Climate change refers to the long-term shifts in global temperatures and weather patterns driven primarily by human activities, particularly the burning of fossil fuels. It matters because it’s reshaping how businesses operate, affecting everything from regulatory compliance and investor expectations to supply chain stability and brand reputation. Understanding the science behind climate change and taking meaningful action isn’t optional anymore—it’s essential for business resilience and competitiveness.
What is climate change and how does it actually work?
Climate change is the significant alteration of Earth’s climate patterns over extended periods, primarily caused by increased concentrations of greenhouse gases in our atmosphere. These gases, especially carbon dioxide (CO2) and methane, trap heat from the sun in a process called the greenhouse effect, gradually warming the planet beyond its natural temperature range.
Our atmosphere has always contained some greenhouse gases, which keep our planet warm enough to support life. The problem is that human activities, particularly burning coal, oil, and gas for energy, have dramatically increased the concentration of these gases since the Industrial Revolution.
Global warming specifically refers to the rising average temperature of Earth’s surface. Climate change is the broader term that encompasses not just warming, but all the resulting shifts in weather patterns, sea levels, and ecosystems.
Why does climate change matter for businesses today?
Climate change has shifted from a distant environmental concern to an immediate business priority that affects your bottom line, reputation, and ability to operate. The impacts span multiple dimensions of your business:
- Regulatory compliance is becoming mandatory – Regulations like the Corporate Sustainability Reporting Directive (CSRD) and the EU Taxonomy now require many companies to disclose detailed information about their environmental impact and climate-related risks, with non-compliance potentially resulting in significant penalties and legal consequences.
- Investor expectations have fundamentally shifted – Environmental, social, and governance (ESG) criteria now shape investment decisions worth trillions of pounds, as investors want to understand your climate risks and strategy before committing capital to your business.
- Customer demand is driving market changes – Consumer demand for sustainable products and transparent business practices continues to grow, with organisations that ignore climate change facing reputational risks that translate directly into lost sales and diminished brand loyalty.
- Supply chains are experiencing direct impacts – Climate impacts such as extreme weather events, droughts, and flooding are disrupting logistics, creating resource scarcity, and increasing costs, directly affecting your operational continuity and profit margins.
- Competitive advantages emerge from climate action – Companies taking climate action seriously are reducing operational costs through energy efficiency, attracting top talent who prioritize purpose-driven employers, and building competitive advantages that differentiate them in crowded markets.
These factors combine to create a business landscape where climate action has moved from the periphery to the core of strategic planning. Organizations that view climate change merely as a compliance exercise miss the broader opportunity for innovation, cost savings, and market differentiation. The organizations thriving in this environment recognize that addressing climate change isn’t just about managing risks—it’s about positioning your business for long-term success in an economy that increasingly rewards sustainability and penalizes environmental negligence.
What can organisations actually do about climate change?
Addressing climate change starts with understanding your carbon footprint, then systematically reducing emissions across your operations and value chain. The fundamental approach follows a clear pathway:
- Measure your emissions across all three scopes – Scope 1 covers direct emissions from sources you own or control (such as company vehicles and on-site fuel combustion), Scope 2 includes indirect emissions from purchased electricity and heat, and Scope 3 encompasses all other indirect emissions in your value chain (including supplier emissions, business travel, and product use).
- Set science-based targets aligned with climate science – Initiatives like the Science Based Targets initiative (SBTi) provide frameworks for setting targets that are ambitious yet achievable, ensuring your reduction goals align with limiting global warming to 1.5°C above pre-industrial levels.
- Report progress transparently using established frameworks – Frameworks like CDP (formerly the Carbon Disclosure Project) provide standardized ways to disclose your climate data to investors and customers, building trust through consistent and comparable reporting.
- Build momentum through incremental action – Many organisations begin with quick wins like energy efficiency improvements, switching to LED lighting, or renewable energy procurement, then gradually expand their efforts to more complex initiatives such as supply chain engagement and product redesign.
The journey toward meaningful climate action doesn’t require perfection from day one—it requires commitment to continuous improvement and strategic prioritization. By starting with measurement, you create a baseline that allows you to track progress and identify the most impactful reduction opportunities. Setting credible targets provides direction and accountability, while transparent reporting demonstrates your commitment to stakeholders and creates momentum for further action. This systematic approach transforms climate action from an overwhelming challenge into a manageable process that delivers tangible business benefits alongside environmental impact.
Taking action on climate change
Climate change is reshaping our world and how businesses operate within it. Understanding the science behind it, recognizing why it matters for your organisation, and knowing what actions you can take are the foundations for meaningful climate action.
The challenge is that building the expertise needed to address climate change effectively takes time. Between understanding complex regulations like CSRD and the EU Taxonomy, measuring your carbon footprint accurately, setting credible targets, and reporting transparently, there’s a lot to navigate.
That’s where we come in. At Dazzle, we connect you with pre-screened sustainability experts who specialize in exactly the areas where you need support. Whether you need a CSRD reporting expert, a carbon reduction consultant, or guidance on setting science-based targets, we can match you with the right professional within 48 hours.
Climate action doesn’t have to be overwhelming when you have access to the right expertise. If you are interested in learning more, reach out to our team of experts today.
