1. Country, Date, Presenter
Presentation Module 3b Identifying and Prioritising Climate Change Adaptation Measures
Country, Date, Presenter

2. Objective The objective of this module is to:
learn about adaptation and measures strategies
get to know different types of positive side effects
review by which criteria adaptation measures are compared and prioritized
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3. Adaptation Strategies & Measures Selection of Adaptation Measures
Outline / Agenda
Adaptation Strategies & Measures
Selection of Adaptation Measures
Positive Side-Effects and Competitive Advantage
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4. I. Adaptation Strategies & Measures
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5. I. Adaptation Strategies & Measures - Overview
Adaptation is essential to a company‘s climate resilience as it greatly influences how severely climate impacts and risks eventually manifest as negative business effects- or whether positive side effects can be leveraged.
Adaptation strategy plays a key role in this process. The more sophisticated and planned through it is, the better negative effects from climate change on the business can be fought off.
Strategy is "the determination of the basic long-term goals and objectives of an enterprise, and the adoption of courses of action and the allocation of resources necessary for carrying out these goals.”
- Peter Drucker -
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6. Anticipatory Adaptation Integrated Adaptation
I. Adaptation Strategies & Measures - Flood protection measure – timing and integration
Time
Adaptation made afterwards
Reactive Adaptation
Anticipatory Adaptation
Integrated Adaptation
Company anticipates and prepares for changes and integrates it to its biz model / supply chain
No anticipation of impacts and / or no action
Company severely affected
Company somewhat affected
Improvements made to single measure
Company anticipates changes and prepares for them
Company might even profit
Improvements made to strategy
Flooding occurs
adapt
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7. I. Adaptation Strategies & Measures - Overview
After being clear about the adaptation strategy, you have to opt between different adaptation measures. These comprise technical (grey), ecosystem-based (green), or solutions concerning management issues (soft).
Multiple factors influence the nature of adaptation measures, which in the end, must also coincide with your adaptation strategy: For example, ask yourself if a measure should only be cost-effective or also contribute to achieving social and environmental co-benefits?
Grey
Green
Soft
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8. I. Adaptation Strategies & Measures - Technical measures (grey)
Source: Oxfam
Source:
Technical measures chiefly reduce the physical vulnerability of a company, locations of production or processing
Examples: insulation for buildings, flood- and storm-resistant construction of buildings, physical barriers to protect buildings from flooding
Features: immediate risk reduction, medium- and long-term pay-offs
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9. I. Adaptation Strategies & Measures - Green adaptation measures (green)
Source: adelphi
Source:
Ecosystem‑based adaptation measures often make use of and equally sustain ecosystems and their services, hence contributing to the sustainability performance of a company
Examples: installation of flood storage areas, planting of trees, green roofs and walls
Features: low-cost, flexible solutions to increase the adaptive capacity and to limit climate change impacts
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10. I. Adaptation Strategies & Measures - Managerial adaption measures (soft)
Managerial solutions do not include physical infrastructure but rather deploy digital services or knowledge and capacity building measures
Examples: monitoring of environmental data and adaptation progress within the company, taking up climate change relevant insurance (e.g., flood insurance), formation of a climate adaptation team
Features: adaptation to increase the internal / organisational capacity and ability to deal with climate change
Source: adelphi
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11. I. Adaptation Strategies & Measures - Adaptation options
Flexible or adaptive adaptation options involve putting in place incremental adaptation options rather than undertaking large-scale adaptation at one point in time
Win-win actions contribute to adaptation whilst also having other social, economic and environmental policy benefits, including those relating to mitigation
Adaptation options
Win-Win options
Low regret options
Flexible/ adaptive mgmt.
No regret options
Adaption measures can be classified according to the benefits they yield.
No-regret actions
are cost
-effective under current climate conditions and are consistent with addressing risks of climate change, they possess no hard trade-offs with other policy objectives
Low-regret actions
are relatively low cost and provide relatively large benefits under predicted future climates
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Source: UKCIP & Martin
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12. I. Adaptation Strategies & Measures - Example: Response of a food processor facing more heatwaves
Negative effects on the business in the area of
Potential adaptation measures
Buildings and infrastructure
Secure and increase water sources
Processes
Water recycling system
Logistics and stock
Heat-resistant roof for storage depot
Employees and community
Collaboration with community for joint water management
Market
Product offer with heat-protecting packaging
Finance
Credit for energy efficiency investment
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13. I. Adaptation Measures and Strategies - Example: Response of a chemical company to flooding risks
Negative effects on the business in the area of
Potential adaptation measure
Buildings and infrastructure
Secure most important machinery from floods
Processes
Close unwanted leakages
Logistics and stock
Emergency plan for keeping up supply to market
Employees and community
Emergency plan for employees
Market
Regional diversification of buyer base
Finance
Insurance against damages from extreme weather
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14. II. Selection of Adaptation Measures
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15. Awareness Raising Workshop on CCA 2015
II. Selection of Adaptation Measures - Overview of steps in strategizing adaptation
Select risks to address from the risk assessment
Identify measures (grey, green, soft)
Assess measures according to criteria
Select measure(s) to be implemented
After having picked several adaptation measures, it is crucial to scrutinize their suitability and effectiveness by an array of criteria.
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Awareness Raising Workshop on CCA 2015

