Key messages

SMEs have specific characteristics and needs and these inform the way in which climate-related information and support can be made most useful for them. For example, Smaller businesses could be more vulnerable than larger organisations, because they have fewer resources to help them prepare and respond. But SMEs can also be more flexible and able to respond more rapidly to changing conditions.

The following summarises the main lessons from UKCIP’s own experience (and that of our strategic partners) in working with SMEs and with those who advise them.

• The upsides are more engaging – SME leaders are often entrepreneurial and are more likely to be engaged by messages that also emphasise the opportunities from climate change. Of course, it is still important to communicate the risks.

• Where planning horizons are short, focus on resilience to current weather – Most businesses are focused on short planning horizons and climate change can seem remote. But many SMEs are not prepared for the risks of the current climate, so that there is a business benefit to adaptation in the short term.

• Key risks often relate to markets and supply chains – Being small in terms of their own premises and workforce, many SMEs may be more exposed to climate risks through their markets and supply chains, which can be UK wide or international. The impacts of local climate or weather events will still be important, of course.

• An informal approach might be appropriate – SME leaders may be less likely to use structured decision-making processes than those in larger companies, or to need to justify their actions and decisions to shareholders etc. It will be important to integrate climate and weather risks into this ad hoc decision-making.

• Integrate with core business concerns – Although both mitigation of the causes of climate change and adaptation to its consequences are critical business issues, bundling adaptation messages with mitigation usually causes confusion. It is more useful to integrate adaptation issues with similar business areas, such as business continuity planning, risk management, health and safety arrangements, flood plans etc. It may be less helpful to treat it as an aspect of environmental management.

• Look for where benefits are more certain – It is difficult for a small business to spend time or money preparing for something that may or may not happen. Therefore approaches that focus on high likelihood weather events might be the most appropriate, even where these have smaller magnitudes.