Facing the Heat: The Impact of Climate Change on Caribbean Islands & the Role of SMEs in Achieving a Sustainable Future
Written by Carla Joan
ABOUT THE AUTHOR | Carla Joan is an Associate, Managing Principal at NYC & the Business Development Director at Álvarez-Díaz & Villalón. She also heads the firm's Internship Program.
AS PUERTO RICO AND MUCH OF THE CARIBBEAN CONTINUE TO EXPERIENCE RECORD-BREAKING HEATWAVES AND PROLONGED HEAT ADVISORIES WELL INTO JULY 2025, THE REALITY OF CLIMATE CHANGE IS NO LONGER A DISTANT CONCERN—IT IS A DAILY CRISIS.
Our region, like many others around the globe, is on the frontlines of a rapidly warming planet. From Category 5 hurricanes to prolonged droughts and massive floods, the Caribbean is enduring the brunt of climate disruption.
This is not an isolated phenomenon. Across the world, communities are grappling with extreme weather: Central Texas is reeling from catastrophic floods that claimed over 100 lives and caused billions in damage; Europe is facing another summer of deadly heatwaves; wildfires rage across parts of Canada and the Mediterranean; South Asia is inundated with monsoon floods; and even Antarctica is seeing unprecedented temperature spikes.
These global patterns reinforce the urgent need for unified, bold action to combat climate change and build a sustainable, resilient future.
THE ROLE OF CARIBBEAN SMES IN ACHIEVING A SUSTAINABLE FUTURE
Small and Medium-sized Enterprises (SMEs) are the backbone of Caribbean economies, and they are uniquely positioned to lead the region’s transition toward sustainability. By embracing innovation, community engagement, and green practices, SMEs can drive meaningful change. Here’s how:
1. ADOPTING GREEN PRACTICES
SMEs can reduce their environmental footprint through simple, cost-effective measures: switching to LED lighting, minimizing single-use plastics, implementing recycling programs, and sourcing sustainable materials. These actions, though small individually, collectively contribute to a greener economy.
2. INVESTING IN RENEWABLE ENERGY
Solar panels, solar water heaters, and energy-efficient appliances are increasingly accessible. By adopting these technologies, SMEs can reduce energy costs and dependence on fossil fuels, while setting an example for others in the community.
3. DRIVING INNOVATION & ADAPTATION
From eco-friendly packaging to climate-resilient agriculture, SMEs can develop and adopt solutions tailored to local needs. For example, a coastal tourism business might invest in coral reef restoration, while a food producer might shift to drought-resistant crops.
4. ENGAGING WITH COMMUNITIES
SMEs can play a vital role in raising awareness and building local resilience. Hosting educational workshops, supporting environmental initiatives, and collaborating with schools and NGOs can foster a culture of sustainability and preparedness.
5. BUILDING STRATEGIC PARTNERSHIPS
Collaboration amplifies impact. SMEs can partner with government agencies, universities, and international organizations to access funding, training, and research. Joining global networks like the UN Global Compact or regional sustainability coalitions can open doors to new opportunities and shared knowledge.
By taking these steps, Caribbean SMEs can become powerful agents of change. Their agility, creativity, and deep community ties make them ideal leaders in the fight against climate change.
THE PATH FORWARD: COLLECTIVE ACTION & THE ROLE OF SMES
The climate crisis is a shared challenge, and it demands a shared response. Governments, businesses, and individuals must work together to build a resilient, low-carbon future. For SMEs in the Caribbean, this means going beyond the products or services they offer and becoming active stewards of the environment and their communities.
In Puerto Rico and across the region, we have a unique opportunity to lead by example. By embracing sustainability, SMEs can help safeguard our islands for future generations.
These actions are not just good for the planet, they’re good for business. Consumers are increasingly supporting companies that align with their values, and sustainable practices often lead to cost savings, improved brand reputation, and access to new markets and funding opportunities.
A CALL TO ACTION
As we confront the escalating effects of climate change, every stakeholder must step up. Business leaders—regardless of size—have a critical role to play. The decisions made today will shape the world we leave behind tomorrow.
Let’s commit to building a future where economic growth and environmental stewardship go hand in hand. A future where Caribbean islands are not just surviving climate change, but thriving through innovation, resilience, and unity.
The time for action is now. Together, we can make a lasting impact.
For more resources on how businesses can take action on climate change, visit the UN Global Compact and the Climate Action Network.
FURTHER READING: 4 BENEFITS OF EMBRACING THE SDGS IN PUERTO RICAN MSMES