Impact of Climate Change on Business: A Sustainability Report

This report delves into the critical role of sustainability in the modern business landscape, highlighting the detrimental effects of climate change on various industries. It explores how climatic changes pose significant challenges to business operations, financial stability, and reputation, affecting profitability and growth. The report emphasizes operational impacts, resource costs, political uncertainties, and reputational damage stemming from climate-related issues. It then suggests practical steps businesses can implement to mitigate their carbon footprint, including consuming local and seasonal products, avoiding single-use plastics, and switching to green energy sources. The report concludes by summarizing the discussed challenges and solutions, reinforcing the importance of sustainable practices for business resilience and environmental responsibility. The report is designed to provide students and professionals with a comprehensive overview of how climate change impacts businesses and what actions they can take to become more sustainable.

Building a Sustainable
Organization

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
The climate change could be problematic for businesses across the world................................3
Suggesting steps businesses can implement to reduce their carbon footprint.............................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Sustainability term simply defines as an ability to keep the nature and environment protected
and can be able to maintain the ecological balance. Today, the sustainability has become the
most significant part in this growing and developing business world. The report will illustrate the
concept and brief of the sustainability at the organisation which can help and support the
company to grow in definite order (Mitchard, 2018). Also, the report has included the different
climatic issues and problems the business sectors gets and affect the productivity in efficient
way. Along with this, some suggestion or a step has been mentioned to reduce the carbon
footprint where it is important to be considered and understand respectively.
MAIN BODY
The climate change could be problematic for businesses across the world
Climatic changes is one of the most drastic and dynamic issue nowadays for the business
and organisation. Climatic changes harm the human creature but not only them they are also
harming and reducing the profitability of the business sector all over the world. Almost, all kind
of industries are getting impacted by this drastic climatic changes problem and leading them to
suffer from high loses in the business sectors. The climatic change direct impacts on the
worldwide companies and approximately 70% of the economic sector are getting affected in
definite manner (Thaler, Fuchs, Priest and Doorn, 2018). In general, it has been identified that
climatic changes as systemic financial risk for the commercial industries and do not able to grow
and develop their organisation in successful manner. Today, the global warming is increasing in
rapid manner which is putting the great negative impact on the economy sector and industries
and leads to obtain the negative result and outcome.
Thus, climatic changes create a disaster situation for the human where agricultural land,
water bodies, water insecurity and even coastal regions are entirely getting affected and leads to
mass migration and displacement. The risk of getting affected by the climatic change like rising
of global warming leads the companies to obtain the lower productivity and do not able to grow
and develop accordingly. These changes also disrupting the business operations, property
damages, problem in supply chains and even issue in infrastructure due to rise of cost of
maintenance and materials where these all function are creating a wider problem and issue for
the business industries (Petersen, Vincent, and Westerling, 2019). These mentioned issues are
some of the problematic ones who affect the business of all over the world and drive them to not

able to obtain the profitable outcome. Here, explaining few issues which a business cause due to
climatic changes.
Operational impact: The operational department and management is the one of the most
important factor an individual should consider and notice where due to climate changes the
companies also get impacted and affects their operational department in wider manner. Thus, out
of 10 organisations 5 are noticing the impact on their operational management such as facilities
damage and workforce disruption which leads the company to not focus on the particular
working and cannot obtain the profitable results (Fanzo, Davis, McLaren and Choufani, 2018).
Cost of resources: The organisation also gets affected and not able to get the enough resources
for their company. The climate changes rises up the cost of the materials and leads the company
to pay higher amount of prices to purchase those materials and resources. Also, the scarcity of
resources occurs such as food, water and energy which directly impact the human creature and
consumer industries widely.
Political uncertainty: In general, as it has been already known that political and government
concern and regulations puts the great impact on the business and organisational sector where
they are not able to get the definite amount of result and outcome. However, the climatic change
drives the government to adopt and implement some regulations for the betterment of the public
and society where many of the industries and organisation get suffered from their laws and rules
in highly manner (Seddon, Chausson, Berry, Girardin, and et.al., 2020).
Reputational damage: Today, each and individual person is looking for the sustainability where
consumer only purchase the materials and products from the company who adopts and follows
the sustainability at their organisation. However, the company who do not participate in
sustainability process the reputation of the company decreases or get damaged from where the
business cannot be able to grow and develop at successful level. Accordingly, the people
demanded the companies to adopt and implement the sustainability at the business workplace all
over the world from where the company can save the environment and nature which will reduces
the climatic changes and enable the consumers to purchase their requirement from the
organisations.
Suggesting steps businesses can implement to reduce their carbon footprint
Consume local and seasonal products: The consumer and companies have to store and provide
the local and seasonal products so that the environment cannot be harm and can maintain the

greenery at the surrounding which will reduce the carbon footprint (Steiger, Scott, Abegg, Pons
and Aall, 2019).
Refuse to use single plastic: Also, the organisation and individual person should avoid the
usage of single use plastics as it harms the nature and especially marine life in wider manner and
leads the water bodies to death.
Switch to green energy: At last, go green or switch to green energy where it will enable the
consumers to get the desired results and can save up the environment at definite order.
CONCLUSION
The above mentioned report has summarised the brief about the problem worldwide
business and industries are facing due to climatic changes. This issue has affected the companies
in wider manner and enable them to not obtain and acquire the definite outcome. However, the
report has included the different issue faces by the companies due to climactic changes and also
mentioned the step to reduce the carbon footprint accordingly.

REFERENCES
Books and Journals
Fanzo, J., Davis, C., McLaren, R. and Choufani, J., 2018. The effect of climate change across
food systems: Implications for nutrition outcomes. Global food security, 18, pp.12-19.
Mitchard, E.T., 2018. The tropical forest carbon cycle and climate change. Nature, 559(7715),
pp.527-534.
Petersen, A.M., Vincent, E.M. and Westerling, A.L., 2019. Discrepancy in scientific authority
and media visibility of climate change scientists and contrarians. Nature
communications. 10(1), pp.1-14.
Seddon, N., Chausson, A., Berry, P., Girardin, 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.
Steiger, R., Scott, D., Abegg, B., Pons, M. and Aall, C., 2019. A critical review of climate
change risk for ski tourism. Current Issues in Tourism. 22(11), pp.1343-1379.
Thaler, T., Fuchs, S., Priest, S. and Doorn, N., 2018. Social justice in the context of adaptation to
climate change—reflecting on different policy approaches to distribute and allocate flood
risk management. Regional Environmental Change. 18(2), pp.305-309.