Rising temperatures and extreme weather events affect how entrepreneurs, small business owners and employers conduct their operations.
Business practices that merge with climate policies could help your brand grow. Learning more about the connection between environmental action and business compliance can keep your services competitive in the modern world.
Why Climate Policies Matter for Business Owners
The U.S. loses around $143 billion annually on environmental disasters, which taxpayers and business owners must recover. The physical toll on storefronts isn’t the only way you may struggle after a hurricane or tornado. Your consumers may also spend less for longer periods if they need to repair their homes.
Climate policies can mitigate those losses. They may direct local and state governments to assist with paying for storefront repairs. The policies can also require entrepreneurs to have action plans to keep employees safe during weather events. Leaning into existing policies keeps businesses in compliance with local laws, avoids costly fines and establishes companies as leaders in adapting to changing environmental conditions.
How Climate Policies Affect Business Compliance
Climate policies have direct and indirect impacts on businesses in various industries. Some regulations are legally mandatory, like emissions reporting in energy production. Local waste management rules and carbon taxes are also unavoidable. Your consumer base may not even know those compliance standards exist, so many entrepreneurs advertise their regulatory efforts to appeal to growing eco-friendly customer bases.
Some policies require updating your brand’s physical storefront. Local governments can update building codes so each commercial property features climate-resilient upgrades. The initial project investment might take time, but the long-term savings could be worth it.
Home-based businesses are no exception. Experts estimate that 80% of U.S. houses have existed for 20 years or more, so a project like updated building envelope seals could prevent extensive water damage that the original contracting team didn’t anticipate.
Indirect impacts — like supply chain improvements and insurance industry regulations — can also affect entrepreneurs. Whether the policies require immediate action from you or not, they still change your professional life.
Practical Ways to Adapt Your Business This Year
You don’t have to wait for climate change policies to happen on a state or federal level. Make your brand more resilient to global warming with a few simple updates.
Upgrade Your Commercial Property
Many climate-related laws require businesses to become more eco-friendly through physical property updates. Research the current policies that affect your brand based on city and state guidelines. You could update your property at least once a year with resources like solar panels or less energy-intensive machinery. Whether adapting a commercial or residential property, you’ll likely align with future green policies and improve your structure for the planet.
Find Regulatory News Sources
Look up news sources for your industry and region. Read their updates at least once weekly to learn something new and adapt your brand before legal deadlines and fines occur.
You might read about how transportation is the second biggest contributor to global emissions of any industry. Pollution may inspire laws requiring businesses to participate in greener forms of shipping, so updating your shipping strategies could be a preventive measure that also impresses eco-friendly consumers.
Fortify Your Supply Chain
Some laws are supposed to help entrepreneurs resume operations after a major weather event. Fortifying your supply chain may help you comply with those laws now and later. Investigate opportunities to adopt circular economy principles. Partner with companies using environmental practices and look for ways to improve their planetary impact. You’ll develop a greener brand that better aligns with future climate policies.
Merge Your Business Practices With Climate Action
Business owners should recognize the many ways climate policies affect their compliance. Your long-term success depends on abiding by local laws, planning for future weather events and fortifying every aspect of your brand before disaster strikes. You’ll also stay up to date with the regulatory landscape and remain competitive.
