Climate change is a ‘business risk’

Climate change is a ‘business risk’

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Climate change is a ‘business risk' which is no longer about an environmental concern.

We as a country are observing a level-change in climate-related business risks where climate change is no longer a little environmental concern.

For many cooperations, small businesses and medium businesses, it presents an element of financial risk.

The management of climate risk is not about compliance, and understanding that climate risk is key to mid-long term plan and flexibility.

Companies in many sectors, risk climate-related scenarios that are real and depend on the industry, location of production and company assets, as well as the carbon footprint.

Extreme weather events, failure of climate change adaptation and natural disasters were all ranked as the top 10 risks for business owners in East Asia, the Pacific and North America.

East Asia and the Pacific, environmental risks are the leading concerns for doing business, with natural catastrophes and extreme weather events ranking first and fifth, respectively.

On a country basis, “natural catastrophes” were ranked first in Japan and New Zealand, while in Indonesia and the Philippines they ranked third. Given that the broader Asia Pacific region witnessed 50% of the world’s most natural disasters in 2018.

These catastrophes claimed over 80% of the total global deaths through natural disasters, affected over 50 million people, and cost the region a total of $56.8 billion.

There are many impacts of climate change on companies. On the one hand, it creates a series of new business risks for the future to come.

Image: Pexels

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