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Exercise Module 2b Assessing Climate Change Business Opportunities

Exercise Module 2b Assessing Climate Change Business Opportunities. Country, Date, Presenter. Objective. The objective of this exercise is to : Identify new business opportunities for the case company that arise from new demands on national and foreign markets due to climate change

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Exercise Module 2b Assessing Climate Change Business Opportunities

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  1. Exercise Module 2bAssessing Climate ChangeBusiness Opportunities Country, Date, Presenter

  2. Objective The objective of this exercise is to: • Identify new business opportunities for the case company that arise from new demands on national and foreign markets due to climate change • Scout new business opportunities for the case company that stem from alternated production conditions causedbyclimatechange • Evaluateandprioritisebusinessopportunities ToC - Module 2b Exercise

  3. Step 1 Step 2 Step 3 Step 4 Identify changes in markets / conditions • Identifyclimatechangephenomena Identifybusinessopportunities Prioritizeclimatechangeopportunities ToC - Module 2b Exercise

  4. Step 1 Step 2 Step 3 Step 4 Identify changes in markets / conditions Identifybusinessopportunities • Identifyclimatechangephenomena Prioritizeclimatechangeopportunities ToC - Module 2b Exercise

  5. Introduction to STEP 1– Identify climate change phenomena STEP 1 of this exercise is to identify the climate change phenomena potent that give rise to new market opportunities. At this point, it is only the phenomena that are relevant. They should not yet be assessed according to impacts. This will happen in the next step. We have already determined climate change phenomena in Module 1. You should revisit these phenomena to see if they are relevant for the target markets of the company as well as its customers Are there other phenomena in the target markets and production sites of the case company that you have not considered yet? ToC - Module 2b Exercise

  6. Step 1 Step 2 Step 3 Step 4 • Identifyclimatechangephenomena Identifybusinessopportunities Identify changes in markets / conditions Prioritizeclimatechangeopportunities ToC - Module 2b Exercise

  7. Introduction to STEP 2– Identify expectedchanges in markets or production conditions In STEP 2 of this exercise you will identify expected changes in markets or production conditions that inherit the potential for the company to leverage new business opportunities Climate change phenomena can have impacts on existing customers of the case company. Climate change phenomena in certain countries or areas can make the products that the company produces relevant for new customers Climate change phenomena may make customers susceptible to products that the company does not yet produce but could produce easily Climate change may alter the costs and yields of inputs that the company uses or could use • Climatechangewill occuraroundtheworld, so therearemanybusinessopportunities. Fornow, only consider those markets the company is already operating in as well as production conditions in regions where the company is already sourcing from ToC - Module 2b Exercise

  8. Step 1 Step 2 Step 3 Step 4 Identify changes in markets / conditions • Identifyclimatechangephenomena Identifybusinessopportunities Prioritizeclimatechangeopportunities ToC - Module 2b Exercise

  9. Introduction to STEP 3– Identify climate change opportunities Do yourecallthe different typesofproductsorservices? Therearetwo: • Products thatcatertonewneedsresultingfromclimatechangeandhelpcopewith/adapttochangingclimate • Products whichareeasiertoproducebecauseofthechangeofclimaticconditions In STEP 3 it is the goal to think of concrete business opportunities that address the impacts specified in the previous step. This refers to new products and services that allow adaptation to climate change as well as profiting from improved production conditions. Market opportunities are innovations developed on purpose to tap into new markets and make use of improved production conditions For example: A company’s irrigation experts may be interested to develop and market the efficiency-enhancing drip irrigation system as a response to decline in rainfall ToC - Module 2b Exercise

  10. Guidance for Participants– Identify climate change opportunities Forthistaskyoushould • Join your consultant group • Identify relevant changesin (target) marketsandproductionconditions; comeup withresultingbusinessopportunities – bothnewproductsandproductionimprovements • Usetheinformationexhibited in thecasestudy but also becomecreativeandcomeupwithnewopportunities • Write the business opportunities on the corresponding card; also fill them in the Excel • You have 60 min for this task ToC - Module 2b Exercise

  11. Guidance for Participants– Identify climate change opportunities Business opportunity Climate change phenomenon Changed conditions Protective nets Spain: Decreased resilience of crops to intensifying heat waves Intense rainfalls Prolonged droughts Efficiency-enhancing irrigation Morocco: Lower crop-per-drop water availability Increased average precipitation levels Italy: Higher quality of vegetables Source from different location ToC - Module 2b Exercise

  12. Step 1 Step 2 Step 3 Step 4 Identify changes in markets / conditions • Identifyclimatechangephenomena Identifybusinessopportunities Prioritizeclimatechangeopportunities ToC - Module 2b Exercise

  13. Introduction to STEP 4– Prioritize climate change opportunities Market/Revenue: How large do you estimate the market scope of the opportunity, and hence, what revenue may issue from commercialization? Technical Feasibility: How complex is the technical implementation of the measure? Has a similar measure been implemented before? Organisational Feasibility: Wouldthecompanyhavethe internal resources (e.g. financial, human captial, and time capacity) toshoulderthedevelopment of theproductorservice? CompetitionHowmanycompetitorsarethereandhow strong arethey? STEP 4 (Excel Sheet 3.2) aimsatevaluatingandprioritizingclimatechangeopportunititesforyourmarketsaccordingtothreecriteriaandtheirrankingproposition. For each of the criteria, you have to match your opportunity to one of the suggested scores. In the end, you rank them. ToC - Module 2b Exercise

  14. Guidance for Participants– Identify market opportunities Identified Opportunities Forthistaskyoushould • Join your consultant group • Look into the descriptions of the point scale for each criteria • Write the scores and priorities for each opportunity on the corresponding card; also fill them in the Excel • You have 20 min for this task Protective nets: Market: 1 / TF: 1 / OF: 4 Efficiency-enhancing irrigation: Market: 3 / TF: 3 / OF: 3 Biological insect control : Market: 5/ TF: 4 / OF: 4 ToC - Module 2b Exercise

  15. Discussion– Comparing results This exercise is about presenting the results to your peers and discussing how this is relevant for any real climate change adaptation assessment. After presenting the results discuss the following questions: • Do you agree with the opportunities your partner identified, and how they were ranked? • What are the difficulties in expanding to other markets, especially for your own company? ToC - Module 2b Exercise

  16. Thank you for your attention! Company Trainer 1Telephone numberE-Mail address Homepage Company Trainer 2Telephone numberE-Mail address Homepage Knowledgepartner ToC - Module 2b Exercise

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