Climate change will affect businesses enormously. But it's not just about risk mitigation. Climate change also opens new opportunities to develop new markets and strategies. Some interesting insights from a panel of writers, including Professor Michael Porter, in the October edition of Harvard Business Review.

If you want, you can read the piece in its entirety here

Porter's view from a strategic perspective is particularly interesting:

"A firm that has more employees than it needs in its shipping department is operationally ineffective; its managers are wasting resources and creating a drag on performance. In the same way, a firm that produces excess emissions in its shipping operations is also operationally ineffective-it is wasting resources and incurring unnecessary costs that are certain to rise. Implementing best practices in managing climate-related costs is the minimum required to remain competitive.

"In addition to understanding its emissions costs, every firm needs to evaluate its vulnerability to climate-related effects such as regional shifts in the availability of energy and water, the reliability of infrastructures and supply chains, and the prevalence of infectious diseases. The firm's leaders should systematically assess these risks and then decide which to reduce through redesigning operations, which to transfer to others through insurance or hedging contracts, and which to bear.

"For some, but not all, companies, the approach to climate change can go beyond operational effectiveness and become strategic. Some firms, in the process of addressing climate change, will find opportunities to enhance or extend their competitive positioning by creating products (such as hybrid cars) that exploit climate-induced demand, by leading the restructuring of their industries to address climate issues more effectively, or by innovating in activities affected by climate change to produce a genuine competitive advantage. For example, an operational response to climate change in outbound logistics or after-sales service might involve more-efficient engines on delivery and service vehicles, or modified schedules to reduce traffic delays. By contrast, strategic approaches could involve reconfiguring the activity entirely: In outbound logistics, firms might replace physical books or manuals with electronic versions, and in after-sales service, they could supplant physical visits by service technicians with remote diagnostics and treatment programs.

There are also some good insights from strategist Peter Schwartz. Also check out what Vicki Bakhshi and Alexis Krajeski from F&C Investments say about the impact that climate change will have on the balance sheet.