Increasing regulation and legislation mean businesses are facing more pressure to go green than ever before. In addition to this, the environment and climate change have become major societal issues. As a result, companies are under pressure from the public to take a more environmentally-friendly approach to their operations.
Although businesses are constantly reminded of their impact on the climate, have you stopped to consider how the changing environment will affect your own industry?
Every business will be affected by the changing climate and the evolving environment, and being prepared for these changes will be the key to surviving. With a myriad of changes set to flow due to changing climates and environments, you’ll need to identify which issues are most likely to impact your business, before you develop an appropriate strategy to deal with them.
Population Displacement
The rising sea levels are already having a significant impact on where people live and work, with many being forced to flee from once habitable coastal areas. Whilst your business may already track your target demographic, your existing tracking protocols simply won’t be able to cope with the sudden displacement likely to occur.
When natural disasters inevitably occur due to changing weather conditions and higher sea levels, people will be forced to relocate in their thousands. Regardless of what industry you operate in, such significant displacement will turn your marketing, your client base and your delivery on its head.
Furthermore, if you’re currently partnered with other firms in threatened locations, you could find that your own operations are disrupted when such displacement occurs. Even working with suppliers in these areas could leave you in a precarious situation if they are suddenly no longer able to operate due to floods, wildfires and significant storms.
Negative PR
The public at large is becoming increasingly aware of environmental issues, and they’re already campaigning for companies to take a more proactive approach to climate change. If businesses ignore this warning, it could have a considerable impact on their bottom line. With many consumers already switching from non-environmentally focused businesses to more eco-friendly companies, the negative publicity associated with poor green credentials could be ruinous for your business.
However, there are straightforward steps you can take to negate this. By incorporating more environmentally-friendly equipment and modifying your existing processes to reduce your carbon footprint, you can reduce your negative impact on the environment and get great publicity at the same time.
By installing a regenerative thermal oxidizer, for example, you can minimize your fuel consumption and repurpose the thermal energy which is produced during your operations. In doing so, your costs will naturally be lowered, and the air pollution associated with your business processes will be dramatically decreased. As well as giving you a fiscal advantage, you’ll be able to publicize your commitment to the environment and attract the growing number of consumers and companies who are looking for more environmentally-friendly businesses to engage with.
Rising inflation
As the land, oceans, and settlements are affected by the changing environment, global food supplies will be heavily impacted. When food distribution channels are affected, it tends to have direct and indirect effects on inflation. Currently, Time magazine estimates that there will be a 23% decrease in the average salary by 2100 due to climate change.
If individuals are earning significantly less, it follows that they’ll be spending less too. As a result, it’s likely your business will face falling revenue as a direct result of climate change. In addition to this, changes to the climate will affect how well businesses can perform. If climate changes result in difficult working conditions, companies will be less productive and less efficient; resulting in fewer outputs for the same investment.
As well as having less turnover due to declining sales, businesses could also see a drop in their outputs in the future. With these changes effectively meaning that companies will have to invest more to produce less, many businesses will surely be unable to function or will be forced to do so with significantly less profit to show for it.
Traditionally, environmental concerns and thriving economic have been seen as competing issues, with many businesses unwilling to invest in environmentally-friendly processes at the perceived expense of their productivity. Whilst the corporate world has largely ignored their impact on the environment until relatively recently, the very real threats posed by climate change mean this is no longer an option. In reality, protecting the environment is the only sure-fire way to try and safeguard the economy and the global market as we know it.
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