UNITED INTERNATIONAL UNIVERSITY

Individual Assignment
Marketing Management
MKT 3336
Sec- B
Fall, 2020

Submitted to:
Sarker Rafij Ahmed Ratan
Assistant Professor
SOBE, United International University

Submitted by:
Name: Md. Sakib Hossain
ID: 111 173 053
Serial No: 22
 Climate change and its
Adaptation for Business world

Prepared for Marketing Management Course

(MTK 3336)

By: Md. Sakib Hossain

ID: 111173053
LETTER OF TRANSMMITAL

Sarker Rafij Ahmed Ratan

Assistant Professor

School of Business and Economics

United International University

United City, Madani Avenue, Badda, Dhaka

Subject: Climate change and its adaptation

Dear Sir,

Here is the report that you have assigned us on the given topic. This report required the knowledge we
have gathered by doing the course “Marketing Management”

I am thankful to all the people who helped by providing me with their valuable time, presence,
information, suggestions, and advices. I would be very happy if you could spare your precious time and
read the report carefully. I will try our best to answer any question you have about this report.

I have tried my best to complete this report as meaningfully and correctly as possible. I do believe that i
have followed the guidelines properly while making the report. However, if you need any assistance in
interpreting the report, you can call contact me without any hesitation.

Thanking you.

Sincerely yours,

Md. Sakib Hossain, id - 111 173 053

ACKNOWLEDGEMENT

The time I have spent to study Climate change and its adaptation for Business world was an experience
worth the time and effort. This was an opportunity I believe will shape and influence my professional
life. This report is not perfect and may contain shortcomings. Thus, I remain open to all criticisms and
suggestions which could present me with new sources of inspiration.

This report would not have been possible without the contribution and collaboration of others.

My sincere gratitude towards:

• The Almighty who granted us with good health and long life.

• The respected faculty Sarker Rafij Ahmed Ratan a lecturer of United International University
Contents
LETTER OF TRANSMMITAL..................................................................................................................3
ACKNOWLEDGEMENT...........................................................................................................................4
Executive summary.....................................................................................................................................6
Introduction.................................................................................................................................................7
Impact of climate change on business.........................................................................................................7
The pressure to act on climate change........................................................................................................8
How should corporate management respond?...........................................................................................8
What are companies doing to combat climate change Today?...................................................................9
Preparing for a hotter environment..........................................................................................................10
Conclusion.................................................................................................................................................11
References.................................................................................................................................................11
Executive summary

In fostering social adaptation to the physical impacts of climate change, businesses and industries can
play a central role. Nevertheless, the business and management sector has been consistently criticized
for its lack of involvement with climate change as an immediate problem and in particular, adaptation to
the physical impacts of climate change.

This report entails an analysis on Climate change and its adaptation. The research shown here I mostly
based secondary data available on the internet. The research outlines the impact small and large
business bare for climate change and its intensity and how they are handling such scenarios from
multiple dimensions.
Introduction

In recent times the consequences of climate change have affected the human race more furiously then
ever and also people’s awareness to the such issues have arisen drastically. Today’s business contains a
verity of risks and opportunity in its adaptations to Climate changes.

The business community has been aware of the challenges and opportunities associated with the
reduction of greenhouse gases and existing and future policies on climate change for some time. Many
organizations have taken action to actively minimize greenhouse gas emissions. Some of the effects of
climate change are taken into account by many, such as future state and federal policies, shareholder
expectations, and shifts in the markets for customers and suppliers. Firms and industry have a key role
in supporting climate change and environmental responsibilities not only by drastically reducing
greenhouse gas (GHG) emissions the key drivers of climate change but also by supporting responses that
allow for adjustments in managing and responding to actual or expected physical impacts.

Impact of climate change on business

There are various effects of environmental change on organizations. From one viewpoint, it makes a
progression of new business hazards. Other than the most clear actual dangers, organizations are
presented to progress chances which emerge from society's reaction to environmental change, for
example, changes in advancements, markets and guideline that can expand business costs, sabotage the
reasonability of existing items or administrations, or influence resource values.8 Another atmosphere
related danger for organizations is the likely obligation for discharging ozone depleting substances
(GHG). An expanding number of lawful bodies of evidence have been brought straightforwardly against
petroleum derivative organizations and utilities as of late, considering them responsible for the harming
impacts of environmental change.

