Climate Change and its Impact on UK Business

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Climate change as well as its effects on economy and business across the entire global world always takes a second place as far as environmental effects are concerned. Though we do need solutions to the numerous environmental problems, it is important that we prepare and we realize the vast impact that climate change may have on businesses as well as the global economy. Climate change can have adverse effects on companies and businesses across the entire world. In order to come into terms with the major changes that the global warming might impact, businesses ought to come into terms with how the weather changes and how accurate the predictions are. This research project will focus on the effects of climate change on the business ofUK. Also it will discuss some of the objectives, weaknesses and strengths that are related to climate change and the effects it has on the business ofUK.

There will be a detailed limelight on how climate change will affect business inUKand what ought to be done to avoid adverse effects on the same. The methods used in this research project will also be discussed and the findings on the same will be discussed. Secondary research methods will be used for this project and a rational conclusion highlighting all the relevant issues that ought to be discussed will also be discussed. There is a great need to have this research project in order to notify the society as well as other relevant groups on ‘the effects of climate change and what ought to be done in order to reduce all known predicament that might result from climate change. Also business people will benefit a lot from this research project who come fromUKas they will be able to predict for the future and come up with strategies that will work in their favor in order not to be greatly affected.

There will also be an analysis on the causes of climate change in order to come up with helpful strategies that will be of help to the people to avoid all the issues that will lead to adverse climate changes.

4.0 Introduction

Though there have been skeptics who have been questioning the facts on climate change, statistics have revealed a lot. Figures that have been gotten in the last forty years have shown an increase in levels of temperature inUK. Businesses will need to cope with the changes in climate. The predicted changes of climate and weather inUKwarmer winters, wetter and hot dry summers and some extreme weather conditions for example storms (Rachel, 2004).  It is also predicted that there will be adverse flooding which will be quite catastrophic as the rainfall continues to be heavy. Industries for example the water industries as well as suppliers of electricity ought to ensure that their entire systems can as well cope with changes that will be registered by rainfall. Flooding will cause problems for example short circuiting that might result in outrage of power thus the electricity and water industries should make sure that their entire systems are quite reliable and safe. Changes in the distribution of rain will also cause problems as far as water storage is concerned.

There will be an adverse effect on how energy is produced. Since there will be scarcity of fossil fuels, there is a great need to find some environmentally friendly methods that will ensure production of energy for example wind, solar, water power and geothermal energy. Since the economy is based and categorized on industries and businesses that depend on the fossil fuels, and the fact that they might be quite scarce in the next twenty or thirty years, there should be a need for a replacement of oil as the effects of global warming will be quite adverse.

Businesses like the insurance industry will be greatly affected by damages by both storm and floods and the onset of dry and hot summers will mean that there will be more cases of subsidence. The insurance companies will suffer from the extreme conditions of the weather and they may end up going bankrupt because of making payments.

The clothing industry will also have to protect itself from loss of profit because of the weather. Whether or not the effects of climate change will be positive or negative, planning for the change of climate is paramount since the effects are already being recognized. Effects of climate change can already be seen in the clothing sector and food sectors. There will be drop of sales as winters become warmer. The construction industry as well as others that their work will be delayed by the adverse weather conditions are no exception and will have to get some ways in which to cope with the animosity of rainfall and other weather events (Rachel, 2004).

The weather has a great impact on the trends of the consumers and mostly when people go for shopping basing on what they will go to buy. Few people might be willing to go out for shopping during the summer period and this will have an adverse effect on the clothing industries.  Businesses will also have to rethink on how to run their working lives on their employees.

The agriculture community will also be affected by weather change. Therefore, it is important that they prepare and recognize that the agriculture demographics might shift and divergent crops might have a divergent sustainability in most parts of the globe. The types of crops that are grown inUKmight also end up changing and there might be an increase of crops that are associated with the warm climates. Rainfall will also be expected though it will fall at divergent intervals of the year. The need of alteration of most lives and the way businesses will be conducted will have a great effect on the government policies in some areas. There will be trendy phenomenon for example people dislocation thus influencing the policies of immigration. There will be higher rates of immigrants coming toUKbecause of the changes in climate. Just like economic and environmental effects, changes in climate will also mean changes in our health.  The warmer world will turn to be a sick world and there might be an emergence of conditions and diseases that are not usually experienced today. There will be a need to design new buildings that are sturdier in order to cope with the storms. Companies and businesses ought to have a rich access to information on weather

It is patent that climate changes will have adverse effects on businesses whether negative or positive and people ought to be prepared. Even if they might not be affected by the environmental factors, they will be indirectly affected by the supply chain, consumer market and transportation. It is therefore imperative that the businesses realize the major need for planning for the climate change and they get access to relevant resources as well as knowledge.

5.0  Literature review

There are various factors that cause changes in climate. For the past 100 years, there have been changes in climate globally. This has been caused by both natural and manmade factors. In the recent past, research reveals that some of the factors that lead to temperature variations are changes in volcanism and irradiance (Thomas, 2000, pp. 270-277).

Abrupt, large and vast climate changes with great effects have occurred in the recent past when the system of the earth was forced on the thresholds. Though climate changes do occur for various reasons, human acts are also causing abrupt and large events (Alley, Marotzke, Nordhaus, Overpeck, et al, 2003, pp. 2005-2010). Certain gases in the air for example carbon dioxide play a very important role when it comes to determining the climate of the earth.  The atmospheric concentrations in the greenhouse are rising because of the activities by people.

Because of the burning fossils and the deforestation of the earth, mankind is continuously amplifying the levels of carbon dioxide. Research has revealed that the current increase of greenhouse gases will end up affecting the climate (John, 1996)). Though there are many uncertainties, the reality is that we can say with great confidence that the dangers of climate changes are grave. If there is no any action that will be done in order to reduce the emissions of the greenhouse, there will be adverse effects on the ecosystem (William, 1991, pp. 904-919).

InUK, there have been numerous debates in businesses and the policy situations that have been focusing on the issue of sustainability and the reduction of emissions of greenhouse. Weather damages inUK, is likely to cause adverse effects in businesses and other sectors. For example the flooding that happened in the year 2007, is meant to send a warning of what we ought to expect in future. Climate change inUKmight result to rise in temperatures making it inconvenient for any farming to take place. However, others will be more localized and specific for example enhanced warming of the city. Once risks are comprehend, it easier to work on them  Some trivial changes in the normal days in the coming decades in UK will have little impacts for most sectors of the market and enhance the tourism and agricultural sector. There will be however long term effects on resilience of infrastructures. Those business people in theUKthat will analyze some their dangers early enough will end up gaining an advantage in the market because they will have an idea on the operations that might be affected and how they will take advantage of the common changes that will be registered. The government ofUKis encouraging all the industries inUKto use minimal energy through using some measures on finance and more so taxation (Nick, 2001, pp. 309-326).

IfUKneglect the need to enhance their energy consumption, the earth’s climate will end up rising thus resulting to levels of the sea rising, reduction in food supply, large numbers will suffer due to amplified stress of water and diseases and the tropical rain forests will end up disappearing because of shortages of water. Though theUK, climate effects programme helps most organizations to adapt to an inevitable climate changes, it is essential to reduce some of the greenhouse emissions because if nothing is done, then effects of climate change will continue to be felt.

The changes in climate will end up affecting health, biodiversity, construction department, demand for services and goods, working practices as well as service delivery (Charles, 2008). The heavy rainfalls, warm temperatures and the rising sea levels will be experienced. It is therefore important for people to realize the impact of climate change and come up with effectual strategies (UK, 2007).

There will be onset of flash flooding inUKand rainfall will intensify. Industries for example the electricity and water need to make sure that their entire systems will cope with changes in climate. The issue of rain distribution will also pose more problems to water storage. For businesses like the insurance industries, the issue of climate change will have both positive as well as negative effects (Gerhard, 2004, pp. 283-293). The increase in floods and storms will mean more cases as far as subsidence is concerned. The insurance company will suffer because of the extreme weather conditions and most of them might end up going bankrupt.

The clothing industry will also be affected by climate change and might end up loosing lots of profits if nothing is done (Subak, Palutikof, Agnew, et al, 2004, pp. 1-26). There will be decrease in sales in of certain clothing when the climate rises. Agriculture will also be highly affected inUK. There will be changes of crops grown. There might be increase of crops in the winter seasons or decrease due to floods. The distribution of rainfall will also have an adverse effect on agriculture. The government policies also will be altered as there will be dislocation and emergence of new migration policies. As migration continues, businesses will also be affected. People’s health will also change and this means the food, water and homes. All this will affect the business either positively or negatively.

