Business Adaptation to Climate Change

Blog Action Day is the right moment to share the findings of recent research on climate change!

The Network for Business Sustainability has looked at over 200 studies since 1997 on climate change adaptation.The research project’s findings are structured in four reports: concepts&theories, current practices, case studies and tools, knowledge gaps&future research and I will present some of the most important research findings and their implications for managers.

• As there is no agreed definition of business adaptation to climate change and theories on adaptation are still underdeveloped, the research study emphasizes the need to develop shared definitions which should be the result of a collaborative effort between firms, academia, government and NGO’s. The adaptation discussion should also become mainstream within the firm, the sector, and in multi-sectoral platforms.

• Business adaptation to climate change differs across sectors in terms of risks, opportunities, strategies and tools. Several sectors are leaders in adaptation to climate change: the insurance sector is a leader in risk assessment, the agriculture and tourism sector are leaders in their awareness of climate impact. Consequently, the Network for Business Sustainability advises managers, especially from leading organizations to collaborate within/across sectors in order to share knowledge and develop solutions.

• Unfortunately,  the third report clearly states that :”In general, business is taking a ‘wait-and-see’ approach, with adapters being the exception rather than the rule.” but the researchers warn that such an approach comes with great risks.

• Existing tools deal mostly with risk management (risk frameworks, scenario tools, decision trees, costing tools, computer simulation tools) but there is a need to develop tools for risk modelling and opportunity assessment. Moreover, there is a need to undertake real adaptation measures and strategies beyond short-term measurements and GHG (Green House Gas) mitigation.

More about climate change:

COP15 , the United Nations Climate Change Conference,December 2009.

Interview with the Danish Minister, Connie Hedegaard

What can you do?(the European Union’s website on climate action)