Climate change impacts businesses: Survey shows resource scarcity and cost as top concerns

Survey reveals climate change challenges impacting businesses globally

As the global climate continues to shift, businesses are increasingly feeling the impacts on their operations and bottom lines. A recent survey conducted among over 2,000 C-level executives worldwide between September and October 2022 revealed that 46% of respondents identified resource scarcity and rising costs as significant challenges already affecting their businesses. This finding underscores the urgent need for companies to adapt strategies in the face of ongoing climate change.

Resource scarcity, including water shortages and diminishing natural resources, has emerged as a critical concern for businesses across various sectors. As extreme weather events become more frequent and severe, supply chains are disrupted, leading to increased costs and operational challenges. From manufacturing to agriculture, companies are grappling with the need to secure essential resources for their operations while mitigating potential disruptions.

Furthermore, the survey highlighted changing consumption patterns as another key issue influenced by climate change. Shifting consumer preferences towards sustainable products and services are forcing businesses to reassess their offerings and operations. Companies are recognising the importance of adopting environmentally friendly practices not only to meet consumer demands but also to mitigate reputational risks and stay competitive in the market.

Businesses are responding to climate challenges by implementing various strategies to adapt and mitigate impacts:

Investing in sustainable technologies

• Transitioning to renewable energy sources like solar and wind power.
• Reducing carbon footprint and mitigating energy price volatility.

Optimising supply chains for resilience

• Incorporating climate considerations into supply chain management.
• Ensuring resilience against climate-related disruptions.

Incorporating climate considerations into long-term business strategies

• Integrating sustainability initiatives into business plans.
• Seizing opportunities for innovation and growth in a changing business landscape.

Executives express optimism about adapting and thriving in a changing climate:

Development of sustainable products and services

• Meeting consumers’ demand for eco-friendly products.
• Creating new market opportunities and boosting brand loyalty.

Improvement in resource efficiency

• Implementing measures to reduce resource consumption and waste.
• Achieving cost savings and environmental benefits.

However, despite increasing awareness and efforts to address climate-related challenges, significant barriers remain. The survey indicated that a lack of clear regulatory frameworks and inconsistent policies pose obstacles to effective climate adaptation strategies for many businesses. Additionally, financial constraints and short-term profit pressures hinder some companies from making substantial investments in sustainability measures.

In conclusion, as climate change continues to impact businesses worldwide, proactive adaptation measures and strategic planning are crucial for companies to navigate the evolving landscape successfully. From resource management to consumer preferences, businesses must embrace sustainability as a core tenet of their operations to thrive in a changing world.