3 Ways Small Business Plays Huge Role in Fighting Climate Change
One of the biggest outcomes of the recent UN Climate Summit came from the private sector, where, side by side with world leaders, 1,042 multinational corporations (MNCs) pledged their support for carbon pricing. Twenty-five of these companies—including Nestle, Unilever and Philips—even committed to price their own carbon internally to reduce emissions themselves.
This move is significant, as MNCs have a central role in planning for the impacts of climate change. However, if they are not already doing so, business leaders can go a step further by also making their supply chains—often made up of small businesses in developing countries—more resilient.
In most of the developed world, large corporations, such as those who pledged at the UN Climate Summit, are the main driver of economic growth and job creation. But that is not the case in most of the developing world, where micro- and small-sized businesses are the economic engines. Ensuring that the whole private sector has the capacity to adapt to climate change can support the resilience of populations everywhere.
Here’s a look at the reasons why small businesses have to play a significant role in mitigating and adapting to climate change:
1. Small businesses are best suited to reach vulnerable communities in low-income countries.
Despite their large financial and operational resources, MNCs do not have the same impact as small businesses in preparing the most vulnerable communities to be more resilient to extreme weather. The populations who will and already are experiencing the worst social and economic effects of climate change are the marginalized and poor populations who live in low-income countries. The World Trade Organization estimates that about 60 percent of all employees in developing countries work in micro and small businesses. In Sub-Saharan Africa, for example, these businesses account for 90 percent of all firms and make up about 25 percent of GDP. Because the majority of vulnerable populations rely on these businesses for their livelihoods, it is vital that they become climate-resilient and are given more priority in climate discussions.
2. If small businesses are resilient, so are communities.
Micro and small businesses are oftentimes the most direct contributors to a stable economy in low-income countries, providing a strong labor force, access to markets, and steady incomes. Climate-proofing the private sector—particularly at the small business level—will not only benefit business-owners, but also employees, households, and others in the extended value chain. For example, in Cambodia, farmers learned new techniques to increase their crop yields while managing scarce resources. By installing irrigation systems and planting new varieties, farmers produced more crops, ensuring food security to the nearby community even when faced with the impacts of climate change.
These businesses could also provide resilient goods and services to their communities—such as offering drought-resistant cassava instead of maize or corn, which are sensitive to climate variability—contributing to household adaptation. As such, the private sector would become a valuable ally in building climate-resilient communities and societies from the bottom up.
3. Vulnerable populations have the fewest resources to adapt to climate change.
The poor in developing countries are oftentimes highly dependent on the natural environment and have few savings and safety nets to adapt to a changing climate. In Africa, for example, at least 80 percent of the rural poor derive their primary income from employment in small businesses in agriculture, a sector highly susceptible to climate change because of its reliance on natural resources. Without proper risk management and planning, climate impacts like droughts and floods could have long-term impacts on development, creating chronic hunger, displacement, and an uneducated or unhealthy population. Without a strong private sector to support local livelihoods, vulnerable communities are even more exposed to the effects of climate change.
Creating Resilient Small Businesses
MNCs can help in these efforts by strengthening the resilience of their suppliers. However, many more micro- and small businesses not linked to MNCs will also need support. Thus, the public sector becomes an important player in implementing policies and providing financial resources, incentives, and support to help small businesses to adapt to climate change.
WRI’s Vulnerability and Adaptation team is currently researching ways that the private sector—including small businesses—can help create climate-resilient communities.
YOU MIGHT ALSO LIKE
Typhoon Molave is expected to make landfall in Vietnam on Wednesday with 90 mph winds and heavy rainfall that could lead to flooding and landslides, according to the U.S. Embassy and U.S. Consulate in Ho Chi Minh City. To prepare for the powerful storm that already tore through the Philippines, Vietnam is making plans to evacuate nearly 1.3 million people along the central coast, as Reuters reported.
EcoWatch Daily Newsletter
How does your burrito impact the environment? If you ordered it from Chipotle, there is now a way to find out.
