculture and food. In 2021, Valio's revenue was €1.92bn, 40\% of which came from exports. Valio recognises that if it wants to continue to grow it will need to export more. One reason is that the 5.5 million population in Finland is declining.

Extract B Valio selected financial data 2021

Table for Question 4.3.4.2b - Environmental considerations question 1 — Edexcel A-Level Business A2

Extract C Valio and sustainability In June 2021, Valio and energy business St1 announced a new joint venture to produce biogas from manure. Valio's dairy farms have the raw material for its production and St1 will distribute the liquefied biogas. This is part of Valio's efforts to build an environmentally responsible business. In recent years Valio has changed its packaging to ensure that it is reusable or made from recycled materials. All Valio's milk and yogurt carton packages are made of 100\% plant-based materials. It has also set a target to cut milk's carbon footprint in Finland to zero by 2035. In 2021, Finnish consumers selected the business as the most sustainable brand in Finland.

Extract D Valio's takeover of Heinon Tukku In 2021, the Finnish Competition and Consumer Authority (FCCA) approved the takeover of Heinon Tukku by Valio. With the takeover, Valio becomes an even more competitive supplier to the food industry. Heinon Tukku has a portfolio of thousands of products - from fresh vegetables to napkins - and its customers are restaurants and coffee shops. Valio has the country's most extensive distribution network and supplies many customers in the public sector. The takeover will enable Valio to be the only business that supplies everything a professional kitchen needs. In addition to an extensive selection of raw materials, it will offer support in the development of new meal and snack products.

Discuss the benefits of sustainability for a global business such as Valio.

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