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For many businesses, climate change integration seems like another regulatory hurdle, a box to tick to stay compliant. But what if, instead of just being a regulatory requirement, addressing climate change could actually be an opportunity to improve the workforce wellbeing of your employees, strengthen your long term businesses resilience, and give you a competitive advantage?
"We need to do adapt our mindset how we view climate change. The 2024 Lancet Countdown report highlights that in 2023, extreme heat led to a loss of 512 billion potential labour hours globally, a 49% increase compared to the 1990s average." - Jose Hopkins, CEO and Founder Simplify Climate.
As we experience more frequent and intense extreme weather events, the impacts of climate change are already here, affecting everything from operations to employee health and wellbeing. Tackling these challenges head-on offers a way to build resilience not just in your financial reporting but across your entire organisation.
Why climate change events aren't just "weather problems"
It’s tempting to think of climate impacts as simply a “weather problem,” but for many employees, they’re much more personal. Extreme weather events create stress and uncertainty, impacting mental health, safety, and well-being. For instance, think about how unpredictable flooding or heatwaves could affect employees commuting to work, or how long-term weather changes might strain supply chains.
When businesses integrate climate change considerations into their strategies, they don’t just meet regulations, they actively support employee wellbeing by planning for and mitigating these risks. This can look like establishing safe workplaces, providing mental health support, and being prepared with contingencies during extreme weather.
For accountants, there’s an additional benefit: as companies adapt to these challenges, it becomes easier to quantify potential risks and identify practical steps to strengthen resilience. This proactive approach helps to protect the business, employees, and customers alike.
Building a healthier, more resilient workforce
At the heart of every resilient business is a healthy, engaged workforce. Businesses that make climate adaptation part of their strategy are actively investing in the health and productivity of their teams.
Healthier, less-stressed employees are more focused and productive, directly benefiting the business.
Consider the alternative: if climate-related disruptions keep catching the business off-guard, employees experience ongoing stress and anxiety, which eventually impacts their health and productivity.
Supporting employees through proactive climate strategies shows them that their well-being is a priority, reinforcing loyalty and engagement.
Turning climate action into a competitive advantage
More and more customers, employees, and stakeholders want to support companies that prioritise sustainability and care for their workforce. Companies that integrate climate resilience and employee well-being are seen as forward-thinking and responsible, helping to attract both talent and customers.
For accountants, this shift is an opportunity to help reposition the business from seeing climate change as a cost burden to recognising it as an investment.
By calculating the cost savings from reduced health impacts, improved employee engagement, or enhanced customer loyalty, accountants can show the bottom-line benefits of this proactive approach.
Conclusion
Climate change integration isn’t just about compliance, it’s about creating a stable, resilient business that’s better prepared for future challenges. For those who embrace it, the rewards go beyond meeting regulations: they extend to better health, a stronger workforce, and long-term business stability. So, rather than seeing it as just another requirement, consider the real-world benefits this integration can bring to your team and your bottom line.
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