- Food's Environmental Impact Varies Greatly Between Producers ... ›
- Panera Bread Becomes First Chain to Use Climate-Friendly Label ... ›
Are you noticing your shirts becoming too tight fitting to wear? Have you been regularly visiting a gym, yet it seems like your effort is not enough? It's okay to get disappointed, but not to lose hope.
By Sarah Steffen
A stretch of coastline in the Philippine capital, Manila has received backlash from environmentalists. The heavily polluted Manila Bay area, which had been slated for cleanup, has become the site of a controversial 500-meter (1,600-foot) stretch of white sand beach.
Sand Makeup Crucial for Ecosystems<p>While UNEP/GRID-Geneva generally supports finding <a href="https://www.dw.com/en/not-enough-sand-for-construction-industry-despite-abundance/a-49342942" target="_blank" rel="noopener noreferrer">alternative sources of sand</a> so as not to disrupt ecosystems in rivers and oceans when extracting them, Vander Velpen stressed it was vital to use sand which closely matches the makeup of the native sand to protect beach fauna.</p><p>"If you change the core characteristics of the native sand, the original sand, you need to do an environmental impact assessment (EIA) to find out how it's going to impact the ecosystem and nearby ecosystems," he told DW.</p><p>But according to Torres, such an assessment was not done in Manila.</p>
Beautification Stunt Instead of Proper Cleanup?<p>Manila Bay's waters are heavily polluted by oil and trash from nearby residential areas and ports. A huge "No swimming" sign warns visitors to stay away from the ocean.</p><p>Philippines' <a href="https://denr.gov.ph/index.php/priority-programs/manila-bay-clean-up/25-priority-programs/1825-frequently-ask-questions-faqs-on-the-dolomite-and-the-beach-nourishment-project" target="_blank">Department of Environment and Natural Resources (DENR)</a> has denied dolomite sand poses any risk to human health and the ecosystem.</p><p>However, scientists of the University of the Philippines have come forward disputing the DENR's claims. A <a href="https://biology.science.upd.edu.ph/index.php/ib-statement-regarding-dolomite-in-manila-bay/" target="_blank" rel="noopener noreferrer">statement by the Institute of Biology</a> said that using crushed dolomite did not address any of the rehabilitation phases and instead was "even more detrimental to the existing biodiversity as well as the communities in the area," pointing to the case of water birds. "The dumping of dolomite in Manila Bay has effectively covered part of the intertidal area used by the birds thereby reducing their habitat."</p><p>At peak migration season, Manila Bay is home to 90 aquatic bird species, including species of international conservation concern that are facing a very high extinction risk in the wild. </p><p>Authorities should focus on protecting and conserving biodiversity, the Institute of Biology added. "Rehabilitating mangroves is an example of a nature-based solution that is cheaper and more cost-effective than the dolomite dumping project," the scientists said.</p><p>Moreover, <a href="http://www.msi.upd.edu.ph/" target="_blank" rel="noopener noreferrer">the Marine Science Institute</a> has warned that prolonged inhalation of finer dust particles of dolomite could "cause chronic health effects," leading to discomfort in the chest, shortness of breath and coughing.</p><p>They also warned dolomite sand grains would erode during storms and be carried out to sea, essentially being washed away.</p>
Rehabilitation vs. Reclamation<p>Environmentalists say covering up the beach doesn't address the real issues of the bay. Torres and others believe the best way to clean up Manila Bay is not to add anything, but rather remove trash and pollution.</p><p>"There have been studies saying much of the waste comes from already collected waste — so these are open dump sites along the coast that get washed up because of the rain," Torres said.</p><p>She criticized the authorities for continuing to push reclamation projects she says are at odds with each other. These projects will affect large areas of mangrove forests, she said, and experts warn that this, in turn, exacerbates coastal erosion.</p><p>"If you've removed the areas that helped trap the sand, like mangrove forests, then the likelihood increases that you will have to nourish a beach. Same as building right up to the waterfront," said Vander Velpen of UNEP/GRID-Geneva.</p>
