Air pollution - The Sustainability Management Wiki

Authors: Leinemann, Schmidt, Voß
Edited by: Fynn Ermen, Eric Keller, Jonas Strauch, Ole Sütering
Last updated: March 25, 2026

Executive summary

Air pollution is the alteration of ambient air by chemicals, gases, and particulate matter at concentrations that harm human health, ecosystems, and property. Major pollutants include nitrogen oxides (NOₓ), sulfur dioxide (SO₂), ammonia (NH₃), carbon monoxide (CO), non‑methane volatile organic compounds (NMVOCs), and particulate matter (PM₂.₅ and PM₁₀). The impacts span respiratory and cardiovascular disease, crop yield losses, material damage, and sizable economic costs borne by firms and society.

Organizations influence air quality across their value chains. Material sources include stationary and mobile combustion, industrial processes, solvent use, agriculture, and waste management. A comparatively small number of facilities often drive a large share of damages, which underscores the importance of targeted controls. Companies can measure and manage their contributions through direct monitoring (e.g., CEMS/COMS/CPMS) and estimation using activity data and emission factors. Emerging approaches (e.g., PEMS and predictive systems) broaden coverage and reduce cost.

Regulatory and disclosure requirements are rising. In the EU, the E‑PRTR collects facility‑level emissions, and ESRS E2 requires companies to report air pollution strategies, targets, and quantified emissions, including methods and uncertainties. Practical guidance exists to estimate Scope 1–3 air pollutants, though data gaps in supply chains remain common.

Implementation levers include (1) switching to cleaner energy; (2) choosing lower‑impact materials and enabling circularity; (3) adopting clean technologies, product eco‑design, and abatement systems; (4) optimizing logistics and transport; and (5) investing in behavioral change and training. Progress depends on governance, investment, collaboration, and continuous improvement. Case examples illustrate both risks (e.g., enforcement actions and reputational harm) and opportunities (e.g., green finance, cost savings from efficiency, and competitive advantage).

Drivers of action include international and national regulation, market expectations, access to capital linked to sustainability performance, and technology advances. Barriers include regulatory uncertainty, technology availability, high upfront costs, and intense price competition in some sectors. A structured program—materiality assessment, measurement, target setting, roadmap, technology adoption, supplier engagement, worker training, transparent reporting, and assurance—helps organizations reduce air pollution while creating long‑term value.

1 Definition

The air organisms breathe is a critical natural resource essential for survival.¹ The composition of air fluctuates because of natural processes and human activity. The earth’s atmosphere—a layer of gases held in place by gravity—contains several components. On average, dry air consists of 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 mix of these constituents determines local air quality and, in turn, whether we classify conditions as polluted. Almetwally, Bin‑Jumah, and Allam (2020) define “air pollution” as the contamination of the ambient atmosphere by chemical substances, gases, or particulate matter (p. 24815).³ The World Health Organization (WHO) adds that harmful concentrations can damage health, vegetation, crops, and property, and interfere with their enjoyment.⁴ Major air pollutants include NOₓ, NMVOCs, SO₂, NH₃, CO, and particulate matter (PM₂.₅, PM₁₀).⁵ Many of these occur naturally at low levels; elevated concentrations make them pollutants. Other gases—such as O₃, CH₄, and greenhouse gases (GHGs)—are closely related because they affect climate and ecosystems, but they fall outside the narrow definition of air pollution (see Wiki entry on “Climate change”). Air pollution has persisted since humans first harnessed fire.² By the 1280s, coal had become a common fuel in lime production and metalworking, adding to air pollution.⁶ The late 18th century marked a pivotal shift as machine‑based manufacturing accelerated fuel demand and pollution. The Industrial Revolution increased primary pollutant volumes and spread impacts across more countries. Heavily polluted cities became a major concern, culminating in the Great Smog of London in 1952.⁶ Initially, Europe and North America emitted the most and bore the adverse effects.⁷ As SO₂ and NOₓ controls tightened in these regions, emissions surged in East and South Asia and led global pollution by the early 21st century. Air pollution poses unique challenges: unlike water in a contained system, we cannot easily replicate atmospheric conditions in a laboratory.² Many effects also manifest slowly, with full impacts apparent years later.⁸ Air pollution and climate change are tightly linked.⁹ The warming influence of a GHG or aerosol depends on its atmospheric lifetime and global warming potential. Because many sources emit both air pollutants and climate‑forcers, the issues and solutions are correlated. Plants show visible and physiological injury—from leaf discoloration and reduced leaf area to pathogen susceptibility—that lowers growth and yields.⁸ Terrestrial ecosystems suffer as soils degrade, harming plants and the animals that depend on them. One manifestation is acid deposition, which occurs as wet precipitation (rain, snow) or dry deposition (gases, dust).¹⁰ Consequences include lake acidification, depletion of soil minerals, release of toxic ions that contaminate drinking water, erosion of stone structures, and health issues from inhaled particles.

