Understanding the adaptive capacity of Australian small-to-medium enterprises to climate change and variability

Abstract Small-to-medium enterprises (SMEs) comprise 96 per cent of all private businesses in Australia. The SME sector is the economy’s largest employer and the largest contributor to GDP. Moreover, SMEs play a significant role within socio-economic systems: they provide employment, goods and services and tax revenue for communities. Climate change may result in adverse business outcomes including business interruptions, increased investment and insurance costs, and declines in financial indicators such as measures of value, return and growth. After natural disasters, SMEs face greater short-term losses than larger enterprises, and may have lower adaptive capacity for various reasons. This study examines the underlying factors and processes shaping adaptive capacity of Australian SMEs’ to climate change and associated sea level rise. Specifically, the research asks the following questions: 1) How have SMEs considered and integrated adaptation into business planning? 2) What are the key underlying processes that constrain and influence the adaptive capacities of SMEs? and 3) What types of support are required to promote SME business continuity under a changing climate? The study adopts theories from Political Ecology and draws on literature on vulnerability and hazards to understand the processes that mediate the adaptive capacity of SMEs. The empirical research involved an online survey targeting SMEs, attending business engagement events hosted by chambers of commerce, 30 semi-structured interviews with secondary stakeholders, five case studies involving SMEs and secondary stakeholders, and finally a stakeholder workshop which brought together participants from both groups. The central conclusion of this study is that underlying contextual processes are critical to enhancing the adaptive capacity of SMEs. These processes include: the social relationships between SMEs and support organisations; the relationships within support organisations themselves; the agency of SMEs to direct resources toward building resilience into business continuity; SMEs’ perceptions of climate risks; and power struggles between support organisations. Unfavourable combinations of these processes have the potential to limit the adaptive choices that SMEs can adopt in order to overcome climate change and other related stresses on business continuity. These processes generate vulnerability and often occur at scales external to the SMEs;including relationships between different tiers of government as well as between various support organisations working with SMEs. These contextual processes have been largely overlooked in formal programmes that aim to build business resilience. The programmes have tended to be reactive and have tended to focus on business recovery during and after disasters rather than on altering the vulnerability context of SMEs through anticipatory prevention and preparedness or adaptation planning. This study suggests that the success of efforts to build the adaptive capacity of SMEs to future climate and related stresses will depend on how they address these underlying processes to facilitate the ability of SMEs to exercise their agency in pursuing adaptive choices that they value

Confronting climate change and variability : Enhancing adaptive capacity of water management in Kiribata

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Mental preparation for climate adaptation: the role of cognition and culture in enhancing adaptive capacity of water management in Kiribati

In many Least Developed Countries (LDCs) and Small Island Developing States (SIDS), such as in Kiribati, formal national adaptation programmes are currently being operationalised or are in the pipeline. A key focus is on motivating householders to adapt in anticipation of climate change through pilot community projects. In this paper, we argue that the water sector must pay equal attention to how communities cognitively perceive the process of adaptation if interventions are to be effective. Adopting a cognitive model to gain such insights we conclude that individual's belief in their own abilities to manage water stress play a crucial role in driving intentions to adapt and therefore greater attention needs to be placed on understanding the underling drivers shaping such beliefs

Overcoming cross-scale challenges to climate change adaptation in local government: A focus on Australia

Abstract This paper aims to identify key cross-scale challenges to planned adaptation within the context of local government in Australia, and suggest enabling actions to overcome such challenges. Many of the impacts of climate change and variability have or will be experienced at the local level. Local governments are embedded in a larger governance context that has the potential to limit the effectiveness of planned adaptation initiatives on the ground. This study argues that research on constraints and barriers to adaptation must place greater attention in understanding the broader multi-governance system and cross-scale constraints that shape adaptation at the local government scale. The study identified seven key enabling actions for overcoming cross-scale challenges faced by local governments in Australia when undertaking climate change adaptation planning and implementation. A central conclusions of this study is that cooperative and collaborative approach is needed where joint recognition of the scale of the issue and its inherent cross-scale complexities are realised. Many of the barriers or constraints to adaptation planning are interlinked, requiring a whole government approach to adaptation planning. The research suggests a stronger role at the state and national level is required for adaptation to be facilitated and supported at the local level

Traditional Coping Strategies and Disaster Response: Examples from the South Pacific Region

The Pacific Islands are vulnerable to climate change and increased risk of disasters not only because of their isolated and often low lying geographical setting but because of their economic status which renders them reliant on donor support. In a qualitative study exploring the adaptive capacity of Pacific Island Countries (PICs) across four countries, Cook Islands, Fiji, Samoa, and Vanuatu, it was clear that traditional coping strategies are consistently being applied as part of response to disasters and climate changes. This paper describes five common strategies employed in PICs as understood through this research: recognition of traditional methods; faith and religious beliefs; traditional governance and leadership; family and community involvement; and agriculture and food security. While this study does not trial the efficacy of these methods, it provides an indication of what methods are being used and therefore a starting point for further research into which of these traditional strategies are beneficial. These findings also provide important impetus for Pacific Island governments to recognise traditional approaches in their disaster preparedness and response processes