Category: Climate Change

The Impact of Corporate Climate Change Activists

August 15, 2023 Social Issues

Jeff Bartel

Chairman and Managing Director

With concerns about the health of the environment intensifying, corporate climate change activists are using their unique combination of knowledge, influence, and resources to help lead their respective businesses toward a greener future while still sharing in the benefits of a growing green economy.

Understanding Corporate Climate Change Activists

Gone are the days when corporate interests and environmental concerns were considered opposing sides. The appearance of the corporate climate change activist shows a shift in the way business leaders view their role in addressing global matters.

They come from diverse backgrounds in finance, technology, manufacturing, etc., and use their knowledge of business operations, market trends, and an understanding of how industries function to identify sustainable practices that benefit the environment and bottom line.

The Five Phases of Corporate Climate Action

When speaking about climate action, there are five specific phases in the journey to implement change successfully. They are:

  • Indifference: This is the first phase and most common for organizations when they initially consider climate change. It was only in the late 1980s that this feeling began to change.
  • Compliance: The second phase is one brought about by legal requirements or legislation. Today, most companies still meet the minimum requirements without considering the environmental impact or potential business upsides.
  • Instrumentalism: The third phase occurs when companies see and understand there are some market benefits to being sustainable. These benefits include customer appreciation and loyalty, a reduction in material waste, positive press, and partnering with other like-minded groups or companies.
  • Sustainability: The fourth phase is the most common today and the one often publicly presented by companies in their daily business dealings. It builds upon instrumentalism to achieve longer-term sustainability that balances people, profit, and the planet.
  • Climate Change Activism: This fifth phase involves using the power of the company’s brand and firm resources to target the public, consumers, governments, other businesses, and stakeholders in fighting for the cause.

Increased Corporate Climate Consciousness

For a long time, companies operated with limited awareness or interest in their environmental impact. Instead, they were more focused on generating profit. With the appearance of more specific climate change data, that changed and led to an acceptance of sustainable practices. Increased consumer demand for eco-friendly products and responsible business and climate change behavior became obvious, and the public forced corporations to make environmentalism part of their strategies.

How Corporate Climate Consciousness Affects Business Practices

Corporate climate consciousness reshapes business practices by adding sustainability to core strategies. Some methods to accomplish this include:

  • Supply chain management improvements.
  • Focus on renewable products and packaging design. 
  • Minimizing waste and maximizing resources.
  • Shifting to renewable solar and wind energy.
  • Reducing long-term carbon emissions. 

Increased consumer expectations are leading to a greater focus on corporate climate consciousness and transparency in reporting on environmental initiatives and progress.

The Corporate Climate Change Activist’s Role in Raising Awareness

These activists play an important role in raising awareness about environmental issues within their businesses. They’re usually key employees or stakeholders who employ methods that shift public opinion and behavior towards environmentally conscious attitudes. Key tactics include:

  • Releasing information through social media, articles, and public speeches, to provide data and stories highlighting climate change. 
  • Engaging in direct action and protests to generate media attention and lead a public conversation on environmental issues. 
  • Forming partnerships with other activist groups and developing shared messaging. 
  • Lobbying for policy changes at local and global levels to influence regulations and drive businesses and individuals to green practices. 
  • Building alliances with influencers, scientists, and policymakers to network and grow public sentiment.

Climate Change Activism and the Supply Chain

Climate change has been proven to have an impact on supply chains and goes beyond the usually-mentioned environmental effects of wildfires, floods, and freezes. To get ahead of potential problems, it’s necessary to be proactive and adaptive when addressing supply chains.

Climate change’s impact on supply chains falls into three categories:

  • Transition risks: These develop from regulatory, policy, and market changes during the switch to a lower-carbon economy but sometimes impact previous assets and generate lower financial returns.
  • Physical risks: These are often event-specific risks like floods and wildfires or long-term shifts like higher average temperatures, rising sea levels, and ongoing heat waves.
  • Climate change business opportunities: These are seen when product preferences or services change or as new consumer markets open. The development, adoption, and support for electric vehicles is an example of this.

How are Suppliers and Consumers Affected in the Supply Chain

By identifying companies at the beginning of the supply chain, activists for climate change can influence the adoption of sustainable material sourcing, minimize environmental impact, and encourage renewable material use. They also lead behavior through consumer awareness campaigns that influence sustainable purchase decisions. 

By targeting supply chain practices and promoting transparency, activists help consumers choose products that match their core values. This creates consumer goodwill and drives positive change throughout the entire supply chain.

