Global Warming Effects on Business

Global Warming refers to the increase in the average temperature of Earth’s near surface air and oceans since the mid 20th century and its projected continuation. Global warming, caused not only by natural occurrences but also by human activities, is a heated concern; it affects business, commerce, health and the environment and changes the dynamics of the global economy as we know it today.

Unfortunately, Global warming effects on the business are not only negative but rather devastating, and few only see some positive effects.

Damage to property and infrastructure: Sea-level rise, floods, droughts, wildfires, and extreme storms require extensive repair of essential infrastructure such as homes, roads, bridges, railroad tracks, airport runways, power lines, dams, levees, and seawalls.

Lost productivity: Disruptions in daily life related to climate change can mean lost work and school days and harm trade, transportation, agriculture, fisheries, energy production, and tourism. Severe rainfall events and snowstorms can delay planting and harvesting, cause power outages, snarl traffic, delay air travel, and otherwise make it difficult for people to go about their daily business. Climate-related health risks also reduce productivity, such as when extreme heat curtails construction, or when more potent allergies and more air pollution lead to lost work and school days.

Mass migration and security threats: Global warming is likely to increase the number of "climate refugees"—people who are forced to leave their homes because of drought, flooding, or other climate-related disasters. Mass movements of people and social disruption may lead to civil unrest, and might even spur military intervention and other unintended consequences.

Coping costs: Societies may find ways to prepare for and cope with some climate impacts—provided that we do not let our carbon emissions continue unabated. However, even a partial accounting of these measures suggests that coping is likely to be more costly steps to reduce carbon emissions thereby reducing associated climate impacts.

Agricultural Sector: By far, the agricultural sector is the most affected sector by global warming which is causing serious disruptions in the weather, which will have a domino effect on other factors.The direct dependence on climate makes the agriculture sector sensitive to global warming. Increases in global temperature and greater variability will force farmers to adopt new management practices.

They will have to invest in new areas, where the climate has warmed enough to make agriculture viable, and may have to abandon other areas that have become too hot, too dry, or too wet.Global warming will also cause a global shift to the agricultural crops around the world. Types of crops grown in a particular place will most likely change. It will also alter agricultural methods based on the distribution of rainfall; water storage and irrigation to assure water is stored for the summer where the quality of the crops could be affected due to an increase in drought or heat waves.

Tourism and Travel Sector: It is often said that farmers are on the front lines dealing with global warming; however tour operators and resort owners are not far behind. The Tourism and Travel Sector is highly affected by Global Warming for several reasons. First of all, people are going more “green” nowadays, choosing eco-tours and eco-hotels to minimize their carbon footprint as they travel. Second, the increase in bad weather events, landslides and erosion will all keep tourists away. Third, many countries that depend on tourism will be affected by the sea level rise or the lack of decent snow or even water shortages, thus resulting in the closing of many beachside tourist spots, ski resorts and golfing hotels.

Health sector: The climate could also bring a change in our general health. The quality and type of food we eat, the water we drink and our homes are all dependent on our climate and weather. It is feared that warmer climates may see the emergence of some conditions and diseases not found today. Climate change has a significant effect on most businesses, whether it is negative or slightly positive, even if they are not directly affected by environmental factors. They may be indirectly affected in their supply chain, transportation, or consumer market.

Consumption sector: Consumer trends and behavior are also dependent on climate change. If it is too hot in summer, fewer people go out. Same is the case in more severe winters. The weather also has an effect on when people go shopping and what they go out to buy.

Real-estate sector: The prices of the equatorial and low-latitude areas of the world becoming hotter and less desirable as places of habitation will decrease, as well as properties located on coasts affected by storms where it could become more difficult and costly to obtain insurance.

Climate change has a significant effect on most businesses, whether it is negative or slightly positive, even if they are not directly affected by environmental factors. They may be indirectly affected in their supply chain, transportation, or consumer market.

It is important that businesses realize the need to plan for climate change and adopt new suitable strategies to cope with this quick change. We finally say with Elliot Spitzer: “Global warming threatens our health, our economy, our natural resources, and our children’s future. It is clear we must act”.