Global warming is having significant impacts on business activities globally. It is causing uncertainty for businesses and disruptions to operations from weather events and infrastructure damage. Higher temperatures are also reducing economic growth and incomes in affected areas, lowering the customer base for many businesses. Global warming is forcing some businesses to close due to difficulties operating in severe and unpredictable climate conditions. It is also affecting businesses through rising climate change-related insurance costs. Addressing the impacts of global warming on business is important for companies to adapt and plan for ongoing changes.

1. THE EFFECTS OF GLOBAL WARMING ON TODAYS'
BUSINESS ACTIVITIES
Introduction
The global climatic change is taking a different path now in that
its effect is not only threatening nature but also business
activities in various places in the world. Now businesses can no
longer sit down and watch because they now have something to
lose. If businesses can effectively integrate strategy, people,
processes and technology in pursuit of responding to the
climatic change, the result can be positive and it will help solve
the upcoming problems, moreover it may help prevent some un
foreseen effects which may be catastrophic. But why is the
focus on the effects of global warming on businesses? Varying
levels of appreciation of the effects of global warming are
deeply connected in the differences between direct and indirect
impacts of climate change. The question that arises is how the
business are impacted by the direct and indirect differences?
Some of these effects are potentially threaten to alter the
favorable climatic conditions that favor businesses. In this
discussion we will focus on the impact of climatic change on
business and how business can help counter the arising problem.
In addition we will discuss in details the steps businesses
should take to help contain the problem of global warming
before it gets out of hand.
Major effects of global warming on business
Global warming poses some major risks on business and these
risk threaten to affect the business world in a negative way.
Some of these risks are as follows:
a) Strategic risk
Global warming which basically is a result of climate change
may bring about reputation damage. Cruz, R.V. et al. (2007).
Reputation damage may include brand erosion and bad
publicity. For example a company's reputation can be damaged
following negative publicity from a climate-related accident.

2. This may happen to air lines who deal with airplanes and this
may cost the company customers and the end results may be
losses.
Competition may rise to be stiff in that the climatic advantage
for instance will no longer be available. For example a business
which deals with tourism depends a lot on favorable climate for
the animals to survive but when the climate changes to bad the
animals may die and the tourism status may be affected, and
now the firm will have to face the competition with the other
firms in the world.
Regulation and political trends will have to change if the
climate continues to change. These policies may not favor all
businesses in fact some will have to suffer so as they can
accommodate the policies. Some businesses can even be swept
out because the policies can be very harsh to them.
b) Financial risk
Credit services suffers in that the terms change. Here the
creditworthiness is eroded and the interest rates automatically
rise as lenders considers escalating business risks. Timilsina, Y.
P. (2015). The liquidity ratio also is affected. The areas
affected include cash flow ,call risks and opportunity cost. For
example when a firm was forced to relocate because of floods
on the initial location will have to receive lower insurance
premiums.
c) Hazard risks.
These risks include fire and property damage from storms from
bad natural weather conditions due to global warming.
Businesses get direct effect of the change of climate where they
suffer from property loss or destruction and they have to start a
fresh or they stagnate because of the same.
On the same type of risk another risk can be drought which may
force people to migrate from one place to another so as to look
for greener pastures, where they can feed themselves and be
able to sustain their families. This might be a big blow to the
businesses in that area where people have shifted from. Firstly,
their customers will now be gone they will have no one to do

3. business with. Secondly, Some businesses will suffer a major
losses, especially those dealing with highly perishable goods,
because of reduced populations. On the other side other
businesses will be affected directly especially those that depend
on probably rain to survive, examples are large scale farmers,
their crops will be affected where by the harvest may not be
encouraging.
d) Operational risks.
Business operations may be affected in areas like HR, product
development, capacity, efficiency, product/service failure and
supply chains. Cogan, D. G. (2006). Supply chain disruptions
may occur because of adverse climatic conditions brought by
global warming. For examples when there is floods the supply
channel will be interrupted in that the goods will not reach the
target group because of the obstacle.
Impacts of Global warming.
1) Lack of capacity
The lack of capacity may also be a factor due to increased
demand when the weather conditions meet extremes. Cruz, R.V.
et al. (2007). For instance the target group may demand more
than what a firm has and hence there is a shortage created and
this may affect the price of the commodities in that they might
shoot up.
2) Damage to property and infrastructure.
Sea levels may rise, floods may take place, wildfire may take
place killing wildlife or extreme stream may require extensive
repair of essential infrastructure such as roads, bridges, railroad
tracks, power lines and airport runways. Chaulagain, N. P.
(2006). Most of the stated infrastructure are key in facilitating
the success of businesses and if they are destroyed they affect
the health of businesses directly in that they become vulnerable
to failure.
3) Mass migration and scarcity threats.
Global warming increases the numbers of refugees who migrate
from one area to another because of calamities such as floods,
wildlife and other climatic related disasters. These refugees

