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- Major brands are finding ways to make money on the fears surrounding and consequences of climate change.
- In disclosures to CDP — a nonprofit that asks companies about their environmental impact — companies like Apple, Disney, and Philip Morris identified ways that they could profit from natural disasters, extreme weather, and the need to reduce carbon emissions associated with climate change.
- In many cases, brands saw addressing climate change as a way to improve their public image.
In 2018, a devastating report released by The Intergovernmental Panel on Climate Change (IPCC) predicted a future of extreme heatwaves, severe droughts, mass extinctions, and sea-level rise. Under these conditions, the report said, the world could experience $54 trillion worth of environmental damage.
While that scenario might be decades away, companies are already finding ways to profit from humanity’s collective fears about climate-related disasters.
Read more: Big Oil claims it’s doing its part to combat climate change. A new study finds it’s not even close.
In January, a London-based nonprofit called CDP, which collects information from companies about their environmental impact, released thousands of company disclosures explaining how natural disasters, extreme weather, and the need to reduce carbon emissions could translate into serious money-making opportunities.
In one of the most striking disclosures, Apple noted that iPhones could help people survive in a disaster by offering flashlights and other emergency services. The company estimated that its brand value would increase by $920 million as customers began to rely on iPhones for personal safety.
Other companies saw an upside to warmer temperatures. Molson Coors predicted that the desire for beer would increase as the world experienced more frequent and extreme periods of heat.
Here are some of the ways that major brands think they can make money from climate change.
Philip Morris International says extreme weather could be good for its tobacco.
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The tobacco manufacturing giant behind Marlboro cigarettes thinks heavier rains could save the company an estimated $10 million. According to the company’s latest CDP disclosure, rain lengthens the life cycle of tobacco, keeping the soil moist for longer periods of time.
A steady rainfall also provides the ideal conditions for tobacco to grow, helping the company ramp up production and improve the quality of its cigarettes.
The company believes it will also save $1 million per year from higher global temperatures.
Before producing a cigarette, manufacturers must first dry out, or "cure," the tobacco leaves in heated barns, which use firewood to power the drying-out process. Philip Morris predicts that warmer weather will produce natural heat that will reduce the need to burn firewood.
Read more: The world’s top cigarette company thinks a future of extreme weather could be good for its tobacco
Apple predicts more natural disasters could increase demand for iPhones.
Clancy Morgan
When a natural disaster such as a hurricane or earthquake hits, people tend to reach for their phones. Apple predicts that more customers will soon be inclined to purchase an iPhone in preparation for a severe climate-related event.
"Mobile devices can serve as the backbone communication network in emergency and quasi-emergency situations," the company wrote in its disclosure. "They can serve as a flashlight or a siren; they can provide first aid instructions; they can act as a radio; and they can be charged for many days via car batteries or even hand cranks."
The company also touted existing emergency features like "SOS," which connects iPhones and Apple Watches to emergency services.
Read more: Apple predicts more climate change disasters could increase iPhone demand
Molson Coors thinks warmer temperatures will ramp up the desire for cold beer.
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Like Philip Morris, Molson Coors has discovered a financial upside to warmer temperatures.
"Beer sales are strongly dependent upon weather," the company wrote. "If we have more warm days or the summer season is extended, we have more opportunity for sales."
The company estimates that it could earn an additional $1 million from warmer temperatures, though it recognizes that these earnings could be offset by climate-related disasters such as floods, drought, hurricanes, and wildfires.
In an effort to get ahead, Coors is already looking for ways to keep its beer colder for longer, so that more customers have access to it on hot days.
See the rest of the story at Business Insider
See Also:
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- The Midwest is colder than Antarctica thanks to the polar vortex — here’s what it looks like
- The world’s top cigarette company thinks a future of extreme weather could be good for its tobacco
SEE ALSO: The world’s top cigarette company thinks a future of extreme weather could be good for its tobacco
Source: Business Insider