Three key points: guide to climate change adaptation for industry

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Climate change is one of the greatest challenges facing industry, with impacts on value chains, production operations, and the global competitiveness of products. To address this situation, Confederação Nacional da Indústria (CNI), representative organization of Brazilian industry, launched the Industry Guide to Adapting to Climate Change on July 13, with technical support from WayCarbon, the German Ministry for the Environment, and the German Agency for International Cooperation (GIZ).

The document initially focuses on three priority sectors (oil and gas, food, and textiles) and aims to be more than just a technical guide. The goal is to provide strategic guidance to companies and industry associations in building resilient industrial supply chains capable of responding to physical risks and the demands of the transition to a low-carbon economy.

Below are three key points from the guide:

1. Status of climate-related disasters in Brazil

The publication notes that Brazil has seen a significant increase in the number of climate-related disasters in recent decades, including storms and floods. According to the Sistema Integrado de Informações sobre Desastres (S2iD), Brazilian disaster information system, between 1991 and 2023, 64,280 such disasters were recorded in the country, corresponding to an average of 4,077 occurrences per year

The main events are related to water, whether due to excess or scarcity, such as droughts (50% of recorded events), followed by floods, flash floods, and high water (27%), and storms (19%). “The data presented reinforces the need for the private industrial sector to engage with public policy strategies regarding the allocation of capital aimed at preventing and responding to extreme events,” explains Melina Amoni, Climate Change Manager at WayCarbon.

2. Impacts on industry

The document shows that climate impacts are directly affecting the operations of Brazilian industry, especially in sectors that depend on natural resources and critical infrastructure. For example, storms and floods can cause significant damage to industrial facilities, disruptions in supply chains, and the loss of raw materials.

In the food industry, changes in precipitation patterns can affect everything from crops to distribution centers, compromising the supply chain and food security, and causing fluctuations in costs for the end consumer. In the oil and gas sector, storms (often accompanied by lightning strikes) can disrupt offshore production, damage pipelines, and delay exports.

3. Possible adaptation measures

To reduce exposure and vulnerability to climate threats, it is highly recommended that companies and governments implement initiatives to mitigate GHG emissions and adapt to climate change. In addition to promoting business sustainability in the medium and long term, adaptation measures can also present opportunities.

Some examples outlined in the Guide include: efficient use of resources; adoption of low-emission energy sources; development of new products and services; access to new markets; and strengthening resilience throughout the supply chain.

Turning to the topic of energy efficiency, this area can be improved through measures such as: cogeneration of energy; the use of variable-frequency drives on motors; improvements in thermal insulation; sensor-controlled LED lighting; preventive maintenance; and the adoption of renewable energy sources, such as biomass, solar, and wind power. Measures such as these tend to reduce operating costs and contribute to the sustainability of industrial operations.

Another notable opportunity is access to new markets, referring to the ability of industries to expand operations into new geographic regions or consumer segments. “This can occur through the export of products, adaptation to the environmental or social requirements of new consumers, or by entering niche markets that value attributes such as sustainability, innovation, or clean technology. This expansion allows for revenue diversification, risk reduction, and increased competitiveness,” the document notes.

Proactive action is essential

In short, the Guide demonstrates that the risks associated with climate change must be monitored and addressed by industry with urgency, especially in sectors that rely heavily on natural resources, such as agribusiness, textiles, and energy. “Over the past two decades of WayCarbon’s operations, we have seen firsthand that the cost of proactively addressing this issue is lower than dealing with its consequences,” concludes Amoni.

WayCarbon’s experts are available to support companies and governments in addressing the challenges of climate change, from identifying physical and transition risks to developing adaptation plans, through consulting services and the integrated WayCarbon Ecosystem platform.

Discover our solutions and enhance your organization’s climate intelligence.

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Maria Luiza Gonçalves
Journalist and Communications Analyst at WayCarbon |  + posts

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