Implications of climate change for business development and capabilities to build a sustainable organisation in a complex and changing environment

This report discusses the evidence for climate change and how it could be problematic for organisations throughout the world. It also explores the capabilities and attributes essential for achieving success of business in a dynamic and complex environment. The report highlights the operational impact, scarcity or resource cost, political or regulatory uncertainty, reputational damage, enhanced insurance costs or lack of insurance availability, capital expenditures for emission control systems, cap and trade rules, and changing weather patterns as ways in which climate change is already influencing businesses throughout the world.

Building a sustainable
organisation

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Task A..............................................................................................................................................3
Task B..............................................................................................................................................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Climate change is a constraint to the process of development and sustainable
development is a key to the capacities in order to mitigate and adapt. Within sustainable
organisation, the aspect related to climate change, profitability and social commitment are in
harmony (Bolmsten and Kitada, 2020). This report is based on two tasks in which the first task
will discuss on the evidence for climate change along with an evaluation of how climate change
could be a challenge for organisation throughout the world using certain examples. In addition to
it, the second task of this report will include an explanation on capabilities and attributes that are
essential for organisational success within dynamic environment.
MAIN BODY
Task A
Briefly, discuss the evidence for climate change and evaluation of how changes in climate could
be problematic for organisations throughout the world with suitable examples
Climate change is defined as long-term shifts within the temperatures as well as weather
patterns. Widespread improvements in the quality of life of most of the people of the world have
gone hand-in-hand with enhanced demands on natural resources. Climate change leaves a wide
number of ways within the natural universe. Ongoing changes within the climate are being
controlled by a large number of sensors in space, on the land surface along with on as well as
below surface of oceans of the universe. Climate changes of last 200-300 years have been
authenticated by instrumental records as well as in any other form. This written material and
records give data regarding the changes in the climate in few areas for last some of the hundred
years. Climate is impacted by a large number of factors which function at such timescales which
are ranging from hours to million hundred years (Elia, Margherita and Petti, 2020). Most of
grounds of climate change are extrinsic to Earth System while others are part of system of Earth
however, are extrinsic to the atmosphere. However, others include fundamental interaction
between atmosphere as well as some other factors of the Earth system are are together
represented as feedbacks within Earth system. Feedbacks are considered as the most latest
revealed as well as critical casual components for studying. However, such kinds of elements are
increasingly identified as playing basic roles within the climate change. The evidence for the
climate change describes that hotter weather has begun melting the glaciers as well as warming

the oceans in such a way that it triggers rising the sea level. The global mean sea-level rose by 7
centimetres within just 25 years. Some of the seaside cities around the global world are already
losing their coasts in order to enhance the sea-levels.
Businesses are feeling the pain of climate change as it is influencing the business and its
operations in a great way. The world is at a top point when it comes to the aspect of climate
change and more than 80% of the initiatives are concerned as per Deloitte Global's 2021 Climate
Check report. Perhaps, it is due to the most of the global organisations which are already starting
to feel the adverse impacts of the climate change (Franco and Tracey, 2019). The hotter planet is
causing a great number of challenges for the organisations from discontinuous supply-chains to
enhance costs of insurance to labour risks. Climate change as well as intense weather cases such
as hurricanes, fires and floods, for instance, are directly influencing 70% of all the economic
sectors globally. The events related to climate are already impacting over 1 within 4
organisations globally as per the global report of Deloitte. Public sector, healthcare and
consumer industries are the most worried regarding the business influences of the climate change
with more than 80% of the initiatives within such sectors showing apprehension regarding the
future of the planet. There are some of the ways in which the climate change is already
influencing the businesses throughout the world. These ways are discussed as under:
 Operational impact: It is one of the major way through which the changes within the
climate are impacting the businesses throughout the world. As nearly 3 in 10
organisations are observing the influences associated with the operations of disasters
associated with climate such as facilities damage as well as disruption of workforce.
 Scarcity or resource cost: Resources such as energy, water as well as food are at risk
because of both of the caused concerned with human as well as environmental activities
along with the energy and consumer industries which are covering the most influence
(Hinch and et.al., 2020).
 Political or regulatory uncertainty: Figuring out the topmost aspects, more than a
quarter of initiatives state they are on guard regarding the political variability as well as
regulatory environments. Banking sector as well as healthcare industries irresistibly cited
this as the problem associated with the climate change influencing their sustainability
efforts the most.

