Building a Sustainable Organisation: Evaluating the Impact of Climate Change on Businesses

This report discusses the impact of climate change on businesses and the need for sustainable practices. It provides examples of how climate change affects supply chains, insurance costs, and consumer demands. The report also highlights strategies for reducing carbon footprint and gaining a competitive edge, such as adopting renewable energy sources and complying with regulations.

Building a Sustainable
Organisation
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Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Ascertaining how climate change could be problematic for business organisations across the
world with suitable examples......................................................................................................3
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6
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INTRODUCTION
Climate change can be described as long-term shifts in regards with temperature as well as
weather patterns (Abdelzaher, Martynov and Zaher, 2020). These shifts can be natural which is
occurred due to variations in relation to solar cycle. In modern times, human activities are
considered as a major driver in relation with climate change due to extensive burning of fossil
fuels. Energy, industry, transport and varied other factors are main emitters which are
responsible for climate changes. There are severe consequences of the phenomenon of climate
change such as intense droughts, scarcity of water, melting polar ice, declining biodiversity,
catastrophic storms and many more. It is affecting the whole universe in an adverse as well as
unstoppable manner. This project report highlights a critical understanding of sustainability in
business operations and creation of competitive advantage by following sustainable activities in
an organisation. It also delves into evaluation on how climate change can become problematic
for businesses across the world with justified examples. It also demonstrate a set of strategies
which can be implemented by organisations for reducing their carbon footprint.
MAIN BODY
Ascertaining how climate change could be problematic for business organisations across the
world with suitable examples
It is difficult to ignore the increased number of catastrophic events which affects the
population as well as geographies all over the world. It creates massive risks for businesses
initiating from supply chain to increasing insurance cost to challenges related to labourers (Dunn,
2018). Due to rapidly changing climate, supply chain of organisations are disrupted in an adverse
manner. In order to set up big plants as well as machineries, organisations take help of
deforestation which is a critical factor of constantly changing climate.
Climate change is not just only an environmental problem, it is inextricably is linked to
business operations. For example, severe weather conditions is considered as primary aspect
which increase the insurance costs in an adverse manner. Due to changes in climate, demands ad
perception of people also gets changed in a significant manner. For example, consumers has
shifted their demands to those company’s products who have adapted sustainable practices. Rise
in temperature as well as change in weather patterns has made working conditions harsh
especially those indulges in physical labour as well as manufacturing units (Fiedler and Et. Al.,
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2021). Health and safety in these types of industries have led to increase in operational cost of
business organisation. Strict regulations due to climate change have also impacted business
organisations in a significant manner. For instance, establishments which are indulged producing
sizeable manner of carbon as well as other toxic gases have to invest their hue resources in
eliminating them in a strategic manner. Companies are expected to be socially responsible and
take actions for building their operations environmental –friendly. For example, companies such
as IKEA, Apple, Nestle and many more are working on making their manufacturing unit a
sustainable practice. Climate changes are considered as a significant aspect which affect business
organisations and promotes sustainable operations. For example, in Coco-Cola, changes in
weather patterns affect their raw material supply chain, delivery mechanisms and product
demand. Organisations are also facing the issues reading importing as well as exporting their
products due to climate changes in an effective manner.
Companies are taking interest in adopting sustainable practices for securing competitive
edge as well as attract massive number of customers (Rivera and Et. Al., 2022). For example,
Bentley Motors has adopted practices in order to make their production sustainable such as
onsite solar PV system, green gas, hydrotreated vegetable oil which are considered as an
alternatives for reducing carbon emission. They are moving towards becoming sustainable
luxury brand by working on their commitment to curb the carbon emission by 2050.
It is imperative for business organisations to be prepared for facing the impacts in regards
with climate change. It should be done in a systematic procedure by conducting an analysis as
well as probable risks for identifying opportunities in order to improvise environmental
performance (Soler and Marce, 2018). It is imperative for organisations to switch their energy
system regarding fossil fuels towards renewable resources such as solar and wind. Varied
developed nations such as Britain, United States and many more come together for making a
commitment to curb the carbon emission by 2050. They made strict regulations for companies to
initiate programmes which aid in curbing carbon emission.
In order to reduce carbon footprints and impact on environment, organisational managers
can frame strategies regarding the principle of reduce, reuse and recycle. Companies can buy
carbon offsets through which businesses can make invest their resources in reducing the carbon
emission in an effective manner. Establishments can also opt for green web hosting whereby
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customers are encouraged to go for those applications whose manufacturing is done by adopting
environmental-friendly operations.
CONCLUSION
From the above presented information, it has been concluded that climate change has
adverse effects on population as well as business organisations on a global scale. It is imperative
for business organisations to adapt varied practices as well as formulate strategies in order to
perform sustainable operations in an effective manner. Companies are desirable to examine
alternative sources as well as perform the feasibility study for implementation of renewable
energy like solar, wind and biomass. Varied organisations have to focus on development of
sustainable operations in order to be competitive in market. It is imperative for establishments to
comply with varied regulations as well as fulfil their corporate social responsibility in an
effective manner which led them to increase their revenue as well as profitability. It is the high
time whereby organisations need to critically evaluate solutions in relation with climate change
as well as their impact on lives regarding as per economic perspective.
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REFERENCES
Books & Journals:
Abdelzaher, D. M., Martynov, A. and Zaher, A. M. A., 2020. Vulnerability to climate change:
Are innovative countries in a better position?. Research in International Business and
Finance. 51. p.101098.
Dunn, S., 2018. Down to business on climate change: an overview of corporate strategies. The
Business of Climate Change, pp.31-46.
Fiedler, T. and Et. Al., 2021. Business risk and the emergence of climate analytics. Nature
Climate Change. 11(2). pp.87-94.
Rivera, J.E. and Et. Al., 2022. Business adaptation to climate change. Cambridge University
Press.
Soler, C. E. and Marce, S. A. C., 2018. Sustainable Companies, Addressing Climate Change. A
Theoretical Review. Business and Management Studies. 4(1). pp.33-40.
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