6 days ago
Earth Observation: A New Frontier of Resilience for European Entrepreneurs
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Our fast-changing climate is hitting businesses hard. Every three weeks, a billion-dollar extreme weather event hits, wreaking havoc on global supply chains and denting business for large and small companies alike. It's a risk that European business owners can't continue to ignore as Europe is the fastest-warming continent.
The devastating floods that hit Spain late last year also put a huge strain on its economy, costing the Spanish more than 10 billion euros. Over a year's worth of rain hit in eight hours, creating a nightmare situation for businesses and residents alike, whose properties were destroyed.
Entrepreneurs need to take a proactive approach to managing challenges like these. There's a clear business case for being prepared before disaster strikes: According to the U.S. Chamber of Commerce, every $1 invested in climate resilience saves businesses $13.
That's where Earth Observation (EO) data comes in. EO is the science of using sensors found in satellites and other devices to unveil vital information about our planet's surface, such as climate change patterns, land conditions, marine life, security, and more.
Governments around the world have been heavily investing in EO given its potential to solve a wide range of problems that plague us here on Earth. The EU's Copernicus is a globally leading EO programme, set to generate up to €131 billion for the European economy. The European Space Agency (ESA) has also made headway in its 'Space for Earth' initiative. Just last month, it launched its groundbreaking satellite, Biomass, to uncover new data on how much carbon is stored in our forests and to 3D map them for the first time.
Using Earth Observation data to stay ahead of the curve
Yet it's not just governments and big organizations that stand to benefit from the capabilities of EO. Entrepreneurs and smaller businesses can also leverage it to answer real-world challenges, like risks to operations and assets. In fact, platforms like Copernicus aren't off-limits for smaller businesses: It's freely accessible for commercial use, combining information from satellite and in-situ (non-space) sources alike.
These tools are made of high-quality imaging technology that analyse topography and weather patterns in unparalleled detail, capturing resolutions of 0.3m². What does this mean for entrepreneurs who access these data sources? They can tap into insights to take pre-emptive action for risk management, such as forecasting an otherwise unexpected flash of heavy rain which could cause flooding and destroy warehouses in that area.
"It's interesting to see the ways that AI is helping to support the development of Europe's space industry and how it plays a key role in underpinning the convenience and security of our lives on Earth," says Daniel Smith, founder of AstroAgency, a consultancy for the space sector. "Earth Observation data, which comes from sensors on satellites, provides insights to support our economies through business sectors like energy, finance, agriculture, maritime, forestry, and more, as well as broader environmental monitoring efforts."
Let's take a look at that in action. An entrepreneur with a small wine company, for instance, can tap into crop yield data at scale via EO data, allowing them to better forecast how much fertilizer and water they will need ahead of the planting season. The European wine industry, as well as the agriculture sectors, is being hit by continent-wide droughts; the use case of EO technology in these industries could be highly useful for business owners shuffling budgets, planning logistics, and trying to predict harvest yield.
A founder operating in construction can benefit from EO data, too. A small business owner specialising in recycled concrete for buildings relies on rail to transport materials between regions or even countries. However, a key challenge is keeping a pulse on transport progress and being notified immediately if there are any delays or disruptions so they can act accordingly. Here's where EO insights can improve business operations with satellite-powered radar technology to get instant updates on rail freight.
Tapping into those insights also benefits SMEs from a financial standpoint. It's no secret that European banks have some of the most stringent standards for risk management, including climate impact, when issuing funds and loans. Business owners need to prove that they're aligning activities with sustainability goals, but often struggle to uncover the insights needed to guide their steps in doing just that. According to a report from Morgan Stanley, 77% of investors are interested in sustainable investing.
That's where companies like D-CAT come in, providing monitoring, reporting, and verification (MRV) services via satellites and machine learning (ML)-powered platforms. They're helping businesses understand where they can make more sustainable choices and show investors how they're slashing risks like climate impact.
Be strategic with EO data use
While EO data is not an absolute necessity for all entrepreneurs—especially those just starting out—the insights it yields can give a significant competitive advantage. With that in mind, entrepreneurs should be intentional in terms of investing in and prioritising the use of such information. That means having a blueprint in place to guide how these tools are implemented' here's how to do that.
First, map out business goals and weaknesses in existing processes. This will enable entrepreneurs to gauge which challenges and opportunities EO data and relevant tools will answer.
Next, it's critical to get digital infrastructures ready. Too often, businesses are quick to adopt technologies like AI tools without addressing existing gaps in their digital ecosystem, whether that's poor data management or poor interoperability between existing applications. There's nothing more frustrating than investing time, money, and energy into implementing a new technology, only for it to cause more friction than benefits.
Assessing these aspects will also mean business owners can narrow down the EO data tools and solutions most relevant to their business needs—ensuring they bring tangible impact, whether that's fortifying resource availability, safeguarding facilities that are otherwise at risk of extreme weather events, or strengthening risk reporting for investors' assessments.
An economic opportunity orbiting overhead
EO data could pave the way for a $3.8 trillion economic opportunity, transforming how businesses propel growth while empowering their ESG efforts for stronger risk management.
What once was a field viewed as exclusively for astronauts and astronomers is now a frontline for tackling key challenges like climate change head-on.
Entrepreneurs who tap into this latest frontier aren't just going to be resilient to risk, but ahead of it, too.
