Environmental Factors

PESTLE analysis environmental factors

The issues surrounding environmental protection have become increasingly important in recent years as the implications of under-regulated economic activity are seen today. This has become more significant with globalization as the impact of an organization's actions may be felt outside of its native country and may incur unquantifiable financial penalties.

Other environmental factors are those that relate to the weather, climate, and geographical location. For example,

  • Natural disasters or weather cycles such as monsoons may create too high a risk for operating in particular regions.
  • The physical condition, extent, and maturity of a country's infrastructure may impose uneconomic costs on an organization. Weather conditions could also cause logistical problems at certain times of the year.
  • Potential financial penalties resulting from causing contamination of soil or water may be unquantifiable.
  • Before operating in a country with high temperatures and humidity you would want to determine the availability, financial viability, and reliability of air conditioning.

As with the other PESTLE factors you would look at how the potential changes to weather patterns and climate cycles could have implications for your organization's operations. These ecological and environmental aspects can have consequences that are felt both on an economic and a social level.

An increasingly important consideration facing organizations is one of packaging and waste disposal and its environmental consequences. Throughout Europe all electrical equipment retailers are required by law to pay a government levy based on their sales volume. The funds generated in this way go towards minimizing the cost and environmental impact of obsolete products.

Key Points

  • Environmental factors include infrastructure, cyclical weather, disposal of materials, energy availability and cost, and the ecological consequences of production processes.
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You may also be interested in: Introduction to PESTLE Analysis, PESTLE Factors, Political Factors, Economic Factors, Social Factors, Technological Factors, Legal Factors, Environmental Factors and Advantages and Disadvantages.

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