Business adaptation strategies to climate change

Abstract

Climate change pressures businesses to adapt, but knowledge on adaptation strategies remains fragmented. This systematic literature review addresses this gap by advancing the adaptation field in three ways. First, it expands the conceptualization of business adaptation strategies through a novel classification based on depth, time, locus, and tactic. Second, it identifies five key determinants influencing adaptation decisions: regulatory and stakeholder pressures, industry specificities, business network features, organizational capabilities, and individual characteristics. Finally, the review proposes a comprehensive framework with three tiers: 1) determinants at various levels, 2) types of adaptation strategies, and 3) adaptation impacts. This framework offers novel research avenues for scholarship and enables a more nuanced assessment of the impact of adaptation strategies. Additionally, a 'reverse roadmap' is proposed to help practitioners and policymakers navigate from desired adaptation outcomes back to current choices, increasing resilience while limiting maladaptation risks.