Air pollution is associated with chronic obstructive pulmonary disease, asthma, bronchitis, impaired lung function, and lung cancer.¹¹¹² It also affects behavior, productivity, and overall well‑being. Estimates attribute roughly 6.5 million deaths annually to air pollution, with most urban residents exposed.¹³ Firms both contribute to and are harmed by air pollution through lost labor productivity, higher health‑care costs, and reduced agricultural yields. Lost working days could rise from 1.2 billion in 2015 to 3.7 billion by 2060.¹⁴ In 2018, the global economy incurred costs of USD 2.9 trillion—about 3.3% of world GDP—due to air pollution.¹⁵

2 Sustainability analysis

In general, air pollution arises from natural and human sources. Natural sources include volcanic eruptions, wildfires, fog, and dust storms.³ Nature often regenerates from these events, while anthropogenic pollution—occurring in or near settlements—poses persistent risks.¹⁶ Traditional sources are combustion and industrial processes, transportation, solvent use, and agriculture.¹⁷ This article examines corporate contributions, performance measurement, key KPIs, and a best‑practice example of new developments in measurement and reporting.

2.1 The contribution of business

The European Environment Agency’s (EEA) Zero Pollution Monitoring Assessment shows that, despite declines over the last decade, European industry remains a major source of pollution because of intensive production and consumption, including imported products.¹⁸ Companies contribute through electricity use, fuel combustion, transportation of materials, goods and people, and waste disposal.¹⁹ Sector patterns vary: the energy industry produces large amounts of N₂O and SO₂; small combustion in residential, commercial, and service sectors emits significant particulate matter and CO; road traffic generates particulate matter from tire and brake wear and produces N₂O and CO through fuel combustion. Process emissions include CO from metal production and dust from mineral extraction and bulk handling. Solvent use in industry is the largest source of NMVOCs. Agriculture is the main source of NH₃ in Germany and across the EU, largely from manure and inorganic fertilizers.²⁰ Pesticides and insecticides also release harmful chemicals.²¹ Waste and wastewater emit smaller amounts of N₂O, NH₃, NMVOCs, and dust.¹⁷ An earlier EEA report (2008–2012) showed that 29 of the 30 costliest industrial polluters were power plants, mainly coal‑ and lignite‑fired.²² The power sector caused the largest share of damage costs, followed by manufacturing production and combustion. A subsequent EEA analysis (2012–2021) found that just over 100 of roughly 10,000 facilities accounted for 50% of the total estimated damage.²³

