Addressing climate change has become a critical part of business management, as companies respond to the wide variety of physical, transitional, and reputational risks caused by climate change - in addition to meeting stakeholder expectations that businesses play a significant role in mitigation. Fortunately, the market is shifting in a way that rewards those who understand the risks and opportunities and are willing to innovate and show leadership to adapt to a low-carbon economy.
As climate change accelerates, businesses will face more frequent disruptions to operations and supply chains, whilst at the same time needing to respond to increasing regulatory compliance and demand from stakeholders. Businesses that proactively respond to the risks and opportunities of climate change will be in a greater position to attract and retain talent, build customer loyalty, future-proof their business models, and secure investment.
Effective climate action begins with understanding business emissions from direct operations and supply chains and taking steps to mitigate these impacts through best practice target setting and transition planning. The UN Global Compact Network UK offers programming to help businesses understand the basics of corporate climate action, from the complexities of value chain emissions, to setting targets with the Science Based Targets Initiative, and developing business models that prioritise climate action through impactful Transition Plans.