Yet, environmental change additionally offers business openings. Initially, organizations can intend to
improve their asset profitability (for instance by expanding energy effectiveness), accordingly decreasing
their expenses. Besides, environmental change can spike development, motivating new items and
administrations which are less carbon serious or which empower carbon decrease by others. Thirdly,
organizations can improve the strength of their stockpile chains, for instance by diminishing dependence
on value unpredictable petroleum products by moving towards sustainable power. Together, these
activities can encourage intensity and open new market openings.

Climate change has many effects on businesses. It introduces a set of new business risks, on the one
hand. In addition to the most apparent physical threats, businesses are exposed to transitional risks
resulting from the response of society to climate change, such as changes in technology, economies and
legislation that can raise business costs and threaten the competitiveness of existing goods.

Yet climate change also provides opportunities for business. Firstly, businesses should seek to increase
the productivity of their resources e.g. by increasing energy efficiency) and thereby reduce their costs.
Second, climate change will promote creativity, inspiring new goods and services that are less carbon
intensive or that encourage others to reduce carbon. Thirdly, businesses may increase the durability of
their supply chains by, for example, reducing dependence by moving on price-volatile fossil fuels.

The pressure to act on climate change

The degree to which businesses experience external strain varies enormously. Approximately 30 percent
do not experience significant pressure from anyone, while 19 percent of the pressure comes from just
one or two stakeholders, usually from regulators and civil society.

With almost two-thirds (61 percent) of CFOs reporting that they feel the pressure to act from three or
more stakeholders and almost 70 percent feeling under consumer pressure, larger businesses are more
likely to feel pressure from multiple sides. Where, the regulator is the key source of pressure on smaller
firms.

The pressure felt from various stakeholders varies across industries as well. The share of executives
reporting pressure to act is among the highest for each stakeholder group in tourism, automobile,
consumer goods and energy and utilities. However, there are some variations between these sectors in
the degree of impact coming from the different stakeholders. For example, customer pressure is felt
more strongly in tourism, consumer goods and the automotive sector. In energy and utilities, the most
pressure arises more from investors and regulators.

How should corporate management respond?

Four main management disciplines are defined by the TCFD in which organizations are required to
handle climate change: governance, strategy, risk management, metrics and targets. Enhanced
transparency in these areas can help investors and other stakeholders determine the company's
exposure to and the consistency of its response to, climate-related threats.

The suggestions of the TCFD are widely applicable, but concentrate explicitly on high-impact industries.
These include banks, insurance firms and fund managers who in their portfolios, would need to handle
risks related to climate change. The sectors the TCFD focuses on in the real economy include power,
transportation, agriculture and forestry.

In recent years, businesses' ability to report climate change-related management practices and
greenhouse gas emissions has increased rapidly. More than 800 businesses have signed up to the TCFD
to date, thus promoting the concept of better management and disclosures.
However, it will not be sufficient on its own to improve management and disclosures and to develop risk
assessments and targets. The actual measures that businesses perform to minimize pollution and
mitigate risks are more important.

This could involve refocusing on renewable energy and raw materials, reducing their dependency on
insufficient water supplies, or shielding manufacturing sites from severe weather through the
construction of dams or the installation of thermal insulation. Another field of tangible, urgent but also
worthwhile action is seizing opportunities to produce marketable solutions to climate change. This may
involve the production of goods that are less carbon-intensive or of services that help people and
economies sustain themselves in a climate-change-affected world.

What are companies doing to combat climate change Today?

However, from what finance executives report, the climate responses of businesses concentrate mainly
on initiatives that have a cost-saving impact in the short term. Many businesses resort to increasing their
energy usage and using more climate-friendly equipment when it comes to the concrete measures
taken. Such initiatives also take advantage of government benefits and help reduce business expenses.

