Weathering the Next Storm: A Closer Look at Business Resilience

Weathering the Next Storm: A Closer Look at Business Resilience

Extreme weather and other climate-related impacts are becoming more frequent, and are imposing real costs on communities and companies. Companies have always navigated a changing business environment. But now they face a changing physical environment, as climate change affects their facilities and operations, supply and distribution chains, electricity and water, and employees and customers.

A new 2015 C2ES Report, Weathering the Next Storm: A Closer Look at Business Resilience, examines how companies are preparing for climate risks and what is keeping them from doing more. It also suggests strategies for companies and cities to collaborate to strengthen climate resilience.

The new report synthesizes public disclosures by S&P Global 100 companies, in-depth interviews and case studies, and workshops. It updates the groundbreaking 2013 report, Weathering the Storm, Building Business Resilience to Climate Change, which provided a baseline for how companies were assessing their climate vulnerabilities.

Click above to see our Weathering the Next Storm  infographic, with key takeaways

Key Findings

  • Most major companies recognize and report climate risks. Ninety-one percent of companies in the S&P Global 100 Index see extreme weather and climate change impacts as current or future risks to their business.
  • Companies worry about climate impacts beyond their facilities. Almost all companies interviewed expressed concern about impacts to their supply chains and public infrastructure.
  • There isn’t one right way to assess and manage climate risks. Many companies view climate change as a “threat multiplier” that exacerbates existing risks. This puts climate change into a familiar context, but could cause companies to overlook or underestimate the threats they face.
  • Companies struggle to translate long-term, global climate data into short-term, local risks. Despite growing access to climate-related data and tools, companies say they need “actionable science” that helps them understand locally-specific risks or risk scenarios.

C2ES Recommendations

  • Companies can start with a limited-scope vulnerability assessment – focusing, for example, on the most critical parts of the business – to raise internal awareness of climate risks.
  • Companies should facilitate regular communication across departments involved in climate risk and resilience -- including sustainability, risk management, operations, and finance – and consider whether to change planning horizons to better incorporate climate risks.
  • Companies, state and city governments, non-profits and local experts should explore partnerships to analyze data, evaluate climate risks, undertake cost-benefit studies, and implement resilience planning.
  • Governments should look for ways to streamline climate risk reporting and provide more guidance on how to incorporate climate risks into financial disclosures.
  • Governments should improve public infrastructure and provide opportunities for the private sector to contribute to resilience planning efforts and investments.

Additional Resources:


Video of our report launch


Building Resilience to Climate Change -- Why it's Crucial


Panel: Taking Business Resilience to the Next Level

Climate Resilience Toolkit is important resource

Anyone who needs to plan for future risks -- whether a city manager, a state official, or a business leader -- needs good information that’s easy to find and easy to use. The federal government took an important step to help managers plan for the impacts of climate change with the release this month of the Climate Resilience Toolkit.

This new online portal offers a wide range of resources and interactives that consolidate some of the “greatest hits” from federal climate data sets, guidance for resilience planning, and examples of resilience projects.

The toolkit is likely to be especially helpful for communities and businesses in the early stages of resilience planning, or for individuals who want to know more about managing climate risks. I took a spin through the toolkit’s resources and here’s my take on some of its components.


The toolkit promotes a five-step process for building resilience: Identify the Problem, Determine Vulnerabilities, Investigate Options, Evaluate Risks and Costs, and Take Action.

The Climate Resilience Toolkit’s five-step process for building resilience.

Business and government start preparing for climate impacts

Today’s Senate hearing isn’t just about the science of climate change. It’s also about the actions that need to be taken now to adapt to the reality of a changing climate. Businesses and governments each have a critical role to play in building resilient communities and economies.

Business-as-usual is already being interrupted by extreme heat, historic drought, record-setting wildfires, and flooding. Events from water shortages to floods are disrupting the supply chains for such companies as Honda, Toyota, Kraft, Nestle and MillerCoors. By the end of 2011, the United States had recorded more billion-dollar disasters than it did during all of the 1980s, totaling about $55 billion in losses.

Report Highlights Climate Change Risks to Key Gulf Coast Industries

Press Release
June 6, 2012

Contact: Rebecca Matulka, 703-516-4146,


Report Highlights Climate Change Risks to Key Gulf Coast Industries
Recommends Steps to Reduce Impacts on Region’s Energy and Fishing Sectors 

Climate change is already having major impacts on the Gulf Coast region and action is needed to protect its vital industries from the likely impacts of continued warming, according to a new report from the Center for Climate and Energy Solutions (C2ES).

