Question: Climate Change is a major issue in business sustainability.

What problems does

it pose to businesses, and how can businesses address its impacts?

For decades businesses have struggled to achieve an adequate level of sustainability. That dwells in their
ability to manage appropriately their social, financial and environmental opportunities, obligations and
risks (Australian Government, 2015). Nevertheless, the rapid change in climate has brought about
political, economic, social and environmental repercussions that challenge the sustainability of Background

businesses. Erratic weather conditions, droughts, floods, rising sea levels and rapid snowmelt are among
the significant climate change issues for business operations and sustainability, and have straight
inferences for trade on globally (Miles, Grainger and Phillips, 2004).
Climate change is a global challenge necessitating a global solution. Just as business sustainability is
important, it is essential to consider the impact and effect of climate change on business sustainability
(Dauvergne and Lister, 2013). It is evident that businesses will face more issues as never before if they do Thesis
not carter the impact of climate change and no steps or strategies are taken to implement adequate
Statement
solutions (Suzanne, 2013). It is the time now for leaders to carefully rethink their business priorities,
models and sustainability, and to appraise the significance of climate change for their business goals, as
supported by Shiva (2002).
The substance of this paper will be about assessing the impact of climate change on businesses
Outline
sustainability and the way businesses could minimize the effect of climate change, adapt to the changes,
lower their risk and if there is any opportunity, to take advantage of it (Stern, 2006).
Recognizing climate change as an unavoidable or unpredicted factor and acknowledging the necessity to
adapt to it will definitely enable businesses to make appropriate decisions that will enable them to strive Significance

in adversity moments.

Problem 1:

Unpredicted weathers are affecting the operations of businesses, in Australia in particular and in theTopic Sentence
world in general.

To remain sustainable, businesses have to meet up to the expectations of their stakeholders and to their
commitments to these stakeholders. Nevertheless, with the unpredicted and hazardous weather conditions
brought along by climate change (drought, heavy storms, and so on), some business operations are
Elaboration
significantly affected, making businesses unable to achieve their goals and satisfy customers (Pearse et
al., 2011; Scott et al., 2003). This means that the supply chain of the business will be affected, either the
distribution of the products or the procurement of the raw materials, or even the manufacturing of the
product itself (Coburn et al. 2011).

For instance, with the increase of the frequency of cyclone and the increase of the severe storms,
combined with heavy rainfall events in Australia have significantly affected the distribution network of
some businesses, making them unable to reach to some localities or some dealers with their products due Example

to these bad climate conditions (McMichael et al., 2002). This has increased the delivery time for some
businesses and unable them to abide to the just-in-time business delivery.

The prevalence or the unpredicted climate condition is significantly derailing or disturbing the operations
of companies and businesses, at the extent that they often fail on their commitments or engagements with
their customers, as they often found themselves in a situation where they cannot honor an engagement or Interpretation

satisfy a command or an order on a timely manner. This can considerably deter on the identity of the
business, as the business sustainability is put in doubt.

Considering the fact that business sustainability is significant for companies and that it informs on the Link to Next
business reputation and identity, it is therefore important for businesses to take some measures to remain Paragraph
sustainable even in adverse conditions.

Solution 1:

Realize that climate change is a reality and cannot be avoided, thus implementing strategies to carter it. Topic Sentence

The Australian average surface temperature has augmented by 0,5 oC during the past 50 years; there is an
augmentation of the frequency of hot days, the severity and frequency of drought has become more
frequent, and the sea levels in Australia has increased of 20mm per decade during the past 50 years
(McMichael et al., 2002). These data ascertain the reality of the climate change in the Australian context, Elaboration

and things are getting worse, so business cannot avoid this reality and it is only left to them to develop
and implement strategies or approaches that will enable them to remain sustainable during these adverse
conditions for their businesses.

One of the strategies that businesses can implement in order to cater to the realities of climate change is Example
risk management

Through risk management, the company will have a step ahead on the occurrence of risks. This strategy
enables the management of the company to predict or to anticipate on the eventual risks that could occur. Interpretation

This could only be achieved if sustainability is formalized as a board priority, if sustainability is

incorporated in the strategic planning and if it is aligned with business performance and management
approach.

Despite the fact that climate change is a reality and unavoidable, and that businesses can cater it through Link to Next
adequate measures, it is sad to recognize that businesses have threatened their sustainability by getting Paragraph
involved in practices contributing to climate change.

