How Climate Change is Costing Your Company

BY Jim Cole Managing Editor
Means & Matters
Molly O’Conner

Jun 10th 2021

Businesses large and small are beginning to respond to the threats to their operations, revenue, and profits created by changing climate. Is your company prepared for these three climate risks?

1. Be Aware of the Physical Risks Today and in the Future

The costs of climate-linked catastrophes are surging, and companies across the country have felt the impact.

2016: Louisiana Floods

  • $1.2 billion in damaged inventory
  • 6,000 flooded businesses

2017: Texas Hurricane

  • 12% of businesses across Texas closed

2018: California Wildfire

  • 18,000 structures destroyed in Paradise, CA

2019: Colorado Hailstorms

  • 46% of Colorado properties affected

2020: National Disasters

  • 22 extreme weather events across the U.S. cost $95 billion

Taking Action

Colorado’s ski industry responds to physical risks.

Resorts have partnered with Colorado State University’s Colorado Climate Center to use climate data to better forecast the impact of climate change on their operations.

2. As You Prepare for Physical Risks, Remember Your Supply Chain 

14% of suppliers say more than half their facilities face water-related risks

$1.26 trillion in revenue is at risk among 8,000 suppliers due to climate change, deforestation, and water risks

$120 billion in added costs may be passed on by suppliers to customers for climate-related physical, regulatory, and market risks.

Taking Action

Partner with your suppliers

Ask questions about suppliers’ resilience

Collaborate on solutions

Set targets and timelines to reduce risks

Ask your suppliers to work with their suppliers

3. After Physical and Supply Chain Risks, Get Ready for the Transition to a Green Economy.

By 2025, there could be 27 times more electric trucks on U.S. roadways.

By 2030, at least 15 states will require 30% of trucks, buses, and vans sold to be zero-emission vehicles.

By 2045 California intends to make a statewide transition to zero-emission trucks and to generate 100% of electricity from renewable resources.

By 2050, Los Angeles intends to have zero-carbon transportation, zero-carbon buildings, a zero-carbon electrical grid, zero waste, and zero wasted water.

Taking Action

Community Choice Aggregators (CCAs), which buy clean energy for users, are accelerating access to renewable energy for businesses and households in 9 states, including California.

30% of California customers (10 million total) now have the option to choose a CCA for their electricity provider, up from less than 1% in 2010.

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