Introduction An immense body of evidence elaborated through the last 40 years shows that climate change is real and it is already influencing people’s lives. Global warming was first recognized as a worldwide environmental problem in the 1970s (DiMento & Doughman, 2014). The reason for climate change is considered to be the human-caused greenhouse gas emissions since the 1950s (WWF – Australia, 2004) Goldenberg (2013) states that the present-day environmental crisis is caused largely by 90 companies, which produce nearly two-thirds of the greenhouse gas. If the discharge continues to grow at the present rate, the results of the climate change will affect many countries including Australia within a short timeframe (WWF – Australia, 2008). Environmental crises also pose problems to businesses in Australia. Climate change poses four types of risks to the sustainability of the enterprises, including physical risks, reputational risks, regulatory risks, and litigation risks (Demertzidis, Tsalis, Loupa, & Nikolaou, 2015). Therefore, boards of directors should make necessary adjustments to corporate strategies to address the hazards (Ramani, 2015). The present paper touches upon the main threats to business sustainability in Australia and provides evaluations for the possible solutions to the problems. First, the paper touches upon reputational risks environment policies imply to business and offers a way of avoiding problems with the public. Second, the study explains regulatory risks and demonstrates how business owners in Australia should address the issue. Third, the research evaluates the solutions and describes limitations to the work. The importance of the study is uncanny as it offers the reader a concise assessment of the situation concerning the dangers climate change poses to business in simple words. Reputational Risks The reputational risks implied by the climate crisis are one of the major concerns to the businesses’ upper management as they notably affect enterprises’ sustainability performance. These risks are connected with the harmful actions of consumers and communities due to the improper operation of businesses about various climate change aspects (Demertzidis et al., 2015). In simpler words, people are unhappy with the enterprises that ignore environment-friendly policies and organize boycotts and protests. Such reactions of the public cause a decrease in the market value of the companies and, consequently, alarm the investors. Hence, it is clear that reputational risks are always associated with conflicts between the community and the company. Franks et al. (2014) conducted 45 interviews with key individuals, primarily from mining and hydrocarbon companies, to assess the main sources of unexpected costs. The research revealed a “world-class mining project with capital expenditure of between US$3 and US$5 billion suffering roughly US$20 million per week of delayed production in net present value terms as a result of community conflict” (Franks et al., 2014, p. 7578). This example vividly demonstrates how human relations can be converted into sheer numbers and confirms that evaluation of reputational risks is crucial for business. Therefore, the business upper management should consider projecting awareness about current environmental concerns in order to keep employees, shareholders,