How can business survive climate change?
The Economist・15 minutes read
Climate change poses significant risks to businesses, with companies facing pressure, litigation, and financial losses, as seen in cases like PG&E and Volkswagen. The urgency for adaptation is evident, with the need for decarbonization, risk mitigation, and embracing cleaner practices to avoid bankruptcy and legal consequences.
Insights
- Lisa McKelly advises businesses on wildfire impacts caused by climate change, with California's wine region facing significant damage, highlighting the immediate threats climate change poses to specific industries and regions.
- Exxon Mobil's concealment of climate change information and the subsequent surge in legal cases underscore the growing accountability and consequences for companies failing to address climate issues, emphasizing the urgent need for transparency, adaptation, and decarbonization efforts within the corporate world.
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Recent questions
How is climate change impacting businesses?
Climate change is disrupting the corporate world significantly, leading to devastation and heavy regulation. Companies with high and medium emissions face pressure and potential litigation. PG&E and Volkswagen faced billion-dollar payouts for their roles in wildfires and emissions cheating, respectively. Businesses need to adapt to avoid extinction, as highlighted by COVID-19 risks.
What advice does Lisa McKelly offer to businesses?
Lisa McKelly advises businesses on the impacts of wildfires caused by climate change. California's wine region, like Napa County, has suffered significant damage due to wildfires. Businesses in these areas are struggling amid power shutoffs and climate-related challenges. Rising temperatures are affecting grape production, with more extreme heat days experienced in Napa County.
Why do businesses face financial risks from climate change?
Businesses face financial risks from climate change-related events, necessitating adaptive measures and investments to mitigate these risks. China's commitment to carbon neutrality and increasing global carbon emissions highlight the urgency for businesses to adapt. Some corporations are making significant decarbonization pledges to combat climate change and disclose their emissions.
How has Exxon Mobil been criticized regarding climate change?
Exxon Mobil has faced criticism for concealing information about climate change, leading to a surge in climate-related legal cases against businesses. Around 120 cases have been filed in the past decade, compared to 20 between 2000 and 2010. Failure to address climate issues could result in bankruptcy, negligence indictments, and loss of reputation, emphasizing the urgent need for companies to adapt to a changing climate.
What are the consequences of not preparing for climate change?
Not preparing for climate change can lead to devastating consequences for businesses. PG&E and Volkswagen faced billion-dollar payouts for their roles in wildfires and emissions cheating, respectively. COVID-19 has highlighted the risks of not adapting to climate change, with businesses needing to evolve to avoid extinction. Lisa McKelly advises on the impacts of wildfires caused by climate change, emphasizing the need for businesses to prepare for climate-related challenges.
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Summary
00:00
Corporate World Faces Climate Change Challenges
- Climate change is set to disrupt the corporate world significantly, leading to massive devastation and heavy regulation.
- Companies with high and medium emissions are facing increasing pressure and potential litigation.
- PG&E faced a billion-dollar payout for its role in wildfires, while Volkswagen pleaded guilty for emissions cheating.
- COVID-19 has highlighted the risks of not preparing for climate change, with businesses needing to adapt to avoid extinction.
- Lisa McKelly advises businesses on wildfire impacts caused by climate change, with California's wine region facing significant damage.
- Napa County has suffered losses due to wildfires, with businesses struggling amid power shutoffs and climate-related challenges.
- Rising temperatures are affecting grape production, with Napa County experiencing more extreme heat days.
- Businesses face financial risks from climate change-related events, with the need for adaptive measures and investments to mitigate these risks.
- China's commitment to carbon neutrality and increasing global carbon emissions highlight the urgency for businesses to adapt to climate change.
- Companies are urged to measure and disclose their emissions, with some corporations making significant decarbonization pledges to combat climate change.
18:39
Exxon Mobil faces legal backlash over climate concealment.
- Exxon Mobil has faced criticism for concealing information about climate change, leading to a surge in climate-related legal cases against businesses, with around 120 cases in the past decade compared to 20 between 2000 and 2010. Failure to address climate issues could result in bankruptcy, negligence indictments, and loss of reputation, emphasizing the urgent need for companies to adapt to a changing climate and embrace the clean and green economy to avoid severe economic and human consequences.
