Climate Change Is Transforming the Economy. How Will Your Company Adapt?

Credits: Photo by Ian Froome on Unsplash

“Companies have to move beyond seeing climate change as an external relations issue—addressed through CSR initiatives and transparency—and instead begin viewing it as part of their business strategy”

In his article “Climate change is transforming the economy. How will your company adapt?” Klaus Weber, Professor of Management and Organisations at the Kellogg School of Management (Northwestern University) argues that climate change and global warming should play a more important role in business decisions.  His rationale is fairly simple: Given that regulatory standards vary from country to country and are not enough to counter the vagaries of the current environmental challenges, firms are the ones that need to take action. They could self impose regulations and practices and include them in their business models. An example that highlights this solution is the “carbon tax’ imposed by Microsoft on its different offices. Microsoft charges its offices a tax on consumption of electricity and such other commodities which increase their carbon footprint. In turn, they use this tax for eco-friendly activities such as reforestation. Another impactful example is that of Sainsbury, who asked its suppliers to reduce their packaging to counter waste generation.  Companies should not use sustainability as a marketing gimmick but rather as a solution to the climate change epidemic and its consequences to business continuity.  

For more information on what Klaus Weber has to stay on sustainability for firms click here.

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