1. a) Do you think Han Solar’s green strategy will increase shareholders returns ?
It will increase the shareholders returns. Han Solar used to be very
... [Show More] successful because
they were one of the cheapest producers of solar panels. Nonetheless, it seems nowadays
that customers are becoming more and more environmentally conscious and are according
more importance on green initiatives. Being the cheapest is not sufficient to have a
competitive advantage anymore; that is why selling environment-friendly products is
paramount for Han Solar to attract more customers.
By focusing on environmental issues and by taking green initiatives, the company will
improve its brand image, and this will appeal to more consumers. Therefore, the company’s
sales and profit will increase, leading to an increase in the shareholders wealth.
There is still a condition below that: being environmentally conscious is important but to
beat the competitors, Han Solar should still have a price advantage as all competitors are
already branding themselves as environmentally friendly.
1. b) List some other possible impacts of sustainability efforts.
Except for environmental effects (reducing the emission of GHP), there are economic and
social impacts:
Economic: a change in process of manufacturing or in delivery method for
example, is prone to increase the efficiency of the entire manufacturing process.
This will therefore reduce the overall costs and will help the company to be
profitable.
Social: Han Solar’s green strategy also includes reducing exposure to harmful raw
materials. This will improve employees’ health and safety and occasionally their
work satisfaction since they know that they pollute less than before.
2. What is the corporate carbon footprint of their manufacturing and distribution
processes? Assuming one shipment of 1,000 PV panels produced in China and
delivered to California (manufacturing and distribution). Explain how you identified
the different elements that make up the total footprint.
The first step is to compute the total energy requirement for the 9 manufacturing
steps.
Manufacturing process Energy requirement
(Mj/panel)
Energy requirement
(kWh/panel)
Operation 1 0,71 0,20
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