New legislation imposes binding limits on the carbon emissions that a company's factories may produce, which will require expensive changes to its plant. In a PESTEL analysis, the emission limits themselves are best classified under which headings?

Correct answer: A) Environmental and legal

Explanation

The limits concern the natural environment (pollution and climate change) and are binding because they are imposed by legislation, so they fall under the environmental and legal headings. The policy debate that led to the law has a political dimension, but the stem asks about the binding limits themselves. They are not social factors, and although the company may need new technology to comply, the limits are not a technological factor in themselves.