Impacts on SME

Environmental (Direct Impact of Climate Change)

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 and suffer from phenomoena such as drought and disease.

While impacts will be more serious 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.

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