Climate Resilience Strategies for SMEs: Pioneering Sustainable Business Practices

 In a world where the impacts of climate change are becoming increasingly apparent, small and medium-sized enterprises (SMEs) are stepping up efforts to address the urgent need for climate resilience. Today, the Kenya Private Sector Alliance (KEPSA), through its Knowledge Centre – the Sustainable Inclusive Business Kenya, has affirmed its commitment to equipping SMEs with the tools and knowledge necessary to build a resilient, sustainable, and eco-conscious business environment. This was during the 11^th Annual SME Conference and Expo by Strathmore University, under the theme: “Sustainability and Climate Resilience: Creating Opportunities for SMEs.”

As the effects of climate change continue to intensify, and with Kenyans remaining on high alert for the expected El Nino and the socioeconomic impact on businesses, SMEs will remain crucial in mitigating the consequences while ensuring their longevity and success. Recognizing this imperative, KEPSA is continually conducting programs to equip SMEs with strategies that offer a holistic approach to sustainability, promote responsible environmental practices, and secure a prosperous future for businesses of all sizes.

“Climate resilience is a moral imperative and a smart business strategy. SMEs that embrace sustainable practices reduce their environmental footprint and increase their long-term viability and profitability. For us, therefore, it goes beyond profits. We must also look at our impacts on the people and the profits,” Ebenezer Amadi – Program Manager, Kenya Private Sector Alliance.

Noting that SMEs in Kenya are some of the most innovative, Ebenezer affirmed that KEPSA is at the forefront of providing opportunities for these innovations to be born and scaled.

“For instance, under our Kenya Plastics Pact initiative, we are helping the producers to innovate around their packaging products and invest in sustainable solutions that design out waste and use it as an input for production. By so doing, we are seeing a rise of commitments and action towards innovations that are, for instance, increasing the reusability and recyclability of plastic packaging by eliminating additives from the packaging or moving to clear PET bottles,” added Ebenezer.

Furthermore, the KEPSA SMEs Lab provides customized business solutions to meet SMEs’ challenges, including climate-resilience strategies. From intensive training and mentorship sessions, the SME Programs bolster their current strategies, accelerate their growth, and help them pivot or adjust their strategy due to new information about their target market.

Climate resilience, in essence, refers to the ability of businesses to withstand, adapt to, and recover from the impacts of climate change. It is an approach that incorporates sustainable business practices, ecological responsibility, and a commitment to securing a prosperous future for both the environment and the enterprise.

“The most basic scenario applicable right now is regarding El Nino. SMEs must ask themselves: how will I ensure business continuity if and when El Nino happens? How will my employees continue working? In case of a power outage, what backup do I have? Will I need financial backup to ensure I have enough stock in case I can’t access the market during heavy rains? If so, how do I access that financing? This is a pertinent case of how SMEs can prepare and become resilient to climate change impacts,” says Catherine Masolia – Chief Operating Officer at the WEEE Center. 

Embracing sustainability and climate resilience mitigates environmental harm and future-proofs the business, making it more appealing to consumers increasingly valuing eco-conscious brands. By pioneering sustainable business practices, SMEs are not only helping to mitigate the consequences of climate change. Still, they are also proving that, regardless of size, every business has a role in building a more sustainable and resilient future.

“I have seen SMEs contributing to the fight against climate change by acting as a laboratory. This is where investors are increasingly incubating new ideas and technologies among the SMEs as a sandboxing technique before scaling it to a larger market,” notes Joseph Murabula – CEO of Kenya Climate Innovation Center (KCIC).

However, data availability remains a significant gap. As Wyanie Bright, the Chief of the Party at USAID Kuza, highlighted, it is one of the keys to unlocking climate financing for SMEs.

 “So much is being done, especially by SMEs, but it’s not being documented and shared. Data is money, and by not capturing and measuring climate change indicators, businesses miss out on a lot of climate financing that is available globally. We work with our partners at the financial institution level to identify metrics and the responsiveness of SMEs to projects that address climate change impacts, and we’re only able to reach them if they have their data available,’ she said.

Often characterized by agility, innovation, and adaptability, SMEs have a unique opportunity to continue leading the charge in climate resilience. Are you an SME and wondering how you can pioneer sustainable business practices? Here are some ways:

1. Resource Efficiency: Recognizing that resource efficiency is not just an environmental concern but also a cost-saving strategy, you can invest in ways to minimize waste, reduce energy consumption, and optimize resource use, such as installing solar panels and basic things such as printing less and sensitizing your employees to turn off power when not in use.
2. Innovate and Adapt: The market conditions are rapidly changing. This adaptability is now directed towards creating innovative and sustainable solutions, from eco-friendly product designs to implementing energy-efficient technologies.
3. Supply Chain Sustainability: Increasingly demand sustainable practices from your suppliers and partners, creating a ripple effect throughout the supply chain. This encourages eco-conscious practices across various industries, ensuring you’re not in this journey alone.
4. Community Engagement: Engage with your customers, employees, and peers in sustainability initiatives, promoting environmental awareness and collective action.
5. Climate Risk Mitigation: Implement strategies that enhance your resilience and business continuity. This will help address the risks associated with climate change, from extreme weather events to supply chain disruptions.
6. Green Financing: Create climate-resilient projects to attract green financing options and incentives from sustainability-focused financial institutions. Always capture, measure, and share climate change indicators to elevate viability.
7. Network for Collective Action: Form networks and alliances to multiply your impact and create a community of like-minded businesses committed to a sustainable future.

In an age where environmental responsibility is paramount, the SMEs in Kenya are proving they can be both champions of sustainability and drivers of economic growth. They are the pioneers of climate resilience, showing the world that businesses can secure their future in a rapidly changing world when they prioritize the planet.