Problem 2:

Climate change can generate reputational risks to businesses, significantly affecting their sustainabilityTopic Sentence
before their various stakeholders (CDP, 2011; Coburn et al., 2011)

The reputational risks are associated with the harmful actions of local communities and consumers
against companies (in the likes of protests, boycotts), because of the inadequate day-to-day businesses’
operations with respect to diverse climate changes (Pearse et al., 2011; Scott et al., 2003). Mincer (2008)
Elaboration
added that sustainable business operations and practices enables to meet human needs and at the
meantime preserve the ecosystem for the current and future generations; and that nowadays stakeholders
have put and accent on this aspect of businesses to consider them as socially responsible.

In 2008 a survey on 190 projects led by major multinational oil firms revealed that the time necessary for
projects to be realized doubled in contrast to the previous decade, generating significant costs (Goldman, Example

2008), and that those companies relationships with social entities represented the single largest category
(Ruggie, 2010).

This means that the fact that companies were not socially responsible in the way they operated, by
significantly affecting the environment and contributing to climate change, the local communities entered
in conflicts with these companies. These conflicts have led in extensive projects completion and Interpretation

significant costs for the companies. The conflict could range from protests on the construction or
operation sites, destruction of materials and equipment of the companies, law cases; all of these leading to
unpredicted expense (Henisz et al., 2013).

The adversity of the social actors against businesses will always be detrimental to the business reputation Link to Next

and financial health. It is therefore significant for businesses to look for measure or ways to reduce or Paragraph

improve their contribution to climate change and consequently improve their sustainability.
Solution 2:

All Australian businesses have to cut climate change contributors (energy use and carbon dioxideTopic Sentence
emissions for instance) to significantly reduce it.

In order for the earth to sustain a stable temperature or climate, there ought to be an equilibrium between
the quantity of radiation absorbed by the earth and the quantity of energy emitted coming from the earth Elaboration
back to the atmosphere (Joseph et al., 2015). This basically means that businesses should reduce their
emissions of gases in the atmosphere in order to balance the stability of the climate.

The government as the regulator, can state a cap that will limit the volume of carbon dioxide emissions
for each company or business according to its sector or industry. In addition to that, the government could Example

fix the price of each unit of carbon dioxide, and trade the cost of achieving the target.

The strategy is to entice businesses to make money in abiding to environmental measures and respecting
the regulations, then reducing climate change advancement. Most importantly, this approach will
contribute at unleashing the innovation and creativity of businesses, offering them a springboard to seize
new business opportunities. For instance, there is a noteworthy example of reducing pollution through the
strategy of fixing a cap and then enabling businesses to trade the pollution entitlements in the USA. There Interpretation

the trading approach for Sulphur dioxide, which is a gas that has led to acid rain, was successful ( Mills,
Lecomte and Peara, 2001). During the year 1980 the emissions of this gas were 17.3 million tonnes and
two decades later they dropped to 11.2 million tonnes. Consequently, the costs of realizing the pollution
diminution caps became cheaper for businesses as there was an opportunity to make money through
creativity and innovation (Tony et al., 2004).

Link to Next
Despite the fact that the solutions proposed to the different problems evoked seem adequate and ideal, it
is significant to assess or appraise the efficiency of the solutions. Paragraph

Evaluation:

Two major solutions have been proposed to the problems evoked; the implementation of the risk
management strategy and the setting up of the emissions cap for businesses. The setting up of the
emissions cap for businesses is quite in line with the recommendations of the Conference of Parties
twenty one in Paris (COP 21), which was held in 2015, that stipulated among the resolutions that every
Evaluation
government should take the vow or commitment to reduce the carbon dioxide emission at the national
level by 2030, in order to mitigate the effects of climate change on the world (COP 21, 2015). As for the
implementation of risk management approach, Veena (2015) writing in account for the CERES,
 Evaluation
supported the fact that climate change hazards could only be carter by businesses if they place
sustainability at the core of their strategic actions, and that businesses that have done so have been able to
remain sustainable and conduct their operations, even in adverse moments.

The reduction of carbon emissions by companies which are the main contributors of carbon emissions in
the world will significantly improve the climate condition and less hazardous weather will be observed. Significance
Whereas the adoption or implementation of risk management approach will enable to anticipate on
hazardous weathers (Walther et al., 2002).

Some companies are still reluctant or disobedient of reducing their carbon emissions, and their size and
influence exempt them from sanctions of the governments, making the reduction regulation of no effect.
Limitations
Also the reduction scheme is limited by the creation of new businesses which were not taken in
consideration by the previous standards.

It is essential to compel companies to shift to more environmental friendly sources of energies such as the
biofuel, which does not have any negative effect on the environment and on the climate change. Suggestions
Businesses should be more aware of the climate conditions of the locations where they have operations in
order to take appropriate measures for their operations not to be disrupted.

References

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