Using the Political Influence of Corporate Climate Change Activists

Corporations can make a difference in promoting regulatory changes that relate to climate policy by engaging with policymakers, stakeholders, and industry groups. Examples include:

  • Forming industry partnerships that share common goals and promote sustainable climate practices and presenting smart proposals to policymakers. 
  • Lobbying government officials, providing expert testimony, and providing detailed research to support a case for policy reform. 
  • Collaborating with non-governmental organizations and advocacy groups to increase credibility. By presenting strong evidence of economic and environmental benefits, corporations can show how updated regulations align with climate goals.

How Can Corporations Profit in the Green Economy

Corporations have an influence in shaping the green economy and benefiting from strategies like tax breaks and green infrastructure projects. These initiatives align with environmental targets and position businesses to profit from green solutions and services.

Tax Breaks: Engaging with policymakers and industry associations lets corporations seek tax policies that provide strong incentives for responsible environmental practices and investments. Tax breaks help companies adapt to sustainable technologies, reduce carbon emissions, and move to cleaner energy sources.

Infrastructure: Corporations can take a lead role in developing and financing green infrastructure, like renewable energy installations, sustainable transportation systems, and eco-friendly buildings. 

The Hamptons Group Team are Climate Change and Climate Resilience Activists

Corporate climate change and resilience activists see the benefits of profit and principles that lead to a greener future. The Hamptons Group is committed to the corporate responsibility of embracing a green economy in our core values and principles. We invite you to read more about our commitment to corporate climate change activism at the following links:

Innovations in Climate Change Adaptation and Mitigation

March 15, 2023 Social Issues

Jeff Bartel

Chairman and Managing Director

Global warming and its impact on the planet, its denizens, and the ecosystem has been a mounting apprehension for decades. Despite years of attempts by the scientific community to counteract or, at the very least, moderate climate change, it remains a pressing concern. However, the recent emphasis on climate activism, climate change adaptation, and mitigation has assumed even greater significance.

There has been a considerable advance in technologies designed to reduce the impact of climate change and help the planet and its inhabitants adapt to these changes, with millions, if not billions, expected to be affected by these innovations.

Aerial view from drone of a part of a road junction. Transportation and infrastructure concept

Green Infrastructure as a Climate Change Adaptation

Green infrastructure is quickly becoming a popular tool for minimizing the impact of climate change, such as rising temperatures and extreme weather events. Green roofs and trees can be strategically used in urban environments to reduce the effects of increasing temperatures. As another example, shorelines can be protected from erosion and damage by buffers and dunes.

Innovations in green infrastructure are being utilized to tackle issues with stormwater drainage. Traditionally, towns have depended on gray infrastructure, such as pipes, tunnels, and gutters, to direct water to waterways and local treatment plants. This outdated system can increase the risk of water pollution and overburdened treatment facilities. 

Green infrastructure, such as permeable pavements, green parking lots, and rain gardens, is being installed as cities adapt to climate change. Green infrastructure also includes plants and oil systems that absorb, evenly distribute, and efficiently use stormwater as it falls.

Solar panel, sun battery, alternative renewable energy. Ecology electrical station

Renewable Energy’s Role in Climate Change Adaptation

The perception of renewable energy as a novel technology is a common one. However, it is essential to acknowledge that wind and solar power have been efficaciously energizing homes and cities for several decades. The innovation designed to reduce dependence on traditional energy sources, such as coal, gas, and oil, is rapidly advancing and helping climate change adaptation. The first cargo ship equipped with a wind-powered propulsion system set sail in October 2022.

Energy-harvesting yarn stands as yet another remarkable stride in the progression of renewable energy. Researchers from the University of Dallas invented a “stretchy yarn made of carbon nanotubes.” This yarn, which is 10,000 times smaller than a strand of hair, can convert mechanical motion into energy. Advanced technologies like this can help reduce greenhouse gas emissions, make electric power more affordable, and expand access to electricity in areas lacking.

Climate Change Adaptation with Carbon Capture and Storage

Climate change is considered primarily caused by carbon dioxide, one of the most significant greenhouse gases. Carbon Capture and Storage (CCS) is specifically designed to help reduce CO₂ emissions through carbon sequestration. This climate change adaptation method captures carbon dioxide at power plants and reroutes it to underground reservoirs.

Currently, CCS solutions can only capture about 55% of CO₂ from these plants, but the future goal is to maintain a 90%-100% capture rate. With this objective in mind and the need to mitigate the impact of greenhouse gases on the climate, we expect that investment in energy storage will grow to nearly $620B by 2040.

