Climate change influences natural resource depletion and puts businesses, individuals and the global ecosystem at risk. A recent example is the COVID-19 pandemic. Environmentalists believe it originated from forced migration, causing unnatural interactions between different species.
Habitat destruction caused a ripple effect of destruction that influences supply chain limitations today. However, corporations can attain financial security by minimizing the enhanced greenhouse effect. Renewable energy can effectively shrink the global carbon footprint by decreasing society’s reliance on fossil fuels.
How Is Climate Change Impacting Economic Stability?
Hurricane Ida hit Louisiana last summer and shut down most businesses in New Orleans. Companies remained without power for nearly two weeks. Restaurants had to throw away their perishables and could not serve customers for an extended period.
Researchers calculated the economic losses from natural disasters last year would reach $343 billion globally. Environmentalists predict natural disaster frequencies may increase as greenhouse gas emissions continuously rise. Warmer summer temperatures influence higher category hurricanes, and water displacement causes more flooding.
Rising temperatures also interfere with natural resource accessibility and costs. Ecologists predict severe water scarcity challenges due to increased evaporation rates over the next century. They also expect the price of freshwater to continuously rise.
Another climate risk relates to employees’ health and well-being. Individuals experience higher risks of respiratory illnesses like lung cancer in high-emission regions. Companies can protect their workers and finances by investing in renewable energy.
How Renewable Energy Can Limit Climate Risk
Renewable energy helps corporations manage climate risks by limiting greenhouse gas emissions. The technology also increases a company’s power resilience during natural disaster-related outages. Photovoltaic (PV) solar panels independently produce power in low-light environments.
Individuals can access emission-less electricity during blackouts to minimize storm-related revenue losses. Companies may also gain a leg up on their competitors by increasing their reliability.
Renewable energy systems also protect employees’ health by decreasing their exposure to air pollutants. Protecting workers’ well-being is essential in the current climate. Many companies lost employees during the pandemic from health concerns. At the beginning of the lockdown, nearly 14.8% of the population filed for unemployment.
One of the key benefits of renewable energy is ecosystem conservation. Minimizing atmospheric and surface-level pollution preserves soil nutrient levels and promotes vegetation development. Maintaining natural surface temperatures also decreases water displacement and scarcity.
Additional Climate Risk Management Techniques
Corporations can engage in additional risk-reduction techniques to improve financial security and employee protection. Individuals may directly conserve natural resources like water to reduce utility costs and shrink their water footprints. The price of water is constantly rising to match consumer demands.
Water is nearly 51 cents per cubic meter in developed nations like America. After adopting renewable energy systems, companies can invest in efficiency-enhancing technology to decrease monthly water costs. Solar and wind power are more affordable than conventional power sources, helping businesses save money.
Another risk management technique is minimizing soil erosion with permaculture. Many manufacturers receive their materials from farms engaging in monoculture production methods. Preserving soil nutrient levels minimizes habitat destruction and increases the abundance of natural resources.
Electric vehicles (EVs) also help the environment and improve worker safety. They release zero tailpipe emissions, which improves local air quality. Some EVs are also self-driving, protecting transportation professionals from collisions.
Establishing an Effective Sustainability Plan
Companies that assess their climate risks can begin developing sustainability plans. Rising temperatures and ecosystem degradation affect nearly all industries worldwide. Businesses can reduce their risks by investing in solar and wind power to shrink their carbon footprints.
They also may develop sustainability training programs for their employees to enhance efficiency levels and install smart systems in their office buildings and manufacturing facilities. Over time, sustainability-enhancement measures may improve a company’s longevity and eco-consumer appeal.
