Impact of Climate Change on Businesses and Importance of Sustainability

Individual Report

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................1

INTRODUCTION
Climate change means change in the patterns of climate at global or regional level.
Climate change is the root cause behind the occurrence of natural calamities such as droughts,
floods, tsunami, etc. Climate change results in damaging homes, expensive insurance, in
appropriate conditions for outdoor working etc. In this report the explanation of problems that
are faced by the businesses across the world due to climate will be done with the help of certain
examples. The term environment sustainability is used to refer to the responsibility of the
individual or business to protect the natural resources and use it in a way that it last optimally
meeting the requirements of both present as well as the future. Further the steps that can be
incorporated by the businesses for reducing their carbon footprint will be discussed. The report
will outline the importance for businesses to maintain a sustainable approach in their operations.
MAIN BODY
The term climate is used for referring to the average weather of a particular region for a
long period of time. The types of climate namely are as: Tropical, dry, temperate, continental and
polar. Shifts in the patterns of temperatures and weather over a long period of time is referred to
as change in climate. There are major implications of change in the climate of the Earth over the
businesses and professionals involved in policy making. The impact of climate change is seen
over business in number of ways.
The first impact over the businesses is in the form of the capital expenditures that are to
be incurred over the systems inbuilt for emission control. A hefty amount of money is incurred
by some companies on the upgradation of the facilities that cause pollution and over the
deployment of systems that supports controlling of emissions (Rolnick and et.al, 2022). These
things are to be done by the businesses for complying to the regulations that have been laid down
for the greenhouse gas emissions. It becomes problematic for the businesses if they fail to meet
such regulations. Compiling to the regulations results in incurring capital expenditures whereas
not adhering to such regulations will cost in the form of legal proceedings and good market
reputation. The energy and utility companies are the ones that are most affected by such
regulations (Hofmann and Jaeger‐Erben, 2020). So the companies working in the energy industry
have to install the expensive equipment and systems for meeting the regulations.
Another issue that becomes problematic for the companies are the cap and trade policies.
These policies are formulated with the aim of lowering carbon emissions. For achieving this aim