Climate change strategy for business

It was a leading member of the Global Climate Coalition. If we frame climate change as a strategic issue, the logical conclusion is that companies should think about climate change-related risks and opportunities in a similar manner to other Climate change strategy for business risks and opportunities.

For example, higher demand for air conditioning during prolonged heat waves could stress and possibly overwhelm the electricity grid; longer and more intense rains could restrict access to construction sites and slow productivity in the buildings sector; and extended drought could render large swathes of previously arable farmland unusable.

Climate Action Plans The first step for many companies is to develop climate action plans across the company and for individual business units. This means going beyond core operations to include a review of the entire value chain, along with broader supply and demand networks such as electricity, water and transportation infrastructure.

The companies that have gone furthest in integrating climate change into their business strategies emphasise how much time and effort they have invested in testing new technologies and new approaches.

Scenarios in the Climate change strategy for business Planning Process We utilize scenarios in our strategic planning process to: Gain better understanding of external factors that impact our business.

Internal Carbon Pricing One business strategy gaining traction among leading businesses is internal carbon pricingwhich assigns a price to carbon emissions attributable to the business. For example, some tourist regions may benefit from an extended spring and summer recreation season.

By using our own energy planning model, we gain insight into various scenarios impacting future supply, demand and prices of key commodities.

Renewable energy solutions are a part of this, wind turbines in particular being seen by many as a potent symbol of a new modernity, where environmental considerations are taken seriously.

Business action on climate change

The goal of the Strategy is to identify actions - e. Like conventional bonds, green bonds can be issued by a corporate, bank, or government entity. Biotechnology companies could profit from early development of new seed and other agricultural products that help crops withstand new climatic extremes.

Analyzing and modeling potential outcomes is not the end of the process. A happier workforce is a more productive workforce. Mining giant Rio Tinto is using high-resolution climate modeling to conduct detailed site assessments and gauge risks to high-priority assets.

More directly, the high petroleum oil and gas prices of have only added to the attraction of renewable energy sources. Businesses that begin evaluating potential physical risks will also be better positioned to exploit climate-related opportunities.

Companies are also demonstrating their commitment to climate action by partnering with other companies and stakeholders on solutions and by publicly supporting policies like the Paris Agreement.

The type of target an individual company chooses depends on its products and production methods, policy environment, and business models. Recently there has been a spate of companies acting to improve their energy efficiency. The debt insurance by investors means that the companies do not need to tap into their limited credit lines or cash reserves to fund renewable or energy efficiency projects.

Developing technology that reduces both costs and GHG emissions. To help our decision-making, we set up a scenario monitoring system to identify crucial signposts that would indicate whether we are moving toward one scenario or another.

Some companies purchase carbon offsets from projects such as reduced deforestation to help achieve their emission goals more cost-effectively. Extreme flooding and prolonged drought have emerged as the greatest sources of concern, creating additional justification for the development of a strong water strategy.

The report stresses the importance of proactive adaptation, or recognizing and acting on threats before they occur. Wal-Mart, the largest retailer in the US, has announced specific environmental goals to reduce energy use in its stores and pressure its 60, suppliers in its worldwide supply chain to follow its lead.

Melting ice could open new shipping routes in the Arctic. It can either adopt climate friendly policies or it can face the consequences. Many of these projected impacts, including sea level rise, increased incidence and severity of extreme weather events, and prolonged heat waves and droughts, could have serious consequences across a range of businesses.

Possibly the most prominent of these companies is Wal-Mart.

How companies can adapt to climate change

Viewed from this perspective, energy efficiency becomes a sustainability imperative. The business case rests on the notion that early preparation can prevent, or at least reduce, future losses from climate-related impacts. The Pew Center report lays out a screening process companies can use to evaluate the potential physical risks of climate change and decide if more action is needed.

Energy Efficiency Improved energy efficiency has emerged as a key component of corporate climate change strategies.Scenarios in the Capital Planning Process We utilize scenarios in our strategic planning process to: Gain better understanding of external factors that impact our business.

Business strategies for climate change Huge value is at stake. The winners will be companies that reposition themselves to seize the opportunities of a low-carbon future. Per-Anders Enkvist, Tomas Nauclér, and Jeremy M. Oppenheim 1 According to the Fourth Assessment Report (issued in ) of the Intergovernmental Panel on Climate IPCCChange ().

Improved energy efficiency has emerged as a key component of corporate climate change strategies. Companies participating in the global EP initiative pledge to double their energy productivity (dollar of output per unit of energy), which has the potential to save more than $2 trillion globally by On September 15,Governor Gina M.

Raimondo signed an Executive Order appointing a Chief Resilience Officer to drive climate resilience efforts across the state, both within government and in collaboration with business, academic, and nonprofit partners, with the mission to develop a statewide Climate Resilience Action Strategy to be submitted to the Governor by July 1, The past several years have seen a steady transformation of business attitudes and behavior on climate change.

Faced with the prospect of new regulations, increased pressure from shareholders and changing consumer demands, many companies are developing comprehensive corporate strategies to address new climate-related risks and opportunities.

In the climate-change context, reputation risk can be understood as the probability of profitability loss following a business’s activities or positions that the public considers harmful. A poor reputation on climate can hurt sales through consumer boycotts or local community protests.

Download
Climate change strategy for business
Rated 0/5 based on 54 review