Climate Change And Business Adaptation
In the business context, adaptation seeks to moderate climate change impacts on company operations and activities. It is a key component of a comprehensive corporate response to climate change, alongside mitigation and (in developing countries) sustainable development.
Businesses have many motivations to adapt to climate change, from maintaining profits to environmental activism. Regardless of motivation, businesses that fail to prepare for a changing climate will likely struggle financially, with customers, employees and shareholders left behind.
Risk management is the identification, evaluation, and prioritization of risks (uncertainties with negative consequences) followed by coordinated and economical application of resources to minimize or monitor the probability or impact of unfortunate events. It also includes responding to opportunities that may arise.
Risk assessments must be systematic, documented and, depending on the business, reviewed or redone at regular intervals. The results of the assessment are often used to generate mitigation plans or contingency plans.
Many businesses are increasing the energy efficiency of their products and services. Whether through new appliances and devices (LED light bulbs, for example) or more efficient building insulation, the trend is clear. As such, these efforts reduce the amount of energy that is needed to perform certain tasks and cut electricity costs in the long run.
These reductions in energy usage can also reduce environmental impacts associated with energy use such as air pollution and depletion of natural resources. For example, replacing a gas-powered vehicle with an electric vehicle can reduce the amount of emissions that are caused by driving and can help alleviate pressure on the grid.