Over the course of the next five years, climate change is poised to cost the largest companies in the world approximately 1 trillion dollars. While the cost is high, the opportunities it creates are just as staggering.
While companies may face 1 trillion dollars in costs, business opportunities calculate 2.1 trillion. What this means is that they will most likely make more money in the long run than what it costs to go green.
What are the Bussiness Opportunities
Now 2.1 trillion dollars is a lot of money, but what exactly are the business opportunities that generate this? The average consumer’s perception is changing. Consumers today are now more environmentally conscious than before.
There now exists a larger demand for low emission products. Some shoppers are willing to spend more money on products if they are better for the environment.
For example, electric vehicles have been around for a while and their large price tags have kept them from filling the streets. However, we have reached a point where buying an electric car is more feasible than before. By 2040, half of the new cars sold will be electric.
However, going green offers a lot of other benefits that help save companies money such as energy.
Energy Savings are Real
While you might think that your electric bill is high every month, I can assure you that it is nothing compared to what major companies are paying. Most companies spend billions of dollars every year on energy.
Renewable energy sources like solar and wind are annually dropping in price. In fact, they have become cheaper than coal. Not only will this save billions every year for large-scale companies, but they also become less susceptible to price hikes.
Not Just About The Money
For a long time, pressure from the public has been targeted at governments and industries. This isn’t just from adults, either. School walkouts have been going on all year.
The final nail in the coffin was last year’s IPCC report on climate change. It highlighted that the only way to limit global warming to a 1.5C temperature increase was to make very rapid changes immediately to every aspect of society.
If these changes are not implemented, irreversible damage will be made to our planet.