I. Conscious level

Climate awareness development

1. Understanding climate impacts
   1. Widespread understanding and acceptance of the causes, and social and economic effects of climate change, the most important step in starting preparations. This affects all employees and is the basis for all further steps, including the reception and processing of information.

2. Creating the highest level of commitment

   1. The commitment of the company's top management is essential for the successful implementation of the adaptation program. All key actors in management need to know and understand the processes, their speed, scale, and complexity. Awareness of their personal involvement also allows them to know and understand the threats the company is facing, as only then will they be able to make long-term decisions that will enable the organization to survive.

3. Building an organizational framework
   1. The expected social and economic effects of profound changes in climate and environmental systems make it inevitable that an independent department at the organizational level, or at least a designated specialist, will deal exclusively with organizational impacts, the process of preparation and adaptation, plus monitoring and reporting directly towards senior management.

4. Creating a corporate climate culture

   1. One of the most important pillars of the process of adaptation and preparation is attitude formation, which is a prerequisite for the feasibility of both mitigation and adaptation objectives. The direct influence of the lifestyle, actions and thinking of the employees makes them aware of their own involvement, which is a basic condition for them to be able to identify with the changes taking place in the organization, supporting those to a large extent.

II. Survey level

Condition survey

1. Climate knowledge assessment
   1. It is not possible to set achievable goals and reach them effectively if we do not know the starting point against which we can move forward. Thus, it is essential to assess the climate change knowledge of the people who make-up the organization, only then is it possible to fill-in the gaps where and for whom there is an internal need, because in addition to information, this process also reveals hidden human resources.
2. Exploration of internal human reserves
   1. The aim of the process is to select from those who complete the level, those who are committed to active participation in other parts of the program and are able to support it with valuable thoughts and ideas based on their position and knowledge. Responsible leadership also supports the organization to become forward-looking and capable of continuous change.
3. Identification of past damage events
   1. Take stock and learn about past damage events to the organization in terms of both severity and frequency. In order to prevent climate and weather risks for the organization's headquarters and sites, we should check the type of damage that extreme weather events have caused in that region in the recent past. Next, let’s take into account the current trends revealed by weather observations, so we can predict what likely climatic conditions are expected in the coming decades.
4. Evaluation of value chain members
   1. Any value chain is only as strong as its weakest member. No matter how the company takes the necessary climate adaptation steps, it doesn’t progress its adaptation readiness if the same cannot be said of its key partners at any level of the value chain. Therefore, it is important for the company to know the level of preparedness of its partners and, if applicable, its shortcomings. It is also expedient to formulate expectations in their direction.

III. Analytical level

Vulnerability testing

1. Comprehensive identification of risks

   1. The adaptation of organizations to address the effects of climate change must be based on the diversity of processes. It is not enough to deal with the direct effects of extreme weather events on the company's operations, but also to understand the secondary effects on supply chains and to find answers to them.

2. Investigation of adaptation possibilities
   1. It is necessary to focus on the adaptation options that can offer the organization possible solutions to the greatest risks. They can come from both external and internal sources. It is important that the data collected covers a wide range of adaptation options, including technological, organizational, information, ecosystem-based and socio-economic solutions, at both sectoral and cross-sectoral levels.
3. Evaluation of internal resources
   1. The more effective the preparation of adaptation, and thus the process of it, the more accurately management can form a picture of the real situation, both in terms of external influences, and internal weaknesses and strengths. The identification of innovative human capital is only the first step, followed by the segmentation process, in which it is necessary to realistically determine to whom, and to what extent it can be expected in this task. In addition, the assessment and identification of material resources which can be spent on adaptation is also key.

4. Identification of social and economic relations

   1. In the decade ahead, accelerating climate change and its social and economic impacts are putting increasing pressure and imposing urgent tasks on companies. The exponential and irreversible processes of change in climate and environmental systems, and their socio-economic impacts, will cause significant losses across value chains that leave companies with no choice but to adapt to uncertain outcomes. Thus, getting to know these types of relationships and identifying them for the organization is also a condition for survival.

