Why Paris talks are important for businesses?

Addressing the opening ceremony of the climate change conference in Paris on Nov 30, Chinese President Xi Jinping urged businesses, non-governmental organizations and other players in society to pool resources to counter climate change, which poses a threat to not only the environment and natural resources, but also businesses in China.

Many companies in China are based in areas that are exposed to the risks of rising sea levels, floods and tropical storms. Losses from typhoons alone cost China 8.4 billion yuan ($1.3 billion) a year on average between 1994 and 2005, and since 2000 natural disasters have cost the country 1 percent of its GDP, eight times more than the global average. A large part of the costs have been borne by China-based companies.

Climate change has aggravated the geographical differences in China, making the southern region wetter and the northern drier. Long-term sustainability of businesses in China is threatened because of receding sources of water on the land.