environment vs situation

environment and situation both are nouns.

Word	Noun	Adjective	Verb	Adverb
environment	Yes	No	No	No
situation	Yes	No	No	No

As nouns, situation is a hypernym of environment; that is, situation is a word with a broader meaning than environment:

environment: the totality of surrounding conditions
situation: the general state of things; the combination of circumstances at a given time

Other hypernyms of environment include state of affairs.

environment (noun)	situation (noun)
the area in which something exists or lives	a job in an organization
the totality of surrounding conditions	physical position in relation to the surroundings
	the general state of things; the combination of circumstances at a given time
	a condition or position in which you find yourself
	a complex or critical or unusual difficulty