International ecological issues include climate change, pollution, deforestation, and biodiversity loss. These problems are detrimental to nature and human life. There are lots of serious world environmental problems. Climate change The effect of the increase in greenhouse gases and global warming is known to cause extreme weather, floods, and droughts. The future will be worse if countries fail to take action. Governments, organizations and individuals must act through pollution control, reducing carbon footprint, and environmental conservation efforts. Do the right things, and you can save the planet and create a healthy future for all.
Global Environmental Issues
Today, numerous threats exist to the environment and all Earth life, including humans. Industrialisation, deforestation, pollution and other human activities lead to these problems. Many solutions exist, but countries must collaborate to address these issues.
Major Challenges
- Climate Change Effects – Increasing temperatures, disasters, and sea level rise.
- Deforestation and Biodiversity Loss – Killing Trees destroys wildlife and plants. Factories, vehicles, and industries release harmful gases.
- Plastic Waste Management–Plastic waste accumulates in oceans, adversely affecting marine life.
- Climatic Impact on Water Crisis – Scarcity of clean drinking water.
- Renewable Energy Solutions – Solar and wind energy reduce pollution.
- Cutting Carbon Footprint – Recycling, taking public transport, and the like.
- Ocean Pollution Solutions – One solution is banning plastic and cleaning oceans. This helps save marine life
- Green Initiatives – Governments should preserve forests and wildlife.
- Climate Policy Regulations – Stringent laws can curb pollution and waste.
We need decisive action in the world. Both governments and individuals need to make efforts to protect nature and adopt ecologically sustainable practices.
Sustainable Development Goals
Climate change refers to a long-term shift in weather patterns. The consequences of climate change are caused by burning fossil fuels, cutting down forests and releasing greenhouse gasses. This causes increasing global temperatures, melting ice caps and erratic weather.
Effects of Climate Change
- Impacts of Global Warming — The temperature of the Earth is increasing. This triggers heatwaves, wildfires and droughts.
- Rising Sea Levels — Floods in coastal cities are caused by disappearing ice caps.
- Extreme Weather — More hurricanes, cyclones and torrential rains gut homes.
- Impact on Agriculture – Crops fail due to high temperatures and low rainfall.
Why are Sustainable Development Goals Important?
The Sustainable Development Goals (SDGs) are 17 global goals founded by the United Nations. Its purpose is to address environmental and social problems. Some of the SDGs combat climate change:
| Goal | Purpose |
| Goal 6: Clean Water | Ensures access to safe drinking water. |
| Goal 7: Clean Energy | Promotes renewable energy solutions. |
| Goal 13: Climate Action | Encourages action against climate change. |
| Goal 15: Life on Land | Supports environmental conservation efforts. |
At winds peed at one be of other fellow countries to achieve these missions. The policy will help reduce pollution, protect forests, and encourage clean energy. We must change people’s behaviour, too, to curb their impact on nature. Over the years, Air Pollution Causes and air pollution control measures have been widely discussed.
What Causes Air Pollution?
When toxic gases are in the air, air pollution occurs. The major contributors to air pollution are:
- Transportation — Cars and trucks emit carbon monoxide and nitrogen oxides.
- Industrial Pollution – Factories release smoke and chemicals.
- Burning Fossil Fuels – Coal and oil emit greenhouse gas emissions in the atmosphere.
- Deforestation and Biodiversity Loss – Less trees equals less clean air.
Negative Impact of Air Pollution
- People develop lung diseases and diseases that prevent them from breathing.
- Air pollution contributes to global warming and climate change.
- It destroys forests, rivers and sea life.
Pollution Control Measures
- Switch to Clean Energy — Solar and wind power create less pollution.
- Another one is Public Transport – More cars mean less air.
- Plant More Trees – Trees absorb CO2 and provide fresh air.
It is essential to follow climate policy regulations, and governments should make them punitive.
Bleed with refrain from right and share common airways. Nothing is as essential for a healthy life as clean air.
Deforestation and Biodiversity Loss
Forests account for 30% of the surface on Earth. But they are destroyed for farming, logging and urban development. This results in the loss of biodiversity, which is when many animals and plants go extinct.
Effects of Deforestation
- Global warming increases with more greenhouse gas emissions.
- Animals lose their habitats, and species become extinct.
- Soil is becoming infertile, resulting in desertification.
Solutions for Deforestation
- Protect and restore forests.
- Practice ecological sustainability methods such as sustainable agriculture.
- Implement strict climate policy restrictions to prevent illegal logging.
- Saving forests saves wildlife and combats climate change. The time has come for people to tact before waiting too long.