The report, Impacts and Adaptation Options in the Gulf Coast, examines the risks that climate change poses to the region’s energy and fishing industries, and to its residents and local governments. It concludes that climate impacts are already being felt across these sectors, and outlines measures that can be taken to adapt to the growing risks, reducing the region’s vulnerability and the costs associated with future impacts.

The convergence of several geographical characteristics—an unusually flat terrain both offshore and inland, ongoing land subsidence, dwindling wetlands, and fewer barrier islands than along other coasts—make the Gulf Coast region especially vulnerable to climate change. Among the impacts and risks cited in the report:

  • Over the past century, both air and water temperatures have been on the rise across the region;
  • Rising ocean temperatures heighten hurricane intensity, and recent years have seen a number of large, damaging hurricanes;
  • In some Gulf Coast locations, local sea level is increasing at over ten times the global rate, increasing the risk of severe flooding; and
  • Saltwater intrusion from rising sea levels damages wetlands, an important line of coastal defense against storm surge and spawning grounds for commercially valuable fish and shellfish.

“Nowhere else in the U.S. do we see the same convergence of critical energy infrastructure and high vulnerability to climate change,” said C2ES President Eileen Claussen. “These risks are not borne by the Gulf Coast alone. A major energy supply disruption, for instance, would be felt nationwide. We must respond on two fronts: We have to work harder to reduce the greenhouse gas emissions causing climate change. And we must take steps, in the Gulf Coast and elsewhere, to prepare for the impacts that can’t be avoided.”

The report’s lead author is Hal Needham, a researcher at Louisiana State University’s Southern Climate Impacts Planning Program (SCIPP) and an expert on hurricane storm surges in the Gulf Coast. The co-authors are David Brown, an assistant professor in LSU’s Department of Geography and Anthropology, and Lynne Carter, associate director of SCIPP.

In their analysis of the Gulf Coast’s energy industry, which comprises about 90 percent of the region’s industrial assets, the authors found significant risks from hurricanes, sea level rise, rising temperatures and drought. The report noted the considerable damage the energy industry sustained from recent hurricanes in 2004, 2005 and 2008.  Thirty percent of the nation’s refineries are located in Texas and Louisiana, and Louisiana Offshore Oil Port in Port Fourchon is the country’s only deep-water oil import facility. At its current elevation, Louisiana Highway 1, the only access to the port, is projected to be flooded 300 days a year by 2050.

For the region’s other major industry, fishing, the report details major infrastructure risks, especially relating to coastal docking and fish processing. Fish and shellfish populations are also vulnerable to climate impacts, with a combination of warmer water, ocean acidification, and excessive runoff from the Mississippi River combining to increase the risk of large-scale changes in the Gulf ecosystem.

The authors emphasize that advance planning can reduce the region’s vulnerability and the costs incurred from future climate impacts.

For the energy sector, adaptation strategies include learning from recent hurricanes to more rigorously assess vulnerabilities; strengthening design standards for drilling platforms and other infrastructure; and undertaking projects such as the planned raising of sections of Highway 1 to Port Fourchon. To reduce vulnerability in the fishing industry, options include strengthening docking facilities and other infrastructure subject to storm surges, and limiting fertilizer use upstream on the Mississippi River to reduce the incidence of hypoxia (oxygen-starved waters) in the Gulf.

“Climate change is already taking a toll on the Gulf Coast, but if we act now to become more resilient, we can reduce the risks, save billions in future costs, and preserve a way of life,” said Needham. “The Gulf Coast is one of the first regions to feel the impacts of climate change. It only makes sense to be a first mover on climate adaptation as well.”


About C2ES
The Center for Climate and Energy Solutions (C2ES) is an independent non-profit, non-partisan organization promoting strong policy and action to address the twin challenges of energy and climate change. Launched in November 2011, C2ES is the successor to the Pew Center on Global Climate Change, long recognized in the United States and abroad as an influential and pragmatic voice on climate issues. C2ES is led by Eileen Claussen, who previously led the Pew Center and is the former U.S. Assistant Secretary of State for Oceans and International Environmental and Scientific Affairs.


