This chapter addresses questions about business responses to climate change at several levels: firms, industries, and national and international business associations. It focuses on the economic interests of business, including how interests vary among industries and among firms within industries, and how firms’ and associations’ positions have changed over time.

There have been important splits within “the business community” in what to do about climate change. These splits have sometimes been publicly observable as long-established business associations and ad hoc alliances of firms have splintered over positions on specific pieces of legislation. In addition, while some firms have participated in partnerships with environmental organizations, others have eschewed such arrangements. The themes of variations in firms’ interests vis-`a-vis climate change and how those variations have affected firms’ business practices and political activities are developed by addressing a series of questions: In Section 2.1, which emphasizes diversity in firms’ interests, the key question is: What firms and industries are the leaders and laggards in responding to climate change issues – and why? Who are the winners and losers from climate change policies? In Section 2.2 the insurance industry receives special attention because of its importance as an industry that is directly affected by climate-related loses and as a major investor in many sectors of the economy.