Risks and Opportunities

There is growing consensus in the world of business and finance that climate change is a key challenge facing the private sector, with potential to significantly alter the economic lndscape. Climate change presents a number of new risks for businesses, which will need to be managed. Effective management of these risks will help companies to adapt to the changing business environment and enhance their competitiveness.

The challenge for Irish enterprises is to become aware of the implications of climate change for their business in order to turn potential risks into business opportunities. Proactive businesses that take action to reduce their carbon footprint can make significant gains from the associated increases in internal efficiency and from reductions in resource costs. Other benefits include enhanced reputation, stakeholder support and improved environmental compliance. Tackling climate change can therefore result in a positive outcome both for the environment and for business.

The following sections present the challenge of climate change as an exercise in risk management and explores the business opportunities associated with climate change.