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Recent UK government policy on climate change, and wider policy movement within the United Nations Framework Convention on Climate Change, emphasise the building of adaptive capacity. But what are the institutional constraints that shape capacity to build adaptive organisations? The authors synthesise theory from social learning and institutional aspects of multilevel environmental governance to help unpack the patterns of individual and collective action within organisations that can enhance or restrict organisational adaptive capacity in the face of abrupt climate change. Theoretical synthesis is grounded by empirical work with a local dairy farmers group and two supporting public sector bodies that are both local actors in their own rights and which also shape the operating environment for other local actors (the Environment Agency and the Welsh Assembly and Assembly-sponsored public bodies …