MIT Technology Review
This research examines the ways in which US businesses perceive their climate risk and how they adapt to its impacts. As climate change accelerates, these considerations will only grow in importance. As climate change accelerates, such considerations are certain to grow in importance.
Key findings include the following:
Businesses are weighing relocation due to climate risks.
Most executives in the survey (62%) deem their physical infrastructure (some or all of it) exposed to the impacts of climate change, with 20% reporting it is “very exposed.” A full 75% of respondents report their organization has considered relocating due to climate risk, with 6% indicating they have concrete plans to relocate facilities within the next five years due to climate factors. And 24% report they have already relocated physical infrastructure to prepare for climate change impacts.Companies must lock in the costs of climate change adaptation.
Nearly all US businesses have already suffered from the effects of climate change, judging by the survey. The survey shows that the most significant impacts on businesses are likely to be in the future. These include increased operational costs (64%), insurance premiums (63%) as well as disruptions to operations (61%) as well as damage to infrastructure (55%). Executives are aware of climate change and have begun to plan for it. There is a seeming lag at some companies, however, at translating this perceived importance into actual planning: only 62% have developed a climate change adaptation plan, and 52% have conducted a climate risk assessment.Climate-planning resources are a key criterion in site location.
When judging a potential new business site on its climate mitigation features, 71% of executives highlight the availability of climate-planning resources as among their top criteria. Nearly two-thirds (64%) also cite the importance of a location’s access to critical natural resources.Though climate change will affect everyone, its risks and impacts vary by region.
No US region is immune to climate change: a majority of surveyed businesses in every region have experienced at least some negative climate change impacts. However, respondents believe the risks are lowest in the Midwest, with nearly half of respondents (47%) naming that region as least exposed to climate change risk.Download the full report.
This content was produced by Insights, the custom content arm of MIT Technology Review. This content was produced by Insights, the custom content arm of MIT Technology Review.
