Drivers of Ecoflation The World Resources Institute and A.T. Kearney identified three main drivers for ecoflation : 1. Scarcity of resources An increase in population and consumption leads to an increased demand for resources, such as wood, oil, water, and grain. Meanwhile, climate change is an increasing threat to such resources, in the form of extreme weather events (wildfires, droughts, floods, etc.) and biodiversity loss. For example, as freshwater levels decline, and the demand keeps rising globally, because of the law of supply and demand, the price of water is bound to rise, some predict by 20\% to 30\% by 2050. 2. Policies Governmental institutions, like the World Economic Forum, European Union, General Agreement on Tariff and Trade are increasingly aware of the necessity to react to climate change, and continue to pass stronger regulations in order to protect the environment. One such regulation is the introduction of carbon emissions trading, which forces companies that pollute more than they are permitted to suffer the cost. These are costs that companies will either have to internalize, decreasing their profit margin, or pass on to the consumer, potentially making them less competitive. 3. Consumers Consumers are also increasingly asking companies to provide more sustainable goods and services. Adapting to such consumer demands represents a cost for companies to adapt to. For example, companies may commit to using recycled wood material in response to public concerns about deforestation, or reducing plastic, because it comes from fossil fuels. Addressing Ecoflation The risk of ecoflation is not inescapable, and companies can start by taking concrete steps to counteract its effects. 1. Voluntary actions Companies can take voluntary action in order to reduce gas emissions and avoid ecoflation. For example, companies may choose to use less plastic or recycled plastic, or they may modify their distribution system to increase efficiency and decrease both greenhouse gas emissions and costs. 2. Business Opportunities Drivers of ecoflation can be business opportunities. As stated by the consulting firm Kearney in their report "The Cost of Ecoflation" : “Leaders in this new landscape will be companies that make environmental sustainability one of their core business principles.”. In order for business to remain competitive and to emerge as leaders, sustainability is an important factor. 3. Big changes Addressing ecoflation is not a task to be taken lightly, as stated by Andrew Aulisi, a researcher at the World Resource Institute. "You should not make small 'cosmetic' changes, but work with a true vision of the future," he concluded. In the media In 2009, “ecoflation” was classified as a buzzword by the media outlet The Humanitarian 
Drivers of ecoflation The World Resources Institute and A.T. Kearney identified three main drivers for ecoflation : Scarcity of resources An increase in population and consumption leads to an increased demand for resources, such as wood, oil, water, and grain. Meanwhile, climate change is an increasing threat to such resources, in the form of extreme weather events (wildfires, droughts, floods, etc.) and biodiversity loss. For example, as freshwater levels decline, and the demand keeps rising globally, because of the law of supply and demand, the price of water is bound to rise, some predict by 20\% to 30\% by 2050. Policies Governmental institutions, like the World Economic Forum, European Union, General Agreement on Tariff and Trade are increasingly aware of the necessity to react to climate change, and continue to pass stronger regulations in order to protect the environment. One such regulation is the introduction of carbon emissions trading, which forces companies that pollute more than they are permitted to suffer the cost. These are costs that companies will either have to internalize, decreasing their profit margin, or pass on to the consumer, potentially making them less competitive. Consumers Consumers are also increasingly asking companies to provide more sustainable goods and services. Adapting to such consumer demands represents a cost for companies to adapt to. For example, companies may commit to using recycled wood material in response to public concerns about deforestation, or reducing plastic, because it comes from fossil fuels. Addressing ecoflation The risk of ecoflation is not inescapable, and companies can start by taking concrete steps to counteract its effects. Voluntary actions Companies can take voluntary action in order to reduce gas emissions and avoid ecoflation. For example, companies may choose to use less plastic or recycled plastic, or they may modify their distribution system to increase efficiency and decrease both greenhouse gas emissions and costs. Business opportunities Drivers of ecoflation can be business opportunities. As stated by the consulting firm Kearney in their report "The Cost of Ecoflation" : “Leaders in this new landscape will be companies that make environmental sustainability one of their core business principles.”. In order for business to remain competitive and to emerge as leaders, sustainability is an important factor. Big changes Addressing ecoflation is not a task to be taken lightly, as stated by Andrew Aulisi, a researcher at the World Resource Institute. "You should not make small 'cosmetic' changes, but work with a true vision of the future," he concluded. In the media In 2009, "ecoflation" was classified as a buzzword by the media outlet The Humanitarian .
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Ecoflation
ecoflation
D
1.
D
2.
D
3.
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Ecoflation
ecoflation
D
1.
R
2. Business Opportunities
Business opportunities
D
3.
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“ecoflation”
"ecoflation"
A
.