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Friday, October 21, 2016

Jan. 27 (Bloomberg) — Last week, the New York Times reported that venerable Dow Jones Industrial Average component Coca-Cola Co. was awakening to the impact of climate change on its business.

The increase in unpredictable weather, droughts, floods and other climate-related events was disrupting the company’s product supply. Some of their “essential ingredients” are now under threat. Global warming, according to the article, is being seen “as a force that contributes to lower gross domestic products, higher food and commodity costs, broken supply chains and increased financial risk.”

This debate is no longer about whether global warming is real (it is) or whether humans are the most likely cause (you are), but rather, some very interesting and different questions that might be more professionally relevant to business: How is this going to affect business? What are the investing consequences? Who will be the financial winners and losers of climate change?

Investors should be considering this as a fight over market share, not a scientific debate. That is the approach taken by McKenzie Funk in a new book, Windfall: The Booming Business of Global Warming. The impact is across many industries. It’s time to throw out your preconceptions of climate change as a fight between green hippies and Big Oil. This is far broader and more complex. And it goes far beyond energy, to include agriculture, insurance, transportation, construction, recreation, real estate, energy exploration, food production, health care minerals and even finance.

The culturally constructed ignorance known as “agnotology” has been driven primarily by the oil and coal industries. Funk argues that we are about to move beyond that faux debate to a more important battle between even larger interests. Consider:

  • Insurers stand to make larger payouts because of more severe weather and more frequent natural disasters. However, this will inevitably lead to appreciable higher insurance premiums and potentially rising profits.
  • The travel and hotel industry is facing specific challenges. Ski resorts that were in prime snow making areas may find themselves no longer ideally located; warm weather destinations boasting access to reefs for snorkeling and scuba diving have troubles as reefs die out.
  • Energy exploration and mining is about to get a huge boost as formerly inaccessible Arctic regions are soon to have huge untapped resources exposed. Shipping across formerly unnavigable seas could alter transportation costs and ship designs.
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Copyright 2014 The National Memo
  • howa4x

    What this article points out is the tip of the melting iceberg. There will be huge population shifts away from desert areas like Arizona that is a head in the sand state on changing climates. When the Colorado river dries up and it will be in our lifetime, Phoenix will be a ghost town or one living on trucked in Water. Right now 4 companies own most of the water rights and have gotten sympathetic republican governors to grant them access to the great lakes which they are pumping down. All that shifting of the apparel industry to Bangladesh will not reap rewards as that will be one of the first countries in the area to be submerged. We will see millions of people on the move and that will change buying dynamics. What this article tells me is that Al Gore was right in his book that was vilified by business leaders a few years ago. Climate deniers are still led by the Koch brothers so with all their wealth what do they know that scientists don’t. Fasten your seatbelts things are going to change.

  • Todd Nelson

    Since global warming has been 2/10 of 1 degree F since 1904, and absolutely 0 degrees F or C since 1997 this article is a complete waste of paper. These climate observations are simple facts. They are irrefutable facts. Even the UN IPCC has had to admit to the truth and acknowledge there has been no global warming in the last 17 years. This means there is not 1 child alive, from babies to seniors in high school, who has ever experienced any “climate change”, either up or down. The only place there has been any “global warming” is in the computer models the man made global warming high priests have designed to make themselves lots of grant money and fraud money from governments all over the world. That is all this global warming scare has ever been, a scam to make themselves money and give them power and prestige. The ultimate example of this is Al Gore. He has made himself over $100 million off of this scam, as he rides around in private jets, drives around in huge SUV’s, and has houses that use more energy than 20 regular people each, and he has 10 houses. He then has the gall to tell the rest of us to conserve because the planet is in the balance.

    • Sand_Cat

      Since your post is a recitation of science- and reality-denier talking points, it is a complete waste. And this article wastes no paper!

  • Sand_Cat

    This article pretty much summarizes everything that is wrong with civilization in general and American civilization especially. A potential global catastrophe with the possibility of mass human deaths from starvation, disease, and natural disasters, mass extinction of long-surviving and often fascinating and beautiful life forms, flooding of coastal regions, and god knows what else, and the only thing most people care about is how it will cost of benefit them financially. Our culture is not only “omnicidal” (Derrick Jensen’s word), but richly deserving of such a fate.

  • Allan Richardson

    The real “money bags” in America are under no delusions. However, their continued profits depend on brainwashing non-thinking Americans such as the Tea Party pawns BELIEVING the delusions. They tell you there is no way the seas are rising, while they invest in future oceanfront property in Valdosta and other inland places, just as Lex Luthor bought property east of the fault line and set off a nuclear bomb on the fault to make California fall into the sea and turn that property into a beach. Unfortunately, this is reality, and there is no Superman to save us, while the Luthors among us are morally deceptive to the rest of us and therefore stay out of jail.

  • Robert W Sindel

    the ehtire idea of global warning made by man ir redicilous. Mrthane from livestock hardly increase of Methane from huge bison hesrd wandering the prarie and the migratory herbavores are cretainky nit in a numbor of survival that they do now produce more greenhouse gasses than livestock. The hoje un the ozone war thiought to be a problem caused freon but frean ci=ombined with ionizinf radiation formed a more defensive block to UV and infrared. coeran plants account for the vast majority of greenhous gasses and mankind accoun acvcounts for 2 %. Undoubedtly the earth is waeming and because if human civuilizatuin mar be more rapid than usualnbutut the process is initiated by solar flares and sun-spots. ithat was proved at BERNE Supercollider 2 years ago. The thing we need to worry about are the finite lives of fossel fuels. Appeals to prepare for that have been unrecognized and ignored for years. Thereus no tipping point controlled by mankind. Heverthekess preparing for tthe lack of fossil ruel is something we must do and a change in the weather is just such a carrioin cry that people are trying to find alternate fuel sources. We cannot stop global warming anymoe than re can be responsable for it but we must learn to live and move without fossil fuel. However the end dues not justify this twaddle about tipping points and melted ice cap. Currently it is beyound our Ken..Clean energy is not. GTelieve what you wan but the sun’s north pole just switched to it’s southpole and vice versa. bob sindel