Impact of Climate Change on Businesses

This report discusses the impact of climate change on businesses, including increased risk due to extreme weather, changes in resource availability and cost, changing demand, harsher working conditions, changes in regulations, and increased public pressure. It also explores how businesses can prepare for and manage these impacts.

Individual Report

TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6
INTRODUCTION
Climate change is the threat to the people with solid food and water scarceness, increased
flooding, intense heat, increased amount of disease and economic losses. It is also considered to

be the factor that affects the business both directly and indirectly. Climate is inextricably linked
to the society and this is the reason it affects all the business in the world.
MAIN BODY
Climate change has been recognized as the factor that has allowed the organization in
order to be able to continue with the larger effect that is going forward. In the most outstanding
ways in which the climate change works it has been able to consider the following,
Increased risk due to the extreme weather :
Due to the increased level of risk the weather is also considered to be the factor that
allows the business to gain the weather events that also includes the disruption, floods, droughts
and heat waves (Nambiar, 2019). In the coming years it has been found from the research that
the disruption of the operations of the business can also cause the extreme financial and physical
damage that can cause the weather to be extreme financial and physical damage. It can be said
that the weather is also the result of the direct reason that it creates climate change that increases
the risk, insurance costs for the many organizations also tends to increase.
Changes in Resource Availability and Cost :
It can be said that the extreme weather condition events have the possible of disrupting
the supply chain making acquiring the resources and substantial businesses face more challenges.
Due to the climate changes the business faces major issues related to the dangerous drought and
weather that is the pattern which changes and can also be the reason for causing shortage of cross
that are sued for the food products. Increase in the demand of electricity will also take place due
to the transportation expenses and it would also high the cost for going goods, regulatory
restrictions that are linked to the climate changes that can also grows the costs resources
insufficiency and also would drive companies to utilize the secondary material and recycle more
waste (de Abreu and et.al., 2021). This is the reason why climate change impacts the business in
the 21st century.
Changing Demand :
Due to the changes in the climate there is a significant change in the global temperature
that increases for example, demand for energy, oil and other fuel will also decline and also will
decrease the demand for winter goods. It is also considered to be the factor. This is also
considered to be the changes in the demand which is also helpful for the businesses to be able
prioritizes their operations towards the sustainability in the product. The shift in the demand

towards the environmentally friendly goods is which are helpful for the organization towards the
management of their operations. This is also due to the shift in the demand that has been able to
cause major issues to the businesses that is due to the result of the climate change.
Harsher Working Conditions :
Increase in the temperature is also considered to be the factor that is besides said to create
pollution that is able to invest the substantial funding that helps in the upgrading of their own
facilities. As the weather gets more challenging for the business to do their operations the
increases the total amount of costs that the business had to incur. It ultimately is the loss for an
organization which has invested its money in the organization for being able to complete the
operations (Bunch, 2020).
Changes Regulations :
Due to the changes in the regulations of the government that occurs due to the increased
level of pollution in the environment. There is a significant impact on the economy that is under
these companies for the course of understanding the working of the shift that is helpful for their
power generation (Newell, 2020). This considered to be very helpful for the shifting their power
generation towards the cleaners resources that are helpful for the business to be able to manage
the operations. Energy organizations of course are not yet considered to be working to shift the
power generate towards the cleaner resources. Hence, the businesses have started to increase
their focus towards the ways in which they can reduce the overall the carbon commission.
Increase Public Pressure :
The development public grows the accepting the of the business that don't work for the
reduction of the environment impacts. Increasing the consumers operations for products that are
considered to be sustainable for the production of atleast having smaller environment that is able
to gain the impact for the comparable products (Macchi, 2021). The companies are also
considered to be the one that are able to increase the expected social responsibility of the
organization. It is also important for the business to be able to donate funds and resources for
meeting the needs of the environment charities.
Business can analyse the risk that it might have to face due to the analysis that is able to
defined in order cope up with the changes that would result the business impacting the
environment performance. Companies are also considered to be the factor that are also helpful
for the identification of opportunities.

CONCLUSION
From the above report it has been concluded that climate change s going to impact most
of the types of businesses in one way or the other. There are other factors which the business
needs to considered is to be able to understand the areas that needs key performance towards the
growth. In this project the ways in which business can prepare for managing the areas that can
impact the climate change has been discussed.

REFERENCES
Books and Journals
Bunch, K.J., 2020. State of undergraduate business education: A perfect storm or climate
change?. Academy of Management Learning & Education. 19(1). pp.81-98.
de Abreu, M.C.S., an et.al., 2021. From “business as usual” to tackling climate change:
Exploring factors affecting low-carbon decision-making in the canadian oil and gas
sector. Energy Policy. 148. p.111932.
Macchi, C., 2021. The climate change dimension of business and human rights: the gradual
consolidation of a concept of ‘climate due diligence’. Business and Human Rights
Journal. 6(1). pp.93-119.
Nambiar, E.S., 2019. Tamm Review: Re-imagining forestry and wood business: pathways to
rural development, poverty alleviation and climate change mitigation in the tropics.
Forest Ecology and Management. 448. pp.160-173.
Newell, P., 2020. The business of rapid transition. Wiley Interdisciplinary Reviews: Climate
Change. 11(6). p.e670.
Online
How Climate Change Will Affect Businesses, 2018[Online]. Available through:
<https://www.renewableenergymagazine.com/emily-folk/how-climate-change-will-
affect-businesses-20181109>