The weather, our coastlines, and oceans are all susceptible to the effects of climate change. These effects are localized. The manner in which they affect your company will differ based on the nature of your industry, your location in the world, and the degree to which your company is vulnerable (such as what your business facilities are made from, and the services it depends on).
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The repercussions of climate change from several natural disasters events, such as being exposed to drought, bushfires, and floods in quick succession, add an additional layer of complexity to the situation.
The following are examples of the direct and indirect impacts of climate change on businesses:
Direct consequences, such as physical damage caused by floods or bushfires, or forced closures, have an immediate and noticeable effect on your company.
Indirect effects are the flow-on effects that climate change or extreme events have. For example, the supply chain is interrupted by extreme weather or income being diminished. Direct impacts are the direct effects of climate change or extreme occurrences. One illustration of this phenomenon is the effect that the black summer bushfires of 2019–20 had on the South Coast economy. As a consequence of the fires, there were fewer tourists in the area.
It is crucial to identify the specific climate risks to your business sector and region. Then, you should plan accordingly, because every firm is different in terms of its location, operations, and supply chains. Because of this, it is essential to do so.
Impact on organizations of a size between small and large
The exposure to climate risk that medium-sized businesses face varies. It will rely on the particular industry as well as its vulnerability. Medium businesses are vulnerable to a variety of climate-related hazards. These include disruptions to their supply chains, difficulties in providing adequate levels of comfort and energy efficiency in their buildings and other operations, and climate-related liabilities. It is also essential to have a good understanding of the effects that climate change will have on the health and well-being of employees.
Businesses in the agricultural, forestry and fisheries industries are among those that face the greatest threat from the cataclysmic effects of climate change. The natural environment is essential to the functioning of these businesses. However, other industries, such as retail trade, tourism, and manufacturing, are also extremely sensitive to the effects of climate change. The reality is that all different kinds of businesses are vulnerable to the consequences of climate change.
The impact on low- and medium-sized enterprises
The economy of New South Wales (NSW) is driven almost entirely by the state’s small companies. They not only contribute to the identity of the places we adore but also provide services that are absolutely necessary. The ripple impacts of climate change can be felt throughout a community when small enterprises are negatively affected by it.
The effects of climate change, which might include the occurrence of extremely severe weather, can be disruptive to small businesses. The frequency and severity of weather occurrences are both expected to increase as a result of climate change. This places an additional burden on enterprises. They may be vulnerable to a succession of catastrophic occurrences over a short period of time. For example, droughts, wildfires, and floods. The effects of these factors vary greatly depending on the location of the company, the nature of its operation, and how vulnerable it is.