Climate-Smart Agriculture

According to recent studies, more than 800 million people worldwide go hungry. In addition, it is predicted that global food production will need to rise by more than 60% by 2050 to feed the world’s growing population. While there are many reasons for food insecurities worldwide, climate change is a significant culprit. Rising temperatures and extreme weather systems are impacting agricultural lands and production outcomes.

Investments in climate-smart agriculture innovation are leading the way to help overcome some of these challenges. Examples of climate change adaptation through climate-smart agriculture include the invention of drought-tolerant seeds and advanced irrigation systems. These techniques are helping more than 300,000 farmers in Niger sustainably farm nearly 80,000 hectares of land. Other scientific adaptations in climate-smart agriculture include low-carbon farming, precision agriculture, sustainable cattle ranching systems, and innovative feeding strategies.

Green Finance as a Climate Change Adaptation

The Paris Climate Agreement set lofty goals for climate change mitigation and developing adaptation strategies for climate change. However, reaching these goals requires more than just government grants and climate change policy — it also requires green, sustainable finance. The good news is that worldwide green finance has increased 100 times over the last ten years. This financing includes a combination of green bonds, traditional loans, and private equity.

Investors are choosing to invest in everything from green infrastructure and renewable energy to CCS and intelligent agriculture. Additionally, banks increasingly use multifaceted risk assessments to identify potential climate-related risks. These assessments can help owners and developers work on ways to mitigate these risks, develop climate change adaptation strategies, and minimize their impact on climate change.

Climate Change Mitigation and Innovation

Issues such as food insecurities, rising temperatures, rising ocean levels, and extreme weather events will continue to drive climate change mitigation and adaptation.

As the weather gets warmer, you can use green financing to adapt to climate change. Whether investing in green bonds, green stocks, or green financing, you can be sure these funds can go a long way in helping the world mitigate and adapt to climate change. Contact Hamptons Group to explore your investment options.

The Impact of Social Venture Capital on Society

August 18, 2022 Risk Management

Jeff Bartel

Chairman and Managing Director

Venture Capital as a Force for Societal Change

While traditional venture capital investment continues to provide investors with opportunities for financial reward, impact investing and social venture capital are beginning to take center stage in the investment arena. Venture capital projects with a potentially positive impact on society provide investors with an opportunity to return profits while supporting the most critical, necessary societal changes. Often supported by both the public and the public sector, there are many advantages to social venture capital.

Trends in Social Venture Capital in 2022

Venture capital grew throughout 2021 and into 2022 after exiting the disruptions of 2020. It was up $332 billion in the first three quarters of 2021 compared to the same period in 2020, and early-stage funding was up by more than 100%. Despite that growth, venture capital did not see the types of growth in ESG considerations that other investment areas did. That creates a significant opportunity for growth in social venture capital in 2022 and beyond.

Over the past year, movement in social venture capital indicates many firms and sectors are poised for that growth. Venture capital collaborations are moving to improve practices across the industry to support diversity and other critical missions, and many firms are hiring directors of sustainability and other professionals meant to steer investments and initiatives in ESG directions.

What Are the Main Advantages of Social Venture Capital?

Social venture capital offers many benefits for firms, businesses, entrepreneurs, and the community or society. Some of the benefits of social impact investing and social ventures include:

  • Better access to funding sources. Governments and other agencies offer incentives for social impact investment, making investors of all types more likely to enter the pool. In addition, channels such as crowdfunding and angel investments are typically easier to access when a mission backs the venture.
  • Increased service to the community. Services developed in social impact finance tend to be more relevant to community needs and more likely to solve known social or environmental problems.
  • Easier buy-in. ESG venture capital firms act on agreed-upon environmental, social, and governance missions. Because of that, it is easier to get buy-in from all stakeholders because the mission is clear, and most people can stand behind it.
  • Greater diversity. Consumers increasingly buy from brands they believe support important missions and social responsibility. Social venture capital tends to lead to increased diversity naturally.

Does Social Venture Capital Have Any Disadvantages?

Social venture capital is not without disadvantages. For example, social entrepreneurs relying on social venture capital may give up control to get funding. In addition, a lack of historical case studies may make it difficult for social entrepreneurs to convince potential investors. This may be challenging until social venture capital becomes a long-term trend.