The Problem of Plastic Waste
Plastic decomposes over hundreds of years. It taints land, rivers and oceans. Marine animals eat plastic, and they die. Plastic also leaches toxic substances into the environment.
How to Manage Plastic Waste?
Use reusable bags and bottles to reduce plastic use.
- Turn plastic waste into new products.
- Vote for legislation prohibiting single-use plastic.
- Ocean Pollution Solutions
- Remove plastic waste from oceans and beaches.
Cut down on the industrial waste that is dumped into water bodies.
- Resource: Help reduce your carbon footprint by making greener choices
- Protecting the world from plastic pollution requires urgent action. Keeping oceans healthy is vital for all life on the planet.
- The water scarcity crisis and how it can lead to renewable energy solutions
Why is Water Shortage a Global Crisis?
Many countries that have access to clean water are short. This water shortage problem impacts agriculture, drinking water and sanitation.
Causes of Water Scarcity
- Excessive use of water for agriculture and other industries.
- Climate change diminishes rainfalls and desiccates rivers.
- Pollution of lakes and groundwater.
Solutions for Water Scarcity
- Use water judiciously and do not waste it.
- Collecting water using rainwater harvesting systems
How Does Renewable Energy Solutions Come into Action?
- Solar and wind power consumes less water than both coal and oil.
- Water supply and clean energy demand are catered to by hydroelectric power from rivers.
- Green energy reduces the effects of global warming and saves natural resources.
- We can secure a reliable water supply for future generations with the right actions.
Relevance to ACCA Syllabus
The ACCA syllabus embeds environmental issues in governance, risk management and corporate reporting. Concepts such as sustainability reporting, carbon accounting, and climate-related financial disclosures increasingly feature in financial statements. Understanding how global environmental challenges affect financial choices, corporate strategies, and regulatory compliance is essential for ACCA students. This knowledge is critical in Accounting for Environmental Liabilities, (Carbon credit) accounting Reporting, Sustainability reporting, and IFRS standards.
Global Environmental Issues ACCA Questions
Q1. Which frameworks offer recommendations on sustainability reporting and climate-related financial disclosures?
A) IFRS 16
B) TCFD (Task Force On Climate-Related Financial Disclosure)
C) GAAP
D) IFRS 9
Answer: B) TCFD (Task Force on Climate-related Financial Disclosures)
Q2: Which IFRS standard should a company refer to for rrecognisingenvironmental liabilities due to legal or regulatory obligations?
A) IFRS 9
B) IFRS 15
C) IAS 37
D) IFRS 16
Ans: C) IAS 37
Q3: What is the primary purpose of environmental, social and governance (ESG) reporting?
A) To increase tax compliance
B) To track company sales
C) To provide information about non-financial risks and sustainability performance
D) As a replacement for traditional financial statements
Ans: C) For transparency over non-financial risks and sustainability performance
Q4: What is athefinancial risk associated with climate change?
A) More money spent on marketing
Ans: B) Fines and penalties payable under laws for carbon emissions
C) Cut in office supplies
D) Increase in training programs for employees
Ans: B) Adverse sanctions and penalties for carbon emissions
Q5: What’s the impact of climate risk on financial statements?
A) It does not affect how companies report their financials
B) All these cause asset impairment and higher provisions for liabilities.
C) It only impacts the company’s tax calculations
D) Only discusses management, not records.
Ans: B) It results in impairment of assets and higher provisions for liabilities
Relevance to US CMA Syllabus
Cost accounting, environmental costing, sustainability accounting, and risk assessment with an ecological aspect are part of the US CMA syllabus. Management accountants must consider the implications of global ecological challenges for budgeting, capital investment and strategic decision-making. This impacts cost structures, pricing decisions, and overall financial planning.
Global Environmental Issues CMA Questions
Q3: Which organisation publishes the Global Reporting Initiative (GRI) standards for sustainability reporting?
A)International Accounting Standards Board (IASB)
B) FASB (Financial Accounting Standards Board)
C) The Sustainability Accounting Standards Board (SASB)
D) Global Reporting Initiative (GRI)
Q:73 Which is applicable from April 2023 as Global Reporting Initiative (GRI) reporting on sustainability?
Q4: What does the term external cost (an externality) mean in environmental accounting?
A) Employee wages
d) Depletion on plant assets
C) Air pollution caused by a company factory
D) Advertising expenses
Ans: C)Company Factory Air pollution
Q3: What is sustainability accounting good for?
A) You only focus on growing sales revenue
B) It evaluates environmental and social costs in financial choices
C) It removes the requirement for cost control
It ensures compliance with standard costing principles only.
Ans: B) Evaluate costs of environment and social in financial decision
Q4: Which is an example of an environmental cost included in management accounting?