16. II. Selection of Adaptation Measures - Multi-Criteria Analysis
Feasibility
Grey
Green
Soft
Potential for cost reductions
Synergies with other measures
Positive environmental and social impacts
Reversibility
Technical feasibility
Internal feasibility (skills)
Investment and running costs
Potential for risk reduction
Positive side effects / Competitive advantage
By what is called a Multi- Criteria Analysis, the shortlisted measures can be evaluated and ranked.
On climate / environment / community
On existing processes and approaches
Negative side effects
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Awareness Raising Workshop on CCA 2015

17. II. Selection of Adaptation Measures - Multi-Criteria Analysis
The criteria partly contain several sub-aspects. To simplify, the following questions give you an understanding about each one’s core objective:
Potential for risk reduction: How helpful is the measure? Will it be necessary to implement additional measures to fully tackle the risk?
Feasibility: Does the company have the required resources to implement the measure?
Positive side effects / competitive advantage: Does the measure have positive effects on aspects of the business which had not been targeted by it?
Negative side effects: Will other aspects of the business, the environment, or external stakeholders such as communities suffer from the implementation of the measure?
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18. III. Positive Side Effects and Competitive Advantage
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19. III. Positive Side Effects and Competitive Advantage – Example: Cost savings through risk reduction measures
Adaptation measures that –while reducing risks – entail positive side-effects, are especially attractive.
Drip irrigation as a response to lowered rainfall, for example, mitigates the vulnerability of collapsing groundwater aquifers (risk reduction) and decreases operational costs (gains in competitiveness).
JobyElliott, CC BY 2.0
Alongside positive side effects, adaptation measures may also cause negative effects.
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20. III. Positive Side Effects and Competitive Advantage – Four Types
Opportunities for cost reduction in operations
1. Operations
Opportunities for improving a company’s reputation among key stakeholders
2. Reputation
Opportunities for developing the skill-base of the future
3. New skills and repositioning
Opportunities for anticipating regulation and becoming a first-mover
4. Regulation
Competitive advantage resulting from risks reducing measures
Add examplary adaptation measures by companies that have been implemented in your country
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21. III. Positive Side Effects and Competitive Advantage – Operations
Competitive advantage through cost reduction
How?
Introducing technologies / measures which reduce the resource intensity of production processes and products
Benefits
Cost savings through greater efficiency and effectiveness
Add examplary adaptation measures by companies that have been implemented in your country
Example
Integrated water-, waste- and energy management
Reduces vulnerability to climate change impacts
Reduces costs due to lower resource consumption
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22. III. Positive Side Effects and Competitive Advantage – New Skills and Repositioning
Competitive advantage through a strategic repositioning
Review internal processes and skills: are they adequate to address risks and seize opportunities from adaptation?
Innovate internal processes to be future-ready
Reposition skill-base towards future-oriented markets
How?
Benefits
Long-term sustainability of the business
Competitive advantage through early repositioning
Add examplary adaptation measures by companies that have been implemented in your country
Example
Implement training programmes on energy-efficiency for your staff
Integrate an environmental engineer in your team who can increase the resource efficiency of your products
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23. III. Positive Side Effects and Competitive Advantage – Reputation
Competitive advantage through greater trust by stakeholders
Through dialogue, marketing and cooperation activities which target the community, company staff and their families, local authorities, customers and investors
How?
Consumer loyalty, social peace with regard to community, better access to financing, improved relations with government institutions
Benefits
Add examplary adaptation measures by companies that have been implemented in your country
Example
Projects with communities to develop and implement adaptation measures benefiting company and community
Avoid conflicts with neighbouring communities
Demonstrate social responsibility
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24. III. Positive Side Effects and Competitive Advantage – Regulation
Competitive advantage from anticipating regulation
Monitor developments in the regulatory field concerning adaptation topics (water efficiency, toxic discharge etc.)
Engage in dialogue with policy makers
Prepare your business for potentially upcoming regulation
How?
Benefits
Advantage over competitors as you achieve compliance early on, while competitors are punished for non-compliance
Early access to upcoming support or funding schemes
Add examplary adaptation measures by companies that have been implemented in your country
Example
Keep yourself informed about regulatory developments through participation in industry fora, dialogue processes etc.
Develop actions plans / implement measures proactively
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25. Experience from practice – Examples of Climate Expert implementation
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26. Discussion – Climate Change Phenomena, Impacts & Adaptation
How well are SMEs in your country planning or implementing adaptation measures already?
Generally speaking, what kind of adaptation measures do you find most appealing?
A lot of attention was paid to the positive side effects: Have you had experience with negative side effects?
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27. Thank you for your attention!
GIZ Germany Ms Janina Wohlgemuth +49 (0) –
adelphi Germany
Mr Frederik Eisinger (0) – 69
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28. Sources
CSC, GIZ, Wageningenur, & BMUB, 2011 : Climate Fact Sheet Rwanda, extract from Climate Report Available at: center.de/imperia/md/content/csc/kongo/fact_sheet_climate_rwanda.pdf C2ES, 2011: Extreme weather and Climate Change. Available at: C2ES 2013: Weathering the Storm: Building Business Resilience to Climate Change. Available at final.pdf GIZ & adelphi 2013: Trainers Maunal. Facing the Impacts of Climate Change. Indian SMEs and Climate Change. Available at: Martin, Suzanne: Examples of no-regret, low-regret and win-win adaptation actions. Available at: McKinsey & Company 2015: How Companies can Adapt to Climate Change. Available at: productivity/our-insights/how-companies-can-adapt-to-climate-change UKCIP: Identifying Adaptation Options. Available at:
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