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By Abdullah Jamal
No man is an island- today more than ever that saying holds true. As environmental issues know no borders, neither does trade. As economies and supply chains around the world are increasingly linked, local businesses are susceptible to the effects of global environmental problems. Environmental issues from pollution to climate change affect local commerce in many ways.
Climate Change: Worldwide Issue, Local Effects
Of all the environmental issues facing the world, climate change may be the most well-known. The effects of climate change are global- from severe weather patterns destroying crops to sea level rise devastating port cities, the list goes on. All of these effects can be translated into impacts on local commerce through supply chain disruptions and increased input costs.
Agricultural goods are especially at risk from climate fluctuations and are the lifeblood of many local economies. Droughts, floods, and altered precipitation patterns can all cause crop devastation leading to lower harvests and higher prices. This directly affects farmers’ livelihoods and food availability in local communities.
Environmental problems from pollution also affect local commerce on a global scale. Air pollution resulting from industrial processes or plastic waste entering the waste stream affect areas far from where they are produced. Businesses that rely on air and waterways for transportation or ingredient sourcing will be negatively impacted when pollution thresholds are exceeded.
Manufacturers sited downstream of polluted industrial sites may have difficulty finding uncontaminated water sources for their processes causing delays and cost increases. Businesses that rely on tourism as an income stream will see diminished revenues when local tourist destinations are marred by pollution issues attracting fewer visitors.
Global Solutions are Needed Now
Solutions to these environmental problems will need to be addressed on a global level. International, national and local governments must collaborate with businesses and communities to adopt more sustainable processes to combat the effects of climate change and pollution. The Paris Agreement, for example, is an attempt to coordinate a global response to climate change by aligning countries around clean energy development and greenhouse gas emission reduction goals.
On a local level, businesses can take steps to green their operations through waste reduction, energy conservation, and responsible sourcing. Making sustainability priorities can help preserve the planet and also make businesses more resilient in the face of unknown global environmental stresses.