Factories releasing harmful gases into the air

Companies are starting to realize that climate change will have serious consequences for their operations. The past decade has seen an increase in the frequency and severity of extreme weather events that have affected commercial operations and led to the loss of life, property, and infrastructure.

Corporations are looking beyond the immediate effects of global warming and see how it will affect their global corporate strategies in the long run. While climate change can disrupt businesses, it can also impact workers’ emotional and physical health and even lead to fatalities.

Human capital is the most valuable asset for most businesses. This is especially true in the global services sector. Let’s look at how the global climate crisis is affecting businesses and employees:

Severe weather increases business risk

Floods, hurricanes, and heat waves are becoming more frequent and severe because of climate change, and this will continue if corporations don’t take action, according to scientists.

The next few years will see more catastrophic disasters, severely impacting the ability of businesses to function. Extreme weather makes business activity risky for corporations. This translates into higher insurance premiums and, ultimately, higher operating costs.


Two people holding posters addressing climate change

Price and supply of raw materials

Intense weather can disturb supply chains, making it harder for companies to acquire raw materials and goods to meet consumer demand. Severe drought and weather changes can destroy crops needed for food, clothing, and other items. Shipping costs will also rise if the price of power and fuel continues to increase.

Moreover, climate change has caused regulatory bodies to increase restrictions on certain products, which increases costs for businesses. As natural resources become increasingly scarce, businesses may be compelled to find creative solutions, such as recyclable alternatives.

Business responsibility under public scrutiny

As consumers become more aware of climate change, they become less tolerant of corporations that do little to reduce their harmful impacts on the environment. Sustainable production methods, or at least a lower environmental effect than competing items, are becoming increasingly important to customers.

Companies are under growing pressure to demonstrate corporate social responsibility. They can do this by supporting environmental causes or making their operations more environmentally responsible.

The most important thing businesses can do right now is come up with a strategy to combat climate change and protect their employees, customers and the planet. If your company needs a proactive, forward-thinking leader who will help your company progress in the face of distress, we can help. Our expert New York Executive Headhunters NY and consultants at Cochran Cochran & Yale will help you Find CFO jobs NYC, CEO, or other C-suite executive who understands and fits your company culture and goals.

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