Question

We are faced with climate change on previously unseen scale. The impact of these changes are inevitable and will change the way in which we live,work,govern and do businness.

Question

What challenges will firms face in terms of their responsibilities when it comes to climate change ? (20)

Answer 1

Climate change itself is a global problem requiring a global solution. Just as business operations are important, it is imperative to consider the impact of climate change on business operations, and potential impacts on sustainability

Climate change has environmental, social, political, and economic repercussions. Extreme and unpredictable weather conditions, floods, droughts, rapid snowmelt, and rising sea levels are among the major climate change challenges for business operations, and have direct implications for commerce globally. Companies in developing nations are particularly vulnerable. Climate change will have a domino effect on agricultural and production operations. For example, a reduction in the supply of agricultural products and scarcity of water may lead to a reduced food supply and threats to food security, a rapid global increase in commodity prices, social and political unrest, inflation, and finally economic slowdown. With such a scenario, business will not be as usual.

Business will face challenges as never before if climate change impact is not better understood and no steps are taken towards appropriate solutions. Now is the time for corporate leaders to rethink very carefully their business models, business priorities, and business sustainability, and to consider what climate change may mean for their objectives.

Acknowledging climate change as an inevitable factor, and recognising the need to adapt, involve bold decisions by business. The core message is to know that adaptation adds costs, but lack of adaptation will cost far more.

GIVEN BELOW ARE 10 IMPORTANT BENEFITS FOR FIRM WHILE DEALING WITH CLIMATE CHANGE :-

1. Understand a wide range of issues related to climate change
2. Engage in a meaningful global issue that is affecting our planet
3. Show genuine concern about the sustainability of mountain communities
4. Be involved in long-term solutions for climate change
5. Look at local problems and transboundary solutions for global issues
6. Change public perception that businesses do care about the society at large
7. Demonstrate that you are taking stand for a global cause
8. Be accountable with involvement in a rapidly growing global concern
9. Boost the morale of the stakeholders in your business, as well as of your employees
10. Customise strategic activities of mutual interest for a long-term ‘win-win’ strategic partnership.