Last year, over 7,000 businesses submitted financial reports outlining the expected disruptions that they plan to experience due to climate change. Rather than discussing a time far in the future, these reports refer to financial impacts that are likely to be seen in the next five years. Looking further ahead, an analysis of 215 of the world’s largest organizations reflect an expected loss of $1 trillion among those companies alone. Based on the current research available, businesses are having to completely rethink and redesign their disaster preparation plans. Learn more about what organizational leaders are doing to get ready for the environmental changes ahead.
It is Forcing Business Owners to Look Ahead to Potential Risks
In decades past, disaster preparation and business continuity plans have been relatively straightforward. Those in charge of establishing these plans have known the risks present for their own business, for their vendors, and how to best protect their assets. However, this is starting to no longer be the case. Experts from organizations such as the Union of Concerned Scientists state that climate change is set to cause a range of new problems. This includes rising sea levels, intense heat waves, hurricanes that are more powerful than ever before, and an increase in extreme weather events across the globe. Despite having this information, the exact scope of the changes are not yet known. As a result, business owners are now having to alter their disaster recovery plans to include their best guesses about the future climate.
It is Reshaping Recovery Plans for Stronger Storms
With the potential to be slammed with stronger hurricanes, as well as other kinds of strong storms, business owners are also having to upgrade their capabilities to respond and recover from more powerful weather events. Why? Having the ability to quickly clean up after a disaster is crucial when trying to achieve efficient business continuity. However, with stronger storms, removing debris, water, and making repairs will be more of a challenge. That is why it is wise for organizational leaders to start employing the use of on-site disaster cleaning tools. There will also be more of a demand from businesses to have local disaster recovery cleanup services. In addition to these changes, businesses will have to start upgrading their insurance plans to cover bigger losses. In 2018 alone, natural disasters amounted to $91 billion in damages in the United States, as reported by CNBC.
Environmentally-friendly Initiatives to Help Reduce Climate Change
Since scientific studies have shown that a certain amount of the predicted climate changes are reversible, small business and large corporations alike are taking part in proactive solutions. From straw-less lids to making the switch to a more renewable energy source (such as solar power), companies are making efforts to reverse their role in climate change. Within the next five to 10 years, businesses across industries will make even more dramatic changes to public and internal eco-friendly initiatives.
Even though the exact impacts are still unknown, companies around the world are currently bracing for the disruptions caused by climate change. Rather than waiting until it is too late, business owners and leaders are taking a proactive stance in preventing damages to their businesses, and to the climate.