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 statement underscores the importance of measurement and evaluation. Legal requirements are expanding. The EU’s E‑PRTR Regulation (2006) requires large facilities—such as refineries, thermal power plants, chemical complexes, and waste incineration plants—to report emissions that exceed pollutant thresholds.¹⁸ The E‑PRTR now contains data from over 30,000 facilities across 65 sectors. ESRS sets uniform ESG disclosure criteria that include air pollution; starting with the 2024 financial year, roughly 50,000 EU‑listed companies must disclose their air‑pollution impacts. ESRS E2 specifies pollution reporting requirements.²⁵²⁶ Companies should disclose strategies, resources, quantitative targets, and total pollutant amounts for all facilities under financial and operational control, along with time trends, methodologies, data collection approaches, and uncertainties. If using estimation methods, they should cite standards and sources and explain uncertainties. Two quantification approaches are common: direct measurement and estimation using emission factors and activity data.¹⁹ Continuous monitoring systems (CMS) for stationary sources include continuous emission monitoring systems (CEMS), continuous opacity monitoring systems (COMS), and continuous parametric monitoring systems (CPMS).²⁷ Operators use these systems to verify compliance and prompt corrective actions.

A comprehensive picture often requires estimation where direct monitoring is infeasible or too costly.²⁸¹⁹ Emission factors express emissions per unit of activity. The 2022 Practical Guide developed by SEI, the Climate and Clean Air Coalition, and Inter IKEA Group provides methods across the value chain. Consequently, in 2023 IKEA published the first comprehensive, multi‑year outdoor air‑pollution assessment covering its entire value chain, and other firms followed.²⁴²⁹ The guide covers electricity, stationary combustion, transportation, industrial processes, agriculture, and waste. It focuses on nine pollutants WHO deems most harmful: PM₂.₅, PM₁₀, black carbon (BC), organic carbon (OC), SO₂, NOₓ, NH₃, CH₄, NMVOCs, and CO. Companies typically calculate direct, energy‑related emissions by multiplying purchased fuel quantities by published emission factors; for purchased electricity, they combine metered consumption with supplier or grid factors. For other sources, they use fuel consumption or distance traveled data with appropriate factors. Where possible, use source‑ and installation‑specific factors for accuracy. Tier 1 relies on default factors and simple linear relationships; Tier 2 and Tier 3 increase specificity and accuracy but require more detailed data. Average factors carry uncertainty, particularly if assumptions are outdated.³⁰¹⁹ Predictive Emissions Monitoring Systems interface with turbine control systems and use models based on process and historical data to estimate emissions in real time, offering high accuracy and lower cost relative to CEMS for many gas‑turbine and boiler applications.³¹ Portable Emissions Measurement Systems (PEMS) measure in‑use vehicle emissions and related parameters and are required for heavy‑duty vehicles in the EU.³²³³

3 Sustainability implementation

Companies can reduce air pollutants through five complementary aspects: (1) switching to cleaner energy sources; (2) choosing more sustainable materials; (3) deploying clean technologies and processes; (4) optimizing logistics and transport; and (5) driving behavioral change through training. The relevance of each depends on the business model and context. Pursued together, these measures can substantially lower emissions—ideally approaching net‑zero air pollutants over time. Achieving results requires leadership commitment, employee engagement, and collaboration with stakeholders. Rethinking products and services to align with sustainability goals—for example, by creating offerings that help customers reduce their footprints—also contributes to reductions. Alliances and partnerships can accelerate progress.³⁴

3.1 Switching to cleaner energy sources

Burning fossil fuels such as coal and oil is a major source of air pollutants. Transitioning to renewable energy is therefore a core strategy.³⁵³⁶ Solar, wind, and hydropower offer alternatives that reduce pollutant emissions. A successful transition requires strategy, investment, and adaptation to new technologies and business models to ensure long‑term resilience.³⁷ Start by setting measurable targets and securing management commitment. Improve efficiency (e.g., LED lighting, optimized HVAC, fleet electrification) and deploy energy management systems. Consider on‑site generation (e.g., solar PV, wind) and, where on‑site options are limited, procure green electricity or renewable energy certificates. Large companies may invest in off‑site projects such as wind farms or solar parks.³⁸ Smaller companies can pool resources through cooperatives to access clean energy at lower cost.³⁴³⁹ Transitioning can entail additional costs—global estimates for the energy transition reach into the trillions annually through 2050. Examples of corporate ambition include Google, which first matched electricity use with renewables in 2017 and now pursues 24/7 carbon‑free energy by 2030 through procurement, technology, and systems change; in the past year, 64% of its electricity was carbon‑free.⁴⁰

