Some people think climate change has a negative impact on business, while others think that it provides more business options. Discuss both views and give your own opinion.
ESSAY #134 FROM OUR BOOK
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 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 operations for days. Many sectors like agriculture that heavily depend on climate and natural resources also suffer a lot because of extreme environmental conditions. Secondly, climate change has resulted in stricter greenhouse gas emission regulations and thus companies are forced to spend a lot of money to cut down their emissions and pay huge fines if they fail to do.
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 environment-friendly. For example, global carmakers are transitioning to electric vehicles, energy companies are shifting towards renewable energy. Climate crisis has led to the 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 start-ups, 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 to businesses. In addition to the increasing operational costs like significantly higher air condition expenses, businesses also face competition from new start-ups that offer cleaner products. Another climate-related risk to companies is the legal repercussions for emitting greenhouse gases. For example, recently fossil fuel companies have faced many legal cases for damaging the environment. This also damages a company’s reputation and in extreme cases can lead to consumers boycotting them.
In conclusion, I believe that climate change has many adverse business outcomes like higher operational costs, legal challenges, and reputation damage.
