Air pollution - The Sustainability Management Wiki

Authors: Leinemann, Schmidt, Voß
Edited by: –
Last updated: September 26, 2025

Executive Summary

Air pollution is the presence of harmful substances in the air at concentrations that damage human health, ecosystems, materials, and the enjoyment of property. It primarily includes nitrogen oxides (NOₓ), sulfur dioxide (SO₂), ammonia (NH₃), carbon monoxide (CO), non-methane volatile organic compounds (NMVOCs), and particulate matter (PM2.5 and PM10). While some of these substances occur naturally, human activity—especially energy production, transport, industry, agriculture, and waste—drives most harmful concentrations today.

Air pollution is closely linked with climate change. Many pollutants and greenhouse gases share sources and atmospheric processes; reducing combustion and improving energy efficiency therefore delivers co-benefits for air quality and climate. The impacts are significant: air pollution contributes to respiratory and cardiovascular diseases, reduces labor productivity and agricultural yields, and imposes substantial economic costs on societies and firms.

Organizations contribute to air pollution across their value chains. High-impact activities include fuel combustion, electricity consumption (depending on grid mix), transportation of goods and people, process emissions, solvent use, agriculture, and waste handling. A small number of facilities can account for a disproportionate share of damages, suggesting targeted action can deliver outsized benefits.

Measuring performance is the first step. Companies should combine direct measurement (e.g., continuous emissions monitoring systems for stacks, opacity and parametric monitoring, and portable systems for vehicles) with estimation methods using activity data and emission factors. Where direct monitoring is not feasible, tiered approaches (Tier 1–3) allow progressively greater accuracy. Emerging corporate guidance enables inventories that span Scope 1–3 sources for key pollutants.

Implementation focuses on five levers: switching to cleaner energy, choosing sustainable materials, using clean technologies and processes, improving logistics and transport, and enabling behavioral change through training and culture. Practical measures range from procuring 24/7 carbon-free electricity and optimizing industrial processes, to fitting abatement technologies (e.g., electrostatic precipitators, flue-gas desulfurization), redesigning products via life cycle thinking, and optimizing routes and modes in freight.

External drivers include regulations (ambient standards, emission ceilings, industrial permits), finance (access to green bonds and lower capital costs), stakeholder expectations (customers, investors, communities), ecosystem dependencies, and technology advances. Barriers include regulatory uncertainty, technology and fuel availability, high upfront costs, intense price competition in some sectors, and organizational change needs. Overcoming these barriers requires clear targets, credible data, cross-functional governance, partnerships, and investment in innovation.

1 Definition

The air that organisms breathe is the most critical natural resource for survival.¹ The composition of air fluctuates continuously due to natural processes and human emissions. Earth’s atmosphere comprises several gases; on average, dry air contains about 78.09% nitrogen, 20.95% oxygen, 0.93% argon, and 0.039% carbon dioxide. Trace gases such as methane (CH₄), ozone (O₃), sulfur dioxide (SO₂), nitrogen dioxide (NO₂), nitrous oxide (N₂O), carbon monoxide (CO), and ammonia (NH₃) are also present.²

The relative composition of these constituents determines air quality and the classification of air pollution. Almetwally, Bin-Jumah, and Allam (2020) define air pollution as “the contamination of the ambient atmosphere as a result of the presence of chemical substances, gases, or particular matter” (p. 24815).³ The World Health Organization (WHO) further notes that such concentrations can harm health, vegetation, agricultural yields, and property, or interfere with the enjoyment of property.⁴

Major air pollutants include NOₓ, NMVOCs, SO₂, NH₃, CO, and particulate matter (PM2.5, PM10).⁵ Many of these substances occur naturally, but elevated concentrations make them pollutants. Other gases—such as O₃, CH₄, and greenhouse gases (GHGs)—are closely related to air pollutants because of their harmful effects on climate and ecosystems, yet they are often treated separately (see the Wiki entry on “Climate change”).

Since the discovery of fire, air pollution has persisted as a significant environmental issue.² By the 1280s, coal had become a common fuel in industrial processes like lime production and metalworking, contributing to air pollution.⁶ The late 18th century brought manufacturing, agricultural, mining, and transportation transformations. Machine-based production drove fuel demand and worsened pollution. The Industrial Revolution greatly increased both the volume of primary pollutants and the number of emitting countries, with heavily polluted cities culminating in the Great Smog of London in 1952. Initially, Europe and North America were the primary emitters and faced most adverse effects until the late 20th century.⁷ As SO₂ and NOₓ controls took effect in these regions, emissions in East and South Asia surged, leading global pollution by the early 21st century.

