Ignoring climate change poses several risks to businesses:
- Regulatory Risk: Governments worldwide are implementing stricter climate regulations. Companies that fail to comply may face fines and legal actions. - Reputational Risk: Consumers and investors are increasingly prioritizing sustainability. Businesses perceived as environmentally irresponsible may suffer reputational damage. - Operational Risk: Climate change can cause disruptions in production and supply chains, leading to increased operational costs and reduced profitability. - Market Risk: Changing market dynamics, such as shifting consumer preferences towards sustainable products, can affect the demand for a company’s offerings.