Impacts and Adaptation Options in the Gulf Coast

Impacts and Adaptation Options in the Gulf Coast

June 2012

by Hal Needman, David Brown, and Lynne Carter

Download the full report (PDF)

Press Release

Press briefing (mp3)



The central and western U.S. Gulf Coast is increasingly vulnerable to a range of potential hazards associated with climate change. Hurricanes are high-profile hazards that threaten this region with strong winds, heavy rain, storm surge and high waves. Sea-level rise is a longer-term hazard that threatens to exacerbate storm surges, and increases the rate of coastal erosion and wetland loss. Loss of wetlands threatens to damage the fragile coastal ecosystem and accelerates the rate of coastal erosion.

These hazards threaten to inflict economic and ecological losses in this region, as well as loss of life during destructive hurricanes. In addition, they impact vital economic sectors, such as the energy and fishing industries, which are foundational to the local and regional economy. Impacts to these sectors are also realized on a national scale; Gulf oil and gas is used throughout the country to heat homes, power cars, and generate a variety of products, such as rubber and plastics, while seafood from the region is shipped to restaurants across the country.

This report reviews observed and projected changes for each of these hazards, as well as potential impacts and adaptation options. Information about the scale and relative importance of the energy and fishing industries is also provided, as well as insight into potential vulnerabilities of these industries to climate change. This report also identifies some adaptation options for those industries.


Federal Agencies Respond to Risks of Climate Change

C2ES is pleased to release our updated report, Climate Change Adaptation: What Federal Agencies are Doing, which lays out the rapidly expanding efforts across the federal government to respond to the increasing economic risks of extreme weather and climate change.  

Federal agencies are under growing pressure to reduce costs, eliminate unnecessary regulations, and make certain the public is getting a good return on the tax dollars they invest in government. In the context of climate change, federal agencies are reviewing the programs they operate and the facilities and resources they manage to identify cost-effective steps to minimize their vulnerability and enhance their resilience to increased risks of extreme weather and a changing climate. With our nation having experienced a record number of extreme weather events last year, each causing economic damages exceeding $1 billion, it’s both common sense and smart fiscal policy to analyze and minimize the vulnerability of federal assets to extreme weather and climate impacts. 

That’s One Small Step for the IPCC; One Giant Leap for Understanding Our Climate Risk

The Intergovernmental Panel on Climate Change (IPCC) released a “special report” (that’s what they call topical reports they publish in between their better known comprehensive assessments) today that is worth a close look for anyone who wants to start getting ready for a future with weirder and often harsher weather.

About a year ago I published an opinion editorial taking the Intergovernmental Panel on Climate Change (IPCC) to task for neglecting risk-based information to help decision makers cope with inevitable uncertainties about the future impacts of climate change:

Since uncertainty is endemic to the future, when the second IPCC assessment concluded in 1995 that ‘The balance of evidence suggests a discernable human influence on the global climate’, the IPCC should have reconvened around the risk implications of this probable human influence. Instead, it redoubled its effort to reduce physical science uncertainties [which will not be resolved before action is required].

Global Warming Contributing to Texas Drought

This blog is co-written by Jay Gulledge

Recently, President Obama quipped about GOP presidential candidate and Texas governor Rick Perry: “You’ve got a governor whose state is on fire denying climate change.” While this type of election jousting risks further politicizing an issue that should be totally non-partisan, it raises a legitimate question: Is climate change increasing the risk of drought and wildfires in Texas?

Solar Decathletes Bring Homebuilding Talents to Washington, D.C.

Over the past few weeks, college students have been shedding light on the future of solar energy on the National Mall in Washington, D.C. Out of 19 teams from around the globe and 10 energy performance and livability contests, one overall winner emerged at the recently held U.S. Department of Energy 2011 Solar Decathlon. The winning WaterShed home design, built by students from the University of Maryland, was inspired by the Chesapeake Bay ecosystem. The house included a 9.2 kilowatt rooftop solar array and prominently featured storm water management and recycling components, such as a butterfly roof and pollution filtration.

Flood Damages Stacking Up in Northeast

With the Northeast still reeling from the impacts of Hurricane Irene, the possibility of even more flooding was almost too much to comprehend. But last week the remnants of Tropical Storm Lee stalled and sent plumes of precipitation toward the Northeast, creating a replay of the floods a few weeks earlier. This time the area along the Susquehanna River in Pennsylvania and New York was in the bulls-eye. Since the ground was still saturated from Irene, this new round of flooding was worse, surpassing the previous record event set in 1972 when Hurricane Agnes dropped a torrential downpour on the area.

Syndicate content