Impact of Climate Change on Businesses and Recommendations to Reduce Carbon Emission

This report discusses the adverse impact of climate change on businesses, including changes in demand, regulations, weather patterns, and resource availability. It also provides recommendations for businesses to reduce their carbon footprint, such as minimising energy consumption, selecting sustainable suppliers, and practicing the 3R's (reduce, reuse, recycle).

INDIVIDUAL REPORT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Analysing the effect of climate change over businesses across the world..................................3
Recommendations for the businesses to reduce the carbon emission.........................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Climate change is the long term changes within the temperature and weather instance, it is
threatening the human kind with causing serious problem like extreme warming climate, water
and food scarcity as well as economical loss (Woetzel, Pinner and Samandari, 2020). Shifts
within the environment can be natural as from variations in solar pattern, but human activities are
major responsible for the climate change because of their day to day activity like burning of
fossil fuel. Climate change have the adverse impact over the businesses around the world, as
warming planet is developing the potential risks for the business as it disrupting the supply chain
of businesses as well as increasing the insurance costs. Following report will cover the
description of climate change and its impact over the business thoroughly, it will also discuss
some recommendation or ways for the businesses to reduce their carbon footprints from
environment.
MAIN BODY
Analysing the effect of climate change over businesses across the world
Climate change is the international threat which is creating life threatening situation for the
mankind, frequently changes in climate driving many changes in environment as heat waves,
storms, floods and other natural calamities affecting the ecosystem. As changes within the
weather is posing the certain risks for the organisations around the world to run their business.
here below is some problematic situation for the businesses because of climate change are as
follows:
Changes in demand: Due to climate change demand in the market is shifting, as rise in global
temperature there is high declination in winter products such as heating oil. because of the
warmer planet customer in the market are not preferring the cold weather products, which is the
major loss for the business around the world whose main products are cold products (Sharma and
et.al 2020). Also changing consumer behaviour within the market is also affecting the business
operability as customer shifting their perception towards the sustainable products also they buy
product from the organisation who is committed to sustainability. Even the businesses which are
not operate in energy but still they are indirectly impacted by the energy regulations and the total
price they create.

Changing regulations: Regulations are made and implemented to control the pollution it has
notable effect over business. it is essential for the businesses to comply with the regulations and
control their greenhouse gases emission otherwise they will have to pay heavy fine for it.
Because of this cost burden is also increasing for the businesses to install the energy emission
control system and to utilise the approaches for reducing the greenhouse gases effect.
Changing weather patterns: Climate change is expected to drive major changes within the
weather pattern across the world (Mikhaylov and et.al 2020). Storms are expected as more
challenging for the businesses and possibly gives negative consequences for the businesses.
Because of this international shipping can be more vulnerable, due to this Farming areas are
decimated, coastal communities and other things are repeatedly suffering.
Changes in resource availability and cost: Warm weather is the biggest threat for the supply
chain as getting the raw resources and other sources on time is quite challenging for the
companies to avail it. Sever draught has cause the major obstacles for the farmers to grow crops,
as shortage in the crops and other materials is disrupting the supply chain, as crops that used for
apparel and making of other goods are in danger (Scott, Hall and Gössling, 2019). Also increased
cost for logistics and electricity is also enhancing the costs for moving of the goods. Regulatory
restrictions over the goods is also linked with the climate change. Unavailability of the resources
forcing businesses to shift their services and to use the resources alternative which cannot be cost
effective.
Recommendations for the businesses to reduce the carbon emission
There are some ways which the businesses can proceed to approach with which are
discussed below:
Minimise the energy consumption: For the businesses it is essential for them to decrease their
use of energy as to turn off the lights and other machinery equipment after the office hours ends,
as lights and other machinery equipment generally consumes more energy (Seddon and et.al
2020). Also to pay more attention towards the daily routine activities and adapt the green work
place culture where the workforce is very well familiar to the recycle, source reduction and other
terms.
Select sustainable suppliers: It is most important to have the supplier who are committed to the
sustainable policy, thus in such businesses are in plus point, therefore organisations need to

proceed with connecting with suitable suppliers who have the certificate of their good
sustainable practice it is also important to ensure that suppliers must comply with the regulations
and also to choose supplier who provide the proof as they are not employing children for work.
Reduce, reuse and recycle: Businesses are required to familiar with 3R’s as they are the
important factors for helping the businesses to move towards sustainability and control their
carbon emission (Baldauf, Garlappi and Yannelis, 2020). As to think about the sustainable
procurement can be an better approach to engage workforce to reduce the consumption of things
such as paper, food, water, phones etc. as production of all this things are directly associated with
the carbon footprint. Buying recycled paper and refurbished gadgets are better way for reducing
the carbon emission.
CONCLUSION
It has been summarised from the above that climate change has posed the major threat for
the planet, its adverse effect over the environment is creating hazardous situation for the humans
and animals, as well as it is affecting the business operation and created threats situation for the
organisations. Above report have discussed the description about climate change and its major
contributor, it highlighted the challenges which the weather change is causing for the businesses
around the world that covers the changes within consumer behaviour, changes in demand. It
further illustrated the sort of recommendations for the businesses to proceed with in order to
reduce their carbon emission which is the major contributor in driving changes within climate.

REFERENCES
Books and Journals
Baldauf, M., Garlappi, L. and Yannelis, C., 2020. Does climate change affect real estate prices?
Only if you believe in it. The Review of Financial Studies. 33(3). pp.1256-1295.
Mikhaylov, A. and et.al 2020. Global climate change and greenhouse effect. Entrepreneurship
and Sustainability Issues. 7(4). p.2897.
Scott, D., Hall, C.M. and Gössling, S., 2019. Global tourism vulnerability to climate
change. Annals of Tourism Research. 77. pp.49-61.
Seddon, N. and et.al 2020. Understanding the value and limits of nature-based solutions to
climate change and other global challenges. Philosophical Transactions of the Royal
Society B. 375(1794). p.20190120.
Sharma, P. and et.al 2020. Managing uncertainty during a global pandemic: An international
business perspective. Journal of business research. 116. pp.188-192.
Woetzel, J., Pinner, D. and Samandari, H., 2020. Climate risk and response: Physical hazards
and socioeconomic impacts.