There have been various strategies that have been undertaken in order to correct the issue of climate change. Last year there was a vast international conference inCopenhagenwhere the world came together in order to negotiate as well as agree on how to initiate and tackle on the issue of climate change. TheKyotoprotocol will expire in the year 2012 and it’s already in effect. TheUKtransport company and the agricultural companies have been heavily affected by climate change. As immigration increases due to people coming in the country and leaving the transport business have also been affected

6.0  SWOT Analysis

The strengths, weakness, opportunities and threats of climate change onUKbusiness will be discussed at length.


The main strengths of the research that I have conducted is that most people already know the impact of climate change and have already started looking for strategies that would be of help to them. For example, most insurance industries are already looking for ways to deal with their recent problems without having to loose a lot of profits. Most people have started adjusting considering there have been continuous changes of climate

6.2 Weaknesses

The major weakness that has arose in the research that have been conducted is that there are various documentation on causes of climate change and its effects but strategies to help people avoid climate change are minimal. People ought to be educated on various issues that cause climate change and how manmade factors cause such immense threat. The government also should come up with strategies that will be of help to the society in order to help businesses cope with the climate change.

6.3 Opportunities

There are major opportunities in some of the programs that have been developed by theUKgovernment covering the effects and causes of climate change. With the documentation that is still in existence on climate change, people should not underestimate the concept of climate change but should take it as an advantage to come up with strategies that will be of help to them and measures like strengthening their buildings and infrastructure to prevent damages by floods.

6.4 Threats

The major threat is ignorance in most people. People do not see the seriousness in climate change hence; they have no strategies to help them in future. The other is lack of knowledge. Others are still not aware of some of the manmade factors that cause climate change and for those who know, it is just a few who are taking the right steps.

7.0  Objectives.

The major objectives of undertaking this project are:

  1. To analyze the recent literature that is available on climate change and to reveal on its effectiveness
  2. To educate people on causes of climate change
  3. To make people aware of the adverse effects of climate change on businesses inUK
  4. To reveal some past effects of climate change
  5. To make people aware on some of the strategies they need to undertake in order not to lose profits
  6. To make the government aware on the wanting areas that ought to be revisited in order to prepare the people ofUKand save lives
  7. To give limelight on some of the issues that are yet to be registered and how they ought to be dealt with
  8. To recommend on the strategies that should be used in order to avoid losses.


  1. Climate change has an impact onUKbusiness
  2. Climate change is directly related to adverse effects on business inUK

9.0 Null Hypothesis

  1. Ho: Climate change has no impact onUKbusiness
  2. There is no relationship between climate change and business inUK


The research entailed the use of secondary methods of research that included the internet and books. The independent variable was business in theUKand the independent variable was climate change. Latest scholarly journals and literature was used to analyze the latest literature on climate change and its major impact on businesses inUK. The research method aimed to seek the causes of climate change, the effects it has on businesses in theUK, people’s attitude on the same and strategies as well as recommendations to curb the negative effects that would result from climate changes. Interviews will also be used on three influential companies inUKand analyses will be done on the impact of climate change and some of the strategies that they ought to undertake in order to correct all the catastrophes that will be brought by climate change.


From the research conducted, it is evident that the hypothesis is true. Climate change has a major effect on business inUK. All sectors including, retail, health, insurance, agriculture, water and other sectors will either be directly or indirectly affected. The effects will be both positive and negative.

From data corrected previously as well as research, it reveals beyond doubt that climate change has great effects and not only toUKbut globally. Therefore it is imperative that people come up with strategies that will be of benefit to curb the negative effects and to reduce damage. Results also showed that various departments are already aware of the ongoing climate change and have started coming up with strategies though others are still adamant.

According to the questionnaires presented to some companies, it revealed that they were already facing the effects of climate change and were already coming up with strategies to help the situation.


It is evident from the research conducted that there are adverse effects of climate change and mostly to people ofUK. Climate change has affected businesses inUKboth positively and negatively. The agricultural, economic, transport, health and other sectors have been increasingly been affected.  Businesses will and are being affected by the climate changes and their needs to be prompt strategies to be undertaken in order to curb this phenomenon. The business people, the government and other sectors need to come with working strategies to reduce the negative effects of climate change.