{"id":5124,"date":"2022-08-30T08:48:24","date_gmt":"2022-08-30T08:48:24","guid":{"rendered":"https:\/\/www.surveycrest.com\/blog\/?p=5124"},"modified":"2025-06-11T13:21:41","modified_gmt":"2025-06-11T13:21:41","slug":"impact-climate-change-small-businesses","status":"publish","type":"post","link":"https:\/\/www.surveycrest.com\/blog\/impact-climate-change-small-businesses\/","title":{"rendered":"The Impact Of Climate Change On Small Businesses"},"content":{"rendered":"<p>Our planet is getting warmer every day.  According to the World Meteorological Organization, there\u2019s a 50% chance of <a href=\"https:\/\/public.wmo.int\/en\/media\/press-release\/wmo-update-5050-chance-of-global-temperature-temporarily-reaching-15%C2%B0c-threshold#:~:text=The%20findings%20of%20the%20annual,the%20years%201850%2D1900).\" rel=\"nofollow noopener noreferrer\" target=\"_blank\">global temperatures reaching the threshold of 1.5OC<\/a> in the next five years. For weather events,  this could translate into more floods, more droughts, more fires, and all of it  in more rapid succession and increased severity.<\/p>\n<p>For years now, these extreme weather events have been impacting businesses world over. It has cost world economies billions of dollars in labor challenges, supply chain disruptions, and resource scarcity.<\/p>\n<div class=\"ebookdwnbut\">\n  <a href=\"https:\/\/www.surveycrest.com\/survey\/selection\" target=\"_blank\" class=\"cta-button\" rel=\"noopener noreferrer\">Create A Survey!<\/a><\/div>\n<p>Today, we are listing down the most destructive impacts that the climate crisis is having and <a href=\"https:\/\/deepinmummymatters.com\/have-you-done-enough-to-modernise-your-small-business\/\" target=\"_blank\" rel=\"noopener noreferrer\">how small businesses can modernise<\/a> themselves to do better.<\/p>\n<h2>Top 5 Climate Change Impacts on Small Businesses Worldwide:<\/h2>\n<p>Every climate-related event affects more than 1 in 4 organizations worldwide. Here is how some of these impacts are manifesting themselves:<\/p>\n<h3>1. Operational Impact<\/h3>\n<p>While <a href=\"https:\/\/www.surveycrest.com\/blog\/earth-day-2015\/\" target=\"_blank\" rel=\"noopener noreferrer\">climate change conversations <\/a>have been part of the popular  discourse for years now, it is only recently that business executives have  started to take it seriously. According to a recent survey by Deloitte, 30% of  them admitted that their <a href=\"https:\/\/www2.deloitte.com\/global\/en\/pages\/risk\/articles\/2021-climate-check-business-views-on-environmental-sustainability.html\" rel=\"nofollow noopener noreferrer\" target=\"_blank\">organizations are increasingly feeling the operational impact<\/a> of climate-related disasters.<\/p>\n<p align=\"center\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.surveycrest.com\/blog\/wp-content\/uploads\/2022\/08\/Operational-Impact.jpg\" alt=\"Operational Impact\" class=\"wp-image-5127\" title=\"Operational Impact\" width=\"800\" height=\"800\"><\/p>\n<p>These impacts could include:<\/p>\n<ul>\n<li>\u2022 Facility damage<\/li>\n<li>\u2022 Building repair costs<\/li>\n<li>\u2022 Lost productivity<\/li>\n<li>\u2022 Job losses<\/li>\n<li>\u2022 Unlivable working environments,<\/li>\n<li>\u2022 Rising workforce medical costs,<\/li>\n<li>\u2022 And more.<\/li>\n<\/ul>\n<p>Physical damages caused by floods and wildfires, etc., can have ripple effects that go beyond operational challenges. Workforce disruption not only loses productivity but also results in supply chain disturbances. Similarly, damaged facilities raise repair costs as well as cause building material prices to soar.<\/p>\n<h3>2. Scarcity of Resources<\/h3>\n<p>Natural resources like water, food, and energy get directly impacted whenever there is an extreme weather event taking place. Crops get destroyed, water in lakes and rivers start evaporating faster, and pressure on energy consumption increases, leaving large gaps of population struggling to get access to these basic resources. That&#8217;s why a lot of companies like Waltero the <a href=\"https:\/\/waltero.