Adapting To Climate Change Using Your Business Continuity .

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Smart GuideAdapting to Climate Changeusing your Business ContinuityManagement System

Adapting to Climate Change using your Business Continuity Management Systembsigroup.comContentsChapter 1.0 Introduction3Chapter 6.0 Understanding the Key Issues17Chapter 2.0 About this Guide4Task 7: Review and amend yourBusiness Impact Analyses17PurposeScopeWhy Business Continuity Management?What’s special about climate change?How to use44467Task 8: Climate risk assessment18Chapter 7.0 Preparing for Climate Change21Task 9: Identify adaptation options21Task 10: Review and amend BC strategy23Task 11: S elect and implementpreferred adaptation options23Chapter 8.0 Performance Evaluation26Task 12: Monitoring, measurement,analysis and evaluation26Task 13: Management review26Chapter 3.0 Terms and Definitions8Chapter 4.0 Reviewing the Contextof the Organization9Task 1: Define key external and internalfactors relating to the climate9Task 2: Identify any new interested partiesand requirements12Task 3: Review and amend the scope ofyour BCMS13Chapter 5.0 Developing Leadership14Task 4: Make the case to top management14Task 5: Review and amend your BC policy16Task 6: Define any new roles, responsibilitiesand authorities162Appendix ATemplate for planning adaptation processes27Appendix BTemplate for cataloguing past weather events28

Adapting to Climate Change using your Business Continuity Management Systembsigroup.comChapter 1.01.0 IntroductionMany business activities and the resources that supportthem depend on aspects of the weather or climate and canbe disrupted by severe weather and its impacts. A surveyby the Chartered Management Institute found that 54 %of businesses reported being disrupted by severe weatherin 2012, making it the number one cause of businessdisruption for the fourth year running1. Most recently thewinter of 2013/14 has been reported as the wettest winterin England and Wales since records began2 with heavy rainfalland storms causing widespread flooding and disruption.It is not possible to say that climate change alone is causingthe increase in these disruptive events. Other changes areputting more value at risk, such as increasingly lean andcomplex supply chains and development in vulnerablelocations. However, what is clear is that both the frequencyof severe weather events and the value at risk areincreasing3. This has implications for business continuity(BC) and broader business objectives. For example: Increasing frequency of heavy rain and rising sea levelswill contribute to an increasing frequency and severityof flooding causing damage or loss of access to businesspremises and disruption to staff travel, supply chains orcritical infrastructure Increasing frequency or severity of drought, puttingpressure on water demand and potentially leadingto higher costs or a lack of availability. Low flows inrivers will also put pressure on the quality of waterdischarged under effluent consents.Organizations need to be prepared for severe weatherregardless of the cause. This can involve making physical,operational or strategic changes and includes actionsthat tackle the likelihood of damage or disruption as wellas those aimed at managing its impacts. It can includepreparing for opportunities as well as threats.There are several resources freely available to helporganizations adapt to climate change, such asthose listed in the references of this guide and inthe further reading sections of each chapter.Many of these talk in passing about the need tomainstream this within existing business functionsor management systems. This guide does not seekto duplicate these resources but is instead aimed atsupporting this mainstreaming, specifically by usinga business continuity management system (BCMS). Rising temperatures can lead to a decline in productivitythrough overheating of work places and disruptionor quality issues where processes or products aretemperature sensitive usgrave B and Woodman P (2013) Weathering the Storm: The 2013 Business Continuity Management Survey. Chartered Management 2014/early-winter-stats.3 Trexler, MC and Kosloff, LH (2013) Adapting to Climate Change (DoShorts). Do Sustainability.123

