Companies need to find ways to lessen their climate related costs and risks. Over the years, firms have eliminated jobs, cut expense accounts and outsourced work in efforts to reduce costs. This is the type of thinking and strategy that needs to be applied to emissions because it is costing the firm now and will continue to do so in the future. All companies can make efforts to reduce emissions. Paper files can become e-files, client visits can be done over e-conference, delivery routes can be shortened or changed, packaging can be changed, or some employees may be able to work form home. Taking the inside-out approach, firms can measure their emissions costs by looking at the ratio of profits to emissions. This will also force the firm to look at its value chain and evaluate its suppliers, customers, and delivery options.

In addition to emissions costing firms money, climate change can have devastating affects on business that are not prepared. Warmer temperatures can cause shifts in customer demands, destruction of factories and offices, higher insurance premiums, and numerous other challenges to businesses. Firms need to evaluate the effect that this will have on them. What will happen if the crops that grow a vital ingredient are wiped out for a season? What if employees leave a certain area because of weather related issues or disease? There are numerous other questions that a business has to ask itself. They are no longer distant ‘what ifs’. Climate change will happen and firms need to be prepared. This is the outside-in approach that businesses need to take in order to remain flexible and competitive.