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">Edge AI Company<\/a> are stepping in with IoT smart metering devices to helps monitor consumption and save costs on business that struggle with the climate change impact on resources.<\/p>\n<p>All of this raises  prices, decreasing people\u2019s buying power, and affecting business\u2019 bottom lines  adversely.<\/p>\n<p>Scarcity of resources  also disrupts the workforce and makes it difficult for businesses to offer  their employees the healthiest of work environments.<\/p>\n<h3>3. Rising Insurance Costs<\/h3>\n<p>It is becoming too costly to insure businesses against climate change disasters.<\/p>\n<p>According to experts, as  much as <a href=\"https:\/\/www.ft.com\/content\/5d271251-973d-45e5-8982-2e28bf96f952\" rel=\"nofollow noopener noreferrer\" target=\"_blank\">$183 billion can be added to annual premium costs<\/a> for property insurance by 2040. These forecasts can increase even more if climate  change doesn\u2019t slow down.<\/p>\n<p align=\"center\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.surveycrest.com\/blog\/wp-content\/uploads\/2022\/08\/Rising-Insurance-Costs.jpg\" alt=\"Rising Insurance Costs\" class=\"wp-image-5128\" title=\"Rising Insurance Costs\" width=\"800\" height=\"800\"><\/p>\n<p>The rising premium costs have left many <a href=\"https:\/\/zegal.com\/blog\/post\/legal-considerations-when-starting-a-small-business\/\" target=\"_blank\" rel=\"noopener noreferrer\">small businesses<\/a> exposed to all kinds of financial and liability risks in case of extreme weather-related damages. This issue will force businesses to either fund the repairs and other mitigation costs out of their pockets or cut their losses and close up shop.<\/p>\n<p>In either case, the cost to broader local communities is going to be exponential.<\/p>\n<h3>4. Supply Chain Disruptions<\/h3>\n<p>Small businesses rely on smooth-sailing supply chains. With climate-related effects on the rise, you cannot depend on predictable supply chains. Things can cause a disruption include:<\/p>\n<ul>\n<li>\u2022 Natural disasters<\/li>\n<li>\u2022 Energy scarcity<\/li>\n<li>\u2022 Port congestions<\/li>\n<li>\u2022 Shortage of labor<\/li>\n<li>\u2022 Destruction of crops<\/li>\n<li>\u2022 Shortage of essential services<\/li>\n<li>\u2022 Rising costs and prices<\/li>\n<li>\u2022 And more.<\/li>\n<\/ul>\n<p>When supply chain disruptions take place, it can worsen issues for small businesses even more. A small manufacturer may struggle to fulfill orders on time, a corner shop may not have enough ingredients to run its pizza shop at full capacity, and a small office may lose exponentially in productivity if employees are unable to show up due to displacements or damaged infrastructure.<\/p>\n<p>It\u2019s also  important to remember that though climate change is going to affect all  businesses, to respond effectively, you need to <a href=\"https:\/\/www.surveycrest.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">conduct surveys <\/a>in your own supply chains to spot gaps that may be only specific to  your problems. So, you can come up with solutions to answer your exact needs.<\/p>\n<h2>5. Reputational Impact<\/h2>\n<p>Climate change has become a topic of our daily conversations. Especially in current times as the seasonal changes have wreaked havoc all across the globe. Businesses are not excluded from these conversations. They are also under immense governmental, social, and consumer pressure to adopt more <a href=\"https:\/\/idealmagazine.co.uk\/6-ideal-steps-to-a-greener-more-sustainable-business\/\" rel=\"noopener noreferrer\" target=\"_blank\">eco-friendly practices<\/a>.<\/p>\n<p>While <a href=\"https:\/\/www.theguardian.com\/environment\/2019\/oct\/09\/revealed-20-firms-third-carbon-emissions\" rel=\"nofollow noopener noreferrer\" target=\"_blank\">larger organizations suffer the most burnt of damaged  reputations<\/a> due to their lack of sufficient work towards sustainable  business practices, SMBs also need to buckle up.