Relationship between climate change impacts, risks, and adaptation: Climate change is very likely to increase both the frequency and intensity of extreme weather events such as flooding, heatwaves, droughts, bushfires, cyclones and extreme rainfall, to name a few. These changes will have different impacts for the various sectors within which small businesses operate (e.g. energy, agriculture, construction and trade, tourism, food and beverage, retail and hospitality etc.). For businesses at the individual scale, these impacts will be contextualised differently as climate impacts pose business specific risks. These risks are based on factors such as:
- how exposed is a business to extreme climate events,
- what the likely consequences are for businesses is a potential risk is realised,
- how capable and equipped the business is to deal with risks (for some businesses, climate change will pose new risks, but for others, climate change may also provide new opportunities too).