Climate Change and Innovation

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Table of Contents
Introduction....................................................................................................................................3
Case study: Effects of climate change on food stores in the UK...............................................4
Extreme weather........................................................................................................................5
Constrained resources and high costs......................................................................................6
Shifting demand.........................................................................................................................6
Unfavorable working conditions...............................................................................................7
Regulations.................................................................................................................................7
Public intervention.....................................................................................................................8
The innovation theory.................................................................................................................10
Disruptive innovation..............................................................................................................10
Incremental innovation............................................................................................................11
Breakthrough innovation........................................................................................................11
Game-changing innovation.....................................................................................................12
Disruptive innovation in the food industry...............................................................................12
References.....................................................................................................................................15

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Introduction
Every business operating under normal business environment is exposed to a lot of
challenging factors that in one way or another if not well addressed may render the business
obsolete or on the other hand act as an opportunity for strategic survival technique to of the
business. The major concern in the business world today is the effects of climate change which
come in different forms and affects different types of businesses in varying capacities. Every
business type, however, is prone to the ills of climate change which either affects the business
directly or indirectly. Schiano (2018) points out that the effects of climate change are so intense
that businesses and other enterprises will have to undergo a transition in order to acclimatize
with the new order of the day as far as climate change is concerned and to avoid extinction.
According to the United Nation’s Intergovernmental Panel on Climate Change report of
2018, climate change is headed the uncontrollable way. With a higher level of confidence, the
report points out that the period between the year 2030 and the year 2052, the world is likely to
receive a 1.5 degree Celsius of climate change which has far more devastating effects than what
is currently underway. This change will bring in its wake a higher level of global warming likely
to cause an irreversible change full of damages to livelihoods in varying degrees such as health-
related risks, negative impacts on food security, dwindling and/or stagnated economic growth,
human security, supply of water among other unforeseen risks (IPCC, 2018).
Therefore, it is all evident that with the current practices in different business sectors such
as the industrial and energy production areas, there is a likelihood that climate change is
something that is here to stay. Unless combating strategies are put in place to contain the rapid
increase in climate change to sustainable levels, there is every chance that high levels of climate
change are going to be achieved which will bring with it far much devastating biting effects to

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humanity and all its associations. The Economist (2019) points out a new paradigm shift in doing
business and most companies now focused on participating in the reduction of climate change
using different strategies. Volkswagen company, for example, informed its suppliers to cut down
in carbon and other greenhouse gas associates emission into the environment or run the risk of
losing their customs. There are a number of regulations and policies that are implemented in both
national and international fronts to curb the biting consequences of climate change. This is a step
towards the right direction for the survival of future generations and businesses in general.
Case study: Effects of climate change on food stores in the UK
Even though the effects of climate change could impact all businesses in an economic
environment, some businesses are far much at risk as compared to their counterparts in other
sectors. The impact of climate change in the motor and engine industry, for instance, cannot
favorably compare to businesses in the agricultural industry. The climate change impacts are far
much reaching in the agricultural and food-related sectors than it bites in other sectors. Impacts
of climate change in non-agricultural sectors may be considered a negative externality which
indeed bites the economy indirectly. Confino (2014) observes that Asda, a subsidiary of Walmart
and a dealer in fresh agricultural produce is already running the risk of its business affected by
climate change. According to Confino (2014), 95% of Asda’s range of agricultural products sold
is at risk of climate change which in essence implies that climate change is progressively biting
businesses and if left to continue, businesses may pack up. This section will, therefore, consider
the impacts of climate change in the food and agricultural industries in the UK and will also
lightly summarize the other indirect effects of climate change in other non-agricultural sectors.