Small businesses are more at risk from climate change

2/15/2011

Most small businesses have limited budgets as it is, and can't always afford to research changes and opportunities from the world's rapidly changing environment. However, this may be detrimental to their overall success, indicates a new report from Pax World Management.

The report observes that many smaller companies only change their practices in relation to environmental concerns when they are at risk of violating regulations. This attitude could cause them to miss new opportunities or fail to protect their investments if climate changes turn against them.

On the other hand, larger companies have the resources necessary to fully investigate these hypothetical situations, which enable them to be better prepared.

Pax World Management suggests that "industry trade groups need to develop reporting guidelines for small companies; asset managers and investment counselors should highlight investment advantages of incorporating climate risk in businesses portfolios and have investment organizations and business groups offer guidance to smaller companies."

Now that small business owners have greater access to commercial loans, they should make use of these resources to explore any benefits that the changing environment could have on their companies.