Climate change has become one of the most pressing global issues of our times. While some argue that climate crisis exerts unpredictable and detrimental impacts on global business, others believe that it creates great business opportunities for private sector. In my opinion, although negative effects are inevitable, favourable conditions still flourish for those who can keep up with market changes.
On the one hand, the global business operation has been increasingly suffered from catastrophic climate change impacts. Agriculture, forestry and fishery are the most vulnerable as being subject to weather conditions and natural resources. For instance, rainfall events are occurring less often in many parts of the world, reducing the amount of water available to grow crop or warmer temperature and drought are contributing to animal stress, decreasing production and making animal welfare an issue. Other sectors such as retail trade, tourism and manufacturing are also highly exposed, with all types of business at risk of the effects of climate crisis. Additionally, global supply chain is more likely disrupted by extreme weather and natural disasters, such as earthquakes, flooding or tsunami, which results in delays and extra costs for world-wide goods and passenger transportation.
On the other hand, there is always an existing opportunity in a hardship situation. As internationally declared, green economy and net-zero emission are now becoming first priorities of numerous governments, which encourage businesses to invest and develop more green products and services. A case in point is hydrogen energy technology in Europe or electric vehicles developed by Tesla and Vinfast, progressively replacing fossil fuels and opening a new era of green energy. Another example of recycled products such as reusable water bottles, portable wooden utensil packs, or biodegradable cosmetics are gradually changing customer behaviours, which, in turn, creates greater customer demands and expands traditional markets for traders.
In summary, there is a collapse of private sector, particularly small and medium enterprises, when climate change hits. Nevertheless, those that are able to adapt with market changes will be paid off with sustainable growth.