Climate Change: Challenges and Responses for Business

Climate change caused by carbon emissions from anthropogenic causes such as fossil fuel burning, and their impacts have been at the core of policy discourses concerning the transition to a low-carbon economy. As time is ticking towards achieving the 1.5-2° C temperature limit by 2030, businesses have critical roles to play in leading this transition through transforming operational and organisational processes in line with the Agenda for Sustainable Development. While policy frameworks at local and international levels have been advanced to guide these business transformations, not much has been achieved by international businesses due to complex organisational, political, social and economic challenges such as the inaccessibility of climate financing for mitigation. Moreover, the Covid-19 pandemic has added a layer to the challenges faced by international businesses in transitioning to sustainability as resources are channelled toward promoting resilience to unexpected shocks to allow businesses to return to profitability. Hence, this chapter aims to evaluate the challenges climate change poses to international businesses and examine their responses in the context of global-level energy policies vis a vis the Sustainable Development Goals and the Paris Agreement. Further, a framework for a sustainable business transformation will be advocated.