Climate Change Impact
Climate Change Impact
Climate change is reshaping global markets, supply chains, regulations, and investor expectations. Companies must adapt to environmental risks while identifying sustainable growth opportunities. Climate change directly threatens business continuity by disrupting supply chains, damaging assets through extreme weather, and increasing operational costs. It matters because it impacts profitability (potentially cutting profits by 7% by 2035), triggers regulatory, legal, and reputational risks, and influences consumer demand for sustainable practices
Extreme weather events affect logistics, raw materials, and global distribution networks.
Governments introduce stricter carbon policies and environmental regulations.
Climate-related risks influence insurance costs, investments, and operational expenses.
Customers increasingly prefer environmentally responsible brands.
Climate change refers to long-term shifts in temperatures and weather patterns. Such shifts can be natural, due to changes in the sun’s activity or large volcanic eruptions. But since the 1800s, human activities have been the main driver of climate change, primarily due to burning fossil fuels like coal, oil and gas.Climate change describes a change in the average conditions — such as temperature and rainfall — in a region over a long period of time. NASA scientists have observed Earth’s surface is warming, and many of the warmest years on record have happened in the past 20 years