Exercise Module 1 Climate Change, Impacts, and Effects on the Business Country, Date, Presenter

Objective The objective of the exercise is to: Assess climate change phenomena relevant for the location of the case company Learn to distinguish between climate change phenomena and their impacts on the company Identify the negative and positive effects on the business derived from the impacts, as well as the resulting opportunities for adaptation for the company Develop measure to prepare for the expected business effects Assess the future relevance of the climate phenomena ToC - Module 1 Exercise

Identify climate phenomena Identify effects on the business (-/+) Step 1 Step 2 Step 3 Step 4 Step 5 Identify climate phenomena Identify impacts Identify effects on the business (-/+) Measures taken Future trend ToC - Module 1 Exercise

Identify climate phenomena Identify effects on the business (-/+) Step 1 Step 2 Step 3 Step 4 Step 5 Identify climate phenomena Identify impacts Identify effects on the business (-/+) Measures taken Future trend ToC - Module 1 Exercise

Gradual climate change Introduction to STEP 1 – Identification of past and future climate change phenomena In STEP 1 of this exercise you will identify climate phenomena in the case country as well as at locations where the companies’ value chain partners are located. An example could be that the number of heat waves has increased over the last 10 years and heat waves have also gradually become longer and the maximum temperatures higher. Remember the distinction between two types of phenomena Extreme weather Gradual climate change Kelly Sikkema CC0 1.00 Chuck Simmons CC BY 2.0 ToC - Module 1 Exercise

Identify climate phenomena Identify effects on the business (-/+) Step 1 Step 2 Step 3 Step 4 Step 5 Identify climate phenomena Identify impacts Identify effects on the business (-/+) Measures taken Future trend ToC - Module 1 Exercise

Introduction to STEP 2 – Identify the impacts of climate change phenomena STEP 2 identifies impacts on the natural and human system from the climate change phenomena that have a relevance for the company. The actual losses and damages that the companies incurs are identified in STEP 3 Remember that in some cases a series of impacts needs to occur before it has an effect on the company Examples are: Increase in intensity of heavy rains → landslides, flooding, water logging Increase in mean temperature → increase in vector-borne diseases ToC - Module 1 Exercise

Identify climate phenomena Identify effects on the business (-/+) Step 1 Step 2 Step 3 Step 4 Step 5 Identify climate phenomena Identify impacts Identify effects on the business (-/+) Measures taken Future trend ToC - Module 1 Exercise

Introduction to STEP 3 – Negative / positive effects on the business STEP 3 identifies the potential negative/positive effects on the business that the company incurs from the impacts identified in STEP 2. An effect on the business is the direct effect the impact has on the company. Keep in mind both direct and indirect effects as well as the 7 areas of possible impact areas When doing an economic analysis the negative effects on the business needs to be quantified in monetary terms. ToC - Module 1 Exercise

Introduction to STEP 3 – Negative / positive effects on the business Moreover, consider that there are two types of opportunities: Products that cater to new needs resulting from climate change and which help cope with/adapt to changing climate Products which are easier to produce because of the change of climatic conditions Example: Better growing conditions for certain plant species: planting new crop/fruit species that have a higher market value ToC - Module 1 Exercise

Guidance for Participants Guidance for Participants – Phenomena, impacts and negative effects on the business For this task you should Join your consultant group Read the company case and identify the identify climate change phenomena, impacts and (negative/positive) business effects that the company has experienced or is expected to experience in the future Write the information in the three categories on notecards and pin them next to each other; also fill them in the Excel You have 60 min for this task ToC - Module 1 Exercise

Guidance for Participants Guidance for Participants – Phenomena, impacts and negative effects on the business Climate Change Phenomenon Impacts of Climate Change Phenomenon Negative effects on the business Increase in intensity of heavy rain More frequent and stronger flooding Destruction of buildings and products Landslides Spoilage of goods Water logging Absenteeism of workers ToC - Module 1 Exercise

Identify climate phenomena Identify effects on the business (-/+) Step 1 Step 2 Step 3 Step 4 Step 5 Identify climate phenomena Identify impacts Identify effects on the business (-/+) Measures taken Future trend ToC - Module 1 Exercise

Introduction to STEP 4 – Identify adaptation measures STEP 4 of this exercise is about identifying adaptation measures that the company has already implemented or could implement for addressing potential negative/positive effects on the business identified in STEP 3. This list may not need to be exhaustive but should be a first collection of ideas as well as measures that have been implemented in the past. A more thorough collection of measures will be undertaken in Module 3 after the risks and opportunities have been prioritised. ToC - Module 1 Exercise

Guidance for Participants – Identify adaptation measures For this task you should Join your consultant group Read the company case and identify existing and potential adaptation measures for the negative/positive effects on the business Write the potential adaptation measures on notecards and pin them next the corresponding effect on the business; also fill them in the Excel You have 15 min for this task Negative effects on the business Adaptation measure Destruction of buildings and products Building dams / flood gates Spoilage of goods AC storage facility ToC - Module 1 Exercise

Identify climate phenomena Identify effects on the business (-/+) Step 1 Step 2 Step 3 Step 4 Step 5 Identify climate phenomena Identify impacts Identify effects on the business (-/+) Measures taken Future trend ToC - Module 1 Exercise

Introduction to STEP 5 – Assess future relevance of climate change phenomena STEP 5 of this exercise is about assessing the development of the identified climate phenomena in the future. You should think about projections and expected changes in the case study region. Some questions that you can ask are: How is the mean temperature going to change? Will the region more or less rainfall? Will there be more droughts or floods? While the impacts of climate change are uncertain, there is often information available on the general climatic trends. If you do not have enough information available, you can work with different (hypothetical) scenarios. ToC - Module 1 Exercise

Discussion – Comparing results This exercise is about presenting the results to your peers and discussing how this is relevant for any real climate change adaptation assessment. After presenting the results discuss the following questions: Do you think this approach can serve you to identify the key risks and opportunities of real companies? What could be challenges in applying this step to a real company? How would you identify the key climate trends for a real company? ToC - Module 1 Exercise

Thank you for your attention! Company Trainer 1 Telephone number E-Mail address Homepage Company Trainer 2 Telephone number E-Mail address Homepage Knowledge partner ToC - Module 1 Exercise