ServiceFriday: Climate Change Services – Investing in our Environment and Businesses

Climate change sits high on the list as one of the most controversial and critical debates of today. Changes are having to be made, not just in individuals’ lives, but in the management of organizations as well. However, for a variety of different reasons, many businesses are failing to make these changes, and new services are forming to assist with these.

The European Commission defines climate services as “the transformation of climate-related data – together with other relevant information – into customized products such as projections, forecasts, information, trends, economic analysis, assessments (including technology assessment), counselling on best practices, development and evaluation of solutions and any other service in relation to climate that may be of use for the society at large.”

In a recently published article, researchers examine the aspects of climate change services and the benefits for organizations that utilize these. The authors state, “According to recent Global Risks Reports by the World Economic Forum, climate change and, in particular, failing to implement climate change mitigation and adaptation measures, have repeatedly been rated among the most important risks of our time.” Climate change is forcing companies to make drastic changes, but risking financial stability is holding many back from acting. Studies show that “despite 90% of companies reportedly being impacted by climate-related events within the past three years, only 30% have responded to those threats.” Companies now have the ability to hire climate services, and yet 70% are still refraining.

The majority of the fear companies are experiencing in hiring climate change services centers around financial stability. The risk of losing investors and money is too large and immediate, whereas climate change seems to be an arbitrary phrase, one that has no immediate or noticeable threat. Changes take time and money and even the simple act of deciding who is to take on the responsibility of working with a climate change service provider can be difficult. If a company is ahead of the game and has an environmental department or a Corporate Social responsibility position, these may be the obvious choices. A risk or strategy department might take more responsibility though, depending on the company.

Although it may seem like a risk and a problem to be addressed at a later date, all companies are affected by climate change, and rather than ignore it, they must utilize climate services. This will not only benefit the environment, but enable companies to profit more in the long-run.

To read the full article visit ScienceDirect. (A fee may apply.)