Local businesses have secure access to climate resilient markets, technologies, financing and transport channels

Goal Feedback 3.3

Supporting the development and continuation of locally diverse and prosperous markets through innovation and planning.

We must build resilience into current local markets, particularly those in the agriculture and manufacturing sectors.

Climate change will impact our local markets in two significant ways through environmental changes and businesses’ transition to be net-zero carbon operations. For example:

  • Increased likelihood of unfavourable weather for the growing conditions will impact farmers’ essential products’ price and demand.
  • Investment institution like pension and superannuation funds will increasingly seek investments with long-term time horizons.

One of the main barriers is the cumulative impacts of so many disruptions over the last decade.  The global financial crisis, globalisation, droughts, floods, and trade conflicts are still being dealt with by local businesses. The result of these cumulative impacts means businesses struggle to get ahead. The other key challenge is a clear signal from all government levels to ensure that businesses invest. This uncertainty has slowed down the culture of local innovation on climate impacts or transitioning to low carbon future.

Objective Feedback 3.2.1

Supporting sustainable and secure financing for businesses through innovation and planning.

Company finances will be affected by climate change through the cost of damage to assets and property, disruption and lost sales.

Businesses need to have access to finances to support their effort to avoid, minimise and insure against the impact of climate change on their business. Those who insure wisely are the quickest to recover after events.

There are many barriers to accessing finances. The high cost with retrofitting existing buildings or relocating is not attractive when managing existing larges debts.

There is also limited financial mechanisms for business to access low-interest loans. Those that do exist are hard to access or have a high level of administration requirements.

The finance sector itself is also vulnerable. Huge insurance settlements are becoming the norm. Increased insurance premiums are making it tempting for businesses to cut back on insurance and accept more risk.

Objective Feedback 3.2.2

Supporting responsibility, operations and processes through innovating and planning

Disruption to business operations and processes might be immediate due to extreme weather events such as storms and floods,
or more gradual with a future of warmer climate.

Or more gradual with a future of warmer climate. Excessive heat in summer will affect IT servers, on-site construction processes and food preparation and storage.
Existing crops may no longer be viable in new climate conditions.

To adapt to this change businesses need access to technical support and affordable technologies to help them transition and developed a new way of operating in a changing climate.

Many local businesses want to transition to cleaner technologies and become more resilient to a changing climate. It will rely on the businesses ability to access affordable experts in climate adaptation planning, the support to upskill existing staff to consider climate change or acquiring staff with skills in using new technology identified as a solution.

Objective Feedback 3.2.3

Improving business access to flexible logistics needs thorough innovation and planning

Our region is home to some world-class operations that rely heavily on utilities, transport, and or limited supply networks.

Extreme weather events can cause disruption of supply chains due to transport disruption or impacts on suppliers. For example, the flooding of premises or changes in raw material price or availability will impact the businesses who rely on the product affected. Extreme weather events can also cause disruptions to utilities, supply and distribution.

Not only is it a risk to businesses but our economy as a whole. Businesses most vulnerable are those with complex supply chains. Many of those are some of the largest employers in the region. Supporting businesses to maintain their logistical requirements will be critical for the health of our local economy.

Objective Feedback 3.2.4