Mobilising business will be crucial to adapting to climate change – according to two new reports, presented at a side event in Barcelona.

The reports indicate that businesses - from international multinationals to small local enterprises - must be encouraged and supported to play a much more active role in adapting to, and helping to tackle, the inevitable effects of climate change in developing countries. The success of national adaptation plans will depend on whether they enable businesses to adapt and continue to provide jobs, livelihoods and essential services.

Adapting to new risks

The 'Business of Adaptation' produced by AccountAbility and the International Institute for Environment and Development (iied), says that the role of the private sector in adaptation has been under explored, both by business and governments but 'mobilising business will be crucial to effective national adaptation strategies'.

 

The report warns that all kinds of private actors, from household and informal sector enterprises to state-owned and multi national companies, will need to adapt to protect their own assets and meet the needs of their customers and supply chains in a harsher environment.  For example, agricultural companies will need to develop drought resistant crops, manufacturers will have to be more aware of ensuring access to water, power, materials and distribution networks and property developers will have to take climate change into account when looking for sites to build on.  

 

Critically, business will also need to consider how their actions, such as shifting location or supply base, will impact on communities dependent on supply chain linkages for jobs or on land for food production.  

 

As well as managing risks the report forecasts new business opportunities. For example, working with governments to finance and deliver public sector adaptation actions such as building and operating sea-defences and early warning systems.

World Economic Forum

Meanwhile recommendations from the Low-Carbon Prosperity Task Force – a business-led multi-stakeholder group– supports the call for a major public-private dialogue to increase our understanding of policies required to catalyse private sector engagement in adapting to climate change.  The Adaptation Working Group of the Task Force, led by The World Economic Forum, calls on the public and private sector to work closely together to ensure that public funds and associated policy instruments leverage the maximum possible adaptation actions by all parties. Download report