The Dual Nature of Social Impact Investing

One of the challenges leading to investor hesitance for social impact investing is its dual nature. Investors and venture capitalists historically were concerned with the return on their investments. The bottom line can not be ignored, as investors that pour money into ventures that do not perform go out of business quickly. But social investors are also concerned with how the venture performs with regard to social or environmental factors, including diversity, sustainability, reduced emissions, or policies that provide for the community.

A business woman investor examines solar panels while holding her notebook with social venture capital impacts listed.

Social Impact Investing To Cool the Planet

One growing area of social impact ventures has to do with the environment. Social entrepreneurs are leveraging innovation, sustainability, and other processes to create products or provide services in a way that safeguards the planet. Climate impact investors are putting money behind those efforts, funding businesses and efforts that keep the planet central to all missions.

Venture Capital to Reduce Poverty

In the same way, for-profit and nonprofit venture capital investors seek to improve the quality of life of people across all borders. For example, many are looking at ways venture capital can reach the poor in developing countries. Funds from private and public sources are being used to educate and train people in these nations to help them develop businesses, local economies, and even entire infrastructures that might lead to longer-term profits or prosperity. Again, the efforts come up against significant challenges, including currency risk, cultural barriers, and long-term poverty that can be difficult to change.

Removing Barriers for Minority Entrepreneurs

Women, Black, LGBTQ, and other minority entrepreneurs have historically found it challenging to get funding for several reasons. First, historically, not many partners in venture capital and investment firms match these demographics. People often invest in ventures that make them feel comfortable, which can mean a trend of investors funding ventures for and about people that look and act as they do.

Cultural and societal barriers, including systemic racism, also play a role in reduced funding opportunities for minority entrepreneurs. However, as more investors seek social impact ventures and awareness about diversity needs continues to rise, those trends are changing. As a result, venture funding to minority businesses has been up in recent years, though there is still a lot of ground to cover, as it remains small compared to the entire funding pie.

How Do You Measure the Impact of Social Venture Capital?

The first step in measuring the impact of social venture capital is to define why it matters and what success looks like for all involved. The second step is finding a numeric measurement that can help indicate performance.

If someone is trying to create more diversity, a good metric of success might be how many of their venture investments are run by or related to minorities. Investors interested in climate impact investing might want to measure the emissions associated with their portfolios.

Going beyond measurement, social venture capitalists might rely on case studies to demonstrate success in a more narrative format. Case studies can raise additional awareness and funds and illustrate the impact on investors and other stakeholders.

Examples of the Effects of Social Virtual Capital on Society

Social virtual capital has plenty of positive effects on society. For example, a venture capital fund that seeds startups helps businesses get off the ground. But a social venture capital fund that specifically seeds startups with a community mission does more than that: It helps a business help others. Likewise, a social impact investor that puts money behind ideas that introduce sustainability into sectors that do not tend toward eco-friendly processes helps those businesses grow and protect the environment.

Ultimately, social venture capital can change the world. Investors must do so, however, with one eye focused on change while the other eye remains trained on the bottom line. It can be a problematic duality to walk, but it is critical to the future success of communities, nations, and even the planet.

Moving Industrial Clusters Toward Net Zero

July 15, 2022 Corporate Responsibility

Jeff Bartel

Chairman and Managing Director

Executive Summary

Industrial clusters are one tool for companies to take the climate action consumers are demanding. An estimated 70% of the global economy appears committed to reaching Net-Zero by 2050. For the past decade, industry has accounted for more than 25% of the global economy. The industrial and energy sectors account for more than 50% of global greenhouse gas emissions.

By working together, businesses within industrial clusters can significantly impact emissions and help achieve net-zero goals on time.

Net Zero Solutions for Industrial Clusters

Industrial clusters have a lot of power and responsibility as essential drivers of wealth and growth in various global regions. That includes responsibility for social and environmental factors that may feel impacted by industrial businesses. With around 70% of the global economy, including economies in China, India, Africa, and Saudi Arabia, committing to net zero, industry clusters must find solutions to support net-zero emissions and other environmental goals while helping maintain economic stability within their regions.

Direct Electrification

Electricity is a crucial factor in moving toward net-zero energy for all types of industrial clusters. Relying more on electric power over fossil fuels and other energy sources can significantly affect pollution emissions. However, moving in that direction involves an energy transformation that has not been seen since the Industrial Revolution and, even then, likely outpaces that historic time of innovation. Therefore, energy companies and industrial clusters must embrace new solutions from digitization and low-carbon technologies. 

