The effects of climate change are increasingly visible. Storms, droughts, fires, and flooding have become stronger and more frequent. Global ecosystems are changing, including the natural resources and agriculture on which humanity depends.
The 2018 intergovernmental report on climate change estimated that the world will face catastrophic consequences unless global greenhouse gas emissions are eliminated within thirty years. Yet year after year, these emissions rise.
Climate affects everything we do – from the food we eat and the products we manufacture, to our imports and exports, even the way we do business. And climate change is going to have an adverse impact on our economic growth in the next few decades. According to a study, an increase of 4.5 degrees Celsius in global temperatures could shrink the global domestic product by $72 trillion.
Apart from this, the businesses also have to sustain in the competitive market of self-aware consumers who demand that the companies they do business to implement more sustainable practices. Thus, the next logical step for companies is to draw up environmental action plans and implement them in order to keep customers happy. Investors are also getting into the game and calling on CEOs to consider this shift in consumers’ attitudes and implement real, actionable changes.
In this context, here are three things businesses can do to make sure they don’t get left behind.
Forecasting a range of scenarios and creating an action plan on its basis.
A company can start assessing risks and probabilities pertaining to whatever region of the country they are based in, regarding food, drought, rising sea-levels, temperature and rainfall patterns. It can conduct a thorough assessment to point out vulnerabilities in certain areas of the business that haven’t been previously taken into consideration.
A sample assessment could be something as simple as investing in renewable energy. As prices continue to decrease, the can save money and help reduce energy uncertainty at the same time.
Adopting a design to sustainability approach
If your line of work involves creating or designing new products, your objective should be to lessen the use of non-renewable resources and minimize waste for more reuse and recycle. What are your company’s strategies for mitigating change? Whatever those are, the new designs should align closely with those strategies.
Some sustainable design principles include:
- Optimizing site potential
- Minimizing the use of non-renewable energy
- Protecting and conserving water
- Enhancing indoor environmental quality
- Optimizing operational and maintenance practices
Managing Regulation Risk
To manage risk, it is important to understand the policies being implemented by the government. After all, policies change with every election, a company must understand not just the policies but also its options. That level of comprehension allows executives to formulate cohesive strategies to respond to all regulations and policy changes that pertain to them.