At Davos, Climate Change Is a Pain in the Bottom Line

What do Coca-Cola, Apple, Nike, and Toyota have in common? They’ve all suffered measurable losses from climate change. The World Economic Forum is paying attention.

Jan 25, 2014 at 8:00AM

A striking thing is happening right now at the World Economic Forum in Davos, Switzerland: Climate change and the risk it poses to business is under discussion in mainstream circles like never before. Representatives from major corporations are not only communicating the harm climate change is doing to their operations right now, but they're also asking politicians to put meaningful climate change regulations into place. That's right: Business is asking government for more regulation.

How bad could it be?
Many folks think of climate change as something that poses some ill-defined, distant risk, but companies are suffering serious consequences right this minute. Coca-Cola (NYSE:KO) had a wake-up call back in 2004 when the company lost a valuable operating license in India because of severe water shortages there. Coca-Cola now tackles climate change as a full-blown business risk, as increasing global droughts interrupt not only water supply, but also the sugar beet and sugar cane crops that are Coke's feedstocks.

Toyota (NYSE:TM) and Apple (NASDAQ:AAPL) have faced several recent supply chain disruptions after extreme weather events in Asia, most significantly the 2011 Thai floods that forced a temporary suspension of Prius and Camry production there, and caused a setback in Apple's supply of Mac components.

Nike (NYSE:NKE) has been outspoken at Davos. Here's what Hannah Jones, vice president of sustainable business and innovation at Nike, wrote on Friday.

While ... Nike-led technologies have greatly advanced the integration of sustainability and performance, materials innovation is not a problem we can solve alone. ... It is clear that no single company, organization or government has the ability to tackle this innovation challenge on their own. Instead, it will require new models of collaboration. We need to catalyse capital, capabilities, science and technology and resources far beyond the boundaries of our own supply chain. To tackle massive systemic challenges like those in the materials and manufacturing industries, Nike is harnessing the collective power of unconventional collaborations. Our ability to positively influence the systems in which we operate is critical to our future success.

Watch the following videoto hear more about these companies' challenges, and how the mainstream world is increasingly pushing for action.

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Sara Murphy has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Apple, Coca-Cola, and Nike. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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