It's an implementation of namespaces. In other languages, at the top of your file, you'll often see things like...
#include <math.h>
or
require "Foo"
or
import x.y.z
Environments basically does that for Smalltalk. It's a way of breaking up the global namespace into smaller namespaces which don't ordinarily need to share state or behavior. I haven't used it yet myself though, so that's the limit of what I know about it, and I may be wrong about the various details.
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