How Climate Risk Mitigation is Changing Corporations

In an article for The Business Journals, Navigant discusses how climate change mitigation is creating new financial opportunities for businesses

Not long ago, climate change used to only be a concern for coal and oil companies. Now, companies unrelated to fossil fuels are beginning to address the topic, thanks in part to activist shareholders, climate events that have disrupted supply chains, and interested customers and employees.

In an article for The Business Journals, René Groot Bruinderink, director at Navigant, outlined how climate risk mitigation perceptions are changing in the corporate world and how companies can use sustainability to strengthen financial resilience.

He noted that five years ago, sustainability was only discussed with managers that struggled to effect real change where, “today, the people coming to me with worries about climate risk are executives with very real decision power,” Groot Bruinderink said. 

Today, climate risk mitigation is transforming the corporate world through supply chain relationships by alleviating unpredictability between suppliers and buyers caused by climate-related events. Businesses across industries are forming decades-long partnerships, which is creating stable, predictable prices to ensure a lasting, climate-proof supply. 

Additionally, banks across the globe are beginning to measure their greenhouse gas emissions related to loans and investments. From the bank’s perspective, those that invest in climate mitigation measures now are reducing long-term risks by creating stability, but also taking advantage of increasingly profitable emissions-reductions and other climate-related programs.

Read The Business Journals Article

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