Carbon Capture

Despite the excitement over direct electrification, resource and functional limitations mean that not all efforts within industrial clusters can transition to these cleaner forms of energy — certainly not in the immediate future. Carbon-capturing technology has become increasingly critical in this environment, and current efforts are falling short. According to data from the International Energy Agency, at the current rate of progress, carbon capture projects will fail to capture the 1.7 tons of CO2 required by 2030 to keep up with global goals for a 2050 net-zero scenario. Industry cluster businesses must step up to push these efforts further and gain more ground in this area.

Hydrogen Technology

Hydrogen technology is a low-carbon, clean energy alternative that may help industries turn away from high-carbon gasses and fuels. While hydrogen technology is currently in use, it is a relative newcomer to sectors that have long relied on fossil fuels. Nevertheless, industry leaders are committing to hydrogen research and developing this technology. Others in the niche must follow suit by implementing these technologies as they become available.

Bioenergy

Bioenergy is the oldest form of energy used by humans, who began burning wood for warmth centuries before electricity, fossil fuels, and other energy sources were available. Researchers are delving into different biomass energy resources, including byproduct residues from industries such as forestry and agriculture and even fumes from landfills. Bioenergy is frequently focused on turning the byproducts of one process into energy sources for another.

 

Carbon Net Zero in industry can be attained through industrial clusters

Collaborations for Net Zero Industrial Clusters

Organizational and governmental actions must drive collaborations to help create net-zero industrial clusters. Since the world is already falling behind on total net-zero goals, U.S. government efforts, U.N. collaboration, and buy-in from large sectors, such as China’s industrial clusters, are critical to future success.

Industrial Cooperation

Profound transformation must occur by 2030 to support the final goals of net-zero emissions by 2050. It is a relatively short time frame, requiring intense cooperation and collaboration among industry clusters. The IEA notes that investments are already being made in technologies to support low-carbon and net-zero approaches. By 2040, the average expected investment in technologies for this purpose is $350 billion; by 2060, those investments are expected to rise to $3 trillion.

While alternative energy investments are significant, businesses and agencies within industrial clusters must also cooperate to:

  • Set and work toward short- and long-term goals together. Goal-setting is a requirement for companies adopting the Net-Zero Standard. Working together can help businesses within industrial clusters set realistic goals and work through the challenges of obtaining them.
  • Find ways to make rapid, deep emissions cuts in the short term. By working together to find the low-hanging fruit and enacting quick cuts to emissions where possible, businesses in industry clusters can significantly impact global emissions, even in the near future.
  • Moving beyond value chains. Most businesses prioritize cutting emissions within value chains, but industry cooperation lets organizations move beyond those goals to find further options for reducing emissions.

Government Initiatives for Industrial Clusters to Reach Net Zero

With approximately half the global population highly vulnerable to the impacts of negative climate change, governments across the globe have reasons to join in the cooperative effort to reduce emissions. Some ways government initiatives and collaborations can lessen the impacts of climate change by supporting industrial cluster moves to net-zero include:

  • Setting priority policies to support net-zero efforts. These can range from creating and enforcing regulations for driving net-zero approaches to funding and rewards for industrial clusters and businesses that meet goals.
  • Creating opportunities for investors. Public-private partnerships increase available capital for green-tech efforts and drive flexibility for rapid adoption and implementation of sustainable technologies.
  • Being aware of internal issues. Understanding government issues and how they might create blockers for success with net-zero is important, as it allows nations and agencies to address challenges and create smoother paths to success for industrial clusters and businesses.

Collaboration across business sectors, national borders, and industries is critical to reaching net-zero goals and objectives. Industrial clusters can lead the way by modeling collaboration and implementing rapid new developments.

Mitigating Risk in Climate Change Investment

May 3, 2022 Climate Change

Jeff Bartel

Chairman and Managing Director

Since 1880, the average global sea level has risen more than 8 inches, and that change has accelerated in the past decade. Extreme weather also threatens a variety of locations, impacting lifestyles, businesses, and the peace of mind of individuals across the globe.

As increasing numbers of people become concerned with climate risk, renewable energy, and responsible investment, financial markets are evolving. As a result, modern businesses face several risks ranging from damage to physical infrastructure related to climate change to higher tax or regulator costs.

Proactively approaching climate change investment and mitigation efforts can increase businesses’ stability. This article looks at climate risks for businesses, and ways organizations can reduce climate change risks now and in the future.

Climate Risks for Businesses

Climate-related risks can impact business bottom lines, workforces, and reputations. Below are five of the most prevalent climate risks.

