ENGT5219: Business Environment and Climate Change Report

This report examines the critical issue of climate change and its multifaceted impact on the business environment. It explores the threats posed to businesses, including damage to workplaces, reputational risks, and disruptions to essential resources like food and water supplies. The report identifies opportunities for investors in sustainable practices and low-carbon products. It introduces the concept of Distributed Low Carbon Innovation (DLCI) as a key strategy to reduce greenhouse gas emissions, focusing on mobility, building, and energy sectors. The report analyzes different types of innovations and their impact on the environment. Furthermore, it highlights the role of the UK government and international agreements in mitigating climate change and promoting sustainable business practices. The report concludes by emphasizing the importance of disruptive innovations in reshaping business processes and fostering a low-carbon economy.

Running Head: BUSINES ENVIRONMENT 0
Business Environment
Report
Student name

Business Environment 1
Table of Contents
Introduction......................................................................................................................................2
Threats to business...........................................................................................................................3
Damage to workplaces and processes:.....................................................................................3
Opportunities in term of Cost for investors:.............................................................................4
Reputational Risk:....................................................................................................................4
Disruption of food and water supply:.......................................................................................4
Uses of these opportunities:.....................................................................................................4
Analytical framework:.................................................................................................................5
Summary of innovation...................................................................................................................6
Disruptive innovations to address threats to business.....................................................................7
Conclusion.....................................................................................................................................13
Reference.......................................................................................................................................15

Business Environment 2
Introduction
Climate change is a huge issue in front of overall world. It is having a key issue, which is carbon
releases from the different industries of overall world. Climate change is affecting economy of
different countries, such as China, USA, UK, India, Australia, and many more. The government
of UK is facing so many issues in their economy as well as health of people from climate
changes. They are forming comities for reducing different things, which are the reason of climate
changes. Climate change is creating different things, such as flooding and bed weather
conditions. Therefore, Most of the countries are doing their best efforts to stopping all those
things, which are reason for climate changes. This report will discuss about Distributed Low
Carbon Innovation (DLCI) in next sections.
Distributed Low Carbon Innovations are helpful for reducing the global warming as well as it is
securing our future. Health is the most affecting thing from the climate changes. There are many
things, which are affecting from climate change. Mostly food, water and energy are affected
from the climate change. This report will explain about the different types of innovations as well
as what are the advantages of those innovations on environment.
Environment is polluted from the industry and different things. Industries are producing different
products and those products are generating carbon. Vehicles are second reason for polluted the
environment. Everyone wants personal vehicle for his or her work, which is generating high
carbon. These things should be control by the government in present time. Otherwise, it is
making worst condition of environment (Alexander, 2014). This report will also describe about
the three fields, which are introducing technologies in wide range and reduce low carbon in their
product and services, such as mobility, building and energy supply and distribution.
The UK government is creating new concepts at their political basis that private and public
sector companies are having a relationship for reducing the greenhouse emission in their
products and services. Business processes are having different threats from climate change. The
UK government is facing challenges for partnership of private and public sector industries. It is
for controlling the climate change (Scrase & Smith, 2009). This report will also describe about
the threat for business from climate change in the later section.

Business Environment 3
Threats to business
Business processes are affecting from different threats that are related to the climate changes. It
is a reason for affecting progress of industries. Climate change is affecting business of different
organizations. Industries are making their business from productivity and their growth in
particular field. There is a big role of innovations for their productivity. It is a process in which
products and services making their business. Therefore, they increase their productivity.
Sometimes, it is a reason of high carbon production. There are different threats to business from
climate changes. Innovations are handling this issue in upcoming time. Innovations are providing
technologies to reduce harmful things form industries (Baregheh, et al., 2009).
The UK government is having few Acts for climate change, such as Climate Change Act 2008. It
requires that emission of greenhouse gases are reduced for safe environment. The Act establishes
the framework to deliver on these requirements. This Act is helpful for taking decisions for
tackle climate change by UK’s Government at international level. Main of aim of this Act is
reducing emission of carbon dioxide and other greenhouse gases by 2050. Committee on Climate
Change (CCC) is also established for maintaining the targets, which are evidence-based and
independently accessed. It is having a target to reduce emissions by at least 80% of 1990 level
by 2050.
UK government is taking input for designing policy from the deferent departments. The two
departments, who are responsible for collating this above input belongs to UK government:
1. Department for Business, Energy and Industrial Strategy (BEIS): it is leading on policy for
reducing emissions of greenhouse gases. Mainly it is working for mitigation of greenhouse
gases emission.
2. Department for Environment and Rural Affairs (Defra): this department is leading on
domestic adaptation policy.
United Nations Framework Convention on Climate Change (UNFCCC) was created in 1992.
UNFCCC is responsible for international action on climate change. It is an international
agreement for climate change and 195 countries have joined this convention. It is focus on main
four key areas:
 Mitigating greenhouse gas emissions

