Some people think that climate change could negatively affect the business world, other people claim that climate change could create new business in various ways. This essay will first closely examine both views before showing my final thought.
On the one hand, climate change could somewhat spell trouble for the fashion industry. The vital reason here is that the sector always depends on weather because customers often buy clothes for the season. For example in summer individuals buy t-shirts or some short object to get fresh. While in winter people buy sweaters or hoodies to get warm. With the unpredictability brought about by climate change, fashion retailers often face dilemmas in inventory management. Fashion often follows trends, if clothes are in inventory too long people will not buy it ,so fashion retailers have to discount these clothes. Moreover extreme weather such as droughts or floods can disrupt supply chains, affecting the availability of raw materials then the process will rupture.
On the other hand, climate change could also open doors to new business prospects. Instead of using raw materials, manufacturers can use eco-friendly materials. Beyond industry-specific changes, climate change has given rise to entirely new markets. Instead of carbon credit trading, it helps reduce incentive emission by companies to sell earned credits.
In my opinion, I believe that the impact of climate change on business has both positive and negative effects. While the sector businesses imminently push some companies to the edge, it can be the moment to research the way for new business models and markets.