A) Car depreciation on company vehicles
B) Imprisonment for breaking environmental laws
( c ) Advertising cost for green products
D) Employee salary increases
Ans: B) Penalties of law for breaching the ecosystem
Q5: What are the implications of global environmental issues on capital budgeting decisions?
A) Capital budgeting does not incorporate the environment.
B) Environmental risks result in elevated discount rates and increased project costs
C) Environmental risks affect only variable cost analysis
D) Environmental issues only relate to public companies
Ans: (B) Higher required discount rate and extra costs of the project due to environmental risks
Relevance to US CPA Syllabus
The US CPA syllabus, therefore, covers sustainability reporting, environmental liabilities, and regulatory compliance under GAAP and IFRS. Worldwide environmental challenges influence financial statements, taxes, and risk management. CPAs will need to review climate-related financial disclosures, carbon accounting, and asset impairments that are subject to risk because of environmental events.
Global Environmental Issues US CPA Questions
Q1: When is a cleanup cost-driven environmental liability to be recognised under US GAAP?
A) Disclose only in the notes to financial statements
B) Record a provision if the liability is probable and can be estimated
B) Treat the liability as a monetary fund that decreases when paying the cost
D) Treat it as a deferred tax liability
Ans: B) When the liability is probable and estimable, recognize a provision
Q2: What is the name of the US regulatory body that puts guidelines around environmental reporting for publicly traded companies?
A) Financial Accounting Standards Board (FASB)
B) SEC (Securities and Exchange Commission)
C) Internal Revenue Service (IRS)
D) Public Company Accounting Oversight Board (PCAOB)
Ans: B) Securities and Exchange Commission (SEC)
Q3: What is the impact of climate-related financial disclosures on financial statements?
A) They affect asset valuation, provisioning, and contingent liabilities
B) They do not affect financial statements
C) They merely influence tax computations
D) They only apply to government entities
Ans: A) They affect asset value calculations, sections and contingent liabilities
Q4: Which accounting standards govern environmental liabilities under US GAAP?
A) ASC 450 (Contingencies)
B) ASC 606 (Revenue from Contracts with Customers)
C) ASC 842 (Leases)
D) ASC 718 (Compensación por acciones)
Ans: (A) ASC 450 (Contingencies)
Q5: What are the implications of environmental taxation for CPA advisory services?
Therefore, A) does not impact tax advisory services
B) CPAs need to understand carbon tax provisions and sustainability tax credits
C) CPAs are not responsible for environmental-related taxes
D) No financial audit is irrelevant to environmental taxation.
Ans: B) CPAs will need to evaluate carbon tax provisions and sustainability tax credits
Relevance to CFA Syllabus
This is particularly true concerning social, environmental, and governance (ESG) investing, risk analysis, and financial decision-making. Investing Valuation, Corporate and Portfolio Management Risk Exposure Due to Global Environmental Issues Analysts evaluate the monetary implications of climate risks, eco-friendly investments, and compliance with regulations.
Global Environmental Issues CFA Questions
Q1: How do investment decisions feel the impact of global environmental issues?
A) They do not do anything to financial markets
B) ESG factors impact risk assessments and asset values
C) Environmental issues just don’t matter to investors in pricing stocks
D) The Doomsday scenario only impacts treasury bonds
Ans: B) ESG factors are perceived as influential on risks and asset valuations
Q2: All of the following are key ESG metrics in investment analysis except:
A) Sales volumes
B) Carbon footprint and GHG emissions
C) Price of advertising campaigns
D) Growth in office expenses
Ans: B)Carbon footprint and greenhouse gas emissions
Q3 How would you define the primary goal of sustainable investing?
A) The only purpose of a corporation is to provide maximum short-term profits with no regard for the environment
B) Investment strategies for long-term value creation by incorporating ESG factors
C) Not considering social responsibility when making investments
D) Investing exclusively in fossil-fuel industries
Ans: (B) Include ESG considerations in investment strategies for long-term value creation
Q4: How are environmental issues related to assessing industry competition?
A) Companies having strong ESG policies have a competitive advantage
1B) The is no impact of environmental issues on market competition
C) Firms with weak environmental policies consistently outperform rivals
D) ESG factors only matter in government policy, not investment analysis
Ans: A) Companies that have strong ESG policies will have a competitive edge
Q5: What financial risk does climate change pose?
A) Decline in technology use
B) Regulatory fines and asset depreciation from environmental harm
C) Decrease in the accuracy of financial statements
D) Rising social media marketing prices
Ans: b) Regulatory penalties and asset devaluation owing to environmental damage
