Businesses are sensitive to drought, especially when key components of their operations are dependent upon the water at a specific quality and time.
Shortage of water supply caused by drought brings major challenges to businesses.
Water is a fundamental part of many industrial processes and plays a vital role in global trade. The potential impact of water scarcity on some industries may seem obvious – but that can blind us to the true scale of potential consequences.
To give you an idea, In Noordoostpolder, Netherlands, the majority of the land is used for agriculture. The lack of flora has caused the region to turn brown, something that can be seen throughout the Netherlands. Per Copernicus, the region is facing challenges in producing animal feed and has a shortage of water resources that are required by the local wildlife because of the drought and crop failures.
Drought also impacts energy. Last August 2022, hydropower generation has been hit. Whereas power producers were heavily affected due to a shortage of water to feed colling systems of powerplants.
How climate fintech can help businesses grow despite drought
Drought imperils water-dependent sectors such as agriculture and real estate. It also heavily affects decision makers like the local government, facility managers, and investors. The emergence of climate technology paved the way for start-up companies like CLIMATIG to help businesses grow despite climate risks viz, increasing high temperature.
CLIMATIG is a climate fintech that is easily available to anyone with just a few clicks.
The company makes use of climate intelligence to come up with accurate predictions to reduce the extreme aftermath of climate risks. Climate risks like drought are felt by people across the globe, especially in Europe.
Agriculturists can take advantage of CLIMATIG’s features to uncover opportunities to optimize crop and yield performance. It can further integrate agribusiness with advanced climate science by simply entering its asset’s location. From there, CLIMATIG will do its work in generating comprehensive climate risk reports and recommendations on when and where’s the best time to plant and store them.
Real Estate brokers and investors can use CLIMATIG to identify mispriced assets, find resilient properties, and maintain existing assets amidst drought and other climate hazards.
Decision makers like facility managers can integrate climate-intelligence solutions to achieve climate-resilient buildings and infrastructures to adapt and respond to ever-changing environmental conditions in the long term. Ultimately, big societal players like local government units can back decisions and policies with insights that ensure a safer jurisdiction in the present and more resilient projects for the future.
Conclusion
Water is a crucial driver of the global economy.
Yet unlike sought-after commodities like oil, we often take its abundance for granted.
As lessons are learned from record-breaking heatwaves, droughts, and widespread forest fires in Europe, public and private players must take action quickly to prevent the rapid increase in temperature. Climate technologies startups like CLIMATIG help businesses and investors to address and adapt to climate change.