The Role of Climate Literacy in Corporate Strategy
In recent years, a growing number of businesses are including climate literacy as part of their strategy—and for good reason. Climate change is no longer a far-off idea. It's here, and it’s affecting how companies plan, make decisions, and interact with their customers and communities. Knowing the basics about climate change can help leaders make better choices for their companies and for the planet.So, what is climate literacy? Put simply, it means having a basic awareness of how climate change works and how human activity plays a role. It also includes knowing how the climate can affect things like supply chains, energy costs, and customer behavior. With this kind of knowledge, businesses can move toward being more planet-positive, not just in their messaging, but in the way they actually operate.
For example, if a company sells clothing, climate literacy can help its leaders think more carefully about where and how their materials are made. They might look for suppliers that use fewer natural resources or reduce transportation emissions. A food company may start thinking about how farming is impacted by weather changes and plan early to stay ahead. Even office-based companies can support climate-friendly choices by reducing energy use or encouraging remote work.
More and more, investors and customers are looking for companies that are taking climate seriously. A climate-smart strategy can build trust and set a business apart. It doesn’t mean making huge changes overnight—it can start with small steps like measuring energy use or learning about which parts of your business cause the most carbon pollution.
Educating staff also plays a big part. When everyone in the company—from entry-level roles to leadership—has a basic climate knowledge, they’re better equipped to make decisions that align with long-term goals. It can also drive new ideas and solutions. Often, the best improvements come from team members who see things from a fresh angle.
In the end, climate literacy is less about becoming an expert and more about being mindful of how the world is changing. Businesses that pay attention and act on this knowledge are more likely to be ready for the future—while doing their part to protect the environment we all share.