3.2 Sustainable choice of materials

Resource extraction and processing emit pollutants via energy use and process emissions.⁴¹⁴² Poor practices can also degrade local environments and reduce natural pollutant uptake capacity. Economic and environmental arguments favor better resource management.⁴³ Technology choices and regional development shape which materials are “cleaner” at a given time and place. Advanced methods can cost more initially, driving some firms toward cheaper, more polluting options. Supply risk also matters: deposits and processing capacity for critical minerals are concentrated in a few regions, sometimes in politically unstable areas, which adds risk.⁴⁴ Companies should manage availability (on‑time supply at reasonable cost) while shifting to lower‑impact inputs. Options include sourcing certified materials and using third‑party audits to verify environmental performance.³⁵⁴²⁴⁵ Circularity further reduces air pollution by keeping materials in use through reuse, repair, refurbishment, remanufacturing, repurposing, and recycling. Tighter loops generally save more resources and emissions.⁴⁶ Patagonia illustrates these ideas by using recycled inputs (e.g., polyester from bottles, nylon from fishing nets) and supporting regenerative practices.⁴⁷

3.3 Use of clean technologies and processes

Reducing pollutants may require changes in products, processes, and management systems: assessing air‑quality impacts, quantifying damage, evaluating abatement options, conducting cost‑benefit analysis, and implementing control strategies. An environmental life‑cycle approach helps compare alternatives and optimize designs.⁴⁸ Eco‑design sets product requirements that minimize impacts across the life cycle, including air emissions; in some cases, specific quantitative requirements are justified.⁴⁹⁵⁰ Because fossil fuels still provide most global energy, combustion and certain chemical processes remain major emitters.² Firms can both improve process efficiency and install end‑of‑pipe controls, from low‑tech filters to electrostatic precipitators, to cut emissions.⁵¹ Select solutions that minimize energy and chemical use. Choosing appropriate equipment requires information on quantities, concentrations, physical/chemical properties, space, locations, and regulatory requirements. Audits help verify abatement effectiveness.

3.4 Sustainable logistics and transport

Logistics manages flows from origin to consumption across material handling, production, packaging, transportation, inventory, and warehousing. As the interface with stakeholders, logistics significantly affects the environmental footprint, particularly where ships, planes, and trucks still rely on combustion engines. Without intervention, growing freight volumes will increase harmful emissions.⁵² Sustainable logistics management improves supply‑chain performance while reducing impacts.⁵³ Start by defining environmental KPIs—e.g., packaging waste and energy use by source—and assessing operations.⁵⁴ Then optimize transport: plan efficient routes, reduce empty miles, improve load factors, and select modes that balance time, cost, and environmental performance—recognizing inherent trade‑offs.⁵⁵⁵⁶ Lean manufacturing complements these actions by removing waste in transportation, inventory, motion, waiting, and processing.⁵⁷ DHL’s GoGreen program shows sector ambition through investments in electric vehicles, alternative fuels, carbon‑neutral shipping, and low‑impact packaging, with a goal of zero emissions by 2050.⁵⁸

3.5 Behavioral changes and training

Employee engagement is essential. Training on energy efficiency and air‑quality practices fosters awareness and empowers teams to find reductions in their areas.⁵⁹ Establish internal sustainability forums to spread knowledge and solicit ideas. Siemens, for example, created a sustainability academy and encourages staff participation in initiatives that promote a “green culture.”⁶⁰ External communication also matters. Beyond brand promotion, effective messaging can change public attitudes and behaviors related to air pollution—by appealing to health, activating social norms, and emphasizing collective responsibility.⁶¹⁶²

