New analysis method assesses the economic impacts of climate change on Indian SMEs

adelphi enhanced its widely used Climate Expert approach to include an assessment of how climate risks and opportunities impact businesses. On behalf of GIZ, adelphi joined forces with local companies to explore how early implementation of adaptation measures can prevent financial losses.

19/03/2014

Over the decades to come, climate change will bring about significant changes in the business environments of small and medium-sized enterprises (SMEs) in India. Companies in India already face business risks caused by the negative impacts of climate change, such as more severe and frequent storms or water shortages due to increased dry periods and longer hot spells. At the same time, changing climate conditions and the resulting changes to the market also create scope for Indian companies to offer new products and services.

On behalf of the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), adelphi developed the Climate Expert approach – a method to analyse climate change adaptation measures – to help Indian SMEs identify these climate risks and opportunities. This widely used and tried-and-tested approach has been enhanced to include an economic assessment of climate risks and opportunities, making it possible to gauge how companies can prevent financial losses by implementing adaptation measures early on. adelphi conducted two pilot analyses in Indian SMEs to test these new components and also organised workshops to introduce the new analysis method to representatives of Indian SMEs.

In March 2014 the think tank invited a number of Indian consultancies from the area of climate change and the private sector to a workshop in Delhi in order to select an institution to spread the Climate Expert approach in India. adelphi also visited a pharmaceutical company in Hyderabad (Andhra Pradesh) and a textiles company in Ludhiana (Punjab). The information gathered will now be used to compile case studies to assess the economic risks and opportunities of climate change for SMEs. As well as conducting appraisals of individual companies, adelphi held workshops to present the Climate Expert and the new economic assessment method to other companies in Hyderabad and Ludhiana (Punjab).

Please find more information on the Climate Expert approach under www.climate-expert.in