Question

During to the Bill Conerly about “Business Strategy for Climate Change” what his point for the climate change business strategy?  

Answer 1

Bill Conerly says that it is the duty of the business leaders to understand how their general business decisions and choices made about production, marketing and finance should change due to global warming. He also says that some business leaders have been skeptical about climate change, though we cannot blame them for having this view. Bill Conerly suggests that corporate planning on climate change should be based on two major points. The first being that the climate would become warmer, though not at the pace suggested. The second being that the uncertainty about the future path is great enough that the situation could worsen and be much worse than predicted.

Global warming will vary from one place to another, and it will be different in winters than in summers. It will change our environment for sure, but Bill Conerly says that it won't be that bad as the extreme social activists suggest. Warmer weather can help improve agricultural yields in high latitude countries. The farmers could adjust their crops to the new climate average. In many parts of the world, more carbon dioxide in the atmosphere and added warmth has proven to be good for the crops. Precipitation might also change. Accordingly, the various business sectors will also have to adjust to the changing climate. The agricultural sector will need to make multiple adjustments over time. The current practices used in agriculture will also have to be updated.

Construction companies, affected by rain and snow need to adopt a more scientific approach or use climatology to provide local details. The production and distribution facilities in low lying areas will need extra attention. The changing climate poses both direct risks and infrastructural risks to the businesses. An increase in energy usage will be seen in developing and poorer countries. They will continue to expand their energy use at a rapid pace. The more economic and developed a country becomes, the more energy it would consume, leading to an increase in climate change due to global warming.

A major conclusion we can draw from this research is that the path of climate change is highly uncertain because the magnitude resists accurate estimation. But, we must not get complacent because negative surprises are more likely to come up than positive ones. Since the path of climate change is uncertain, it could be much worse or much milder than anticipated. We must strategize in such a way that the decisions we make are flexible to whatever issues might come our way. Businesses should make it a point to make global warming and climate change as an element when formulating business strategies. An analysis must be made based on the current estimates and not on future calculations because the path that global warming would take is uncertain. This uncertainty about current estimates must also be taken into consideration.