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The recent floods devastating large parts of Dubai and China are a cruel reminder of the severe threat that climate change poses to global economies. Business representatives underscored these risks during the COP28 climate summit in Expo City, Dubai, in 2023.
As a matter of fact, 50% of CEOs, interviewed during the PWC 26th Annual Global CEO Survey indicated that their companies will face climate change business risks over the next five years.
This revelation highlights the glaring reality that organizations must shape up or ship out on the issue of climate change. On the flip side, it also means that there are numerous investment opportunities for businesses looking to provide solutions that promote climate resilience.
We will look at the top 5 business reasons for climate-change investing.
Implementing a carbon tax across the entire economy is one mechanism governments worldwide use to address climate change. Although the U.S. government hasn’t implemented a federal carbon tax, many states, like California, have carbon schemes to price carbon effectively.
Other global policy tools like the Network for Greening the Financial System have spurred the EU and the UK to implement climate risk reporting for large corporations and financial institutions. Giving your business a head start by collecting data on your CO2 emissions will differentiate your company from competitors and improve your brand reputation.
Trillions of dollars will flow into economic activities in the next five years, and allowing the politics of climate change to impede investments is seen by many businesses as a severe mistake.
Businesses can increase their revenue by tapping into new climate-change business opportunities. They can partner with small-scale local companies, governments, and community projects looking to migrate to a low-carbon economy.
Michael Sonnenfeldt, CEO of Tiger 21, and investment club for billion-dollar net individuals, says, “Climate changes are underway regardless of your politics. Renewables are cheaper than fossil fuels, prompting energy utilities in Europe and the U.S. to restructure their purchasing patterns, creating opportunities across the energy sector.
The heightened awareness surrounding climate change has spurred the development of many climate-related goods and services. Organizations are scrambling to capitalize on changing consumer preferences and beat the competition. Some lucrative climate-smart opportunities include footwear, food, clothes, and financial products like ‘green’ mortgages, climate adaptation and insurance risk solutions,
Natwest Group, the UK's largest commercial and business bank, launched a green mortgage/remortgage product that gave its customers low interest rates if they bought or remortgage energy-efficient properties. By 2021, the bank had closed £728 million (USD 965 million) equivalent of green mortgages.
The 2010 BP Deep Horizon oil spill in the Mexican Gulf triggered massive global protests urging BP to take responsibility for the economic and ecological cost of the accident. This incident and others like this show that environmental or social negligence by businesses can affect consumer buying behavior and hurt a company’s revenues and stability.
Therefore, private sector entrepreneurs engage in CSR to mitigate possible risks to their reputation or reduce harmful eco damage their organizations might be contributing to, says Nestlé CEO Paul Bulcke. The benefits of this forward-thinking approach include improving corporate bottom lines in the long term and the ability to upend business strategy to shape the future.
Today’s employees love to work at companies that align with their interests, and for some, this means choosing employers who take climate action over those who don’t. One Harvard Business review study shows how sustainability efforts correlate with employee retention - up to 38% higher staff retention - for businesses that address climate sustainability.
The same study revealed that employee productivity increased by 16% when they felt their values aligned with their organization’s sustainability efforts. Attracting and retaining skilled employees is a valuable asset that improves the planet and your company’s income.
While business sustainability has been around for a long time, the issue of climate action is at the top of the agenda now, even as the adverse effects of climate change start to manifest faster than anticipated. So, whether you are a retailer, manufacturer, or even a high-tech corporation, climate-change investing can help transform your true potential.
The recent floods devastating large parts of Dubai and China are a cruel reminder of the severe threat that climate change poses to global economies. Business representatives underscored these risks during the COP28 climate summit in Expo City, Dubai, in 2023.
As a matter of fact, 50% of CEOs, interviewed during the PWC 26th Annual Global CEO Survey indicated that their companies will face climate change business risks over the next five years.
This revelation highlights the glaring reality that organizations must shape up or ship out on the issue of climate change. On the flip side, it also means that there are numerous investment opportunities for businesses looking to provide solutions that promote climate resilience.
We will look at the top 5 business reasons for climate-change investing.
Implementing a carbon tax across the entire economy is one mechanism governments worldwide use to address climate change. Although the U.S. government hasn’t implemented a federal carbon tax, many states, like California, have carbon schemes to price carbon effectively.
Other global policy tools like the Network for Greening the Financial System have spurred the EU and the UK to implement climate risk reporting for large corporations and financial institutions. Giving your business a head start by collecting data on your CO2 emissions will differentiate your company from competitors and improve your brand reputation.
Trillions of dollars will flow into economic activities in the next five years, and allowing the politics of climate change to impede investments is seen by many businesses as a severe mistake.
Businesses can increase their revenue by tapping into new climate-change business opportunities. They can partner with small-scale local companies, governments, and community projects looking to migrate to a low-carbon economy.
Michael Sonnenfeldt, CEO of Tiger 21, and investment club for billion-dollar net individuals, says, “Climate changes are underway regardless of your politics. Renewables are cheaper than fossil fuels, prompting energy utilities in Europe and the U.S. to restructure their purchasing patterns, creating opportunities across the energy sector.
The heightened awareness surrounding climate change has spurred the development of many climate-related goods and services. Organizations are scrambling to capitalize on changing consumer preferences and beat the competition. Some lucrative climate-smart opportunities include footwear, food, clothes, and financial products like ‘green’ mortgages, climate adaptation and insurance risk solutions,
Natwest Group, the UK's largest commercial and business bank, launched a green mortgage/remortgage product that gave its customers low interest rates if they bought or remortgage energy-efficient properties. By 2021, the bank had closed £728 million (USD 965 million) equivalent of green mortgages.
The 2010 BP Deep Horizon oil spill in the Mexican Gulf triggered massive global protests urging BP to take responsibility for the economic and ecological cost of the accident. This incident and others like this show that environmental or social negligence by businesses can affect consumer buying behavior and hurt a company’s revenues and stability.
Therefore, private sector entrepreneurs engage in CSR to mitigate possible risks to their reputation or reduce harmful eco damage their organizations might be contributing to, says Nestlé CEO Paul Bulcke. The benefits of this forward-thinking approach include improving corporate bottom lines in the long term and the ability to upend business strategy to shape the future.
Today’s employees love to work at companies that align with their interests, and for some, this means choosing employers who take climate action over those who don’t. One Harvard Business review study shows how sustainability efforts correlate with employee retention - up to 38% higher staff retention - for businesses that address climate sustainability.
The same study revealed that employee productivity increased by 16% when they felt their values aligned with their organization’s sustainability efforts. Attracting and retaining skilled employees is a valuable asset that improves the planet and your company’s income.
While business sustainability has been around for a long time, the issue of climate action is at the top of the agenda now, even as the adverse effects of climate change start to manifest faster than anticipated. So, whether you are a retailer, manufacturer, or even a high-tech corporation, climate-change investing can help transform your true potential.