Business Environment 4
 Adapting to climate change
 Reporting of national emissions
 Financing of climate action in developing countries
Climate change is creating these risk and opportunities for the investors, which is helping to
manage global warming as well as climate change. These threats are changing the market, as
they are highly affects the business of different industries (Lily, 2018). Global warming is also
an issues as well as business is affected form it in a high cost. Innovations are having an
important role in solving these issues with using Disruptive low carbon innovation (Brooks,
2013).
Industries are not only the reason for climate change but different innovations are also having a
reason behind it, such as vehicles, industries of different countries (Bulkeley, et al., 2010). There
are many risk form climate change, few risk are as mention below:
Damage to workplaces and processes:
Threat: Physical damage to workplace or organization, processes, equipment because of bad
weather condition, such as flooding. These reasons can disrupt business by halting production as
well as workers to get to work.
Opportunity: All the organizations are focusing in the resilient building designs, which are
better with stand damage from flooding, extreme weather conditions, and storms.
Developing countries are invited investors to invest in the new constructions and infrastructure
projects that are built to handle different bad conditions of weather. For investors, this is an
opportunity to use energy conservation with existing infrastructure. It is also growing their shares
in the market, as they are spending the ‘green’ constructions (Donovan, 2017).
Opportunities in term of Cost for investors:
Threat: Investors are ignoring those companies in which old processes are still used. Which are
polluting the environment? New opportunities are providing to those companies, which are
producing environment friendly products.
Opportunity: investors are more interested in those companies, which are having environment
friendly products such as low-carbon products. Dirty industries are having short term advantages

Business Environment 5
form their products. They are also facing problems from climate changes. However, they are
producing products and they are not changing their processes, which are producing high carbon
in their production (Forrester, 2018).
Reputational Risk:
Threat: Investors are not chosen those companies, which are not having environmental friendly
processes.
Opportunity: Investors are highly interested in those companies, which are having quantitative
and qualitative disclosure. There are few fields, which are helpful for environment, such as
energy. It is a way to identifying those companies that are having best management practices.
Environment friendly processes and products are helpful for the organization that makes
reputation of organization in front of investors. Investors are searching for those industries that
are having environmental friendly processes as well as used low-carbon generation processes
(Foxon, 2013).
Disruption of food and water supply:
Threat: Food and water are basic requirements of employees. If these things were having
shortage then it would be a great risk for the company.
Opportunity: Companies should invest in the water purification system and clean farming. It is
a reason of health issues in terms of employees health is not good and it directly affecting
production of companies. Most of the investors are invest in the farming and other things, which
are basic needs of human being (Drucker, 2014).
Uses of these opportunities: Sustainable resources are best things to invest and they are most
beneficial things to provide better advantages to the investors. Sustainable energy resource is
providing a low income, but it will provide high profits in upcoming years. Investors are highly
interested in those companies that are having sustainable energy resources in their processes. In
upcoming years, Low-carbon economies will have approximately $90 trillion for their products
and services ( Kramer, 2013).

Business Environment 6
Analytical framework:
Companies can use the disruptive innovations to framing for reshape the way to produce good
and service. Disruptive innovations are providing benefits on conventional attributes of price,
reliability and performance (Christensen, et al., 2015).
DLCIs are defined better in this term: Technological and business model innovations that offer
novel value propositions to consumers. Moreover, they can reduce greenhouse gas emissions if
adopted at wide scale. There are two things, which is most important for the mitigation of
climate change problem. Following things are must considered by government, which are as:
1. Which industries are facing that innovations are potentially reduce emissions of
greenhouse gases.
2. What is the ratio of potential emission reductions from adoption of DLCI’s adoption by
industries?
These things are creating problems and it should reduce by using DLCIs for maximum products
and services in all over the world.
Methods
There are three methods are used for solving climate change problem. China is producing a huge
quantity of greenhouse gases. DLCIs are only a way to reduce emission of greenhouse gases.
China is following all those rules and regulations, which are created for reducing greenhouse
gases (Tyfield, et al., 2015).
There are so many things to manage to reduce the carbon generating processes of industries. It is
a huge responsibility of government and private sectors organization that they should reduce low
carbon from their productions (Crossan & Apaydin, 2010).
Food and water supply is also affected from the climate change and in the field of food and water
supply industries, Disruptive low carbon innovation are beneficial for reducing greenhouses gas
(Tyfield, 2011).

