Winners and losers

The merits of individual company responses will be ultimately be judged by customers and shareholders. Both customers and investors are increasingly using environmental factors as part of their decision process.

However it is clear that the likely losers are those who:

  • delay taking actions while waiting for absolute certainty
  • take no immediate actions to mitigate the problem
  • do not incorporate a clear strategy to manage the consequences of climate change

Risks of doing nothing

Doing nothing will increasingly be seen as poor management of a significant business risk, with possible consequences including:

  • Loss of revenue or market share - customers move to more dynamic competitors
  • Increased cost of capital or Reduced investor confidence
  • Damaged reputation or brand
  • Missed business opportunities
  • Non-compliance with regulatory or corporate governance requirements
  • Financial risks from investment decisions based on incomplete information
  • Direct impacts of changing weather patterns or extreme events wind, rain, heat or flood
  • Escalating costs energy, raw materials
  • Removed from approved partner list of key suppliers