1. Exercise Module 2b Assessing Climate Change Business Opportunities
Country, Date, Presenter

2. Objective The objective of this exercise is to:
Identify new business opportunities for the case company that arise from new demands on national and foreign markets due to climate change
Scout new business opportunities for the case company that stem from alternated production conditions caused by climate change
Evaluate and prioritise business opportunities
ToC - Module 2b Exercise

3. Guidance for Facilitators – Opportunities
Plan approx. 1 hour for the exercise
You need to bring the following materials:
Case company handouts
Pens & markers
Flipcharts
ToC - Module 2b Exercise

4. Step 1 Step 2 Step 3 Step 4 Identify climate change phenomena
Identify changes in markets / conditions
Identify business opportunities
Prioritize climate change opportunities
ToC - Module 2b Exercise

5. Identify climate change phenomena
Step 1
Step 2
Step 3
Step 4
Identify climate change phenomena
Identify changes in markets / conditions
Identify business opportunities
Prioritize climate change opportunities
ToC - Module 2b Exercise

6. Introduction to STEP 1 – Identify climate change phenomena
STEP 1 of this exercise is to identify the climate change phenomena potent that give rise to new market opportunities.
At this point, it is only the phenomena that are relevant. They should not yet be assessed according to impacts. This will happen in the next step.
We have already determined climate change phenomena in Module 1. You should revisit these phenomena to see if they are relevant for the target markets of the company as well as its customers
Are there other phenomena in the target markets and production sites of the case company that you have not considered yet?
ToC - Module 2b Exercise

7. Identify climate change phenomena
Step 1
Step 2
Step 3
Step 4
Identify climate change phenomena
Identify changes in markets / conditions
Identify business opportunities
Prioritize climate change opportunities
ToC - Module 2b Exercise

8. Introduction to STEP 2 – Identify expected changes in markets or production conditions
In STEP 2 of this exercise you will identify expected changes in markets or production conditions that inherit the potential for the company to leverage new business opportunities
Climate change phenomena can have impacts on existing customers of the case company.
Climate change phenomena in certain countries or areas can make the products that the company produces relevant for new customers
Climate change phenomena may make customers susceptible to products that the company does not yet produce but could produce easily
Climate change may alter the costs and yields of inputs that the company uses or could use
Climate change will occur around the world, so there are many business opportunities. For now, only consider those markets the company is already operating in as well as production conditions in regions where the company is already sourcing from
For now consider the markets the company ais already operating in, as well as the production conditions in regions where the company pr their suppliers are already sourcing from
ToC - Module 2b Exercise

9. Step 1 Step 2 Step 3 Step 4 Identify climate change phenomena
Identify changes in markets / conditions
Identify business opportunities
Prioritize climate change opportunities
ToC - Module 2b Exercise

10. Introduction to STEP 3 – Identify climate change opportunities
Do you recall the different types of products or services? There are two:
Products that cater to new needs resulting from climate change and help cope with/adapt to changing climate
Products which are easier to produce because of the change of climatic conditions
In STEP 3 it is the goal to think of concrete business opportunities that address the impacts specified in the previous step. This refers to new products and services that allow adaptation to climate change as well as profiting from improved production conditions.
Market opportunities are innovations developed on purpose to tap into new markets and make use of improved production conditions
For example: A company’s irrigation experts may be interested to develop and market the efficiency- enhancing drip irrigation system as a response to decline in rainfall
ToC - Module 2b Exercise

11. Guidance for Participants – Identify climate change opportunities
For this task you should
Join your consultant group
Identify relevant changes in (target) markets and production conditions; come up with resulting business opportunities – both new products and production improvements
Use the information exhibited in the case study but also become creative and come up with new opportunities
Write the business opportunities on the corresponding card; also fill them in the Excel
You have 60 min for this task
ToC - Module 2b Exercise

12. Guidance for Participants – Identify climate change opportunities
Climate change phenomenon
Changed conditions
Business opportunity
Intense rainfalls
Spain: Decreased resilience of crops to intensifying heat waves
Protective nets
Prolonged droughts
Morocco: Lower crop-per-drop water availability
Efficiency-enhancing irrigation
Increased average precipitation levels
Italy: Higher quality of vegetables
Source from different location
ToC - Module 2b Exercise

13. Step 1 Step 2 Step 3 Step 4 Identify climate change phenomena
Identify changes in markets / conditions
Identify business opportunities
Prioritize climate change opportunities
ToC - Module 2b Exercise

14. Introduction to STEP 4 – Prioritize climate change opportunities
Market/Revenue: How large do you estimate the market scope of the opportunity, and hence, what revenue may issue from commercialization?
Technical Feasibility: How complex is the technical implementation of the measure? Has a similar measure been implemented before?
Organisational Feasibility: Would the company have the internal resources (e.g. financial, human captial, and time capacity) to shoulder the development of the product or service?
Competition How many competitors are there and how strong are they?
STEP 4 (Excel Sheet 3.2) aims at evaluating and prioritizing climate change opportunitites for your markets according to three criteria and their ranking proposition.
For each of the criteria, you have to match your opportunity to one of the suggested scores. In the end, you rank them.
Revenue / Market Demand
1 = a) The revenue would only be of marginal interest to the company
b) The market demand for the product, service or innovation does not yet exist
Technical Feasibility
1 = company has very few of the necessary technical means
Organizational Feasibility
4 = high availability of the required organizational capacities and resources
. Let‘s take the example of the protective nets:
Although a promising innovation, market demand may be rather minor, while such low-tech products have small margins
As SunCans® focuses on food processing, it has very few technical means to develop such a product
However, the company would have both the capital and human resources
ToC - Module 2b Exercise

15. Guidance for Participants – Identify market opportunities
Identified Opportunities
For this task you should
Join your consultant group
Look into the descriptions of the point scale for each criteria
Write the scores and priorities for each opportunity on the corresponding card; also fill them in the Excel
You have 20 min for this task
Protective nets:
Market: 1 / TF: 1 / OF: 4
Efficiency-enhancing irrigation:
Market: 3 / TF: 3 / OF: 3
Biological insect control :
Market: 5 / TF: 4 / OF: 4
ToC - Module 2b Exercise

16. 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 agree with the opportunities your partner identified, and how they were ranked?
What are the difficulties in expanding to other markets, especially for your own company?
ToC - Module 2b Exercise

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