Today’s climate-driven economy has forced us to be wary of climate change’s ongoing threats to various businesses in the public and private sectors. Undeniable evidence of climate change impacts can be felt all over the world. Natural disasters such as major flooding, heavy rainfalls, droughts, rise in sea-levels and the increase of the Earth’s temperature indicate a range of environmental risks that present significant effects in an organization’s supply chain and operations.
The Guardian News reported that companies have already started to include climate change mitigation initiatives in their investments and business planning to protect themselves from climate change impacts such as the disruption of business operations, increased costs of maintenance and materials, and rising insurance prices. These are some of the reasons why climate change is not a singular corporate objective, but a global concern that has become the game-changer in the business community.
Companies need to take appropriate action for climate change risk mitigation. Businesses that take a proactive approach by including it on the corporate agenda have identified their own climate risks and recognize the opportunities to increase their market share and promote climate resilience to other stakeholders.
According to a report by the United Nations Environment Programme (UNEP), strengthening the ability to mitigate climate change helps improve the health of the world’s ecosystems. It is essential to foster strategies that engage organizations to disclose and address the impacts brought about by climate change to help build a climate-resilient future. One such strategy is the introduction of new management practices within the organization. The integration of climate change mitigation measures into management practices through the use of a more efficient energy system helps reduce a firm’s greenhouse gas (GHG) emissions and foster the development of low carbon societies.
An organization shows its dedication to climate resilience through the use of low-carbon materials and incorporating facilities that help reduce one’s carbon footprint as well as GHG emissions. Businesses also cite their best-practice examples by providing an annual Corporate Social Responsibility (CSR) report that shows GHG emissions reductions across their value chain.
Another strategy is the development of new products and services to help vulnerable communities. Organizations help promote climate change mitigation by reducing a community’s GHG emissions and creating new climate-resilient products and services that benefit the organization as well as the general population. Communities, governments and businesses will need products that will safeguard their assets against climate change. The World Resources Institute supported this claim and asserted that multinational corporations are in the best position to provide products that safeguard the assets of a community, government and business because of their excellent financial, technical and human resource capabilities.
Lastly, raising climate change awareness by working alongside governments and non-governmental organizations strengthens the advocacy for climate change mitigation by conducting awareness-raising campaigns and outreach programs, and educating the various organizational stakeholders. Through the promotion of climate change programs, best practices and success stories, the organization helps its stakeholders become more exposed to climate-related issues, as well as its causes and consequences. These awareness campaigns will drive stakeholders to take informed actions when it comes to climate change.
ADEC ESG has the experience to give expert advice on how to develop solutions to lessen climate change impacts and cites best practice examples on how to incorporate climate mitigation strategies into your corporate agenda. For more information or to request a consultation, contact FCS today.
