Why Businesses Must Think About Climate Change

  24-May-2018
 

Climate Change is real

97% of all published climate scientists agree that climate change is real. Furthermore, we are already seeing the effects of climate change around the globe with our neighbours in the Pacific particularly vulnerable.A growing number of business owners are taking it upon themselves to part of the solution to human induced climate change.

The Federal Government is committed to reducing emissions

Australia is a signatory to the Paris Accord 2015.Therefore, Australia has committed to reduce emissions by 26-28 per cent on 2005 levels by 2030.The need to reduce carbon emissions will be felt across all sectors and businesses.It is prudent to start thinking about your carbon footprint and ways to reduce it.

Climate Change is a Business Opportunity   

The Nielsen Global Corporate Sustainability Report 2016 highlights the rise of the climate conscious consumer.Some of the findings were:

66% of survey respondents are willing to pay more for sustainable goods, up from 55% in 2014, and 50% in 2013

Sales of consumer goods from brands with a demonstrated commitment to sustainability have grown more than 4% globally, while those without grew less than 1%

Millennials are the most willing to pay extra for sustainable offerings—almost three-out-of-four respondents (73%), up from approximately half in 2014

The rise in the percentage of respondents under 20, also known as Generation Z, who are willing to pay more was equally strong—from 55% of total respondents in 2014 to 72% in 2015, and

Commitment to the environment has the power to sway product purchase for 45% of consumers surveyed.

Clearly, there is ever-growing demand for sustainable products and services as we see the rise of the climate conscious consumer.This presents an opportunity for many businesses to either expand their customer base or grow loyalty with their existing customers.

Make a statement about your values

Businesses take action on human induced climate change to demonstrate their corporate values. Such businesses can promote their positive action for the environment; thereby enhancing their reputation for sustainability and CSR and as a result attract climate conscious customers.

My next post will address how businesses take the next step to achieve carbon neutrality and the business opportunities that arise from it.

 

About the Author – Garth Mulholland is NoiCO2 Program Manager with the Carbon Reduction Institute and is a specialist in carbon management, carbon credits and climate change certifications for businesses.

 

 

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