Plenty of Sand in the Sea?<p>The question of Manila's contentious white beach echoes larger questions about sand mining worldwide. <a href="https://unepgrid.ch/storage/app/media/documents/Sand_and_sustainability_UNEP_2019.pdf" target="_blank">Global sand consumption has tripled</a> over the past two decades, UNEP/GRID-Geneva has found. A huge chunk of it is now taken up by construction.</p><p>"Many operate on the assumption that natural sand is endless in its supply," said Vander Velpen.</p><p>Sand scarcity is a concern shared by Stefan Schimmels of <a href="https://www.fzk.uni-hannover.de/fzk_start.html?&L=1" target="_blank">Forschungszentrum Küste</a> who's done extensive research on shore nourishment to stop coastal erosion. And as climate change and rising sea levels are threatening coasts, demand for sand will grow even more.</p><p>A large study, the <a href="http://www.stencil-project.de/wp-content/uploads/2019/10/STENCIL_SWOT_Analyse_191026.pdf" target="_blank">Strategies and Tools for Environment-Friendly Shore Nourishments as Climate Change Impact Low-Regret Measures (STENCIL project)</a>, focused on the German island of Sylt, a popular vacation spot.</p><p>About 1 million cubic meter of sand per year is used to maintain the coastal area of Sylt, STENCIL project head Schimmels said. That's about 100 million 10-liter buckets of sand.</p><p>When sand was extracted off the coast of Sylt, underwater craters were formed. "You can still detect these craters even decades later," Schimmels told DW.</p><p>"Also when you add a couple of meters sand onto the beach — you essentially bury all things that do creep and fly," he said. "How quickly will they recover?" Schimmels said more research was needed as there was still too little known about long-term effects on the environment. </p>
Criticism Piling Up<p>As for Manila's artificial white sand, it looks like some might have already been blown away by a recent storm. DENR claims it wasn't washed away, but said that grayish sand, stones and other material had simply piled up over the dolomite sand. People in Manila have tweeted photos showing how the storm has ravaged the beach. </p>
<div id="adc0b" class="rm-shortcode" data-rm-shortcode-id="98f9390db6bb81cb421aaf0bb9d9a6fb"><blockquote class="twitter-tweet twitter-custom-tweet" data-twitter-tweet-id="1318816633280851969" data-partner="rebelmouse"><div style="margin:1em 0">Exactly one month after giving excited netizen a glimpse of Manila Bay white sands, look what happened now after ju… https://t.co/X0Z9i0bPB0</div> — M*A*S*H (@M*A*S*H)<a href="https://twitter.com/Magtira_Matibay/statuses/1318816633280851969">1603265362.0</a></blockquote></div><p>Authorities have been called tone-deaf for spending around 389 million pesos ($8 million) on a beach nourishment project in the middle of a raging pandemic.</p><p>An image of cake iced with the words "It really hurts - that's [worth] 389 million pesos?" has since gone viral.</p>
<div class="rm-shortcode" data-rm-shortcode-id="4387aad52ea316e4db7330052318ca2f"><div class="fb-post" data-href="https://www.facebook.com/theweekendpatisserie/posts/144564207350008"></div></div><p>"It's just a waste of precious resources," Torres said. </p><p>The environmental activist now also worries that she might be labeled a terrorist for speaking out under the <a href="https://www.dw.com/en/philippine-anti-terrorism-law-triggers-fear-of-massive-rights-abuses/a-53732140" target="_blank" rel="noopener noreferrer">Philippines' controversial new anti-terrorism law</a>. She says she could be arrested for inciting fear when talking about environmental dangers.</p>
- 8 World Cities That Could Be Underwater as Oceans Rise - EcoWatch ›
- Endangered Migratory Birds on Collision Course with New Airport ... ›
- How Is Climate Change Affecting the Philippines? - EcoWatch ›
A pair of studies released Monday confirmed not only the presence of water and ice on the moon, but that it is more abundant than scientists previously thought. Those twin discoveries boost the prospect of a sustainable lunar base that could harvest the moon's resources to help sustain itself, according to the BBC.
- Scientists Find Rust on the Moon 'Puzzling' - EcoWatch ›
- Historic NASA/SpaceX Mission Could Pave the Way for Space ... ›
- NASA Study of Increasingly Dire Global Water Shortages Finds ›
- Groundbreaking NASA Announcement: Evidence of Liquid Water on ... ›