Book Title: Sustainable Innovation and Global Business Practices
Editors: Dr. D. Kinslin, Dr. K.A. Janardhanan, Dr. M.C. Shibin Tad, and Dr. D. Deekshith
ISBN: 978-81-69297-56-1
Chapter: 6
DOI: https://doi.org/10.59646/724/6
Author: Prof. Kishore J S
Abstract
This chapter examines the profound impact of climate change on business strategies and operations. It begins with an overview of climate change and its global significance, emphasizing how its effects are felt across various sectors, from agriculture to finance. The chapter underscores the importance of integrating climate change considerations into business strategies to ensure resilience and competitiveness in an increasingly uncertain environment. The chapter identifies climate-related risks, categorizing them into physical risks (such as extreme weather events), transitional risks (related to the shift to a low-carbon economy), and liability risks (associated with potential lawsuits). Additionally, it explores opportunities arising from proactive climate action, such as access to new markets and fostering innovation. Tools and methodologies for assessing climate risks, including scenario analysis and comprehensive risk assessments, are discussed. Developing climate-resilient business strategies is a focal point of the chapter. Strategies for mitigating climate risks and adapting operations are examined, along with the role of sustainability in shaping business models and value propositions.. The chapter also examines regulatory frameworks influencing business strategies related to climate change, such as carbon pricing and emissions targets. It discusses stakeholder expectations regarding corporate responsibility in addressing climate issues, emphasizing the need for effective stakeholder engagement in climate initiatives. Finally, the chapter predicts future trends in business strategies in response to climate change, exploring emerging technologies and innovations driving climate action, such as renewable energy and circular economy practices. Recommendations for businesses to proactively adapt their strategies to thrive in a changing climate are presented.