As we are seeing, many counties are facing the dire consequences of changing climatic conditions. For instance, most of Syria and northern Iraq were hit by drought during what’s normally the wettest time of the year, in the mountains of eastern Turkey, which form the headwaters of the Tigris and Euphrates rivers, snow and rain were less than half of normal and the region has seen one of the worst droughts in decades. Drought has become a common trend over the Mediterranean and Middle East region. Series of U.N. reports described that global warming is already destabilizing nations around the world. Agro-products, fisheries etc. are likely to be hit by such changes the international business of various commodities for worse.
Negative effects on businesses are many and far-reaching, as discussed by others, but let's not forget positive (new) business opportunities created by climate change: 1) renewable energy; 2) "green" manufacturing; 3) energy-efficient and smart products... and many others.
Consider how many Prius and energy-saving light bulbs are sold around the world, climate change is not necessarily all bad for business. People just need to innovate and adapt. Businesses that refuse to change are the ones that will be marginalized.
Global warming affects the ecosystem services as well which may affect sectors like tourism in both negative and positive ways. It definitely adversely affects agriculture and fisheries. Along with it there are chancesof the evolution of many C4 plants which though can help in cereal production but for other crops, the productivity is questionable. Mutation resulting from global warming may lead to new diseases and consequently boost up advance research, new invention and more business in the healthcare sector.
Negative and positive impacts of climate change on business
Rising temperatures, rising CO2, rising sea levels, changes in rainfall patterns, extreme event’s (droughts, floods, and cyclones), proliferation of pests and pathogens, melting of glaciers and ocean acidification due to climate change will have direct impacts on a number of business sectors. There will be both negative and positive impacts of climate change on business. Climate change and extreme weather events will affect agriculture, fisheries and food supply, water security, assets and infrastructure etc.
Negative: Direct physical impacts of climate change such as sea level rise will risks to coastal population, coastal infrastructure including sea ports, airports, schools, roads, tourism business, coastal agriculture and coastal freshwater aquifers. Rising temperatures and movement of crop pests are expected to lead to higher prices and increased volatility in agricultural markets. Crops that are projected to be affected include staples such as wheat, maize and rice. Climate change is projected to increase price volatility for agricultural commodities, and reduce food quality (CO2 fertilization effects). Price rises of 37% (rice), 55% (maize), and 11% (wheat) are projected by 2050 from the additional stress of climate impacts. Climate change will affect the economics of fishing since both the quality and quantity of marine fish catch and its distribution within and between nations exclusive zones will be impacted (e.g. if climate change reduce fish supply, fish price would obviously increase). These will impacts companies (retailers, food processors, exporter etc.) linked to food industries. Higher and more volatile prices may also affect socio-political stability (e.g. the potential for food riots in some countries).
Positive: Climate change also presents opportunities for investors and financial institutions. There are likely to increase opportunities for investment in areas such as renewable/clean energy and energy efficiency and new job opportunity in renewable sectors, and in companies with expertise in areas such as flood control, geo-engineering, diseases and insurance.
Physioeconomics offers an interesting twist on existing environmentalism/carbon-neutral/ecological economics. In particular the idea of high temperature and the equatorial effect on economic growth and development. The "equatorial paradox" is investigated in the link. If global temperatures continue to rise, will this paradox be augmented further? If moral sentiments are the bed rock of economics, and weather holds sway over it, rising global temperatures may occasion a greater contrast between the rich and poor; the happy and unhappy; the benevolent and the self-centered. Thus rising temperatures may impact economic climate, not just via the quality of natural resources but via the constitution of its human resource, the hopefulness of its human agents.