Why climate matters

Climate and weather patterns play a significant part in determining patterns of population and trade around the world today. There is overwhelming evidence to suggest that these global patterns will be different and more unpredictable in future. The effects on business will be significant and widespread.

The physical effects of climate change revolve around reduced predictability of weather patterns and the increase in frequency and intensity of extreme events associated with a higher energy climate system.

It may be that your business has little exposure to these direct physical impacts but the indirect effects arising out of changes to regulation, customer demand, supplier mandates, investor requirements or employee priorities are unavoidable.

Change creates uncertainty, opportunity and risk. Climate change is no exception. It is the nature of the response to change that determines whether that change becomes positive or negative for any business.

Climate change is now widely seen as a critical and changing business dynamic. It is a natural phenomenon but the current rate of change is concerning and impacts from change are significant so it cannot be ignored.

Many companies are therefore taking steps to determine a structured response plan. Most have done so voluntarily as a result of prudent management or commercial opportunity, rather than because regulation or market forces have yet dictated it.