To clearly identify the impacts of the climate crisis on the global economy, explore the possible policy responses and focus on highlighting the short and long term consequences for businesses.
Learning objectives / outcomes:
- Highlight the impact of climate crisis on global economy, both in the medium to long run and in relation to current events (energy crisis, international tensions).
- Introduce current and future policy reactions attempting to steer the economy towards climate neutrality.
- Discuss consumers’ voluntary actions (green consumers).
- Relate the above described rapid changes to businesses’ operation.
- Identify impacts on businesses and examine them grouping them into three categories: physical, transitional, and liability risks.
- Identify the steps, focusing on risk management, which could assist businesses in becoming resilient to climate risks.
- Proactive vs reactive business responses: the role of business in battling climate crisis, or turning a crisis into opportunities.
- Climate Crisis essentials.
- The economic impacts of climate crisis.
- Climate policies: the slow international response, national policies, the EU climate policy framework. (Green Deal, Farm to Fork, New EU climate targets, Green Bonds, Incorporating sustainability issues to competition policies).
- The evolution and the role of green consumers.
- Analysis of direct (physical) and indirect (transitional, and liability) risks, exposing the effect of non-linearities:
- Long and short term physical impacts: flooding, hurricanes, drought, wildfires, etc
- Costs to businesses from the introduction of climate policy and regulations as well as from failing to adopt to changes in consumers’ preferences
- Costs from failing to comply with the evolving regulatory framework
- Incorporating climate risks to the core business risks and develop strategies to mitigate them.
- Going beyond legal requirements and climate/sustainability reporting to gain long term competitive advantage.
- Sectoral case studies.