Environmental

Global climate change is predicted to bring higher temperatures, an increase in extreme and unpredictable weather events and higher sea level. While the overall effects of climate change are predicted to be highly negative, some regions may suffer disproportionately, experiencing phenomena such as drought and disease.

While impacts will be more fundamental for those in the forestry, agriculture and horticulture sectors, many businesses stand to be affected by climate change in less direct ways due to the interconnection between the health of the environment and the health of the economy. Predicted changes such as less summer rainfall and increased frequency of extreme weather events (such as flooding and storms) can lead to infrastructure damage. This will put financial stress on the public and private sector to manage these events and to conduct any associated repairs. Additionally, more extreme and erratic weather may result in an increase in health, property and life insurances.

However, if strong coordinated action is taken now, with the focus on prevention rather than cure, the worst impacts of climate change can be avoided. Climate associated risks can be managed through foresight and through the incorporation of potential climatic impacts in business planning and investments.