An Apple report on the business impact of climate change shows how extreme weather conditions could have benefits for the company as well as downsides.
The report was published by the Carbon Disclosure Project (CDP), a non-profit which aims to encourage companies to make the right choices about their environmental impact. Its reports collate company responses to questions about their policies, targets and performance – but the most interesting section is on the ‘risks and opportunities’ …
Apple details a number of risks to the business posed either by climate change itself, or by governmental responses to it. For example, the company outlined the way in which extreme weather could disrupt its supply chain and logistics.
Apple assesses the risk as 50/50, and the likely financial impact at around $300M.
Other risks described in the report are increased energy costs (which Apple notes are in part mitigated by its own solar panels) and reputational risk if it fails to satisfy consumers that it is doing the right thing in regard to climate change.
But the company also notes potential upsides. For example, tighter regulation on energy usage could boost sales given that it works hard to make its products energy-efficient.
And as consumers become more conscious of climate change, they may increasingly favor companies like Apple that try to do the right thing – like powering all operations from renewable energy. Apple publishes an annual Environmental Responsibility Report, and VP Lisa Jackson last year won an award for greening Apple’s supply chain.
Apple says that consumer concerns about preparations for severe weather events could also make its products more appealing, citing functionality like the SOS feature.
Overall, Apple estimates that the total upsides of climate change could be worth as much as $920M.
CDP awarded Apple an A rating for its responses, the top rating achieved by only 2% of companies.
Via Business Insider. Photo: Shutterstock
