The z2 environment is a new approach to managing the lifecycle of Java solutions that aims to eliminate complex build systems, improve integration between components, and simplify operations like development and scaling. It works by loading updates directly from source control repositories, compiling code on the fly, and defining an entire solution within a single repository structure called a system. This system-centric approach is demonstrated using a travel portal application with 250,000 lines of Java code. While z2 is not intended to replace build tools like Maven, it is well-suited for developing integrated solutions.