Financial institutions are increasingly expected to consider climate risks when examining investment opportunities.

Failure to disclose risks and mitigation strategies related to the energy crisis and extreme weather events may impact investor trust and support (source 1, source 2).

A game or platform’s success in new and existing markets is highly dependent upon whether or not we meet players where they are. Many emerging markets have different socioeconomic and technological constraints impacting their purchasing power, nevermind willingness to adopt new content and tech. These very communities are already disproportionately affected by the climate crisis, which make the impact of those constraints more severe.

As an industry, we are limit our ability to increase our addressable market if we do not support initiatives that help communities become more sustainable and resilient to future environmental threats (source 1, source 2).

In a 2021 report by United Nations Development Programme, Playmob, and the University of Oxford, 1.2 million mobile gaming players across 50 countries participated in the largest survey of public opinion on climate change ever conducted. Of that 1.2 million, they found:

• 64% believe climate change is a global emergency;

• 54% support forest and land conservation;

• 53% support solar, wind, and renewable power;

• 52% support climate-friendly farming techniques; and

• 50% support more investment in green businesses and jobs.

It is important to also consider that the next generation of players (i.e. the ones who will be paying our bills) are less likely to make purchases based on brand and IP. Rather, they are more likely to make purchases that reflect their identity and core values. Businesses are rethinking how they deliver value to the next generation of consumers, who is more aware of the climate crisis than prior generations were.

An entire economy has already been built around the idea of conscious consumerism, and employees are inherently consumers. As interest in sustainability has grown, consumers with increasing knowledge have learned to look beyond the social-environmental impact of products - and at the policies and practices of the companies behind them. In a 2019 survey, more than 70% of US respondents said they’d choose an employer with a strong environmental agenda.

The climate crisis already directly impacts where we can live and work. Chronic and acute physical climate risks can heavily impact day-to-day operations, as well as how we source and retain talent. Today, severe weather and downstream impacts on health are already creating climate refugees - in both industrialized and developing regions (source 1, source 2, source 3).

The climate crisis is real, and it’s not a hyperbole.

• We can’t make games if our homes and offices are flooded, on fire, or aren’t built to insulate us from extreme heat.

• We can’t play, download, or stream our games if our power grids are disrupted by challenges for which they weren’t prepared.

• We can’t sell our games if players are dealing with severe weather, food shortages, and limited access to clean water.

• We won’t care about reserving the next cutting-edge game or next-gen console if we only have the energy to focus on keeping ourselves and our families safe.

While the amount of energy needed to stream video content and play games may seem small compared to other industries, the minerals we use to produce devices, the energy consumed by the settings we keep on by default, and our data usage all add up. Even with technological innovation, our industry’s overall footprint depends on most heavily on how electricity is generated.

In response to current and future regulatory risk, major companies are already shifting how they power their servers and networks - as well as implementing new features that can help players be more energy efficient (source 1, source 2).

How we develop content, release updates, and conduct live ops also play direct roles in how we can support players in more climate conscious and resilient ways.

COP26 saw the convening of 120 world leaders and 38K delegates to set ambitious 2030 emissions reductions targets that align with reaching net zero by 2050.

While the outcomes left many concerned commitments made were not enough (source 1, source 2), there’s increasing public pressure for climate action in all industries.

When it comes to technology we use on a daily basis, identify with, and love, the video game industry has a great opportunity to lead the charge - and set the example for other industries to follow suit.

Media and entertainment directly influence what we consider as humans consider socially acceptable or normal. They are inherently real lenses with which we map out who we think we are - and who we can be.

When we transport people from the real world into a different one, research also indicates people are much more open to new ideas than when people are actually trying to persuade them - and that’s with non-interactive books and film! Imagine what’s possible with games, where players interact with characters and tackle big challenges directly.

The video game industry has a potential reach of over 2.5 billion people worldwide, and is forecast to be worth $269 billion by 2025. This translates to many opportunities to spark hope and influence what we as a society value.

The exploitation and destruction of our natural ecosystems does not only undermine our ability to regulate greenhouse gas emissions and protect ourselves from extreme weather events; it is also resulting in a severe loss of life on Earth. If global temperatures rise by more than 3.5°C, we risk losing up to 70% of the world’s known species. Without conservation and protection, this already impacts where we live, and how we source both food and water today.

Climate justice is intrinsically linked to social justice. 80% of the people displaced by the climate crisis are women and communities of color (source 1, source 2). When we think about our industry and how we can create more opportunities for everyone to make and play amazing games, it’s important to factor in how existential threats can impact that access - especially if you’re engaging with members of a community that are still fighting for the resources they need to stay healthy, let alone survive extreme weather events.

Tackling the climate crisis will enable us to lift all boats and thrive.

Ever evolving environmental conditions are having a direct impact on respiratory health. In addition, elevated temperatures have been reported to be associated with worsening symptoms (from decreased cognitive function to anxiety and depression), increased hospitalization, and mortality rates.