<\/p>\n<p>The reputational damage,  if you fail to align your business practices to what\u2019s in the best interest of  Earth, is instrumental.<\/p>\n<p>It\u2019s one of the factors  that\u2019s driving the biggest change in C-Suite attitudes towards climate change.  It\u2019s only because of consumers and shareholders that large organizations are  becoming more active in taking climate change seriously.<\/p>\n<p>To ensure your small business can  continue to receive the love from your community, you also need to become more  vigilant about eco-friendly business models. If you are a travel destination,  for example, start offering people more <a href=\"https:\/\/www.surveycrest.com\/blog\/travel-trends-2021\/\" target=\"_blank\" rel=\"noopener noreferrer\">sustainable ways to holiday<\/a>.<\/p>\n<h2>Summing Up<\/h2>\n<p>Small businesses are the backbone of the world economy. Look it up: 90% of all businesses across the globe are small and medium enterprises. Most of these businesses remain local and serve their local communities.<\/p>\n<p align=\"center\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.surveycrest.com\/blog\/wp-content\/uploads\/2022\/08\/Summing-Up.jpg\" alt=\"Summing Up\" class=\"wp-image-5129\" title=\"Summing Up\" width=\"800\" height=\"800\"><\/p>\n<p>When these businesses suffer losses, the effects are rippled and multiplied. The business and people behind it are not the only ones that bear the damage. The broader community also feels affected, not only due to sudden shortages in goods and services they rely on, but also in mentally and psychologically. Because these businesses become the fabric of who we are as people.<\/p>\n<p>As the climate crisis  gets worse, small businesses are under growing obligation to acquire more  climate-related skills and knowledge. So, they can equip their enterprises with  all the tools and methods that can future-proof their small establishments.<\/p>\n<p>Governments, emergency  services, and large organizations also need to do their bit and help fortify  the defenses SMBs are trying to put up against the worst of climate-related  change.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Our planet is getting warmer every day. According to the World Meteorological Organization, there\u2019s a 50% chance of global temperatures reaching the threshold of 1.5OC in the next five years. For weather events, this could translate into more floods, more droughts, more fires, and all of it in more rapid succession and increased severity. For [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":5125,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[145],"tags":[],"class_list":["post-5124","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-small-business"],"_links":{"self":[{"href":"https:\/\/www.surveycrest.com\/blog\/wp-json\/wp\/v2\/posts\/5124","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.surveycrest.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.surveycrest.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.surveycrest.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.surveycrest.com\/blog\/wp-json\/wp\/v2\/comments?post=5124"}],"version-history":[{"count":10,"href":"https:\/\/www.surveycrest.com\/blog\/wp-json\/wp\/v2\/posts\/5124\/revisions"}],"predecessor-version":[{"id":6364,"href":"https:\/\/www.surveycrest.com\/blog\/wp-json\/wp\/v2\/posts\/5124\/revisions\/6364"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.surveycrest.com\/blog\/wp-json\/wp\/v2\/media\/5125"}],"wp:attachment":[{"href":"https:\/\/www.surveycrest.com\/blog\/wp-json\/wp\/v2\/media?parent=5124"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.surveycrest.com\/blog\/wp-json\/wp\/v2\/categories?post=5124"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.surveycrest.com\/blog\/wp-json\/wp\/v2\/tags?post=5124"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}