• TEDI

Climate Change Effects

更新日:2021年3月22日



Advanced and low-income countries are impacted by climate change equally and this trend will continue for decades even if the CO2 emission reduction goes forward. 1 The challenge is beyond individual’s effort and taking place worldwide.


Thus, we will be overseeing warming of temperature, more flooding by super-powerful storms, and higher sea level.


How will this impact business?


First, in business shorter supply chain built with resilience will be the key. Shorter supply chain and closer access to market from resource will avoid direct/undirect impact of the climate damage. Depending on the product, some companies might choose to bring back the offshore factories back to their mainland. Factories resilient to flooding or storm-free vendors might be the one to consider partnership. In order to gain profit, “efficiency” was valued, however, “resilience” will be highlighted in mitigating risks.

Next, safety and security will have higher priority than it used to be. 2 Companies exclusively aiming for profit-oriented result and high-growth would need to consider how they can manage climate risks in multiple areas of their business, which may shave their appetite for taking aggressive strategy and strengthen to defend their business approach.




1 https://www.economist.com/special-report/2020/09/17/a-grim-outlook

2 https://mitsloan.mit.edu/ideas-made-to-matter/supply-chain-resilience-era-climate-change


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