As a small business owner you’ve worked hard to get where you are: from your original idea or concept to launch and growth of your business. You want to succeed – your business is a reflection of you and its success is your success. Indeed, in many cases it is your livelihood. Nevertheless, you know that the road ahead may not be as clear-cut and that the strategic choices you make now could affect the future of your company. Can you maximize profit, reduce your CO2 emissions and support global targets by 2030?

The answer of course is not that simple. Understanding the impact on your business of emission targets whether now or in the future and more generally, climate change is even less simple. Ultimately, whether you believe in it or not, you need to be aware of the risks given the current environmental uncertainty. Did you know that the Kalgoorlie earthquake earlier this year caused losses of over $10 million dollars within the hotel industry?

Of course, businesses in Kalgoorlie that were adequately insured for property damage and loss of profits will probably sleep easy knowing that they will be able to get up and running without to much of a hassle. Of course, that is if those businesses weren’t in an asbestos affected areas…

So it’s refreshing to see that organisations that specialise in risk-transfer (i.e. insurance) are partnering with environmental organisations in order to provide tools that can help businesses understand the financial impacts of climate risk. Allianz for example has recently launched an online game that enables you to simulate the effects of business choices on the ability to maximise profits whilst reducing emissions.

Zurich for example, has established a program for brokers that enable them to talk to their clients more confidently about the risks of climate change. The program includes a comprehensive set of risk diagnostics, online tools and training information for both brokers and their small business customers.

The only problem with these initiatives however is how little people know about them – this is still an area where information needs to be ‘pulled’ from risk experts such as insurers and is not ‘pushed’ out to the Australian community in an effective manner. Of course, if you aren’t aware of the risks then why would you go looking for answers?

We would love to hear your thoughts on this important issue!