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Businesses should
prepare for climate change
Climate change is taking place not only around the world but in
Sri Lanka as well and its impact is going to be felt not only by
the public but also businesses in Sri Lanka.
Businesses,
says the ACCA (the UK-based Association of Chartered Certified Accountants),
should therefore prepare now to safeguard their assets against future
climate change. To assist businesses in this aim, ACCA has produced
five climate change precautionary principles. Rachel Jackson, ACCA's
Head of Social and Environmental Issues, said: "Businesses
need to make room on their agendas now to address the long-term
opportunities and threats presented by climate change.
Adoption of
our five precautionary principles will inform businesses of the
climate change issues of relevance, and allow them to make better
plans for a viable future. Leaving climate change preparations to
chance could prove a costly decision." ACCA's five climate
change precautionary principles are:
- Check business
location. In the future, how will local climate affect the business?
For example, coastal areas could be in danger of flooding.
- Consider
business products and services. Will they be redundant in a few
years time or will demand increase due to a change in climate?
Will the business need to adapt? For example, farmers need to
review future crop viability.
- Ensure risk
assessment strategies are part of major investment decisions.
Could climate change increase risks to the business? For example,
check existing insurance policies for validity or possibility
of increased premiums if the business is based in a low-lying
area.
- Re-assess
business opportunities and start planning now. Will the business
need to diversify? For example, central heating businesses may
need to expand to provide air conditioning services.
- Check additional
financial implications. How will the business be affected by financial
instruments such as new environmental taxes and carbon trading
regimes? For example, assess the financial impacts of the climate
change levy.
Dr. Chris West,
Director of the UK Climate Impacts Programme (UKCIP), adds:
"ACCA's practical advice to business is very useful. We know
that our climate is going to change in the coming decades irrespective
of any action we take to reduce greenhouse gases".
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