By Alicia Michelle
Published on: Sunday, June 11, 2017 - 3:00pm ET
Photo credit: Pixabay.com
The demand of investors on the awareness and control of climate change is raising. Despite this fact, the president of the United states chose to withdraw from the Paris Climate Change Agreement. How is this affecting tech companies? Keep on reading to find out.
The Investor’s Point of View
Most investors (73%) are worried about the issues caused by climate changes. They need to rely on something. The environment has proved it can cause important governance and social changes. Sustainability is impossible when nature reclaims areas that have been conquered by men.
80% of the investors agreed that addressing climate change issues is of the most importance. And we are not talking about a scenario like “The day after Tomorrow”, but at real numbers coming from natural disasters all around the world. When we see the data, the KPIs indicate that any growth moves backwards 20 years whenever there is a problem. That is why they claim compliance and clear policies that ensure the risks are minimized.
What’s yet to be Done
Despite there is a raising awareness on the climate change issues, there are still no standards when it comes to assessing risks. That is why the insurance companies and investors find it hard to get a global point of view. That just feels like taking blind steps.
The overall financial conditions are affected by the slightest changes. The SEC, for example, is demanded to take immediate action towards the improvement of the assessment of climate related risks.
The Role of Governments
In assessing climate change, governments all around the world play a fundamental role. They are meant to serve as the regulatory entities that ensures compliance. By having a strict and clear policy when it comes to these natural changes, they are giving the reassurance investors need.
Tech companies in particular rely on the economic stability to grow. They address needs beyond the basics (food and shelter). Therefore, when the world is upside down, they are the first to suffer. Other sectors that are importantly affected include financial services and the oil and gas companies.
The immediate Consequences of Trump’s Withdrawal
It was of the most concerned for everybody that Trump decided to withdrawal the United States’ participation on this important agreement. The fact that one of the big players around the world is stepping back means that the meetings lack credibility. The President of the United States claimed that the rules needed to be corrected so that commerce could flourish.
One of the first reactions came from Elon Musk (Tesla Founder). He supported the Paris Agreement by quitting his advisory support to the White House. Musk stated that climate change is a global issue, and it cannot be addressed by one country alone.
Jeff Immelt (GE) showed his disappointment through his social networks. He took a stand taking the problem in his hands, and all Tech Companies should listen. Immelt highlighted the need to address the issues at a company level and do not rely on governments to do the job.
An Optimistic Approach
There are important objectives at the Paris Climate Agreement. Most of all, the reduction of gas emissions target by 2020 is at risk if the United States fails to comply on the selected measures. This sort of objective is led by the government, but executed by the industrial sector.
Considering that other companies in the United States like Chevron also spoke supporting the agreement. It seems that the companies are aware of the dangers of continuing to fight against nature. So far, the most important tech companies in the United States have raised their voice to support the concerns for climate changes.