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In modern Capitalistic society, any talks of Climate change also gives rise to discussion on its impact on Businesses. This essay analyses both positive and negative impact Climate Change has on Businesses.
To begin with, Climate change corresponds to changes in weather patterns, increase in sea level and certain incomprehensible natural phenomenon. It gives rise to natural disasters like Tsunami, Flooding, Drought, and forest fires. For instance, when one operates a Business in an Island, there is fear that rising Sea levels may destroy the Industrial unit located in the Island. This is a huge loss to the Business and it may lead to Bankruptcy. This could also instill fear among workers who are asked to work in an area prone to destruction by changing Climatic conditions. In another instance, if an Industry operates in a region prone to Forest fires, which are more likely to occur due to extreme heat due to changing climatic trends, the Business can incur losses if the Unit gets burned. Thus it is a very legitimate thought process that Climate change has a negative impact on Business.
On the other hand, Climate change also presents opportunities to Business. First, there are Business opportunities evolving that promotes Sustainability. In such businesses, Green practices are followed, Transportation that is environment friendly is being built and as the central part of Climate change debate is changing one’s own day to day life, many personal hygiene products businesses that makes environment friendly products, are emerging. Also, there are great deal of interest in controlling emissions in Vehicles, as Emissions cause depletion of Ozone layer, and thus emergence of Electric vehicles have provided new investment opportunities. Thus, Climate change have lead to new business opportunities.
In conclusion, Climate Change plays a significant role in modern life, and thus has a direct impact on the way Businesses operate. Though natural calamities resulting from Climate change have greater negative impact on Businesses, they also have given rise to new Businesses opportunities in the areas of sustainability, green practices and also for businesses countering the Climate change.
