The Environmental Impact Assessment

The following sample essay on how environment can affect the decision of investors and the impact of responsible investment in our economy. In general sustainability, ethics and social responsibility with the environment are very important keys to help or affect the decision making of individual or institutional investors. Thus, it is very important to understand why UK investment analyst might refuse to classify shares of RGGC plc. Knowing the facts that products of the existing company are toxic and deliver in states as liquid and gas in case of an accident would be really harmful for the environment and destroy parts of flora and fauna.

Below I am analysing facts using Negative screening which is the most simple and common method and is used to analyse what the company does and how it can affect the analyst’s opinion regarding the investment.

The Environmental Impact assessment has as main goal to cover and protect the environment by ensuring that a local authority could have the power to grant permissions for projects which would have a very important impact to the environment.

Thus, this procedure has been in place with regulations covering the entire topic. Screening is a process that Environmental Impact Assessment must follow in order to determine if a proposed project would follow the right regulations to be considered as a non threat project for the environment. According to Environmental Impact Assessment page [1] “Determining whether a proposed project falls within the remit of the Regulations, whether it is likely to have a significant effect on the environment and therefore requires an assessment.

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” Businesses and companies that might miss the conditions that Environmental Impact Assessment sets they will have to go through Courts and pay fines. According to my research into the government’s website gov.uk the fines usually are high and very strict. Also, affects the brand name and might create a domino effect into business flow and decrease its performance, as customers would feel bad for a company that destroys the environment.

As per government’s website [2] John Jones Civil Engineering & Groundworks which is a small limited company according to our RGGC PLC has been fined with £50.000 because of illegally depositing of waste at Bage Farm. Comparing the fine according to the threat to the environment chemical waste from a larger Company would bring higher fines. Through Negative Screening method, investors must avoid types of businesses that investors do not want to invest their money at. Usually those companies are Tobacco companies, environmental polluters etc. RGGC plc is not a polluter company yet but there is a high risk that might be the case. Furthermore, In negative screening could possibly make individuals to avoid investing on other companies.

Therefore, except harmful for the environments in Europe and specifically in the UK there are legislations that would protect with their actions and perform measurements against companies or businesses that could threat the environment. As UK environmental Protection agency has already notice that there is a risk for the environment to get exposed into those bad chemicals that could affect the environment and create critical issue. This might be critical for investors not to take the risk. Risk will be very high and worth consideration before investing. Finally, investors might afraid to invest into a company that might hold a major risk of environmental incident. Thus, this could be a reason on why UK investment analysts may refuse to classify shares in RGCC plc. B. Wealth Maximization Wealth and maximization are a very popular concepts that includes increasing values of a business in order to increase the shares that stakeholders hold. That concept requires a highly research skilled team in order to make a research on how funds should be invested in a business. In order to understand if a company has performed wealth maximization is the changes into its share prices in a short-term time take advantage for the highest ret.

The entire concept that achieves Wealth Maximization it is not always the best solution of suppliers, employees or stakeholders. Mainly a company would achieve wealth maximization, but it might affect other parts of the company. For example, might invest in small amounts in environmental checks and might put at risk company getting fines from the authorities. Thus, in our case we can see from the data given that RGGC plc share price has started in 2011 from 225 pence per share with an almost double increase in 2012 with 446 pence. From 2011 to 2016 with have a very big change to the share price which is total 1486 pence minus 225 pence is 1261 pence. We can see clearly that the company has achieved that in the past years according to the Balance sheets by increasing the Equity from 2013 to 2015 we can see has increased which also means company tries of course to maximize the shareholders wealth too. A company trying to increase the wealth maximization needs to be socially responsible at the same time. That is possible to happen if they keep investing the same amount of money into environmental checks and following all the appropriate regulations. In our case RGGC plc we can see the price of the share falls in 2017 by almost two thirds.  This clearly shows that the company tried to maximize the wealth but the price falls right along with the company. That shows that company was not fair player in the market and probably not socially responsible.

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The Environmental Impact Assessment. (2021, Feb 19). Retrieved from https://paperap.com/the-environmental-impact-assessment/

The Environmental Impact Assessment
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