Adapting to Climate Change using your Business Continuity Management Systembsigroup.comChapter 2.02.0 About this guidePurposeIt is intended that by carrying out the tasks in this guide,BC professionals will: Understand how climate change is influencingtheir risks from severe weather Be taking the lead on managing these risks Be confident that their BCMS will remain effectivefor managing disruptive events into the future Be able to make the case for additional resourcesto implement BC or adaptation measures Be capable of communicating effectively aboutthe management of risks from severe weatherand the approach to climate change adaptationboth internally and externally.ScopeThis guide is aimed at any type of organization that hasa strong BC culture. It covers adapting to climate change,which does not include efforts to tackle the causes ofclimate change or adapting to such actions by others(see definition in Chapter 3.0). While BC is used as a startingpoint, it offers BC managers a route into a comprehensiveapproach to managing climate risks across the organization.Therefore it covers benefits that may arise from climatechange as well as threats, managing the effects of changingaverages as well as weather events and the effects onefficiency as well as disruptions. The extent to whichthese issues then sit within the BCMS is up to the user.Why Business Continuity Management?There are other standards that may be equally appropriatefor managing climate risks, such as risk management(ISO 31000), environmental management (ISO 14001),quality management (ISO 9001) and potentially many others.However, given the different terminology, approachesand perspectives it was felt that it would be useful fora single guide to focus on a single business functionand associated standard.45Risk management holds significant potential due to thestrong risk emphasis in the climate change adaptationdiscourse. ISO 31000 however, is not a management systemand the process nature of management system standardslend themselves well to this topic. Moreover, ISO 31000is about to be revised. Similarly ISO 14001 will undoubtedlybe influential in driving climate change adaptation whenits revisions are complete. There does not need to be oneuniversal home or starting point for climate changeadaptation and the appropriate choice will vary dependingon the type of business and organizational culture.However, the benefits of using a BCMS include: Disruption due to severe weather is the biggestclimate change adaptation issue facing manyorganizations indicating that BC managers will likelyhave an important role Business continuity management (BCM) includes methodsfor, and experience of, dealing with potential and actualdisruptive events as well as a remit to access and relateto all areas of the business. It is therefore well placed tolead on efforts to manage climate risks, which requirecross-cutting action and are often disruptive in nature.Adapting to climate change is moving up the businessagenda with many commentators beginning to recognizethe importance of BCM. For example, climate changewas identified as one of 14 emerging supply chain risksby the Supply Chain Risk Leadership Council.They suggest responding through looking at BC planningboth within your own organizations and with your suppliers.4A survey carried out by Continuity Forum in 2013 found that72 % of BC managers felt that it should be their role to takethe lead on managing climate risks5. CRLC (2013) Emerging Risks in the Supply Chain 2013. White paper produced by the Supply Chain Risk Leadership Council.S Continuity Forum (2013) Climate Adaptation Engagement and Standards. Written by Continuity Forum for Climate Ready at the Environment Agency.4

Adapting to Climate Change using your Business Continuity Management Systembsigroup.comChapter 2.0“Every business continuitymanager has a duty to assessthe risks and to determinethe threats to their organization.Business continuity is aboutthe long-term survival of yourorganization and climatechange may be one of thebiggest threats you face.”David Honour of Continuity Central6“Business continuity, whichis primarily concerned withidentifying, reducing, mitigatingand preparing for the impactsassociated with disruptive eventsin order to reduce risk, minimizedisruption and ensure continuedprovision of service criticalactivities, can be used to preparefor a range of new threats andchallenges, including thoseassociated with climate change.”Rebecca Ellis in a paper published in theBusiness Continuity Journal75

