Climate Change Affects Business Decisions

As the United Nations [UN] global-warming conference is taking place in Indonesia, companies around the globe hope that governments will set up more effective and coordinated climate change regulations, according to a report by Clifford Chance.

Issues on climate change have been discussed more prominently among governments in recent years. Since 2005, the Kyoto protocol and its methods for controlling carbon emissions have indicated just how crucial the issue is to governments, regardless of how some might see the latter as a potential threat for doing business. While climate change remains a concern, it is also a critical matter to most multinational companies. In recent years, many companies have been paying close attention to the possible affects climate change may bring.

With the aims of finding out how corporations are responding to the challenge of climate change, how they have adapted their outlook and strategies, and what they want from government and regulators, the research has come to the finding that companies view the climate change issue as a business opportunity. Moreover, corporations tend to favour long-term business opportunities rather than short term gains. Both Asia-Pacific and the US are most optimistic about long-term opportunities generated by climate issues.