5 Ways Climate Change Will Affect Business in the Future.
Climate Change has not only been an environmental problem but it has also been inextricably linked to nearly everything in society. It has already started impacting thousands of businesses around the globe and will continue to impact more. What are the main ways climate change can affect you and your business? We have a list below.
1) Increases Risk because of Extreme Weather
Climate change intensifies extreme weather events including floods, landslides, droughts, fires, and more. We might see these calamities causing extreme financial and physical damage to many businesses. It will be difficult for visitors or customers to contact your business, or for suppliers to deliver goods and services. Extreme weather explains why climate change raises business risk. Because of the high risk, the insurance cost for businesses is bound to rise.
2) Changing Demand
As the climate changes, demand will shift. According to an ongoing temperature analysis conducted by scientists on NASA, the average global temperature on Earth has increased by 0.8° Celsius. As the global temperature rises, the demand for summer goods decreases and the demand increases for winter products. Many customers now make sustainability their focus on the products they buy. The temperature issue has triggered millions of people and they are slowly demanding environmentally friendly goods.
3) Heightened Public Pressure
People have come upfront accepting climate change as a fact. Consumers are looking for products that have no or smaller environmental impact. We expect businesses to be socially responsible and take care of the environment by being involved in various charities. Big companies like Apple, Nestle, and IKEA have committed to 100 per cent renewable energy because of customers’ behaviour and growing trend.
4) Tough Working Conditions
As the weather pattern changes and we keep experiencing extreme temperatures, working becomes difficult in some industrial sectors and other business organization. Outdoor works that require a lot of physical work will be more challenging, the health and safety risk of the employees working in the industrial area will rise. Besides this, employees need regular breaks, hydration and keeping workers cool in extreme heat and warm in extreme cold, will be a necessity.
5) Amendments to Legislation
Regulations intended to mitigate and prevent pollution will have a great impact on businesses in the future. Companies producing high levels of discharges will have to invest tons of capital into upgrading their facilities to reduce and eliminate those hazardous products. Most large industries and energy firms are already working on moving their power generation to renewable resources.