The Business Case for 'Green' Initiatives
The UK is moving towards its 2050 goal of reducing carbon emissions by 100% compared to 1990 levels. This highlights the necessity of environmentally conscious business efforts.
Furthermore, beyond recognising Net Zero targets and working towards the nationwide goal, it’s also necessary for employers to understand the ramifications of climate-related risks as they pertain to their businesses. These potential consequences include:
- Operational disruptions - Organisations may have to pause operations due to climate-related disasters.
- Supply chain issues - Climate-related events can affect delivery schedules and resource scarcity.
- Labour concerns - Global warming has led to labour struggles among various industries, such as those relying heavily on outdoor workers.
- Regulatory uncertainty - As governments and regulatory bodies address climate change through various initiatives, organisations must maintain compliance with all applicable regulations and laws.
- Reputational damages - Organisations neglecting to take their environmental impact seriously may struggle to maintain a good reputation among both stakeholders and the general public.
To make progress towards net zero emissions and protect themselves from climate-related risks, organisations should consider the following steps:
- Assess natural disaster exposures. Be aware of natural disaster risks. Based on location, organisations and worksites may have different exposures to consider.
- Address climate change risks. Consider physical, transitional and liability risks related to climate change, such as those related to industry standards, product offerings, daily operations and sustainability.
- Acquire proper cover. Secure appropriate insurance and protection against climate-related risks by consulting a trusted insurance professional and discussing specific needs.
Contact us today for more additional risk management guidance for your business.
