Climate change is no longer just a buzzword; it is a pressing reality that businesses across the US are increasingly taking into consideration. From extreme weather events to dwindling natural resources, the impact of climate change is forcing companies to rethink their strategies and adapt to a changing world.
The latest research in this area sheds light on how businesses are viewing climate change risks and the steps they are taking to mitigate them. One key finding is that climate considerations are now playing a significant role in businesses’ site location decisions, with executives factoring in the frequency of extreme weather events and access to natural resources.
Here are some key takeaways from the research:
1. Relocation Due to Climate Risks
Many executives (62%) acknowledge that their physical infrastructure is exposed to climate change impacts, with a significant portion considering relocation (75%) or already relocating facilities (24%) to prepare for climate change.
2. Locking in Costs of Climate Change Adaptation
Businesses are already experiencing the effects of climate change, primarily through increased operational costs, insurance premiums, operational disruptions, and infrastructure damage.
3. Planning for Climate Change
While most executives recognize the importance of climate planning, there is a gap in translating this recognition into action. Only 62% have developed a climate change adaptation plan, and 52% have conducted a climate risk assessment.
4. Climate-Planning Resources as Site Location Criteria
When evaluating potential business sites, executives prioritize the availability of climate-planning resources and access to critical natural resources as key criteria.
5. Regional Variations in Climate Risks
While no region in the US is immune to climate change, executives perceive the Midwest as having the least exposure to climate change risks, highlighting regional variations in climate impacts.
This insightful content was created by Insights, the custom content arm of MIT Technology Review, offering valuable perspectives on climate change adaptation in the business world.