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Business impacts


Economics has emerged as the key driver for companies that are taking action on climate change. (1) The bottom line is where businesses start and end! In this section, you will find information that will help you understand why climate change is your business. Once you understand how climate change will affect your business you will be in a better position to minimize the risks and maximize the opportunities.


In this section, you will find

  • information about the risks of climate change on your business
  • a summary of how the Kyoto Protocol will affect your business
  • a description of the internal and external business drivers for reducing greenhouse gas emissions


Click here to see Business solutions

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Business risk due to climate change


There are three main categories of risk:

  • Natural Capital
  • Government Policies
  • Customer and Public Pressure

Natural Capital

This risk threatens the natural resources or capital that many businesses rely on for raw materials (forests, fisheries, agriculture) or indirectly (real estate, tourism, retail, restaurant). For example, even if your business does not depend directly on natural capital you still need to ask about your suppliers and customers.


Government Policies

There is a risk that policies will influence the market to favour less greenhouse gas-intensive businesses, products and services.


Customer and Public Pressure

Whether you sell business-to-business or directly to consumers, your customers will increasingly prefer climate-friendly products.


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Kyoto Protocol


In February 2005 the Kyoto Protocol became international law, signaling the first concerted step towards a global commitment addressing climate change. Under this agreement, thirty industrialized countries, including Canada, are legally bound to reduce emissions by an average of 5.2% from their 1990 levels by 2012.

To date, there have been no clear policies or programs that outline how small businesses in Manitoba will help reduce greenhouse gases that cause climate change.


Canada

In April 2005, the Government of Canada released their plan for meeting Kyoto commitments. Actions for small and medium size businesses do not play a prominent role in the plan. This does not mean that these businesses will not feel the affects of the policies and programs that will evolve from the government’s plan.


Manitoba

In June 2002, the Province of Manitoba released "Kyoto & Beyond", their first Climate Change Action Plan. This plan outlines Premier Doer’s commitment to meet or exceed the national emission reduction targets required under the Kyoto Protocol. Manitoba’s plan is geared towards increasing research and development in climate change technologies and creating opportunities for businesses in Manitoba.


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Business drivers to reduce greenhouse gas emissions


Whether you are driven to change because of the risks to your businesses bottom-line (internal) or because the government forces you to make a change (external), there are ways that climate change puts pressure on your business.


Internal drivers

  • reduce costs
  • increase the quality of products and services
  • diversify products and services
  • stimulate innovation
  • increase employee motivation
  • personal commitment and responsibility to community
  • manage risk and liability
  • maintain or increase market share


External drivers

  • customer or consumer demands for “greener” products
  • profitability and access to capital
  • shareholders demanding accountability and transparency
  • competitive advantage by setting the trend or following the market leader
  • government regulations