The European Union's climate adaptation strategy aims to anticipate and respond to the impacts of climate change. By adapting to climate change, we can mitigate the harm it causes and also seek to benefit from some of the changes it brings. Proactive adaptation is economically more viable than reacting to changes after they have occurred.
Climate change will significantly impact weather conditions, and through that, many livelihoods and infrastructures. From an entrepreneurial perspective, climate change presents considerable risks. At the same time, preparing for it can also open up new business opportunities and competitive advantages.
Climate change is increasingly affecting all industries – and the wood product sector is no exception. The production and processing of wood products are heavily dependent on forest resources and natural conditions. Global warming, storms, and pests can impact the quality, growth, and availability of wood raw material. Rising heat and drought increase the risk of widespread forest fires. Forest health and productivity may deteriorate, which adds risks to the supply chain.
Micro-enterprises in the wood product sector – such as local sawmills, carpentry shops, planing mills, small wood construction processors, and wood-using construction companies – often operate close to natural resources and rely on the availability and quality of raw wood material. Changing weather conditions, energy price fluctuations, stricter regulations, and supply chain challenges compel companies to re-evaluate their operations. At the same time, consumer and client expectations for sustainability and carbon neutrality are increasing. For small enterprises, this means a growing need to adapt quickly to a changing operational environment. However, small businesses also often have limited resources, so foresight and planning are especially important.
Preparing for climate change may seem challenging, but it also presents an opportunity to develop business in a more sustainable direction. The lengthening of the growing season may benefit forestry. According to some estimates, forest growth will increase, especially in northern parts of the country. This may also lead to faster harvesting cycles and increased logging volumes.
Wood construction and bio-based products play a central role in the green transition. The construction industry is searching for low-carbon alternatives, and wood as a material meets this need exceptionally well. Companies that invest in low-emission production, carbon footprint measurement, and transparent communication can differentiate themselves from competitors.
More and more customers are seeking ecological solutions. Wood construction companies can highlight the carbon-sequestering ability of wood products and the other advantages of low-carbon construction materials (e.g., insulation properties, energy efficiency, moisture resistance, lightness, adaptability) in their marketing. They can use locally and responsibly produced renewable wood, side streams from wood processing, and wood for packaging, reuse, fuel, or components. They can also develop products and processes that promote circular economy principles and resource efficiency.
In the era of climate change, every material choice matters. The more we build with wood, the more carbon we store for the long term. Wood industry companies that recognize and harness the climate benefits of wood, improve their processes, and communicate their sustainability efforts convincingly will thrive – even in the age of climate change.
Author: Martti Saarela, Ph.D. (Tech.), LL.M, M.Sc. (Econ.), Research Director, University of Oulu Kerttu Saalasti Institute, MicroENTRE Centre for Microentrepreneurship
This blog is based on findings and development work from the NOHEVA project – “Low-Carbon Crisis Preparedness from Wood Construction and Tourism”.
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