Question: Why do managers need to study environmental management for decision making purposes?
Answer: Business Analysis needs to get better- and is- at the art of seeing all short and long-term costs. Strategically, you could this about differentiation and generating competitive advantage; Resourcefully, this starts to take on a tone of Asset Management as we become more aware of Life Cycle Management.
A decision- say, a decision between building a $500k office using standard practices or $600k using energy efficient, eco friendly, LEED platinum certified- might seem clear if you just think of cost and ignore others. But, once you account for operational expenses, the value of the as we divide the capital expenses to build it over the life cycle of a 50 year eco building (effectively $12k/year) over a 20 year typical building (effectively $25k/year), become more clear to see… and hopefully clearer to decide on.
In that way, part of bringing Environmental Management more into our decision-making relies on underscoring and clarifying both the efficient long-term value of investing in this better approach (of being more people, eco, and life-cycle minded) and also clarifying the hidden costs and replacement risks and costs of short-term and eco-insensitive decisions. In that way, a Carbon Tax soon to be introduced here in Canada is a great example of trying ti quantify and clarify displaced hidden costs of certain practices. I suggest checking out modern approaches like Green Project Management, Sustainable Business Analysis, and seeking other methodologies, if you want to learn more.