Climate Change: A Top Priority for U.S. Businesses, Survey Shows
LANSING, Mich. – A recent national survey conducted by MIT Technology Review Insights in conjunction with the Michigan Economic Development Corporation (MEDC) reveals a significant shift in how senior U.S. executives are approaching business decisions: climate change is now a primary consideration.
With extreme weather alerts affecting nearly the entire U.S. population since May, the economic effects of climate change are at the forefront of business leaders’ minds. The survey of 300 senior executives found unanimous agreement that climate change is either currently harming or will harm the economy in the future. Every respondent reported that their businesses had already experienced negative impacts, with the majority citing business disruption (61%) and damage to physical infrastructure (55%). Rising operational costs (64%) and insurance premiums (63%) were also common concerns.
An overwhelming majority of respondents (75%) have weighed relocating due to climate risk, with 24% already acting on these concerns by relocating physical infrastructure to better prepare for climate change impacts.
“Climate change is causing more extreme weather events and raising risks for business right now,” said 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.”
When evaluating potential new business sites, an impressive 71% of executives identified the availability of climate-planning resources as a top criterion. Michigan, for example, offers development programs demonstrating how local resources such as wetlands can help prevent flooding or how microgrids can boost companies’ power resilience. Jurisdictions with their own climate adaptation plans, like the MI Healthy Climate Plan, often provide valuable resources for businesses considering future facility sites.
In addition to these resources, nearly two-thirds (64%) of respondents emphasized the importance of a location’s access to critical natural resources, particularly fresh water. While no part of the U.S. is immune to the effects of climate change, some regions are perceived as significantly less exposed to risk than others. Nearly half of all respondents (47%) selected the Midwest as the least exposed region, while the West (7%) was seen as the most vulnerable due 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 energy sector job growth, 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.”
A concrete example of the trend is LuxWall, a manufacturer of energy-efficient windows, which evaluated six Midwestern states before choosing Michigan for two new manufacturing facilities. “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.” The company selected Litchfield and Detroit, Michigan, after considering grid resilience, natural resource availability, and statewide partnerships.