Adapting to Climate Change using your Business Continuity Management Systembsigroup.comChapter 2.0What’s special about climate change?Adapting to climate change presents BC managers with some new challenges, which mean that traditional approaches mayneed to be reviewed. These are presented in Box 1 and referred to throughout this guide.Box 1Additional challenges that take adapting to climate change beyond traditional BCMS1 Some aspects of adapting to climate change sit outside the traditional scope of BCM.These are:A As well as causing disruption, weather can also affect a business in more subtle ways such as reducedefficiency (in terms of either process or manpower).B Some sectors are vulnerable to changes in climate averages (e.g. monthly or seasonal rainfall or meandaily maximum temperature averaged over a seasonor month) as well as weather events. Agriculture andthe water supply industry are two such sectors.See the definition of ‘climate’ given in Chapter 3.0.C Some companies face significant business opportunities as our climate changes. These canarise from being ahead of the game in preparingfor threats but they can also arise from beneficialeffects of weather and climate, such as by accessingthe growing market for adaptation and resilienceto climate change products and services8.2 Climate change by definition means that threats (and opportunities) are changing and not static.Assessment of and reaction to climate risks maynot have kept pace with these changes. In otherwords, the likelihood of severe weather events maybe greater than an assessment based on pastexperience would suggest and things that have nothappened in the past at all could now be possibilities.A particular concern is around scenarios arisingfrom the combination of different weather events(such as dry periods followed by heavy rain or asuccession of unusually wet seasons), or thoseleading to widespread or prolonged disruption.3 Climate change is a long term and dynamic phenomenon and therefore requires a responsethat takes into account future and changing threats(and opportunities) and how these interact withbusiness timescales. BCM, however, tends to befocussed on short timescales and does not generallyengage with long-term drivers9. David Honour, Continuity Central llis, R. (2007) The Rising Tide: Climate Change and Business Continuity. The Business Continuity Journal. Volume 2 issue 1.8 Department for Business Innovation and Skills (2013) Adaptation and Resilience to (Climate Change) 2011 to 2012.9 Continuity Forum (2013) Climate Adaptation Engagement and Standards. Written by Continuity Forum for Climate Ready at the Environment Agency.676

Adapting to Climate Change using your Business Continuity Management Systembsigroup.comChapter 2.0How to useAdapting to climate change involves a set of processeswhich have been described in a number of existingframeworks and tools. These vary slightly dependingon the intended audience and context but the basicsteps remain the same. This guide describes these stepsin the context of a BCMS as set out in ISO 22301 andISO 22313 using the following breakdown of processes: Reviewing the context of the organization Developing leadership Understanding the key issues Preparing for severe weather and climate change Evaluating performance.Within each process sits a number of tasks. These do notneed to be undertaken in order and the effort and detail thatis required will depend on the context of the organization.Appendix A provides a template, which may be useful forplanning these processes.Large companies may wish to focus initial activity on a singlesite, division, project, or business area (e.g. by matching thescope to that of an exiting BCMS) in order to keep the workmanageable and the time cost low while learning aboutthe subject.This guide is designed to be standalone document.However, in order to facilitate the integration of climate riskmanagement into a BCMS, reference is made to the currentBC standards ISO 22301 and ISO 22313. These represent bestpractice, with ISO 22301 specifying the requirements whileISO 22313 provides supporting guidance. The structure ofthese standards is used in this guide with each section linkedto the appropriate clause to aid cross reference.References that support the text are provided in footnotes,however, those that may be useful as further reading arelisted at the end of each chapter.7

Adapting to Climate Change using your Business Continuity Management Systembsigroup.comChapter 3.03.0 Terms and DefinitionsAdapting to Climate ChangeClimateMaking changes in response to the expected effectsof climate change in order to minimize the threats orexploit opportunities.A construct of the long-term averages (usually averagedover 30 years) of weather variables, such as temperatureand precipitation, over a particular location.NOTE: This does not cover effects arising due to efforts(either internal or external) to tackle the causes of climatechange, such as by reducing greenhouse gas emissions orimproving energy efficiency. In climate policy this istermed ‘mitigation’. This definition is inconsistent withthat commonly used in risk management when it iscommon to talk about mitigating risks.Climate changeBenefitsPositive effects on an organization of a weather eventcaused by climate change.NOTE: The term ‘impact’ is avoided because in the contextof BCM, business impacts usually refers to the consequencesof a disruption.8Changes in climate over time regardless of the cause.Climate riskThe uncertain effects of weather or climate changeon objectives.NOTE: This definition was developed for this guide usingthe standardized definition of risk as ‘the effect ofuncertainty on objectives’ (ISO 31000).ThreatsNegative effects on an organization of a weather eventcaused by climate change.

