It is believed by some that climate change is detrimental for companies,
whereas others believe that climate change offers many business opportunities
and so is good for companies. In this essay I will discuss both the perspectives,
but I agree with the former side.
On the one hand, those who believe climate change negatively impacts
companies give the following reasons. Firstly, climate change poses a physical
risk to many companies. For example, extreme weather events like hurricanes,
snowstorms and floods force many companies to close operation for days. Many
sectors like agriculture that heavily depend on climate and natural resources
suffer a lot because of extreme environmental conditions. Secondly, in order to
comply with regulations on greenhouse gas emissions, companies have to spend
a lot of money on upgrades to polluting facilities and on the installation of
emission control systems.
On the other hand, there are many reasons why some people believe that
climate change is beneficial for businesses. The most Important reason is that
climate change spurs innovation, inspiring new products and services which are
environmental friendly. For example, global carmakers are transitioning to
electric vehicles, energy companies are shifting towards renewable energy.
Climate crisis has led to growth of many companies that make green products.
Many businesses have found success by catering to consumers who make
environmentally conscious choices when they shop. From large multinationals
to local startups, all companies are capitalizing on the green revolution.
Companies are also able to reduce their operational costs by being more energy
efficient.
I believe climate change is damaging for businesses. In addition to the
increasing operational costs related to new technologies and new regulations,
businesses also face competition by new startups that offer cleaner products.
Another climate related risk to companies is the legal risk and potential liability
for emitting greenhouse gases. For example. in the recent years a lot of legal
cases have been brought against fossil fuel companies and they have been held
accountable for the damaging effects of climate change. This also damages a
company's reputation and in extreme cases can lead to consumer boycotting
them.
In conclusion. I believe that climate change has many adverse business
outcomes like higher operational costs, legal challenges and reputation damage.
It
is believed
by
some
that
climate
change
is detrimental for
companies
,
whereas others
believe
that
climate
change
offers
many
business
opportunities
and
so
is
good
for
companies
. In this essay I will discuss both the perspectives,
but
I
agree
with the former side.
On the one hand, those who
believe
climate
change
negatively
impacts
companies
give the following reasons.
Firstly
,
climate
change
poses a physical
risk
to
many
companies
.
For example
, extreme weather
events
like hurricanes,
snowstorms and floods force
many
companies
to close operation for days.
Many
sectors like agriculture that
heavily
depend on
climate
and natural resources
suffer a lot
because
of extreme environmental conditions.
Secondly
, in order to
comply with regulations on greenhouse gas emissions,
companies
have to
spend
a lot of
money on upgrades to polluting facilities and on the installation of
emission control systems.
On the other hand
, there are
many
reasons why
some
people
believe
that
climate
change
is beneficial for
businesses
. The most
Important
reason is that
climate
change
spurs innovation, inspiring
new
products and services which are
environmental friendly.
For example
, global carmakers are transitioning to
electric vehicles, energy
companies
are shifting towards renewable energy.
Climate crisis has led to growth of
many
companies
that
make
green products.
Many
businesses
have found success by catering to consumers who
make
environmentally
conscious choices when they shop. From large multinationals
to local startups, all
companies
are capitalizing on the green revolution.
Companies
are
also
able to
reduce
their operational costs by being more energy
efficient.
I
believe
climate
change
is damaging for
businesses
.
In addition
to the
increasing operational costs related to
new
technologies and
new
regulations,
businesses
also
face competition by
new
startups that offer cleaner products.
Another
climate
related
risk
to
companies
is the legal
risk
and potential liability
for emitting greenhouse gases.
For example
.
in
the recent years
a lot of
legal
cases have
been brought
against fossil fuel
companies and
they have
been held
accountable for the damaging effects of
climate
change
. This
also
damages a
company
's reputation and in extreme cases can lead to consumer boycotting
them.
In conclusion
. I
believe
that
climate
change
has
many
adverse business
outcomes like higher operational costs, legal challenges and reputation damage.