4 Sustainability drivers and barriers

4.1 Drivers

Regulations—air‑quality standards, emission limits, and bans—remain central. In 1979, 32 pan‑European countries signed the UNECE Convention on Long‑range Transboundary Air Pollution, the first broad regional treaty on air pollution.⁶³ It entered into force in 1983 and built an institutional framework that integrates research and policy.⁶⁴ Over time, protocols expanded to cover ground‑level O₃, persistent organic pollutants, heavy metals, and particulate matter, culminating in multi‑pollutant, multi‑effect approaches such as the 1999 Gothenburg Protocol. EU rules include the Ambient Air Quality Directives (2008), the National Emission Ceilings Directive (2016), and the Industrial Emissions Directive (2010/75/EU), which requires best available techniques and permits with emission limits.⁶⁵⁶⁶⁶⁷ In addition to these European regulations, the World Health Organization (WHO) plays a crucial role as a normative driver for air pollution policy. In 2021, the WHO published revised Air Quality Guidelines, which set significantly stricter thresholds for key pollutants such as NO₂, fine particulate matter (PM2.5 and PM10), and ozone (O₃). For instance, the annual guideline for PM2.5 was reduced from 10 µg/m³ to 5 µg/m³, and for NO₂ from 40 µg/m³ to 10 µg/m³.⁶⁸ These thresholds are based on extensive epidemiological evidence showing severe health effects even at lower concentrations than previously assumed.⁶⁹ Although the WHO guidelines are not legally binding, they serve as a scientific benchmark and strongly influence policymaking. In the European Union, the revision of the Ambient Air Quality Directive launched in 2022 explicitly refers to aligning EU limit values more closely with WHO recommendations.⁷⁰ Consequently, member states are expected to face stricter legal requirements in the coming years, which may require companies to adjust their environmental management systems to remain compliant.

Capital markets increasingly reward credible pollution reduction. Evidence links green investments and better ESG performance with tighter spreads and improved access to financing, including green bonds and sustainability‑linked loans.⁷¹⁷²⁷³ Toyota’s 2014 green bond financed low‑ and zero‑emission vehicles.⁷⁴ Public expectations and scrutiny also drive change. Air pollution exposure is associated with social conflict and reputational risk, which motivates firms to improve practices and disclosure.⁷⁵⁷⁶ Volkswagen’s 2015 diesel emissions scandal illustrates the costs of non‑compliance: fines, legal action, and lasting brand damage.⁷⁷⁷⁸ Civil society and communities increasingly use litigation to enforce clean air. After a 2018 fire at U.S. Steel’s Clairton Coke Works, environmental groups won a record‑breaking settlement that funded improvements and fines.⁷⁹⁸⁰ Ecosystem preservation provides another driver. Agriculture depends on healthy soils and biodiversity; air pollution degrades both and reduces productivity through acidification and ground‑level ozone.⁸¹⁸² Technological innovation—from FGD to electrostatic precipitators—enables large reductions and improves efficiency.⁸³⁸⁴

4.2 Barriers

Regulatory uncertainty and weak enforcement complicate planning and investment. In the United States, changes to fuel‑economy standards created uncertainty; some automakers nonetheless agreed with California to pursue stronger standards.⁸⁵⁸⁶⁸⁷ Technology availability can also constrain progress. Shipping is adopting liquefied natural gas (LNG) to reduce SO₂ and NOₓ, but limited supply, fleet compatibility, and methane leakage challenge its net benefits.⁸⁸⁸⁹ Intense price competition can deter investments in abatement—e.g., the fast‑changing textile sector emits VOCs during production and sees significant end‑of‑life emissions from landfilling and incineration.⁴⁵⁹⁰⁹¹⁹² Patagonia shows an alternative model focused on durability, repair, and recycled materials.⁹³⁹⁴ Finally, high upfront investments and operating changes can be daunting. Transitioning to cleaner technologies can require capital and new expertise, as shown by steelmaking shifts to electric arc furnaces and hydrogen‑based routes.⁹⁵⁹⁶

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