Business Environment 7
Summary of innovation
Innovations are fresh ideas for creating new things for a specific purpose, which is used for
solving problems or making things easier. Innovations are having four types, which are as:
1. Disruptive innovation,
2. Incremental innovation,
3. Breakthrough innovation and
4. Game changing innovation
Disruptive innovations: these types of innovations are changing the business processes and it
provides a new face of business. It is a way to produce new concepts for products and services of
organization. It is a way to change processes of products and services of an organization
(Tyfield & Jin, 2010).
Incremental Innovation: these are the common innovations, which are made changes in present
innovations, such as mobile devices, operating systems, and many more.
Source: ( Lopez, 2015)
Innovations are based on two things, which are market and technology, as shows in above figure.
Breakthrough innovation: these innovations are helpful for the small businesses, they are
providing different ideas, which change all the processes, and it will provide a huge business

Business Environment 8
from that innovation. There are so many examples of this innovation, such as iPhone, Dyson, and
Microsoft.
Game changing innovation: Few innovations are change the complete market and business, such
as 3D printing, Television, and navigation. Game changing innovations are useful for customers
as well as company. They are having a potential for changing the history. It takes time to cover
the market. However, they are change scenario of the market in upcoming time (Tyfield, et al.,
2010). There are so many things to required improvements and it is a basic need of different
processes, which are used in daily basis, such as vehicles. Vehicles are used for mobility.
However, it is a huge reason of pollution, which is directly affecting our environment. This field
is highly modified but it is a reason of pollution. Therefore, disruptive innovation is must require
in this area. Electric vehicles are a way to reduce pollution in a small term. However, it is having
much cost (Pinkse, et al., 2014). In addition, Tesla motors are using disruptive innovation and
they are launching electrical cars, which are environmental friendly.
Disruptive innovations to address threats to business
Disruptive innovations are creating a new market and value network, which is disrupts an
existing market and value network. Not every innovation is disruptive, as automobiles, they are
not changing other ways of travelling. However, new technologies are changing markets from
their functioning. There are so many fields in them; disruptive innovations are changing their
market. As an example, Smartphones are changing the market of personal computers, Persona
Laptops. All work is done using the smartphones and they are providing so many different
facilities, which are provided by the other devices with more advantages ( Schiano, 2018).
In below figure, describe about the commercial development of modification options in
worldwide IAMs and DLCIs. It shows commercial maturity of mitigation options analyzed in
Global IAMs for 1.5 °C mitigation. It shows commercial maturity of potentially disruptive
consumer facing low-carbon innovations. Left-to-right scale at top of figure overlays the
technology readiness level (TRL) framework used to assess the commercial maturity of new
technologies onto a simple staged model of the technology lifecycle from basic research to
diffusion (Wilson, et al., 2018).

Business Environment 9
Source: (Wilson, 2017)
Greenhouse gases emission is highly increasing day by day from industries. It must control by
the private sector as well as public sector organizations. There are so many things are available
to stop it. However, industries are not following the standards strictly. It is a basic thing to stop
unnecessary products and services, which are the reason of climate change.
Source: (MORGAN STANLEY, 2017)

Business Environment 10
In above figure, global greenhouse gas emissions is shows in percentage as well as it is showing
the investment in ‘climate change’ mitigation technologies. Energy is having 35 % of global
greenhouse gas emission and it requires the most changes for creating more benefits to
environment (Tyfield, et al., 2015).
In below figure, global renewable energy installation report is showing on the basis on years and
energy. Investment is falling down but energy is increasing always. It will provide high profit to
the investors in upcoming future (Foxon, et al., 2010).
Source: (MORGAN STANLEY, 2017)
Emission of greenhouse gas is affecting the climate and China is on the top of all the countries.
Overall industries greenhouse gas emission is showing in the below figure.
Source: (MORGAN STANLEY, 2017)

Business Environment 11
Energy is a basic need for industries and many other things. US, India, China and Saudi Arabia
are working at large-scale on wind and solar power. At small-scale, off-grid solar is used for
energy infrastructures. Renewable energy sources are providing so many benefits to the
industries and it is improving efficiency of industries at worldwide.
Source: (MORGAN STANLEY, 2017)
In case of agriculture, so many changes are made for efficient seeds and crop. ‘Livestock
methane reduction’ innovations are used for changing the agriculture. Green building
development is providing betterment in the infrastructure designing. It is a topic for research and
development (Lester & Hart, 2011).
Transportation is a huge reason of pollution. Vehicles are not properly used and it is affecting
environment badly. Rapid electric vehicle is a disruptive innovation in the market and it is
providing a better help to reducing carbon problem to environment. Public transportation is a
proper way to reduce unnecessary use of vehicles. Research is going on green transport and it
will help to environment (Urban, et al., 2013).
Industries are taking responsibilities to reduce low-carbon in their productions. They are also
uses different DLCI’s for thier products and services. There is a way to use renewable energy
for different things in our daily life purposes.