 Reputational damage: It is another kind of way in which climate change has a great
impact on the businesses throughout the world. Efforts related to environmental
sustainability are becoming the key tenets of the culture of organisation as well as brand
identity.
 Enhanced insurance costs or lack of insurance availability: Initiatives are very much
aware of how the events which are related to the climate have resulted in dramatic
increases within the insurance costs of the businesses in some of the cases.
 Capital Expenditures for Emission Control Systems: Some of the organisations have
been needed to invest crucial amounts of money on upgrades in order to pollute facilities
and on installation of emission control systems for the purpose of complying with the
regulations on the greenhouse gas emissions (Larimer and Gannon, 2020). The
organisations hit most through these needs include utility and energy businesses which
operate power plants and refineries.
 Cap and Trade Rules: The objective of Cap and trade policies as well as rules is to
minimise the carbon emissions through placing an upper limit on the amount of pollution
can be emitted by an organisation and permitting businesses to sell any of the unutilised
allowances to other organisations.
 Changing Weather patterns: Climate change is foreseen to change the patterns of
weather across the global world according to the report of SEC 2010. This experience has
since been repeated by most of the other resources such as United Nations, the American
Meteorological Society and the National Aeronautics and Space Administration (NASA).
Storms are foreseen to becomes much intense with multiple of adverse situations for the
businesses. These could spread well beyond the actual losses for insurance-based
organisations (Mondal and Sahoo, 2020). International shipping could also become more
dangerous and long-developed agricultural places could be decimated.
Task B
Discussion on capabilities and attributes which are essential for achieving success of business in
a dynamic as well as complex environment
Change is considered as a key element to the success of an organisation and within this
modern era, the ability to change is a need for the success of the business. Within a complex and
changing environment, the attributes as well as the capabilities are significant for the success of

the organisation for the purpose of developing a capability model and to view the functions of an
organisation and discover the capabilities behind that function. It results in the capability models
which are tightly in relation to the functions as well as organisational design. In context to the
complex and changing environment, there are some of the attributes and capabilities which are
essential for the success of the organisation. These attributes and capabilities are discussed as
under:
 Strategic thinking: It is considered as a major skill which van facilitate an organisation
in the process of creating change management plans (Penmetsa and Bruque-Camara,
2021). It is significant to be able to gain the understanding of the requirements of the
business and how a change can meet those needs. In such manner, the organisation can
develop a strong plan in order to provide guidance to the organisation through a complex
and changing environment. The plan must cover a timeline of the change, a deadline for
the change to be accomplish, accountabilities of manpower and particular tasks essential
to make change.
 Project Management Capabilities: It is another kind of capability which can also be
useful within the change management. Experience in the project management can provide
assistance to the businesses in gaining the understanding of the components of making a
complex and changing environment within the organisation. These cover change
management plans, organisational resources, outcomes, accountability and many other
elements. The project management capabilities can also facilitate an organisation in
evaluating the change and ascertaining how to keep it on track in order to achieve the
success of the business in an effective manner.
 Analytical capabilities and skills: The complex as well as changing environment of an
organisation also needs analytical capabilities and skills (Rodriguez, Svensson and Otero-
Neira, 2019). The business can use analytical capabilities and skills for the purpose of
gaining the understanding of the research and frame the best and effective decisions for
the organisation. For instance, am organisation could analyse the financial information of
a business for estimating how a proposed change would impact the revenue of the
company.
 Researching attributes: Within a complex as well as changing environment, the process
of developing researching attributes can facilitate an organisation in planning for the

