Some people assert that businesses are adversely affected due to the changing climate, whilst others believe climate change provides opportunities. This essay discusses both sides of this argument, and then I will give my own perspective.
To start with, people who believe climate change poses risks to businesses, think that changing climate results in extreme weather events, which potentially disrupt the supply chains of businesses. It is reported that, in Vietnam, long-term drought and capricious precipitation pattern cause a severe shortage of crop yield, thus, putting food-supply businesses at risk of resource depletion. Furthermore, climate change also damages the businesses’ infrastructures, making the cost of insurance rise. Recent research concluded that the US businesses spend approximately 70 million dollars on insurance due to the consequences of climate change.
Conversely, those who think climate change creates opportunities for businesses, believe that businesses can develop products that suit the changing of climate and sell it at profit. Since the weather pattern is becoming unpredictable, people working in physical-labour industries such as farmers, face the risk of crop yield losses and this leads to increasing demand for new crop strains which can adapt to the changing weather. As a result, many agriculture companies take this as a lucrative potential and sell their products. Nonetheless, I think this is less likely as these businesses are also under the influence of climate change and ,if the weather changes severely, these products would no longer be able to suit the climate.
In conclusion, although some people concur that climate change benefits business, I believe that its negative impacts are more significant as it disrupts the supply chains of business and its physical effects are disastrous.1 Some people think Climate Change has negative effects on businesses, others think it creates opportunities. Discuss both views and give your opinion.