logo
logo
Sign in

The Effect of Global Warming to Businesses

avatar
Watt Utilities
The Effect of Global Warming to Businesses

Everybody knows what global warming is. It is the gradual heating of the Earth’s surface, oceans, and atmosphere due to human activities, mainly fossil fuel burning. The climate is intrinsically linked to everyday life. Its effects are now being felt on businesses, and it will continue to have an even larger impact on running a business. Here are some of the effects of global warming to businesses:

A series of new business risks

The frequency and intensity of extreme weather events such as storms, floods, droughts, and heat waves are linked to global warming. Good weather is the key to the daily operation of a business. A series of new business risks emerge when the weather is uncertain.

Extreme weather conditions can cause physical risks in the operation of the business. This stems from supply shortages, water scarcity, forced closure, and costly cease in operations. Weather extremity can disrupt supply chains, making it more difficult to get resources. While no company can reverse the effects of extreme weather conditions, a good company can make preparations and take steps to mitigate likely scenarios.

Financial risks are also present. Businesses that cannot run on extreme weather conditions are forced to close all throughout the duration. If a business cannot operate, then it cannot profit. Insurance costs also increase because of the potential damages that climate change may bring. The rise of electricity and transportation costs are also linked to global warming. Prices of commodities and raw materials can also increase as weather-related incidents occur.  The increased costs bring another financial challenge for businesses.

Transitional risks arise from society’s response to climate change. With the way society deals with global warming, business may be required to follow. These include changes in technologies, market regulation that can increase business costs, decreasing value of existing products or services, and undermining asset values

External stakeholder risks are also caused by the effects of global warming. External stakeholders are people who do not work for a business but are highly interested in investing money on it. They can either affect or be affected by the business. They are an important component of the business because they provide financial and practical support. Increased prices caused by climate change can affect stakeholders’ interest in investing. If a business is easily affected by global warming and cannot mitigate its effects, its reputation decreases and its public image becomes negatively viewed.

Lastly, it brings forth a potential legal risk in emitting greenhouse gases. In the recent years, legal cases are being filed to target fossil fuel companies and utilities, holding them accountable for the damages done by climate change.

Harsher working conditions and less productivity

Unpredictable weather patterns may lead to harsher working conditions. Too much rain can cause flooding. It becomes more difficult to travel when there is a heavy flood. Extreme cold and intense heat also affects how people work. People may look at these events as completely normal because they are used to it, but it is not.

Researchers from Cornell University, New York, found out that employees who are working under the temperature of around 20 degrees made 44 percent more errors and were half as productive than when they were working on a nice and warm 25 degrees. On the other hand, heat stress causes low mental performance and decreased motor skills. This happens when the weather is too hot and the body rapidly loses electrolytes.

Impacts on Customers

A good businessperson knows how to handle uncertainty brought upon by weather fluctuations. It is very important to know the behavior of customers during the different seasons of the year. Conducting research on sales would provide valuable data that will help in setting prices and offers for customers. In addition to this, it is necessary to analyze the impacts of weather to predict the future performance of the company. By understanding the performance on a certain in a season, the business can prepare for the next ones.

A Utility Switching Service Solution

Utility expenses are severely affected by global warming. The energy market displays a lot of price fluctuations. The increased business risks brought upon by global warming can lead to additional expenses in utility bills. Luckily, Watt Utilities offers affordable and high-standard utility switching services all throughout the U.K. They cover electricity, gas, water, telecom, and internet. Watt Utilities partners with the top suppliers in the U.K. to get the best and cheapest business electricity bills. They are dedicated to reducing the costs of utilities so businesses can spend their money on other aspects. They have an incredible team of specialists that carefully listens to the demands of the clients and assists in getting the most valuable contracts in the market. Visit the website to enjoy the best deals!

collect
0
avatar
Watt Utilities
guide
Zupyak is the world’s largest content marketing community, with over 400 000 members and 3 million articles. Explore and get your content discovered.
Read more