Businesses face growing threats from extreme weather and climate change: damage to facilities, loss of water or power supplies, higher costs, and disruption of supply and distribution chains.
In a major report, Weathering the Storm: Building Business Resilience to Climate Change, C2ES provides a detailed snapshot of the state of resilience planning among a cross-section of global companies and outlines steps companies can take to better assess and manage their growing climate risks.
Click above to see our infographic, with key takeaways
The report includes a comprehensive review of resilience practices among S&P Global 100 Index companies and detailed case studies of six companies in diverse sectors: American Water, Bayer, The Hartford Group, National Grid, Rio Tinto and Weyerhaeuser. It also draws on input from a technical workshop with representatives of a wide range of industries.
- Ninety percent of S&P Global 100 Index companies identify extreme weather and climate change as current or future business risks.
- Almost two-thirds (62 percent) say they are experiencing climate change impacts now, or expect to in the coming decade.
- Companies are most concerned about the direct impacts of extreme weather on property, production and supplies, and indirect impacts on operational costs, such as higher prices for commodities or insurance.
- Most companies are managing these risks through existing business continuity and emergency management plans. Only a few have used climate-specific tools to comprehensively assess risks.
- Most companies (75 percent) also see new opportunities from a changing climate, including drought-resistant crops, storm-resistant building materials, and weather-related insurance products.
- Create a clearinghouse for reliable, up-to-date data and analytical tools. Companies need user-friendly, localized projections of climate changes and models that link projections to impacts that matter most.
- Invest in public infrastructure resilience. Roads, bridges, ports, and other public resources used to transport goods and services to market must withstand extreme weather and climate impacts.
- Consider resilience needs in regulation. Companies in regulated sectors, such as water, electricity, and insurance need regulators to be forward-looking and open to companies making the case for more spending on resilience.
- Set up voluntary, public-private partnerships. Bring together government and business expertise to improve resilience planning.
- Executive summary of the report. Full report. Case studies.
- Climate Impacts and Resilience Workshop, July 26, 2014, Washington, D.C.
- The Executive Forum on Business and Climate, November 3-4, 2013.
- Workshop: Building Business Resilience to Extreme Weather and Climate Change, November 14, 2012, Washington, D.C.
- Business Resilience Webinar Series, September-December 2013.
- Environmental Forum article by Sara Kendall
- USA TODAY op-ed by National Grid US President Tom King and American Water CEO Jeff Sterba.
- Our Sept. 23, 2013, event at Climate Week NYC: agenda, photos, video interviews with speakers Preston Chiaro of Rio Tinto; Ken Daly of National Grid, New York; Alan Kreczko of The Hartford; and Lisa Shpritz of Bank of America.
- Our July 17, 2013 launch event: agenda, photos.
- Blog post: Weathering the Storm: How to build business resilience to climate change
- Press release on the report.
- Our 2008 study, “Adapting to Climate Change: A Business Approach," which outlined an initial screening framework for assessing risks.
C2ES would like to acknowledge Bank of America for its collaboration and generous financial support.
Video of our July 17, 2013, launch event
Introduction and high-level discussion
Discussion on emerging business resilience practices
Video of our Sept. 23, 2013, event at Climate Week NYC
Company Prespectives: Managing Climate Risk
Video of our Nov. 18, 2013, side event at the UN climate talks in Warsaw
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.
June 6, 2012
Contact: Rebecca Matulka, 703-516-4146, email@example.com
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.”
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
by Hal Needman, David Brown, and Lynne Carter
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.
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.
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].
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?
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.
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.
During the last weekend of August, the Eastern U.S. braced for a walloping. Hurricane Irene spiraled up the Atlantic coast, ripping trees out of the ground in North Carolina and drenching much of the rest of the coast. When I heard that Irene was making her way up toward my hometown of Ridgewood, NJ, I had flashbacks to Hurricane Floyd, a devastating storm in 1999 that brought us much destruction and devastation.