Today, the magnitude of the threat posed by climate change must not be understated, but at the same time, companies should see this issue also as an avenue of innovation for their products and services rather than as a potential risk to their bottom line.
Hence, the message to companies is quite clear: All must take action now. The transition toward an economy with lower carbon emissions offers substantial business prospects and the most significant benefits will accrue to those firms who recognize this opportunity at an earlier stage.
Why Do We Need to Step Up Our Climate Action Efforts?
If we want to see true change, we need to incorporate innovation into every facet of our company operations in order to continue to be successful. Businesses need to learn how to manage risk via innovation and to recognize the reality of climate threats that may sometimes seem paradoxical to a sector focused on making measured judgments.
Getting a handle on the new reality of the unknown demands establishing new learning methods, both on an individual and a corporate level. Hence, businesses should introduce viable climate emergency programs that unravel the aspects of climate change and how businesses can engage in this fight.
How to Deploy Innovation to Combat Climate Change?
The overall process of technological change may be described by a series of steps or phases. In the literature, several words are used to characterize these phases, but the most frequent concepts are:
Discovery: the development of fresh information or new prototypes
Innovation: the introduction of a new or enhanced commercial product or procedure
Adoption: the initial implementation and use of the new technology
Diffusion: expanding use and utilization of the technology
Novel technological developments have the potential to make the climate change action more feasible. Nevertheless, achieving climate change objectives will require a massive deployment of financial and human resources to assist each step of the technological-change process.
Leveraging Innovation for Climate Emergency
Businesses can cut their energy usage — and, as a result, their CO2 emissions — if they improve their energy efficiency. There are potential energy-saving techniques in every industry, but they are now being inhibited by short-term budgeting and the low priority of energy expenses on many management and household agendas.
Potential energy-saving measures exist in every industry and all companies, ranging in size from SMBs to multinationals, have an inherent interest in lowering their monthly energy expenses by increasing the effectiveness of their operations. The potential for cost savings from up-front investment, for which major tax benefits are available under the Enhanced Capital Allowances plan established by the government of the United Kingdom, may have a considerable influence on a company’s bottom line.
To address the needs that rising regulatory and consumer pressures will bring, there is a significant opportunity for businesses to produce low-carbon goods and services, such as new renewable energy sources. OECD estimates that the worldwide environmental products and services business is worth £200 billion a year and is expected to grow at a rate of 6% annually. This opens up significant business prospects for companies to produce low-carbon goods, services, and technology.