Defra launches climate adaptation toolkit for SMEs
Louise Bateman
30th March 2011
The Government has launched a free online toolkit to help small and medium-sized enterprises (SMEs) better prepare their businesses for floods and other environmental threats brought on by climate change.
The
Climate Resilience Toolkit has been designed by the
Department for Environment, Food and Rural Affairs (Defra) and the
Chartered Institute of Management Accountants (CIMA) and is described as "a quick and simple" application specifically aimed at
SMEs. It is being made available for use on the Business Link website.
Launching the toolkit yesterday, Environment Minister Lord Henley said it could bring business opportunities to
SMEs, as well make them more resilient to climate change.
"Climate change will have impacts on all UK businesses, such as the availability of resources, demand for different products, and the increased threat of floods, drought and other extreme weather. But smart businesses that take action now to limit the risks and identify the opportunities climate change could bring will steal a march on their rivals," he said.
Risks to businesses
Businesses risk paying a heavy price if they don’t prepare properly for warmer, wetter winters; hotter, drier summers and severe weather and flooding, says Defra. Cumbria was devastated by severe flooding in November 2009, while the floods of 2007 cost businesses around £740 million, according to Government figures. Yet, a survey commissioned by Defra last year found that two thirds of the UK’s largest businesses have not yet acted on the risks and opportunities that climate change poses.
According to
Andrew Harding, executive director, CIMA Markets, SMEs are even less well prepared. "Many SMEs fail to prepare for climate change, leaving it to the big players in industry to manage and mitigate those risks. This can leave many SMEs in a vulnerable position," he says.
How it works
The Climate Resilience Toolkit allows companies to assess the risks of climate change to their businesses, from the threat of flooding to premises, to the robustness of the supply chain, to potential changes in customer demand for products. It takes the user through a series of easy to answer questions, providing a tailored report at the end of the session.
Although designed by management accountants, it has been built for any small business owner to use and implementation of measures in the report should not entail large outlays, according to CIMA.
"This is not about heavy
investment," said Harding.
While targeting SMEs, the toolkit is intended to apply to all business sectors of the economy, although farmers and those working in the
food supply chain are expected to find it particularly useful, said Henley.
Although aimed at SMEs, Henley admitted, yesterday, Defra had not yet approached any business organisation other than CIMA to help promote the tool to small businesses.
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Related links:
www.businesslink.gov.uk/climaterisk
