International relocation of firm activity in response to climate change impacts

Growing scientific evidence suggests that human-induced climate change will bring about large-scale forced international migration and resettlement, with potentially millions of people displaced by coastal flooding, extreme weather events and agricultural disruptions. The probable occurrence of such major population shifts is alarming and likely to have significant implications not only for affected individuals and communities, but also for organizations, industries, and entire economies. Implications for organizations result from two interrelated disruptions in their business environment which might create the necessity of a geographical relocation of organizational activities. These are: (1) direct disruptions through climate change impacts, for instance through extreme weather events, and (2) indirect disruptions through changes in habitable zones, population moves and a resulting transfer of markets and economic activity elsewhere. We propose a theoretical framework for assessing the international organizational relocation process in response to climate change impacts. Implications for research and business practice are discussed.