In Annual Reports, Companies Recognize Climate Risk and Opportunity
Major companies are examining the risks of how changing weather patterns could affect their businesses, but it’s not all gloom and doom. Companies are also recognizing the business opportunities that new innovations would bring as we tackle climate change. The next step is to push for clear policies.
A recent Denver Post article profiles what seven top Fortune 500 companies said in their annual reports to the Securities and Exchange Commission about climate change when considering business risks.
“In recent annual reports filed with the Securities and Exchange Commission, a number of publically traded companies – including Walmart, PepsiCo, and UPS – have grapples with how changing weather patterns affect their business.”
While some fossil-fuel businesses, such as ExxonMobile or ConocoPhillips, were simply concerned with increased greenhouse gas regulations, many more corporations raised concerns over extreme weather events affecting operations, supply chains, food and water shortages, and even geo-political concerns over increased civil unrest due to changes in climate. Hewlett-Packard acknowledges that finding solutions to disruptions due to climate change could spur innovation and provide new business opportunities.
Companies are not only recognizing that climate change impacts bottom-lines, they are beginning to include those impacts in their reports to investors, shareholders and consumers. The next step is for companies to join with BICEP to make the case in Washington that we need clear, consistent policies that will help drive the transition to a low-carbon economy and protect the long-term viability of their businesses.