Physical Damage to Buildings and Facilities

In 2018 alone, the United States incurred $91 billion in damages from climate- and weather-related events. The historic extremes have continued.

In 2020, 22 unique events resulted in more than a billion dollars in damage each — well above the record of 16 previously reached in 2017. Severe storms spawned tornadic events, tropical cyclones, droughts, and wildfires combined to create $95 billion in damages in 2020.

In 2021, there were 20 unique billion-dollar events, coming in behind only 2020 in number but well outpacing the previous year in damages. The 2021 total for damages was $145 billion.

Extreme weather events and shifting climate frequently lead to:

  • Damage to buildings from wind, including lost roofs or walls or even total loss of structures
  • Damage from flood and water, including loss of equipment and or structure
  • Damage from fire, including loss of structure or partial structures or loss of supplies or equipment

Supply Chain Disruption

Global supply chains are increasingly impacted by climate change, particularly severe weather events. For example, a large hurricane or typhoon hitting a major port city can be enough to disrupt supply chains for months, and experts believe weather events of such scale will become more likely in the future. According to McKinsey, by 2040, the probability of a hurricane event large enough to disrupt chip supply chains could grow by two to four times.

Health and Productivity of Workforce

Even outside of extreme weather events such as hurricanes or tornadoes, climate change can put the health and productivity of workers at risk. Those employed in occupations regularly performed outdoors may contend with severe heat or cold. Workers in indoor situations without air conditioning or heat face similar concerns.

Climate risks can also increase toxic substances or a higher risk of infectious disease, especially in hot environments. Add in the impact of emergency weather situations, requiring dangerous, excessive work from first responders, law enforcement, and medical personnel. As a result, climate change may drive increasing worries for employees.

Higher Regulatory and Tax Costs

As governments latch on to ESG requirements and other potential mitigation factors to subdue carbon footprints, businesses may increasingly find themselves holding the bill for such efforts. Those additional costs could include the expense required to meet more stringent regulatory requirements in various industries and locations as well as additional taxes charged by governments trying to pay for their eco-friendly efforts.

Repricing of Risk Premiums

The cost of peace of mind is likely to increase as climate damage becomes a more frequent and expensive risk. As property and casualty insurers cover billions of dollars in damages caused by weather and climate-related events, they will likely increase risk premiums, leading to higher insurance costs for businesses.

Reducing Climate Change Risks

Acting now to mitigate coming climate change risks can help businesses create better bottom lines and stability for themselves, employees, and partners in the future. Here’s a look at some climate change investments businesses may want to make now.

Diversification of Coastal Real Estate Holdings

While coastal areas are not the only locations impacted by climate risks, they bear the brunt of rising sea levels and tropical storms. As a result, businesses and investors may want to diversify real estate portfolios heavy in coastal properties. Including inland properties or different coastal properties can mitigate some losses during critical events.

Diversification is also an opportunity for operations. For example, businesses with warehouses, call centers or other operations properties on or near the coast may want to engage in disaster planning to create redundancies with backups in other locations.

Focusing on Building Efficiency and Disaster Resilience

Energy-efficient processes put businesses in a more competitive space as reliance on sustainable energy becomes a more prevalent concern among governments, customers and investors. Efficiencies assist with attracting those interested in ESG impact investing. It also reduces business reliance on power utilities and infrastructure, making rapid recovery after a disaster more likely.

Creating a Diversified Supply Chain

Diversified supply chains are a significant risk mitigation step, particularly for businesses that need raw goods or inventory shipped from overseas. Companies can also look to invest in green or circular supply chains to reduce their environmental impacts. Increasing eco-conscious supply chain diversification efforts can help relieve some of the impending climate risks.

Focusing on Water Quality

Turning to business processes that impact water quality is one-way organizations can stave off financial risks from government issues. It can also position businesses as climate-friendly organizations, leading to potential support from ESG investors.

Paying Attention to Emission Profiles

All businesses can look to create better emission profiles. In some sectors, such as agriculture, reducing emissions can mean overhauling accepted standard modern practices that have led to climate-negative outcomes that aren’t necessarily required to get the job done.

Preparing for Carbon Regulations

Carbon regulations are already part of governance changes in most nations, and businesses can expect them to grow. Getting ahead of the game by preparing for increased regulation can help businesses avoid hefty fines or taxes and position themselves as eco-friendly leaders. Investing now in alternative or renewable energy is just one-way businesses can prepare for the future.

Whether businesses are working to inspire ESG investors now or position themselves for better stability in the future, environmental integrity is essential in climate change investment.