In the recent ‘2015 Paris Climate Conference’, the key points were ‘limiting global warming’, ‘to reduce greenhouse-gas emissions’, and ‘how to deal with unavoidable climate impacts’, which is immensely necessary for the survival of life on the earth. The point to be considered is, climate change threatening issues of industry, settlement, and society is chiefly related to extreme weather events rather than to gradual climate change.
Nowadays, over interest in the climate change is becoming an increasingly powerful economic driver, that a whole new industry has taken shape out of it and named as, the Climate Change Industry.
Today’s consumer is willing to pay for greener products. Especially in retail and consumer products, the customer is showing environmental consciousness and concentrating on what and where to buy, making companies of this and all the other sectors to act accordingly work on climate change issue.
From the time of sea voyages, business is always dependent on weather. In recent times, this concern over climate change is going to a higher level, which clearly indicates that now enterprises have to take a serious step towards a better tomorrow. And for all these companies will have to alter them according to the growing regulatory, environmental, and consumer pressures.
Risks related to the climate change
There are so many risks climate change poses, in concern with the different sectors of the enterprises which includes, physical risks, Price risks, Product risks, etc. making climate change a burning issue to be very concerned about.
Now, the rising amount and intensity of extreme weather events, like wildfires, floods, or hurricanes, means increased in physical risks, because all these calamities mean direct damage to the infrastructure and other assets, such as factories and supply-chain operations. This will result, affecting company performance in real and visible ways. These types of risks are out of control, but what enterprises can do is, taking a step further to be prepared in advance to fight against climate change.
Also, there is price risk, if any, climate calamity occurs, the prices of raw material will touch the sky. For example, drought can become a cause of the rise in water prices. Climate change can have one more effect on the industry and that is, product risks. You never know when a product becomes unpopular or unsellable, due to natural calamity.
So, what is the remedy on all over these mentioned and also many more unimaginable risks? What an enterprise as a responsible citizen of this world can do to overcome this? And most important, how can enterprises modify themselves to fight against climate change?
What an enterprise can do is to follow some of the major by following the process which can be explained as follow:
Develop a climate strategy:
The very first step to fight against climate change is ‘developing a climate strategy’. While developing a climate strategy, enterprises have to follow some important steps, like, evaluating emissions profile, which includes tracking the quantities of greenhouse gas (GHG) emissions, judging risks and opportunities posed or presented by emissions, calculating action options for reducing emissions and setting GHG reduction goals and targets.
Inward and Outward Focus
Focusing inward is a very important step after developing a climate strategy. It includes developing the financial mechanisms to support GHG reductions, and engaging the organization. This whole concept of climate change should be implemented focusing inward. On the other side, concentrating inward is not just sufficient, but outward concentration is also necessary, which includes formulating a policy strategy. Also, organization have to develop a mitigation strategy to manage external relationships.
Applying to the business
The most important thing about it is that climate change has a direct impact on the organization’s economy. Climate change issues can have a destructive impact on corporate operations and results. Organizations should introduce carbon-reducing ‘planet-friendly’ products. Some of the companies in the market have already started to introduce greener products. For example, the construction and infrastructure sectors are developing new products and services that serve to cleaner cities, such as electric-vehicle charging infrastructure, renewable integration, smart metering, smart grids, congestion-fee systems, and high-performance building technologies.
Some of the best examples to be followed
Companies working in the mining, transportation, travel, exploration, and building sectors should prepare for totally different new landscapes and related business models. To the other companies working in farming, tourism, and health care, temperature changes will cause migrations of people, plants, animals, and ecosystem services, changing the locations of the ingredients important for effective operations.
Major companies have already taken action against climate change by developing and implementing detailed strategies to reduce their impact on the environment, reduce their vulnerability to the extreme weather caused by climate change, and participating climate change-related market developments.
To fight against climate change some of the biggest organizations has already come forward and join hands. Organizations like, Google, Apple, Goldman Sachs and 10 other well-known companies have recently, joined the White House in launching the American Business Act on Climate Pledge, a campaign that, according to the White House spent $140 billion in low-carbon investments in the global economy.
This indicates the concern and the gravity of the climate change problem, setting an example before other organizations to be followed.