In comparison, corporations in general tend to be very hesitant to collaborate with other businesses in
their supply chain to minimize carbon emissions. Few take a more comprehensive approach and
adequately assess or include climate-related threats in their framework of governance and
management. Companies that say that they feel investor pressure are more likely to have integrated
climate risk management and monitoring into their governance processes. This shows that risk-aware
investors can help to foster corporate climate-related change.

Few large companies are taking that extra step in order to adapt to the unignorable climate change
effects. these companies are also mass communicating their plans to fight climate change to the general
people large companies such as:

Apple: The ultimate aim of Apple is to manufacture their technology without mining materials from the
earth. The organization also uses only chemicals that are healthy for individuals and the world.

All international facilities at Apple and nearly half of its suppliers are operated by 100% renewable
energy. The iPhone makers have decreased their carbon footprint by 35 percent since 2015.

Starbucks: By 2030, Starbucks promises to reduce its 50 percent contribution to carbon emissions, water
withdrawal and landfill waste.

The aim of the business is to store more carbon than they emit and provide more water than they
consume.

The company is working to add more alternative milks and plant-based products, including a whipped
cream that is non-dairy.
Amazon: Following Jeff Bezos' 10 billion dollar commitment to tackle climate change, the public asked
how his Amazon brand plans to reduce its carbon footprint.

Amazon signed a Climate Pledge in 2019 that aims to be 100% carbon free by 2040.

By 2030, by investing in 100,000 electric vehicles powered by batteries, Bezos' company hopes to make
50 percent of shipments carbon neutral.

Microsoft: Microsoft is now a carbon-neutral organization. By 2030, its target is to be carbon-negative.

The organization hopes to eliminate more greenhouse emissions than it emits.

The tech company aims to be carbon-negative for every year since it was established in 1975, not only
that, but by 2050.

"Neutrality is not enough when it comes to carbon," Microsoft President Brad Smith wrote.

Overall, however it is safe to say that the majority of organizations do not take account of the already
expected physical consequences of climate change, nor do they implement substantial adaptation steps.
Companies may claim that climate change would have less impact in Europe than elsewhere, but they
are likely to underestimate the threats they are exposed to through their global supply chains and
markets in this case.

Preparing for a hotter environment

Taken together the findings indicate that many organizations are increasingly under pressure from their
stakeholders, and are starting to respond. Most of the decisions to date, however seem reactive and
based on short-term incentives and easy wins. A longer-term, strategic outlook is seldom pursued on the
threats and opportunities of climate change.

The following measures can help businesses to tackle climate change:

 Understand the threats posed to the industry by climate change and the opportunities to
become part of the solution.
 Evaluate the scale of the pollution reductions required and the levers that are crucial to
achieving them.
 Calculate how much the effort to minimize pollution and adjust would cost?
 To ensure a strategically observable solution, the challenges and opportunities of climate
change are placed within the governance framework.

Conclusion
Climate change has significance beyond the direct impact of the weather on buildings and events and sh
ould be an important part of long-term planning for many organizations. Climate change is changing the
way customers, workers and shareholders assess and communicate with businesses. This can lead to a
real change in certain situations, where business models need to be reevaluated. Companies need not
only to assess and then control their exposure to climate-related threats, but also to integrate climate
change into their strategic plans. Failure to do so would threaten their business's sustainability.

References

United Nations Environment Programme, accessed November 2019. (https://www.unepfi.org/news/net-

zero-asset-owner-alliance-sets-unprecedented-5-year-portfolio-decarbonization-targets/)

World Economic Forum, July 2019. (https://www.weforum.org/agenda/2019/07/the-growing-list-of-

countries-committing-to-a-net-zero-emissions-goal/)

Smith School of Enterprise and the Environment, Oxford University, January 2014.
(https://www.smithschool.ox.ac.uk/research/sustainable-finance/publications.html)

Global trends in climate change litigation: 2019 snapshot, LSE, July 2019.
(https://www.lse.ac.uk/granthaminstitute/publication/global-trends-in-climate-change-litigation-2019-
snapshot/)

What exactly are big businesses doing to combat climate change?, Ali Condon, March 2020.
(https://extra.ie/2020/03/08/business/international/big-businesses-combat-climate-change)