How Climate change affects the Business – Erakina

A picture of a factory emitting smoke

Climate change happened because of us burning fossil fuels and cutting down trees for development purposes. Climate change not only affects the people it affects the animals and now it even affects an organization’s Business. At first climate change was not considered a big threat but realizing the drastic changes in climate and the lack of resources made people take immediate measures to adapt to climate changes. Let’s see how climate change affects people’s Businesses.

Business based on Climate:

People day to day life happens in the climate and some people use the climate to make money and some lose money because of it. Like farmers only work is to make the land suitable to plant crops, maintain the land, sow the crops and finally reap it. They do this for satisfaction and for money. But the climate change affects the farmers first. Drought or continuous rainfall destroys food crops. They have a plan in growing crops but climate change ruins the plan and ruins their business. Not only a farmer, big companies that sell groceries, companies related to food are also getting affected. By this, the consumers are also getting affected. By this company needs to spend money to bring an alternative plan to maintain their business. As the Climate changes, the demands will change like, the oil heater in winter will go down and bring a loss to the company. 

Changes in Business plans:

A company will have a perfect strategy to earn money from Business. When climate change occurs their plans may not go as they planned. They may lack their raw materials and by this their production gets affected. The transportation of goods may be challenging because of precipitation due to climate change. In 2016 Toyota Manufacturing was shut down because of the Earthquakes in Japan. Climate change may increase the demand for products as well as it will sink the product in the market.

This puts pressure on the company to bring up a decision for the upcoming crisis. To come over, these climate change companies took necessary steps which cost them more. Industries that produce more emissions should come up with reducing it by upgrading their facilities or buying a new one. From this companies like IKEA, Swiss RE, and Nestle come up with a new method of renewable energy.

The work station which is situated outside is getting decimated because of the climate change like rain or Hurricane, etc. To renew this the insurance cost of the company increases. The changes that are done by the company make the stakeholders, Customers, Board members, and workers feel the pressure. 

Measures to be taken:

Climate change is a phenomenon that happens due to global warming. We can’t able to stop that. We need to improvise by planning the future smartly. Likewise, the company should adapt itself for reducing pollution. They need to analyze how much impact their company affect the environment and need to upgrade their performance-friendly to the environment. They can able to change their energy source to renewable sources like Solar. 

They need to reduce their carbon emission to limited targets like the Paris agreement of 2015, which is to reduce the temperature that impacts the environment. Climate change makes the country’s government come up with a plan of reducing industry emissions by stating the facts about global warming. To reduce it, by following government rules of Sector to sector approach to reducing the heat. 

The other is to introduce the scheme of Carpooling to the employers to reduce the carbon footprint which is a smaller step to improvement. Spread awareness among the employees, Stakeholders, and Customers by creating contests, etc. By spreading awareness outside the company can get themself some advertisement over their company and can improve the environment. They can seek help from influencers to spread awareness.

These are the steps a company can improve their business as well as reduce their pollution. By following this we can have a well-developed country and a good environment for the future generation to experience it.

By Mukesh Kumar U M

Date: 06/01/2022