Air pollution poses unique challenges because replicating atmospheric conditions in a lab is difficult, and many effects manifest gradually over years.²⁸ Air pollution and climate change are tightly interconnected. The impact of a GHG or aerosol on warming depends on atmospheric lifetime and global warming potential; climate change is driven by emissions of air pollutants, climate-forcing GHGs, and aerosols that often share sources and formation processes.⁹

Impacts on biota are significant and interrelated. In plants, air pollution can cause leaf discoloration from cellular damage, reduced leaf area, and greater susceptibility to pathogens, disrupting physiological processes and lowering growth and yields.⁸ Soil degradation in forests, grasslands, and deserts further impairs plant growth and the animals that depend on it. Acid rain—occurring as wet precipitation (rain, snow) or dry deposition (gases, dust)—acidifies lakes, depletes essential soil minerals, mobilizes toxic ions in water, erodes stone structures, and harms health when particles are inhaled.¹⁰

Air pollution is strongly associated with respiratory diseases such as chronic obstructive pulmonary disease, asthma, bronchitis, impaired lung function, and lung cancer, and it adversely affects behavior, productivity, and well-being.¹¹¹³ An estimated 6.5 million deaths each year are attributable to air pollution, with 9 out of 10 urban residents affected by related health issues.¹²

Firms are both contributors to and victims of air pollution. Lost working days due to air-pollution-related ill health are projected to rise from 1.2 billion in 2015 to 3.7 billion by 2060. Economic impacts from outdoor air pollution—including lower labor productivity, higher healthcare costs, and reduced agricultural yields—could reach 1% of global GDP by 2060. In 2018, air pollution cost the global economy an estimated USD 2.9 trillion, or 3.3% of world GDP.¹⁴

2 Sustainability analysis

Air pollution arises from natural and human-made sources. Natural sources include volcanic eruptions, wildfires, fog, and dust storms,³ but these typically have limited long-term impacts because ecosystems can recover. Anthropogenic air pollution results from human activities and is of greatest concern because emissions occur in or near population centers.¹⁵ Key sources include combustion and industrial processes, transportation, solvent use, and agriculture.¹⁶

This entry examines how companies contribute to air pollution, how to measure corporate performance, key KPIs, and a best-practice example of new developments in corporate air pollution measurement and reporting.

2.1 The contribution of business

The European Environment Agency’s Zero Pollution Monitoring Assessment shows that, despite declines over the past decade, European industry remains a major pollution source, amplified by intensive production and consumption of imported products.¹⁷

Companies contribute to air pollution throughout the value chain. High-impact activities include electricity use, fuel combustion, transportation of materials, goods, and people, and waste disposal.¹⁸

Sector patterns vary. The energy industry emits large amounts of N₂O and SO₂; small combustion plants in residential, commercial, and service sectors emit significant particulate matter and CO.¹⁶ Road traffic produces particulate matter from tire and brake wear, while fuel combustion emits NOₓ and CO. Industrial process emissions include CO from metal production and particulate emissions from mineral extraction and bulk materials handling. Industrial solvent use is the largest source of NMVOCs. Agriculture is the main source of NH₃ in Germany due to emissions from soils and fertilizers; across the EU, about 75% of NH₃ comes from manure and 20% from inorganic fertilizers.¹⁹ Pesticide and insecticide application also releases harmful chemicals to air.²⁰ Waste and wastewater management emit smaller amounts of N₂O, NH₃, NMVOCs, and dust.¹⁶

An EEA assessment of 2008–2012 found that 29 of the 30 most damaging industrial facilities were power plants, mainly coal or lignite-fired.²¹ Across all E-PRTR sectors, power generation accounted for the largest share of damage costs. A separate EEA analysis of 2012–2021 found that just over 100 of roughly 10,000 facilities were responsible for 50% of total estimated damage.²²

2.2 Measurement of corporate sustainability performance related to air pollution

“All businesses, regardless of size and location, contribute to air pollution and need to play their part in cleaning up the air. Measuring and assessing air pollution emissions is the first step for companies to improve air quality. Reporting those emissions is crucial for increasing transparency and accountability in the private sector.” (Clean Air Fund, 2023)24

The Clean Air Fund highlights why measuring and evaluating corporate performance on air pollution is essential. Legal requirements are also expanding. Since 2006, the EU E-PRTR Regulation has required large industrial facilities (e.g., refineries, thermal power, major chemical complexes, large incinerators) that exceed capacity and pollutant thresholds to report emissions to national authorities; these data feed into the European Pollutant Release and Transfer Register covering 30,000+ facilities across 65 sectors.¹⁷

Air pollution is also included in the European Sustainability Reporting Standards (ESRS), which set uniform ESG disclosure criteria. Beginning with fiscal year 2024, around 50,000 EU-listed companies must disclose their impacts on air pollution, including strategies, resources, targets, and quantified emissions.²³²⁴

When disclosing emissions, companies should cover all facilities under their financial and operational control and report totals for pollutants aligned with E-PRTR. Reports should describe temporal trends, methodologies, and data collection procedures. If using methods less precise than direct measurement, companies should justify the approach and disclose sources, standards, and uncertainty.