change. The business can research the changing and complex environment strategies
along with methodologies used by other businesses in order to overcome with the ideas
for the changing environment of business.
 Measurement and Analysis: In context to the complex and changing environment, an
organisation need the capability to measure the progress as well as ensure the changing
environment achieves the outcomes it is meant to (Singh, 2018). The business requires
the capability to identify the Key Performance Indicators (KPIs) for the purpose of
measuring the success of the project on the basis of the objectives and goals. If an
organisation measure KPIs both before as well as after the complex and changing
environment, then it will be able to understand for sure that what effect the organisation
has and it would also be able to prove its outcomes.
 Collaboration: It can be defined as an aspect of management wherein individuals work
together in order to attain shared goals and aspirations of the specific organisation.
Collaboration complies and the workforce to drive for better performances and acquire
heightened results in their area of operation. Thereby, it can be said that collaboration
elevates the current performance of the business and all increase the potential for the
capitalisation for further enterprise goals in a more productive mannerism within a
complex and changing environment.
 Adaptability attributes: Adaptability refers to the ability and capability of an
organisation in order to give up the current skills, technologies and processes which have
resulted to its past success as well as develop new skills and approaches which make sure
the success of the business in a changing environment (Yadav and et.al., 2022).
Organisations require to be adaptable just to survive and highly adaptable in case it
expect for driving the change and thrive.
CONCLUSION
From above explanation of the report, it has been concluded that sustainability of a
business is useful for the purpose of increasing competitive strengths of an organisation as well
as enhancement in its user-friendliness. In order to run a business in a sustainable way, a
company is needed to use its own resources economically and minimise the adverse impact of
environment. Within this report, there has been a discussion on the evidence for climate change
as well as problems related to climate changes which are faced by business throughout the world.

Moreover, there has been a critical discussion on the attributes as well as capabilities which are
significant for an organisation to achieve success within a typical and changing environment.

REFERENCES
Books and Journals
Bolmsten, J. and Kitada, M., 2020. Agile social learning–capacity-building for sustainable
development in higher education. International Journal of Sustainability in Higher
Education.
Elia, G., Margherita, A. and Petti, C., 2020. Building responses to sustainable development
challenges: A multistakeholder collaboration framework and application to climate
change. Business Strategy and the Environment, 29(6), pp.2465-2478.
Franco, I. B. and Tracey, J., 2019. Community capacity-building for sustainable development:
Effectively striving towards achieving local community sustainability
targets. International Journal of Sustainability in Higher Education.
Hinch and et.al., 2020. Academic-practice partnerships: Building a sustainable model for Doctor
of Nursing Practice (DNP) projects. Journal of Professional Nursing, 36(6), pp.569-
578.
Larimer, K. and Gannon, M., 2020. The Poets & Writers Complete Guide to Being a Writer:
Everything You Need to Know About Craft, Inspiration, Agents, Editors, Publishing,
and the Business of Building a Sustainable Writing Career. Simon and Schuster.
Mondal, S. and Sahoo, K. K., 2020. A study of green building prospects on sustainable
management decision making. In Green building management and smart
automation (pp. 220-234). IGI Global.
Penmetsa, M. K. and Bruque-Camara, S., 2021. A framework for building a sustainable digital
nation: Essential elements and challenges. Digital Policy, Regulation and
Governance, 23(3), pp.262-286.
Rodriguez, R., Svensson, G. and Otero-Neira, C., 2019. Framing sustainable development
through descriptive determinants in private hospitals–Orientation and
organization. Evaluation and program planning, 75, pp.78-88.
Singh, S. K., 2018. Sustainable people, process and organization management in emerging
markets. Benchmarking: An International Journal.
Yadav and et.al., 2022. Mediating and moderating variables of employee relations and
sustainable organizations: a systematic literature review and future research
agenda. International Journal of Organizational Analysis, (ahead-of-print).