4. include customers of various business hence when they move
out of their residential areas the resident business are the one
who are affected directly in that they lose customers.
4) Changing prices of goods and services.
When the climatic conditions change the prices of various
commodities get affected in that they rise significantly. The
problem is that the effects are felt by everyone even those
companies which least pollute the environment. Moreover , even
the common man who does not pollute the environment is also
affected in that he/she has to pay the price of climate change by
getting to pay more for commodities.
5) Effect on the employee performance.
Global warming poses a major problem which is the effect to
the mankind's health. Timilsina, Y. P. (2015). Global warming
itself is caused by high concentration of green houses gases like
carbon ii oxide, methane, nitrous oxide and other toxic gases
which go and destroy the ozone layer. The tendency of
absorption of ultra violet rays is reduced and when those rays
reach the earth surface they bring dangerous effects to the
creatures on earth. Another effect is that the temperatures
increase and this increase has negative effect on humans and
animals. Workers tend to feel dizzy, sleepy and tired. The
overall effect on the business is that the quality of work is
affected.
Ways of reducing global warming.
i. Practicing Afforest ration.
One way of solving the problem of global warming is through
practicing tree planting in that to reduce the concentration of
carbon IV oxide in the atmosphere. This will help protect the
ozone layer and somehow we will reduce the rate at which the
climate is changing. Businesses should create programs where
they plant trees regularly. The firms which deal with trees
should observe the cut one plant two rule so as to save the
world from the disastrous effects.
ii. Increasing the use of renewable energy sources.
Companies should adopt alternative energy sources, for example

5. they should move from coal and petroleum and move to green
energy like solar which has no effect on the environment.
Businesses should install solar panels and reduce the use of
hydro electric power which drains our dams they should also
use wind to generate power. In doing so the amount of toxic
gases released to the atmosphere will be reduced in a bigger
percentage and we will be helping our environment.
iii. Reducing or managing carbon related activities.
People should be made aware of the effects of carbon on the
environment other than informing businesses should deploy
technologies such as smart metering or energy-efficient
buildings to improve efficiency. Measuring an organization's
carbon usage its 'carbon footprint'.
iv. The businesses should develop green products and they
should offer green services.
Asses shows how existing products contribute to pollution and
how they have contributed to the recent state where global
warming has become a major issue and concern. For example
businesses should stop serving their customers in plastic
containers and bags instead they should make alternative
products to substitute these commodities. IBM is at the frontline
of campaigning on the green status of businesses. In 2011 they
launched a Big Green project, to help reduce data center energy
consumption.
v. Deployment of smart technologies.
Companies should invest in new , more environmental friendly
technologies such as green data centers, which use less energy.
Tushman, M. L. (1990). These technologies help in reducing the
amount of energy used and besides that it also helps in
conserving the environment in that it has modes of reducing
emissions and this helps in protecting the environment.
Conclusions
In summary, climate change is becoming a major problem and if
we are not careful it's going to get out of hand. Businesses are
already feeling the effect of global warming and if they are not
to use these effects as a wakeup call then we well be digging a

6. big hole for ourselves. Luckily the problem is not yet out of
hand we can still fight back and help correct the problem and
prevent future difficulties.
Businesses can now deploy environment saving measures as
discussed above. They should religiously participate in making
the environment a better place. Other than the businesses,
individuals too, have a responsibility in protecting the
environment. Everyone should take responsibility and act now.
It’s both a communal and an individual responsibility which
should not be neglected.
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Anderson, P., & Tushman, M. L. 1990. Technological
discontinuities and dominant
designs: A cyclical model of technological change.
Administrative Science Quarterly, 35: 604-633.
Chaulagain, N. P. (2006). Impacts of climate change on water
resources of Nepal:
The physical and socioeconomic dimensions. Universität
Flensburg.
Cogan, D. G. 2006. Corporate governance and climate change:
Making the connection.
Boston, MA: CERES.
Cruz, R.V. et al. (2007). In M. L. Parry et al. (eds.), Climate
change 2007: Impacts, adaptation and vulnerability (pp. 469-
506). Cambridge: Cambridge University Press.
Timilsina, Y. P. (2015). Chronological trend of climate in the
Lumle village development committee from Kaski district,
Nepal. Crossing the Border: International Journal of
Interdisciplinary Studies, 3(1), 53-64.

