Which SMEs to target

Virtually all businesses will feel the impacts of climate change in some way, so will benefit from advice on adaptation. However, not all businesses are equally vulnerable to climate change. Similarly, different areas of the UK rely on different business sectors for their economic prosperity. In some cases the benefits of adaptation at an SME will be felt more widely than just within the business.

It is up to the strategic priorities of business support organisations to decide which SMEs to target, however as a guide, focussing on the following is likely to achieve the most benefit:

Sectors whose products, services or processes are weather dependent

For example, anything that relies on the natural environment or outdoor activity, such as agriculture, high street shopping, tourism and leisure. The sales of certain products are linked to the weather, such as some food and clothing. Similarly, demand for some services such as cleaning, building, insurance or consultancy may be linked to the weather or climate. Some industrial processes and equipment are temperature sensitive, for example server rooms, waste management and printing technologies are just a few examples.

Companies involved in making decisions with long-term consequences

For example those involved in building or large scale infrastructure projects, farmers of crops or animals that take a long time to mature or those developing new products or services that will take a long time to get to market. Also, those companies who are considering relocating or purchasing new equipment may want to consider the climate that these new arrangements will need to function in.

Companies that are already affected by extreme weather

Building resilience to extreme weather events can create benefits even in the absence of climate change. This is particularly true where the business has already been affected by a recent event, such as flooding, heatwave, subsidence or stormy weather. The frequency and intensity of these types of events will increase as the climate changes, so there is a strong argument for adaptation.

Companies that are in a position to provide adaptation solutions to society or increase the resilience of the local community

Some adaptation measures are public goods in that they will have benefits beyond the party who pays for them. The private sector will have a role to play in providing these as well as delivering the products and services that the public sector will require to create a resilient society. Flood defences, improved drainage, cooling and ventilation technologies, safe and comfortable public transport and urban design are all examples where SMEs could provide a contribution.

Sectors highlighted as strategically important to the locality

Regional economic strategies or data on the relative contribution of different sectors to productivity and employment in the area. Focussing on SMEs in these key sectors will increase the benefit to the regional or local economy.