Broadening Horizons: Business Engagement with Climate Change in 2007 and Today

The report finds that while public attention to climate change waned after 2009, businesses have increasingly internalized climate concerns, shifting from a focus on mitigation to a broader approach encompassing adaptation and business resilience. Cost savings remain the primary driver for action, though investor pressure and consumer preferences are rising. The document highlights that physical climate risks are becoming real-world impacts, as evidenced by the 2011 Bangkok floods and 2012 U.S. weather extremes. Furthermore, businesses are expanding their focus to include water scarcity and biodiversity loss as critical risks to operational resilience.

• Despite a decline in general public and media attention to climate change after the 2009 Copenhagen COP, businesses have increasingly internalized the issue. Survey data indicates that 33% of respondents consider climate change more important now than in 2007, and 47% view it as equally important.
• Cost reduction is the most powerful driver for corporate climate action, and its importance increased between 2007 and 2012. However, the report notes that companies driven primarily by economic factors may do less overall to curb emissions compared to those motivated by new revenue opportunities or customer preferences.
• Investor pressure is an increasing driver of business action, exemplified by the Carbon Disclosure Project (CDP), which represents 655 investors with $78 billion USD in assets. Regulatory requirements, such as the UK's Climate Change Act 2008 and U.S. SEC guidance from 2010, have further pushed companies to disclose material climate risks.
• Regulatory uncertainty and the lack of clear policy frameworks act as significant barriers to investment in emissions reductions. Some businesses report that the low price of permits in the EU Emissions Trading System (EU ETS) has reduced its effectiveness as an incentive for mitigation.
• Corporate activities have shifted toward supply chain management, with a significant increase in companies asking their suppliers to reduce emissions. In 2007, only four surveyed companies did this, increasing to 10 by 2012, with 17 intending to do so in the future.
• Business perspectives are shifting from a primary focus on mitigation to a more balanced approach that includes adaptation and 'business resilience'. This is driven by the realization that physical climate risks are current concerns; 37% of Global 500 companies now view physical risks as a current rather than future concern.
• Extreme weather events have provided concrete evidence of business vulnerability. The 2011 Bangkok floods caused an estimated $46 billion USD in total economic losses, with the manufacturing sector losing roughly $32 billion USD, disrupting global supply chains for electronics and automobiles.
• The U.S. experienced severe climate-related economic shocks in 2012, including a drought affecting 80% of agricultural land and Hurricane Sandy, which caused $25 billion USD in insured losses. In total, the U.S. accounted for 67% of the $160 billion USD in global natural disaster-related losses for 2012.
• Businesses are increasingly recognizing non-climate environmental issues as critical risks. Water scarcity is identified as a major growing risk, with global freshwater demand expected to exceed supply by 40% by 2030. Awareness of biodiversity loss as a business risk has also increased significantly.

APA

Varnäs, A., Vulturius, G., Benzie, M., Carson, M., & Davis, M. (2013). Broadening Horizons: Business Engagement with Climate Change in 2007 and Today. Stockholm Environment Institute. https://www.sei.org/mediamanager/documents/Publications/Climate/SEI-3C-PR-2013-Business-Climate-Broadening-Horizons.pdf

Chicago

Varnäs, Annika, Gregor Vulturius, Magnus Benzie, Marcus Carson, and Marion Davis. Broadening Horizons: Business Engagement with Climate Change in 2007 and Today. Stockholm Environment Institute, 2013. https://www.sei.org/mediamanager/documents/Publications/Climate/SEI-3C-PR-2013-Business-Climate-Broadening-Horizons.pdf.

Wikipedia

{{cite report |last1=Varnäs |first1=Annika |last2=Vulturius |first2=Gregor |last3=Benzie |first3=Magnus |last4=Carson |first4=Marcus |last5=Davis |first5=Marion |title=Broadening Horizons: Business Engagement with Climate Change in 2007 and Today |publisher=Stockholm Environment Institute |date=2013 |url=https://www.sei.org/mediamanager/documents/Publications/Climate/SEI-3C-PR-2013-Business-Climate-Broadening-Horizons.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{varns2013broadening, author = {Varnäs, Annika and Vulturius, Gregor and Benzie, Magnus and Carson, Marcus and Davis, Marion}, title = {{Broadening Horizons: Business Engagement with Climate Change in 2007 and Today}}, institution = {Stockholm Environment Institute}, year = {2013}, url = {https://www.sei.org/mediamanager/documents/Publications/Climate/SEI-3C-PR-2013-Business-Climate-Broadening-Horizons.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }