It is now widely accepted that global warming is real.

While we know the earth goes through cycles of heating and cooling, man-made heat is accelerating the effects.

According to studies, the amount of Carbon Dioxide (C02) in the atmosphere has increased 35% since the industrial revolution began back in the early 1700s.

Fast forward to 2015, our lives now depend on us burning large quantities of fossil fuels such as coal, oil and gas. Whether that’s to heat our homes, run our cars or fuel the manufacturing process.

This means that more C02 is being created, resulting in the warming of the planet.

Scientists believe that if the world’s temperature rises by more than 2% the damage will be irreversible.

We’re altering the planet’s geological, biological and ecological systems, causing natural hazards such as extreme weather, loss of biodiversity and the spread of diseases.

But how will it affect businesses across the world?

It depends on the sector

It won’t be the same for everyone. Different sectors will be affected in different ways, but for all businesses it’s about adapting to changing circumstances, such as:

Changing government legislation

Businesses will need to adhere to government legislation such as the 2008 Climate Change Act, which aims to move the UK towards a low carbon economy and to reduce emissions by 80% (from the 1990 figure) by 2050.

The main actions include:

  • Setting national carbon budgets
  • Helping businesses use energy efficiently
  • Investing in low carbon technologies

The government hopes this will stop us being exposed to higher prices in the future.

Additionally, the Energy Savings Opportunity Scheme (ESOS) is a new EU wide piece of legislation which has introduced a mandatory audit system for large enterprises across its member states.

Fluctuating price of fuel

Suppliers calculate the wholesale price of oil in numerous ways, including supply, demand and storage. Despite the recent fall in oil prices, suppliers cannot guard against increases over a longer period. But why?

In the UK we get our oil and gas from the North Sea reserves which currently produces 1.43 million barrels a day.

As we work our way through the world’s supply, energy prices will increase, leaving businesses vulnerable.   

Moving towards renewable energy

The legislation listed above is forcing the hands of businesses. A short term fix is to adopt energy saving measures which will reduce energy usage and expenditure.

Business owners should also educate their employees on energy efficiency to ensure the whole operation is moving in the right direction.

An uncertain future will inevitably lead to businesses looking towards renewable energies to safeguard their future.

We predict that climate change will take centre stage, and companies of all sizes will attempt to improve carbon their footprint and become more sustainable.

Keep an eye on the Project Lower blog for more energy saving ideas.