Quantification methods fall into two categories: direct measurement and estimation using activity data and emission factors.¹⁸ Direct monitoring for stationary sources can include continuous emission monitoring systems (CEMS), which measure concentrations of key pollutants or surrogates; continuous opacity monitoring systems (COMS), which infer particulate levels from light transmission; and continuous parametric monitoring systems (CPMS), which track process or air pollution control device parameters like temperature or pressure.²⁵

Direct monitoring helps verify compliance and trigger corrective actions, but it is not feasible for all sources.²⁶ Where direct measurement is unavailable or too costly, emissions can be estimated from activity data and emission factors.¹⁸ The guide supports inventories for electricity consumption, stationary fuel combustion, transportation, industrial processes, agriculture, and waste, focusing on nine pollutants (PM2.5, PM10, black carbon, organic carbon, SO₂, NOₓ, NH₃, CH₄/NMVOCs, and CO).

Tiered methods balance practicality and accuracy. Tier 1 uses default emission factors and a simple linear relationship; Tier 2 incorporates country-, process-, or technology-specific factors; Tier 3 relies on plant-specific data and more complex calculations. Average emission factors (Tier 1) carry higher uncertainty when operating conditions, regional differences, or technology vintage vary; Tier 2/3 methods reduce uncertainty but require more detailed data and resources.²⁹¹⁸

Predictive Emissions Monitoring Systems (PEMS) can be a cost-effective alternative to CEMS for many turbines and boilers. PEMS interface with control systems and use process and historical emissions data to estimate emissions in real time, offering high accuracy and reliability at lower cost.³⁰ Portable Emissions Measurement Systems (PEMS) measure real-world emissions from engines in vehicles or equipment and are widely used in regulatory programs.³¹³²

3 Sustainability implementation

The implementation journey to reduce air pollutants spans five aspects: 1) switching to cleaner energy sources; 2) choosing sustainable materials; 3) using clean technologies and processes; 4) improving logistics and transport; and 5) enabling behavioral changes and training. The importance of each varies by business model and context. Progress toward net-zero air pollutant emissions requires engagement from management, employees, and stakeholders. A sustainability-oriented culture fosters innovation in products and services and can create alliances that accelerate clean-air outcomes.³³

Efficiency measures that reduce energy use often cut costs and emissions simultaneously. Leaner, cleaner operations can drive long-term business growth.

3.1 Switching to cleaner energy sources

Combustion of fossil fuels such as coal and oil is a major driver of air pollutants. Transitioning to renewable energy is therefore a priority.³⁴³⁵ Solar, wind, and hydropower are key alternatives. Transitioning is a multi-year process involving strategy, investment, and adoption of new technologies and business models to ensure long-term resilience.³⁶

Strategy starts with measurable targets and senior commitment. Measures include energy-efficiency upgrades (efficient lighting, optimized heating and cooling, energy management systems) and fleet/logistics improvements. On-site generation (e.g., solar or wind at facilities) can directly power operations. Companies can also procure green power via contracts or certificates; larger firms may invest in off-site projects (e.g., wind farms, solar parks) to reduce pollutant output,³⁷ while smaller firms can form cooperatives to achieve scale.³³³⁸

Transitioning can entail additional costs. For example, global energy-transition investment needs are estimated in the trillions of US dollars per year through 2050. Examples of progress include Alphabet (Google), which matched 100% of its electricity use with renewables in 2017 and is pursuing 24/7 carbon-free energy by 2030 via procurement, technology acceleration, and system transformation; in the past year, 64% of its electricity was carbon-free on a 24/7 basis.³⁹

3.2 Sustainable choice of materials

Resource extraction and processing generate air pollutants through energy use and process emissions.⁴⁰⁴¹ Responsible resource management is motivated by both environmental and economic reasons.⁴²

Access to cleaner materials depends on technology maturity and regional development. Certification schemes and supplier standards can steer purchasing toward responsibly produced inputs,³⁴⁴¹ typically verified through independent third-party audits.⁴⁴

Recycling offers another pathway. Circular economy practices—reuse, repair, refurbishment, remanufacturing, repurposing, and recycling—retain material value and reduce pollutant emissions from extraction and transport.⁴⁵ While end-to-end circularity is rarely achievable within a single company today, integrating circular solutions can reduce air pollutants and increase process efficiency. For example, Patagonia uses recycled materials (e.g., polyester from bottles, nylon from nets) and supports regenerative organic practices that enhance soil health and biodiversity.⁴⁶

3.3 Use of clean technologies and processes

Reducing pollutants often requires adjusting the business model and management systems: air quality assessment, damage assessment, abatement option evaluation, cost–benefit analysis, and control strategy selection. Life cycle approaches help identify impact hotspots and guide eco-design decisions at the product development stage, where most environmental impacts are locked in.⁴⁷⁴⁸⁴⁹

Given that much of the world’s energy still comes from fossil fuels,² improving combustion efficiency and deploying abatement technologies remain important. Solutions range from low-tech filters to high-tech electrostatic precipitators and flue-gas desulfurization, which can significantly reduce particulate matter and SO₂ emissions.⁵⁰ Selecting the right measures requires information about pollutant types, quantities, and properties; available space and locations; and statutory requirements. Ongoing auditing helps evaluate effectiveness and guide continuous improvement.

3.4 Sustainable logistics and transport

Logistics manages flows from origin to consumption, spanning material handling, production, packaging, transportation, inventory, and warehousing. As the link to customers and stakeholders, logistics must be part of environmental strategies, particularly while combustion engines in trucks, ships, and aircraft remain prevalent. Without intervention, growing freight volumes exacerbate harmful emissions.⁵¹

Sustainable logistics management defines environmental KPIs (e.g., energy use by source, packaging waste) and aligns them with operational and economic targets.⁵²⁵³ Measures include supplier engagement on clean energy, transport optimization (route planning, mode shift, load factors), and process optimization (e.g., lean practices) to minimize waste and emissions.⁵⁴⁵⁶

DHL illustrates initiatives such as investments in electric vehicles and alternative fuels, carbon-neutral shipping options, and packaging optimization, aiming for zero emissions by 2050.⁵⁷

3.5 Behavioral changes and training

Reducing air pollution requires engaging multiple stakeholder groups. Training employees on energy efficiency and sustainability can foster proactive emission-reduction behaviors.⁵⁸ Internal sustainability teams help embed new practices company-wide. Siemens, for example, established a sustainability academy and programs that encourage employee participation, promoting a “Green Culture” across operations.⁵⁹

External communication can also influence public attitudes and behaviors. Companies should tailor messages to stakeholder motivations, emphasize co-benefits (e.g., health), and use channels and narratives that activate social norms and a sense of collective responsibility.⁶⁰⁶¹

4 Sustainability drivers and barriers

4.1 Drivers

Regulations: In 1979, 32 pan-European countries signed the UNECE Convention on Long-range Transboundary Air Pollution, the first international treaty addressing air pollution at a broad regional scale, later expanding to a multi-pollutant, multi-effect approach.⁶²⁶³ In the EU, the Ambient Air Quality Directives set binding standards for key pollutants; the National Emission Ceilings Directive establishes national reduction commitments; and the Industrial Emissions Directive requires Best Available Techniques and permits with emission limits.⁶⁴⁶⁵⁶⁶

Finance: Green finance instruments can lower capital costs and reward strong ESG performance, enabling investments in cleaner technologies and renewable energy; these in turn improve air quality.⁶⁷⁷⁰ Toyota’s 2014 USD 1.75 billion green bond supported financing for hybrid and low/zero-emission vehicles.⁷¹

Stakeholders and social license: Rising public awareness and scrutiny drive firms to adopt cleaner practices and disclose more information, with tangible repercussions for failures (e.g., the Volkswagen diesel emissions scandal).
⁷²⁷⁵

Ecosystems and productivity: Protecting ecosystems preserves long-term productivity, particularly in agriculture where air pollutants can reduce yields and total factor productivity.⁷⁹⁸¹

Technology: Advances in cleaner production and emission control (e.g., FGD, electrostatic precipitators) enable large reductions in pollutants and help firms comply efficiently.⁸³⁸⁷

4.2 Barriers

Regulatory uncertainty and weak enforcement can deter investment. For example, changes to U.S. vehicle fuel-efficiency standards created uncertainty, though some manufacturers voluntarily adhered to stricter standards via a deal with California.⁸⁸⁹⁰

Technology and fuel availability can constrain progress. In shipping, liquefied natural gas (LNG) lowers SO₂ and NOₓ emissions but faces availability limits and methane-leakage concerns that can offset benefits.⁹¹⁹²

Intense market competition, especially in fast-moving consumer sectors like textiles, can push firms to prioritize costs over clean production, despite significant VOC emissions across the product life cycle and limited end-of-life recycling.⁹³⁹⁴ Some firms counter these pressures by focusing on product longevity and circular strategies (e.g., Patagonia’s Worn Wear).⁹⁶⁹⁷

High upfront investments and operational restructuring are additional barriers. Transitions to cleaner technologies (e.g., shifting to electric arc furnaces or hydrogen-based steelmaking) require significant capital and process changes, but can materially reduce pollutant footprints.⁹⁸⁹⁹

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