Running a business is an arduous task. You have to deal with suppliers, ensure your customer's preferences are met, and stay ahead of the competition.
In the modern world, businesses also have to grapple with climate change and its severe impacts. According to statistics, about 100 companies account for 71% of greenhouse gas emissions. The greenhouse gases are responsible for global warming that leads to a change in the weather patterns.
Due to this statistic, your business has a central role in ensuring that its operations are not detrimental to the environment.
Whether you run a small business or a big business, your company is liable to experience the impacts of climate change. Whether through physical or social interruption, the effects of climate change can be devastating for your business.
Here's a look at some of the profound impacts:
Increased Cost of Investment
As a business, it is your legal obligation to manage your waste appropriately. Your business can produce waste in various forms; gases, liquid or solid.
Emissions are among the leading contributors to climate change due to the toxic gases affecting the ozone layer. In addition, businesses rely on fossil fuels to produce energy for their operations. The burning of fossil fuels is known to result in the accumulation of Carbon dioxide, which leads to the warming of the earth.
With emissions on the rise, your business will have to adapt emission control technologies to curb the effect. Unfortunately, these investments are costly more often than not and are difficult for cash-starved firms to implement.
More so, implementing these technologies in most countries is a legal obligation.
Tough Working Conditions
One of the profound impacts of climate change is extreme heat events. Some countries tend to experience more extended periods of extreme heat during the day and fewer cooling-off hours during the night.
Extreme heat conditions can result in an unbearable work environment affecting the health and wellbeing of your employees
. As a business owner, you need to create a comfortable working environment for your employees. A way to counter the extreme heat is the installation of air conditioners to control temperature. Use of digital tools, according to Dee Agarwal, can help promote your staff’s well-being.
As a result, your cost of investment goes high.
Change in Production Pattern
The change of weather patterns can significantly impact your business. For example, if your business relies on farm produce, your yields can be affected, resulting in low production of goods.
Climate change also influences your customer preferences, thereby affecting demand. For instance, due to extreme heat, your customers will prefer goods or services that can provide cooling. In such a circumstance, products such as furnaces will be in low demand.
Public Perception
In this millennial era, your business's image is equivalent to its brand equity. So creating a company that is sustainable and environmentally conscious can appeal to your target audience.
Embracing the 'going green' mantra can translate to profitability and higher outputs for your business.
Impact on Environment
With climate change leading to unpredictable weather, it can highly impact your business' location and structure. Countries likely to experience extreme weather events such as tsunamis adopt different construction materials for their structures.
More so, setting up your business at the seashore can be concerning due to the possible rise of sea levels. You may have to consider other locations less prone to weather-related events.
Finally, climate change effects are widespread. They tend to impact every individual and a business owner; you must take the right step in mitigating this force.
