Small Business Owner Tips for Mitigating Costs of Climate Uncertainty

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The climate is changing in shocking ways. The average surface temperature of the planet has risen over 2 degrees since the late 1800s. This may not seem shocking at first glance, but that small temperature difference can have a remarkable impact on the climate. The majority of global warming has taken place since 1980. In fact, all but one of the 17 warmest years on record have taken place after 2001. According to NASA, 2016 was the warmest year on record. The changing climate is taking its toll on businesses as well as the environment.

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Shutterstock Licensed Photo – By Dusit

Businesses must understand the implications of climate change and mitigate the costs that it will bring.

Why climate change is affecting businesses

Businesses cannot escape the horrific reality of climate change. Here are some of the reasons it is taking its toll on them and the steps they can take to address them.

Rising energy costs

Rising energy costs have become a grave concern for countless businesses.   Major changes in the weather force them to expend more resources on heating and cooling. This obviously comes at a large cost. Using energy to heat and cool buildings also leaves a carbon footprint that exacerbates the problem with climate change, which will only worsen the problem in the future.

Businesses must try to find greener solutions to heat and cool thei facilities. This includes taking advantage of geothermal heating and cooling strategies. They can also look into using solar energy to heat their properties during the winter. Solar heating will probably not be sufficient on its own, but it can cut costs by 30% or more.

Businesses may need to relocate to regions where they can benefit from these natural getting strategies. They should also try looking for areas that are more temperate year-round to minimize costs.

You may also want to look into providing your own energy. Rather than purchasing oil, you can cut firewood and use it to heat your home. The best log splitter will pay for itself over time.

Fighting against natural disasters

Natural disasters are another frightening consequence of climate change. Some of the worst natural disasters in history have taken place since 2011. There were four times as many tornadoes in 2011 as any other year in history up to that point.

This is obviously another serious concern for businesses of all sizes. Natural disasters cost $306 billion in 2017. This was the most expensive year for natural disasters in history. It will probably be higher as climate change worsens.

Businesses must take the following measures to avoid these problems:

  • Make sure they have sufficient insurance to cover the costs of a potential natural disaster. Most insurance policies don’t cover flood insurance. You may not think that you needed in the area that you live, but you can’t be sure how likely a flood will be as the climate continues to change.
  • Relocate to an area where natural disasters are less likely. This may not be practical for all businesses, but it is something you should seriously consider if the probability of a disaster is high in your area.
  • Make sure that you are buildings are properly for the fight against the most likely natural disasters. They should be flood resistant and hurricane proof at least.

All of these measures are going to make a difference.

Fight Against the Risks of Climate Change to Keep Your Business Afloat

The costs of climate change are becoming too serious to ignore. They are going to mount in the future and many businesses are going to have to pay the price. You are going to need to make sure that your company is properly prepared for them.

The good news is that there are ways to stave off these costs. You just need to make sure that you are aware of the benefits and take the right steps to stop them from crippling your company.