Climate Impact Assessment
IMPACT ASSESSMENT
Assessing climate impacts on your business
Flood, cyclone, drought, heat wave, and sea level rise are the common physical risks of climate change in Southeast Asia.
Several Southeast Asian countries, in particular Viet Nam, Lao PDR, and Thailand, have extremely high exposure to flooding while the Philippines has high exposure to cyclones
Historically, women-owned SMEs are more vulnerable to these risks. Our localised study revealed the same trend.
Therefore, it is particularly useful to study some disaster mappings, and plan out your business operations properly – such as not establishing your factory in a disaster-prone zone.
Where assets already exist in disaster prone zone, SMEs should include a disaster recovery plan that outline steps to minimise disruptions from disasters and ensure that the business can continue to operate or resume critical functions. This can include emergency preparedness measures, business continuation and building repair plans, and insurance programme.
Therefore, it is particularly useful to study some disaster mappings, and plan out your business operations properly – such as not establishing your factory in a disaster-prone zone.
Where assets already exist in disaster prone zone, SMEs should include a disaster recovery plan that outline steps to minimise disruptions from disasters and ensure that the business can continue to operate or resume critical functions. This can include emergency preparedness measures, business continuation and building repair plans, and insurance programme.
QUESTIONS
High risk impact to your business
Below are questions to guide your climate impact assessment:
- Is your business, suppliers, and/or employees located in a vulnerable area with high exposure to the physical risks of climate change e.g., flood, cyclone, heat wave, drought, sea level rise?
- Are your business operations affected by climate change e.g., disruption in your supply chain, production and logistics, risks to employee’s health, lower access to raw materials, energy, and water or increase in prices of such inputs?
- Is your business or assets insured against climate physical risks?
QUESTIONS
Medium risk impact to your business
Below are questions to guide your climate impact assessment:
- Is the machinery & equipment used by your business able to withstand high heat or water resistant?
- Are the products produced by your business able to withstand high heat or water resistant?
- Is legislation in your country requiring changes in your products and/or business operations due to climate change concerns (e.g.: energy efficient equipment, no single use plastic, need for eco labels, etc.)
- Are your consumers showing a preference or demanding more sustainable products/operations?
- Is your business prepared to respond to the key climate change challenges in your industry/sector?
- Is your business well-equipped to meet investors’ growing green expectations to ensure access to capital?
QUESTIONS
Medium risk impact to your business
Below are questions to guide your climate impact assessment:
- Is the machinery & equipment used by your business able to withstand high heat or water resistant?
- Are the products produced by your business able to withstand high heat or water resistant?
- Is legislation in your country requiring changes in your products and/or business operations due to climate change concerns (e.g.: energy efficiency equipment, no single-use plastic, need for eco-labels, etc.)
- Are your consumers showing a preference or demanding more sustainable products/operations?
- Is your business prepared to respond to the key climate change challenges in your industry/sector?
- Is your business well-equipped to meet investors’ growing green expectations to ensure access to capital?
Markets
Access to new markets (wider supply chain increasingly demand low carbon products and services)
Resilience
Resource diversification, use of renewable energy, climate adaptive resiliency
Insurance Review
