Johnson Controls

Military and Business Leaders Alike Cite Costs and Risks of Climate Change

Conservatives have been reluctant to talk about or acknowledge the actual cause of climate change, because they fear that doing so will lead to action that will cost money. But despite their efforts to cast doubt on the reality of the issue, awareness is steadily  growing that not only is climate change real, but that over time, the cost of not taking action will far exceed the cost of actions being proposed.

Red state politicians and talk radio hosts continue to press the denial agenda, but among the more respected leaders in traditionally conservative areas such as big business and the military, the tone has shifted considerably.

According to the Climate Disclosure Project (CDP), 60 major American companies from Google to Gap, have reported significant impacts to their business as the result of climate change. Business leaders are making strategic investments now, to reduce future risk. Says CDP President Tom Carnac, “Dealing with climate change is now a cost of doing business.”

Large companies with large supply chains are particularly vulnerable. In a new report entitled, “Major Public Companies Describe Climate-related Risks and Costs,” impacts are described confronting ten business sectors ranging from Consumer Discretionary, to Energy, to Industrial, to Health Care.
Over the three year period since the first report was issued, the average likelihood of physical risks, according to the companies responding, grew from 34% to 50%. And the fraction expecting to see impacts within the next 1-5 years also grew from 26% to 45%. Four of the top five assessed physical risk drivers remained the same over the three years. These were:

  • Changes in precipitation extremes and droughts
  • Major storms (hurricanes, cyclones,etc.)
  • Induced changes in natural resources
  • Uncertainty of physical risks

Sea level rise emerged as a top risk driver this year. The top 3 impacts also remained the same. These were:

  • Increased operational cost
  • Reduction/disruption in production capacity
  • Inability to do business

Other impacts included reduced demand for products and services, and increased capital cost.

Some specific examples include soft drink companies like PepsiCo and Dr Pepper Snapple Group stating concerns over changing temperatures, unreliable crops, uncertain water availability and surging energy costs disrupting business and putting US$2.5 billion of their sales costs at risk.

Data centers are becoming more expensive to cool as temperatures rise.

Survey Reveals Top Corporate Supporters of Black Science and Engineering Education

A survey published by US Black Engineer & Information Technology magazine lists the corporations and government organizations that are most supportive of America's historically Black engineering schools.

World’s Most Ethical Companies Announced; Most Competitive List Yet

The Ethisphere Institute has announced its seventh annual World's Most Ethical Companies, a list that recognizes 138 companies for demonstrating leadership in setting ethical business standards. Ethisphere asks companies to nominate themselves for the prestigious designation, and this year thousands of companies were evaluated, making it the most competitive year yet.

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