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How climate change affects your business

Climate change may affect your business in a number of ways.

Unpredictable weather can impact directly on your business, for example by increasing the risk of water shortages or flooding. This can cause significant disruption to your business and make it more difficult to get insurance. Read our guide on how to protect your business from flooding.

Your business may also be affected by measures imposed by the UK government to help meet greenhouse gas reduction targets. These measures include:

- a method designed to improve your business' energy efficiency. You may already pay this levy as part of your energy bills. You can reduce the amount of levy you pay by using energy from renewable sources and cutting the amount you use. See our guide on using renewable energy.

  • - if your business is in an energy-intensive sector you may be eligible for a reduction in the climate change levy by meeting energy reduction targets.
  • - if your business is in one of the energy-intensive sectors covered by the scheme, you must report and meet targets to reduce your carbon dioxide emissions.

You can read about climate change and emissions trading on the NetRegs website - Opens in a new window.

Even if climate change legislation does not affect you, reducing your emissions can bring other benefits, such as lower energy bills and improving the way stakeholders view your business. You may also be able to take advantage of related tax breaks. See the page in this guide on tax breaks to encourage environmentally-friendly practices. You can begin to reduce your emissions by:

  • using energy efficiently - see the page in this guide on how to cut carbon emissions from energy use
  • cutting carbon emissions from transport - see the page in this guide on how to cut carbon emissions from business travel
  • cutting carbon emissions from buildings - see the page in this guide on how to cut carbon emissions from business buildings
  • designing low-carbon products - see the page in this guide on how to design low-carbon products
  • using suppliers of low-carbon products - see the page in this guide on how to find and use suppliers of low-carbon products

The most effective way of cutting your carbon emissions is likely to be by using a systematic approach to managing emissions reduction - see our guide on environmental management systems - the basics.

This content is subject to Crown Copyright

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