The business of climate change: the technology industry

Analysis of the "Technology" in the Report "The Business of Climate Change: Challenges and Opportunities" Cabinet Lehmann Brothers. As already mentioned, we have decided to treat this report in various parts. This will be dedicated to the following question: What are the consequences of climate change on the technology industries?

Manufacturers of telecommunications equipment:

According to the report, there will be more advantages than disadvantages for the industry of telecommunications equipment on climate change. Despite energy costs rising, it is assumed that the demand and therefore the turnover will be proportionately much larger.

The sector is heavily influenced by its production costs. Nevertheless, it takes certain characteristics:

• The production process is primarily dependent on the assembly of components - energy costs limited
• A cost of transporting small compared to the overall cost of the product (often, the same components are used and sold in the same geographical area)

The market demand is likely to increase due to rising energy costs

• The replacement cycles faster for more energy-efficient equipment (now many machines are operating in an air-conditioned environment)
• The companies want to reduce the costs associated with business travel → more video - conferences, special applications of communication, improving network capacity


The impact of a sea level would be higher rather positive for the telecommunications sector:

Many telecommunication devices should be moved. Equipment manufacturers benefit from the situation in order to propose to deal with this move. In addition, some features would be renewed earlier than planned. Simultaneously, a displacement of the population would generate the need for new devices. The costs of these operations are much less than the benefits. If, however, manufacturers have factories in areas at risk, it is relatively easy to move and cheap prices.

In cases of extreme climate change, public authorities will need to communicate as soon as they identify danger. Traditionally, television or radio, which are responsible for linking information. But in the future, the mobile phone may seem more suited, because everyone has one on itself.

If the weather in the northern hemisphere of the globe is deteriorating, people are going to have to stay more at home. The result is a need for stronger distraction and communication.

The semiconductor industry drivers:

The report's authors assume that the fare increase will have a significant impact on the productive sector of microchips. Despite the fact that production is often concentrated in certain geographical areas, packaging and checks are often made elsewhere.

It is very likely that the energy consumption of semiconductors will become an important issue. The R & D will have to move towards chips that consume less energy.

The impact of a level higher Wednesday have huge consequences for the sector:
Many factories are located by the sea, built on three levels. While the critical material for the mission is often stored on the second level, a lot of equipment is located on the first. This will require greater protection.

In the past, the price of semiconductors rose during earth tremors (declining supply). This could happen in the same way in extreme climatic conditions. Accordingly, the effect on stock prices will be positive.

The services and software:

The impact of transportation costs is not important for the sector: the delivery and sale of services and software are for the most time online or through a lightweight (CD / USB ).

Fares push all industries to invest in new logistics software allows better management of deliveries. This sector would benefit, as the sector of telecommunication products, as the need for communication networks more efficient to reduce the costs associated with business travel.

An increasing level ocean is not a direct threat to the industry since it has no concentration in coastal areas. However, consumers will have to move, which has resulted in a redeployment of some systems which is related to cost.

With an extreme time, the government will use more systems, reconnaissance and surveillance, as well as private companies. This will require a software development and media suitable and competitive.

Overall, most of the industries related to new technologies take advantage of climate change on an economic point of view. These technologies appear as one solution to protect themselves from the consequences of the damage already caused by human beings. It is highly likely that they will also help find ways to pollute less and offer different solutions