IV. Design level

Climate adaption planning

1. Analysis of alternatives
   1. Once the adaptation options have been identified, the next step is to describe the options in detail and evaluate their compilation based on the defined criteria. When analyzing the responses to the potential effects of climate change, a ranking should be established, reflecting the specific importance of the measures, in terms of time and human and material resources. A detailed cost-benefit analysis is intended to reveal whether the benefits of a possible solution outweigh its costs and how much higher or lower it is compared to other alternatives.
2. Setting business goals

   1. At the organizational level, in response to climate change, the diversity of information, skills and knowledge related to energy, the environment and CO² emissions needs to be extended and integrated into key business processes, including product development, procurement, supply chain management, marketing and equity financing. In addition to the business goals set on the basis of normally expected criteria, the management must continue to take into account the effects of climate change in such a way that the company significantly reduces the negative effects of the changes and, if necessary, obtains a business advantage.

3. Defining priorities
   1. The task to be performed after the evaluation of possible alternatives is to select and prioritize the adaptation options that are considered appropriate. The use of a system of criteria that includes several criteria is the most suitable for this. Involving stakeholders in the selection, weighting and decision-making process can go a long way in identifying the solutions that are most optimal and most widely supported. When uncertainty can lead to inaction, applying the principles of adaptive management (focusing on solutions that are flexible and beneficial to most stakeholders) can facilitate decision-making.
4. Finalize the adaptation strategy
   1. Once the main risks have been identified and the preferred adaptation options have been selected, a strategic framework can be developed. Developing and communicating commitment, exploring key areas of vulnerability and competitive challenges, is followed by strategy creation and the design of programs to achieve strategic goals. During the creation of the strategy, it is important to examine the ways in which the company could improve its competitiveness in addition to reducing climate risks, taking into account the unexplored creative power and innovation surplus in digitalisation and the workforce.

V. Action level

Sustainable operation

1. Create a timetable

   1. The first step of the last level is to develop an action plan. At the same time, it summarizes the selected adaptation options, the necessary tools and the implementation schedule. It also covers implementation modalities, funding opportunities, roles and responsibilities of the company, addressing existing gaps, overcoming potential gaps, estimating human and material resources required, timing and benchmarks for implementation, and monitoring, evaluating and reviewing its effectiveness. The action plan, which covers every detail, serves as a clear guide for all concerned, and at the same time makes the processes traceable and transparent.

2. Involvement of stakeholders

   1. Comprehensive agreements and close cooperation with all stakeholders are needed to ensure the implementation of the adaptation strategy. Full transparency is an essential condition for adaptation to succeed. Traceability and accountability are key considerations for senior management. In practice, this means clarifying responsibilities, setting deadlines and providing resources. And for the other employees of the organization, the visibility and comprehensibility of what is happening, how it affects them, what benefits they derive from it, either individually or at the organizational level. If they understand, they identify with the task, and by developing their commitment, the organization’s adaptability ultimately improves.

3. Monitoring, evaluation
   1. nvestments brought about by the compulsion to prepare and adapt, on an increasing scale, make it essential to ensure efficiency and effectiveness. Monitoring the adaptation process requires a pragmatic approach and a clear sense of purpose. Successful implementation should be supported by appropriate measures to monitor and evaluate whether the adaptation process is well on track and meeting the expected objectives. The task of monitoring and evaluation should answer two key questions: "Are we doing the right things?" or, “Are we doing things right?”. In order to find answers, it is essential to fully involve stakeholders and provide opportunities for continuous learning.
4. Reports, communication
   1. Document the whole process and make the results widely available. The existence of transparency serves as an excellent basis for both internal (employees, management) and external (partners, public) communication. In the process of building adaptation, we undoubtedly gain valuable lessons and experiences from both successful and unsuccessful attempts. And just as we have learned from others by studying past experiences, so can others learn from the knowledge we have gained. In parallel, all relevant decision-makers should be regularly informed and involved in the implementation process, with a clear mandate from them to carry out the necessary steps and tasks.