Use sustainable production methods
Compare renewable energy, resource efficiency, waste reduction, reuse, recycling and product design.
Section 6 · External influences on business activity
Exam scope and assessment notes
Cambridge IGCSE (9–1) Business Studies 0986, 2026 syllabus, Version 2. This is the separate 9–1 legacy route; 0774 replaces it for first assessment June 2027. Candidates are not assessed on constructing income statements or statements of financial position, nor on price-elasticity or exchange-rate calculations. Simple cash-flow forecast construction is assessed. Written practice is self-checked, not an official Cambridge grade; timed-paper evidence and human subject-teacher review remain outstanding.
Before you begin
- No previous operations study is assumed. Read the time period, output unit, cost data and operating constraints before calculating or recommending.
Work on paper. Try each question before revealing help, and explain why your method works.
Quick readiness check
Which is a sustainable-production method in the syllabus?
What you will learn
- Identify sustainable production methods
- Explain business and environmental effects
- Evaluate cost and customer trade-offs
Change resources and processes
Businesses can use renewable energy, fewer resources, less waste, reuse and recycling. They can also develop environmentally friendly products and use environmentally friendly packaging.
The best method depends on the product, supply chain, available technology and what environmental impact the business is trying to reduce.
Weigh benefits and costs
Sustainable methods may reduce waste or resource use and support reputation or customer demand. They may require investment, new suppliers, redesign or staff training, and outcomes depend on the method's real effect.
A business should measure relevant input or waste changes and avoid unsupported environmental claims. A more expensive option may be justified if long-term savings or customer value exceed the added cost.
Pause and explain
Why should a business measure its sustainability change?
Worked example
A hotel replaces disposable toiletries with refillable dispensers. Identify one sustainability benefit and one issue to manage.
Show the worked solution
- Reuse can reduce single-use packaging.
- Cleanliness and refill quality must be maintained.
- Compare purchase and operating costs with avoided waste.
Answer Refillable dispensers may reduce single-use packaging, but the hotel must maintain hygiene and reliable refilling. It should compare the system's costs with material saved and check customer response.
Try a topic test
Choose Easy, Normal or Difficult. Save your answers and open worked review after finishing.
Test this topic →From guided practice to a new situation
Write your answer and reasoning first. Use a hint only if you are stuck. The model solution is for self-checking; your written work is not automatically marked.
A manufacturer changes to lighter packaging. Explain one potential sustainability benefit and one quality risk to test.
Give me a hint
Less material can reduce resource use, but packaging must still protect the product.
Compare my reasoning
- Lighter material may reduce packaging per item.
- Damage in transport could increase if protection is inadequate.
- Compare material use and damaged-product rates.
The change may reduce packaging material and transport weight, but inadequate protection could increase damaged goods. Compare material use, delivery damage and customer complaints before adopting it widely.
Look for these in your work
- Potential effect explained
- Quality risk identified
- Evidence measures selected
A restaurant wants to reduce food waste through smaller preparation batches. Explain a benefit, a cost and evidence to monitor.
Give me a hint
Less unsold food may save resources, but batches require planning and could affect waiting time.
Compare my reasoning
- Smaller batches may reduce food discarded.
- More frequent preparation may use staff time or delay service.
- Record waste quantity, preparation time and stockouts.
Smaller batches can reduce unsold food and material waste, but may require more staff time or create stockouts during busy periods. Track waste, preparation time and customer wait times to assess the trade-off.
Look for these in your work
- Waste benefit linked
- Operating cost considered
- Balanced measures identified
A business advertises its product as '100% sustainable' after switching to recycled packaging. Explain why the claim needs review.
Give me a hint
One packaging change does not establish the impact of the whole product and supply chain.
Compare my reasoning
- The claim is absolute and broad.
- The business should gather evidence for the full claim.
- Use a narrower statement describing the verified packaging change.
The change may support a specific claim about recycled packaging, but it does not prove the entire product is 100% sustainable. The business should substantiate any claim and describe only the verified change, following applicable rules.
Look for these in your work
- Scope problem identified
- Evidence required
- Accurate alternative suggested
Common mistakes
- Assuming recycling removes all environmental impact
- Using green claims without evidence
- Ignoring startup or supplier costs
What can you explain now?
Which is a sustainable-production method in the syllabus?
Compare with the explanation
Using fewer resources and less waste
The syllabus lists resource and waste reduction.
After trying it yourself, choose your next review. This is your self-assessment.
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Make it stick
How can a business tell whether a sustainable-production change improved its intended outcome?
If you needed the solution, close it and solve the problem again from a blank page. A correct answer is stronger when you can explain the reason for each step.