Climate change will have a range of impacts on businesses. Impacts are expected to fall disproportionately on SMEs including disrupting business operations, property damage, disruption to supply chains and infrastructure leading to increased costs of maintenance and materials, and raising prices.
How does climate change affect industries?
As temperatures rise and weather patterns change, working conditions in some sectors may become harsher. Jobs that require physical labor, especially outdoors, will become more challenging, and health and safety risk in these industries will rise. This will increases costs in these sectors.
Which industry is most affected by climate change?
“The insurance industry is expected to be most affected, as they have to pay for the damage occurring in other sectors,” he says. “The second most is agriculture due to increases in temperature as 30 per cent of the world population is depending on agriculture for their income.”
Which industry will benefit from climate change?
Therefore it’s no surprise the renewables industry will benefit from rising global temperatures. From windmills to solar panels to geothermal solutions, renewable energy solutions will become necessary as existing energy sources are depleted.
Which industries are affected by climate change?
Being highly exposed to climate change impacts, the insurance and tourism industries have growing bodies of Canadian and international climate change research, and are the most advanced on developing adaptive actions. Other industries such as residential construction, manufacturing and trade remain under-analyzed.
What is the impact of industry on the environment?
At the same time, industrial processes can have negative environmental impacts, causing climate change, loss of natural resources, air and water pollution and extinction of species. These threaten the global environment as well as economic and social welfare.
How will climate change affect the economy?
The largest impact of climate change is that it could wipe off up to 18% of GDP off the worldwide economy by 2050 if global temperatures rise by 3.2°C, the Swiss Re Institute warns.