There are many benefits associated with taking a “value chain approach” to climate resilience because climate change affects companies beyond corporate fence lines and national borders, and presents important opportunities for lifecycle thinking and creative collaborations. Within this approach, special focus is given to local communities and the natural environment because of their essential roles within business value chains. Community risks are business risks because communities provide key resources to companies, as well as a “social license to operate.” Though rarely quantified, ecosystems provide natural goods and services of considerable economic value to businesses, such as flood protection and water treatment.
This guide introduces the Business ADAPT (analyze, develop, assess, prioritize, and tackle) tool. The tool follows a step-by-step climate resilience framework inspired by existing good practice risk management models. Many businesses will benefit from using the Business ADAPT tool, including businesses with these characteristics:
- Have long-lived fixed assets
- Use utility and infrastructure networks
- Secure natural resources
- Create extensive supply/distribution networks
- Require finance and investment