7. Running Head: GLOBAL WARMING
1
GLOBAL WARMING
4
Global Warming’s Impacts on Business
Introduction
Global warming is an emerging issue among business activities
in the current world. There are a variety of inevitable changes
that are likely to occur to business activities in case of
increased levels of global warming. Businesses globally need to
make arrangements as well as plans on how they will counter
global warming in the future (U.S. Global Change Research
Program et al., 2019). The global community has been
inadequate in making the necessary reductions in regard to
carbon emissions so as to avoid the hugest implications
associated with global warming. A variety of businesses are
basing their focus on the concept of sustainability, however it is
time for businesses as well as individuals to divert their
attention to climate resiliency and the effects of global warming
(Global Conference on Global Warming & In Kadioglu, 2013).
Global warming continues to be associated with long-term risks
to business associated activities. Focusing on global warming is
considered essential in adapting as well as thriving in an era
characterized by unpredictable weather and unending business
closures. Climate associated resiliency is involved in the
rejection of the concept regarding business as normal and bases
its focus on progressive transformation. The following essay
will offer a comprehensive as well as precise illustration of why
the topic of global warming effects on business associated
activities is appropriate.
Why the topic ‘Effects of Global warming on Business
Activities' is Appropriate

8. The topic is essential in comprehending the various effects of
global warming on businesses and helps businesses in
countering such impacts. First and foremost, global warming
causes uncertainty in business which is considered to be the
main impact caused by global warming on businesses.
Businesses need to be more agile as well as more strategic with
implementation of contingency plans so as to handle the crisis
caused by global warming. Businesses are currently in a
constant state of uncertainty as well as subdued development
and volatile commodity associated prices. If regulatory
associated certainty does not come soon then it is evident that
businesses will be disadvantaged and their ability to plan as
well as act will be reduced. Nonetheless, there are disruptions
to business associated activities. Global warming causes a form
of dislocation which enhances tremendous strains on business
related activities. Weather effects along with fall of buildings
and destruction of instruments is a severe form of distraction to
businesses caused by global warming.
Moreover, global warming has an effect on business activities
by reducing the economic growth along with development in the
affected areas. High temperatures are associated with reduction
in incomes as well as GDP thus business activities are greatly
affected since the number of people who can afford
commodities is lowered. Intensification of weather and climatic
alterations is associated with affecting businesses by lowering
their capability as well as availability to raw materials along
with causing a disruption in their supply chains. During poor
weather, it is difficult for suppliers to carry out their tasks and
operations normally (In Dinda et al., 2016).
Nonetheless, global warming is associated with the closure of a
variety of businesses which find it hard to operate as well as
survive in severe weather conditions along with unpredictable
climatic changes. Furthermore, global warming is associated
with affecting businesses in terms of climate alteration risk
associated insurance. Although a business has the capability to
insure it against a variety of the risks associated with global

9. warming, it is evident that they are unable to get insurance
cover against the identified indirect economic associated risks
like effects on staff. This is inconveniencing to business
operations which experience losses and drawbacks when such an
event occurs and they have to pay the staff themselves.
References
Brooks, L. J., & Dunn, P. (2018). Business and professional
ethics for directors, executives &
accountants.
Casper, J. K. (2016). Greenhouse gases: Worldwide impacts.
New York: Facts on File.
Christiansen, B., Turkina, E., & Williams, N. (2013). Cultural
and technological influences on
global business.
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Global Conference on Global Warming, In Dinçer, I., In Colpan,
C. O., & In Kadioglu, F. (2013). Causes, impacts and solutions
to global warming.
Houser, T. (2015). Economic risks of climate change: An
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In Dinda, S. (2016). Handbook of research on climate change
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Kolbert, E. (2014). The sixth extinction: An unnatural history.
Taylor, M. (2014). Global warming and climate change: What
Australia knew and buried ... then framed a new reality for the
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U.S. Global Change Research Program,. (2019). The climate
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10. assessment - impacts, risks, and adaptation in the United
States.
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