Adapting to Climate Change using your Business Continuity Management Systembsigroup.comChapter 4.04.0 Reviewing the Contextof the OrganizationThis section describes how to review the context of theorganization in light of the desire to adapt to climate change.It is divided into three tasks:Note that there are not currently any legal or regulatoryfactors that need to be taken into account although it ispossible that this may change in the future, for exampleif a legal temperature limit for workplaces were introduced.Task 1: Identify climate influenced external andinternal factors.Task 2: Identify any new interested parties and requirements.Task 3: Review and amend BCMS scope.Task 1: Identify climate influenced external and internal factors(Related clause in ISO 22301 and ISO 22313: 4.1 (in particular 4.1b in ISO 22301))Like other aspects of the natural environment, the climateprovides the conditions upon which businesses depend.Climate change can therefore be seen as an external factorthat affects the organization either directly or through itsinfluence on other external factors. Box 2 lists externalfactors to consider using the categories described in ISO22313. Note that the categories ‘relationships with andperceptions of, interested parties outside the organization’and ‘supply chain commitments and relationships’ are alsoimportant, especially where the relationship involves ashared risk, but that these are picked up later under Task 2.If you have suppliers and customers outside the UK then theprojected climate trends in those regions will need to beconsidered. A list of sources of international information onclimate and related hazards is provided in the further readingsection for this chapter. However, there is no need to go intoa lot of detail for this task and simply flagging it up as afactor may be enough.9

Adapting to Climate Change using your Business Continuity Management Systembsigroup.comChapter 4.0Box 2Climate influenced external factorsClimate trends: Changes to climate averages (in the UK)10- Hotter summers- Milder wetter winters- Rising sea levels Damage/disruption to infrastructure(energy, water and transport) Resilience of built environment e.g. flood defences,urban design etc Less frequent snow/low temperature events - however,their severity is expected to remain the same Changes to price or availability of raw materials Climate change in key locations overseas Stability and well-being of sourcing communityAs well as thinking about your current activities, services,products and supply chains, you should consider thoseinvolved in any upcoming new initiatives so that you canplan ahead appropriately.Some resources for exploring the effects of climatechange outside of the UK are contained within thefurther reading section. Remember to consider notjust industrial sites and offices but also staff homesand key staff travel or logistics routes.Climate change means the future can no longer be expectedto reflect the past. Nevertheless, exploring how past weatherevents have affected you will help you to identify anysensitive internal factors. This can be done by generatinga simple catalogue of the business impacts of past weatherevents. A record of how you responded to these events willalso be helpful when you come to identifying or evaluating11 Severe weather events including storms, floods,droughts, heatwaves, snowstoms etc More frequent severe weather (in the UK) events inthe form of heavy rain, droughts and heat wavesMake a note of any internal factors (such as activities,services, products and supply chains) that involve longplanning horizons, particularly vulnerable locations or a highdegree of sensitivity to weather, climate or indoor temperature.Box 3 explains this further. Only the first of these criteria areuniquely relevant to climate change and much of the otherswill have already been captured in a well founded BCMS.However, it is a good idea to check, in order to make surethat you are adequately prepared for severe weather(see point 2 in Box 1).10The social, cultural, financial, technological,economic and natural environment: Changes in demand for product or servicepotential future adaptation options (Task 9).A template for this is provided in Appendix B.The focus should be on events that had significant businessimpacts, which may not match up exactly with those definedas ‘severe’ weather. Therefore, it is not advisable to use MetOffice weather data as a starting point. Instead, draw oncompany records, employee recollections and the experienceof others in your locality or sector. Near misses can also beincluded, for example, where you know that if a disruptionhad lasted for a day longer, the consequences would havebeen significant, or where you only just managed to preventsignificant damage. If you have the resources a workshop isa good way of gathering this information as well as startingthe process of internal engagement on this issue11.Although anecdotal evidence needs to be treated with cautionwhen being used as part of an assessment, this approach hasshown to be invaluable in generating the kind of depth ofunderstanding required in creating stories that can beinvaluable in engaging others.Other sources of information on sensi

Business continuity management (BCM) includes methods for, and experience of, dealing with potential and actual disruptive events as well as a remit to access and relate to all areas of the business. It is therefore well placed to lead on efforts to manage climate risks, which require cross-cutting action and are often disruptive in nature. Adapting to climate change is moving up the .

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