Climate Change Concerns Drive Business Decisions, Survey Finds
LANSING, Mich. – A recent national survey reveals a critical shift in business priorities, with climate change considerations now a primary factor in crucial decisions. The Michigan Economic Development Corporation (MEDC) and MIT Technology Review Insights collaborated on the survey, which highlights how senior U.S. executives are adapting to the realities of a changing climate.
The findings underscore the growing recognition of climate risk. A significant 99% of the U.S. population experienced at least one extreme-weather alert since May, a reality acknowledged by business leaders across the country.
“Climate change is causing more extreme weather events and raising risks for business right now,” says Kara Cook, the State of Michigan’s Chief Climate and Energy Strategist. “Here in Michigan, we’re facing climate change head-on with investments to build up our water infrastructure, produce more clean, reliable energy, enhance our grid resilience and more. As national leaders in climate action, we are continually finding new ways to make our businesses and communities more prepared for climate events, while growing our clean energy economy.”
The survey of 300 senior U.S. executives found unanimous agreement that climate change poses a threat to the economy, either currently or in the near future. All respondents reported negative impacts on their businesses, with a majority citing business disruption (61%) and damage to physical infrastructure (55%). Rising operational costs (64%) and insurance premiums (63%) were also significant concerns. In response to these climate-related risks, 75% of executives have considered relocating their operations, and 24% have already taken action, moving physical infrastructure to mitigate potential impacts.
Location Decisions Shaped by Climate Resilience
The survey also reveals that executives are actively seeking locations that offer resources and support for climate resilience. Availability of climate-planning resources topped the list of criteria for 71% of respondents. Michigan, with its various development programs designed to help businesses address climate concerns also offers support in climate adaptation plans. Moreover, nearly two-thirds (64%) of respondents placed importance on access to critical natural resources, such as fresh water, showing a holistic understanding of the long-term implications of climate change.
Michigan’s Strategic Advantage
While no part of the U.S. is entirely immune to climate change, the survey indicates that the Midwest is perceived as the least exposed region, with nearly half of the respondents (47%) selecting it as such. In contrast, only 7% identified the West as the least exposed, reflecting the region’s increased challenges related to extreme heat, drought, and wildfires.
“Michigan is strategically positioned to lead the fight against the climate crisis. Not only are we a climate haven—where extreme weather events are likely to less drastically impact our people and businesses—we’re also rolling up our sleeves to establish the state as a leader in climate innovation and purpose-driven work,” said Hilary Doe, Chief Growth Officer for the State of Michigan. “Our robust supply chain, access to natural resources, leading research universities, and incredible talent all make Michigan an ideal place for businesses who want to be on the forefront of climate preparedness and solutions. Pair that with one of the most robust climate plans in the nation, and you’ll see why Michigan is number one for EV and hydrogen investments and IRA-backed clean energy projects. For talent and businesses that want to be on the forefront of climate preparedness, there’s no better place to be than Michigan.”
An example of Michigan’s appeal is LuxWall, a manufacturer of energy-efficient windows. The company evaluated six Midwestern states before selecting Michigan for two new manufacturing facilities. The company took several factors into account, including R&D tax credits and financial incentives, as well as weather events and resource availability.
“We looked at the probability of tornadoes, hurricanes, and other extreme storms. We looked at water availability, because we use quite a bit of water for our process, and we try to re-use water. But some places didn’t have the infrastructure to handle the daily discharge,” said Scott Thomsen, Chairman and Chief Executive Officer of LuxWall. “And we looked at grid resilience, because we need power to run our glass ovens. If you don’t have power, you can’t run a plant.”
LuxWall ultimately chose Litchfield and Detroit, Michigan, for their new locations, with grid resilience, natural resource availability, and statewide partnerships being decisive factors.
About the Michigan Economic Development Corporation (MEDC)
The Michigan Economic Development Corporation is the state’s marketing arm and lead advocate for business development, job awareness, and community development focused on growing Michigan’s economy.
Read the full MIT Technology Review Insights report, titled “Addressing climate change impacts.”
