Making climate action good business

In Kosovo, project teams didn’t set out to tackle climate change - they just helped businesses grow smarter, and resilience followed.

Recently, I was asked to write up a case study on how a couple of projects in Kosovo - PPSE and FEGO - are tackling climate change adaptation. Like everywhere else I find myself, climate change is now also a real threat to businesses in Kosovo. Whether projects are designed to address it or not, it’s impacting everything from tourism seasons to food production. And the truth is, the projects I was looking at didn’t set out to build adaptive practices or address big picture climate issues - but I quickly discovered how well they had done at keeping market systems thinking at the heart of their approach.

The project teams simply focused in on opportunities that made business sense. They saw the business case for climate resilience and built on the incentives and capacity of their partners to make it happen. They didn’t need a climate goal at the top of their results chain to get them there. They made climate action part of how markets work…and as a normal part of business. 

For example, they included support for local tourism businesses to diversify their offerings, so they weren’t at the mercy of unpredictable seasons…because it made business sense to do so. Now year-round tourism, eco-certification and energy efficiency have become the new norm because sustainability (in the climate green resilience sense) is now part of the market DNA. 

They also worked with businesses in the food and natural ingredients sector to scale contract farming, introduce climate-resilient inputs, promote modern nurseries and stronger organic certification systems…because it made business sense to do so. Now supply is more stable, and businesses are meeting EU market demands. 

I applaud these projects teams for helping their SME partners embrace change as opportunity, showing a real understanding of the benefits this would bring to the businesses. 

In the apparel and furniture sectors they promoted recycling, upcycling and the benefits of sustainability certifications to SMEs…because it made business sense to do so - opening doors to new export markets and improved operational efficiency. These projects demonstrated that environmental action can easily go together with growth and competitiveness when the business case is clear and incentives are aligned. 

Most importantly it’s now baked into how those markets function in Kosovo. Businesses are becoming more competitive, export potential is growing, jobs are greener and natural resources are better protected - alongside people’s livelihoods. So, lots of headway there for the project investments to lead to systemic, market-wide change…and for things to continue and expand after the projects ends. All this is music to my MSD ears. 

But while it’s easy to say we should see businesses as part of the climate solution - and make climate action a core part of how sectors function and grow - the real question is: what’s the blueprint for doing that? Of course, there’s the business case and the incentives - I’ve said it and repeated it. But the work of these projects point to some other touchpoints worth noting. What’s interesting is that these actions aren’t just good for climate impact - they’re also examples of great MSD practice.

Co-creation and real ownership
Firstly, the project teams saw the businesses as the climate innovators - nudging them to adopt new technologies and meet sustainability standards, not just because these protect the environment, but because they open doors to growing green markets and make businesses more attractive to investors. They facilitated business leadership and ensured business-driven innovation…and co-creation and real ownership are music to my ears.

Scale and staying power
They built bridges between government, the private sector and civil society - aligning strategies and resources to turn individual initiatives into collective progress. They made sure everyone’s efforts reinforced one another for greater impact… and scale and staying power are music to my ears.

Evidence-based adaptive learning
They tailored evidence-led action to fit local realities, with adaptive and targeted investments, aligned with national policy, and responsive to change on the ground. And evidence-based adaptive learning is music to my ears.

Inclusion and shared values
They demonstrated that it’s people that make things happen, not project partners. Youth, women and entrepreneurs - people who, with the right mindsets and skills, can engage and share in the benefits of a greener economy as employees, suppliers and consumers. They put people at the centre…and inclusion and shared values are music to my ears.

So, the case study on climate change adaptation is a story about identifying and supporting champions of change, reframing risks as opportunities, being precise about incentives and fostering local ownership and systemic collaboration. MSD. Nice.