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This paper sets out to tackle the issue of climate change from a business perspective. It seeks to discuss why it is important to take climate change considerations into account in business decisions, how this can be done and what further action is required from managers and business scholars.

The paper describes ways of reducing emissions and adapting to climate change that can be implemented by any business. As an illustration, the proposed climate strategy of a large European utility company, RWE, is provided.

There are numerous ways to reduce emissions within business operations, along the supply chain and surrounding product usage and disposal. Climate‐proofing operations is also becoming increasingly pertinent to businesses.

New ways have to be found yet in order to take emission reductions to a more ambitious level by altering patterns of production and consumption.

The paper discusses how businesses can reduce their carbon footprint and anticipate changes in the physical and political environment related to climate change.

The paper is of value to managers who, today, are expected not only to reduce emissions from operations, but also to gain an awareness of the physical, political and social risks stemming from the impacts of climate change.