In the modern era, the issue of the adverse impact brought by climate change on business has always been a matter of public interest. Although climate change certainly brings negative effect on business, I believe this promotes more business development.
On the one hand, there are several bad results from climate change. Firstly, climate disasters like floods, thunderstorms, droughts and wildfires can damage the supply chain or infrastructure of a company, which may also increase the operational costs to tackle the aftercare work. For example, the agriculture industry may suffer significant loss if there are floods or droughts, thereby leading to a rise in the price of products. In addition, the policy of governing carbon emissions also puts pressure on corporations as they need to increase budgets to deal with the high carbon-emission processes during the production or the fines due to excessive carbon emissions.
Although climate change indeed has a negative impact on business, I would argue that this provides more business opportunities as well. The variation of climate can promote innovation and market progress as a catalyst. To illustrate this viewpoint, consider the case of more and more companies related to sustainable economy have appeared nowadays and increasingly companies decide to refine their techniques used in the production by facilitating innovation. Moreover, the requirement of environmental protection drives the development of green economy. For instance, both institutional and individual investors like to integrate the ESG scores into their evaluation during their investment.
In light of the above discussions, it is evident that there are both advantages and disadvantages of climate change’s effect on business. From my perspective, the shift in climate brings the revolution to the current market and encourages the advancement of productive technologies.