Climate change is a challenge that threatens various elements of human life. Concerns are being raised that climate change could even threaten the very existence of mankind. Individuals and organizations are being urged to adopt environmentally-friendly practices so as to reverse the damage that the environment has suffered as a result of the irresponsible practices that have been in use for years. It is feared that if no action is taken, cities could be submerged and communities displaced as the sea levels rise (Strauss, 2015). Businesses are also set to lose if the current rate of climate change is sustained. Firms whose operations are shaped by natural elements such as weather particularly have cause for concern as the changes in weather patterns pose a threat to their profits and continued operation. Monsanto is one of the companies that face the threat of climate change. In this essay, an examination of the potential impacts of climate change on the operations of this company is offered. The essay also identifies measures that the company can institute to minimize the impact of climate change.
The risk
As noted above, firms whose operations are dictated by nature are particularly susceptible to the impacts of climate change. Monsanto is one of these firms. This company is primarily involved in the production of seeds that are used by farmers. The company is the biggest player in the seed industry and its sales for 2007 stood at $4.964 billion (“The World’s Top 10”, n.d). The huge revenues that the company generates through the sale of seeds indicate that there is a lot at stake for the company. If climate change persists, the company could see its revenue fall. The impact of climate change on this company will largely be indirect. Monsanto supplies millions of farmers around the world with seeds for their farms. One of the defining features of climate change is increasing global temperatures. While there are some crops that offer good yields when the temperatures are high, there are others which require lower temperatures. Even for those crops that demand high temperatures, it is required that the temperature should not exceed a certain level. As climate change persists and global temperatures continue to rise, farmers will be forced to abandon farming and embrace other economic activities. This is already being witnessed in such regions as Africa where farmers are giving up agriculture since it is no longer profitable (“Climate Change is Hitting”, 2016). Monsanto is likely to see a decline in demand for the seeds from farmers. This fall in demand will depress the company’s revenues. Since it relies on farmers for revenues, the company will have to contend with lower revenues. This is a risk that the company should address urgently. It needs to implement measures that will enable it to mitigate this risk.
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Recommendations
As mentioned above, Monsanto needs to move with speed to protect its revenues from the risk posed by climate change. There are a number of initiatives that the company can institute to ensure that climate change does not threaten its profits. These initiatives mainly involve combating climate change. The company needs to sensitize farmers on the need to adopt environmentally-friendly agricultural practices. Farmers have been cited as among the agents responsible for climate change. There are some farmers who use inputs such as aerosols which add to the greenhouse gases that are already in the atmosphere (Dunn, 2009). These gases trap heat resulting in increased temperatures. Additionally, there are farmers who clear forests to create room for farming (Dunn, 2009). The felling of trees accelerates climate change since trees play an important role in maintaining the balance of gases in the atmosphere. Since Monsanto supplies farmers with seeds, it is in a privileged provision from which it can educate farmers on responsible and environmentally-friendly practices. For instance, the company could encourage farmers to abandon deforestation and plant trees alongside their crops instead.
In addition to working with farmers, there are some more direct measures that Monsanto can implement to protect its revenues. This company is alive to the threat that climate change poses. This is evidenced by the green solutions that the company has developed. For example, the company is credited with producing LED bulbs on a massive scale (“LED History”, n.d) (. LED lights have been shown to consume less energy than other methods of lighting. By 2027, the US hopes to save 348 TWh of energy (U.S Department of Energy, n.d). This goal will be realized if companies such as Monsanto commit more resources and energy to the development of more green solutions. Monsanto needs to remain committed to creating solutions that help in tackling the challenge of climate change. It is true that greater investment by the company in sustainable energy will allow it to protect its revenues. While this would be self-serving, it will allow the company to contribute to the effort to shield the globe from the devastating effects of climate change. Therefore, if Monsanto truly wishes to secure its finances, it should invest more in such green solutions as LED lighting.
In conclusion, the rate at which the climate is changing is alarming. The globe is becoming hotter and sea levels are rising. There are many who are still skeptical about the reality of climate change. The changes in weather patterns that are already being witnessed serve as evidence that climate change is indeed real and that action must be taken now. Monsanto needs to lead the effort of tackling climate change. The company’s revenues are at risk and for this reason, it should work with farmers and invest in green solutions. Apart from protecting the company’s revenues, these measures will also create a greener environment that presents benefits for the entire global community.
References
Climate Change is Hitting African Farmers the Hardest of All. (2015). Retrieved 1st November 2016 from http://theconversation.com/climate-change-is-hitting-african-farmers-the-hardest-of-all-40845
Dunn, C. (2009). 6 Ways Agriculture Impacts Global Warming. Retrieved 1st November 2016 From http://www.treehugger.com/green-food/6-ways-agriculture-impacts-global-warming.html
LED History. (n.d). Retrieved 1st November 2016 from http://www.radio-electronics.com/info/data/semicond/leds-light-emitting-diodes/history.php
Strauss, B. (2015). Images Show Impact of Sea Level Rise on Global Icons. Retrieved 1st November 2016 from http://www.climatecentral.org/news/global-icons-at-risk-from-sea-level-rise-pictures-19633
The World’s Top 10 Seed Companies: Who Owns Nature? Retrieved 1st November 2016 from http://www.gmwatch.org/gm-firms/10558-the-worlds-top-ten-seed-companies-who-owns-nature
U.S Department of Energy. (n.d). LED Lighting. Retrieved 1st November 2016 from http://www.energy.gov/energysaver/led-lighting
