A report commissioned by Michael Bloomberg, Henry Paulson and Tom Steyer indicates the U.S. economy is vulnerable to climate change risks. The report, “Risky Business: The Economic Risks of Climate Change in the United States,” summarizes the findings of an independent assessment by the Rhodium Group, which calculated and quantified the risks of climate change impacts on various sectors of the U.S. economy. The report outlines climate risk by region and economic sector and puts a dollar figure on these risks. For example, the report notes, without any efforts to reduce greenhouse gases, between $66 and $106 billion worth of coastal property will be below sea level by 2050.
In a recent presentation attended by AMWA, staff supporting the Risky Business report said the purpose of the report was to try to get businesses engaged in the climate change issue at a level commensurate to the risks to their bottom line. The report urges action in three general areas in order to “help minimize the risks U.S. businesses currently face from climate change.” These recommendations are:
- Business adaptation: changing business practices to become more resilient;
- Investor adaptation: incorporating climate risk assessment into capital expenditures and balance sheets and
- Public sector response: instituting policies to mitigate and adapt to climate change.
The Rhodium Group study – American Climate Prospectus, Economic Risks in the United States – employed climate modeling, econometric research and risk assessment to analyze the impacts of potential changes in temperature, precipitation, sea level rise and extreme weather events.
For their study, researchers selected several "impact categories" to evaluate in the context of changes in precipitation and temperature: agriculture (grain, soy and cotton yields); labor productivity (hours worked); heat and cold-related mortality; crime (property and violent); coastal damages due to inundation from sea level rise, hurricanes and Nor’easters; and energy demand. Other impacts, including water supply and demand, were not specifically quantified, although the impacts of climate change on water resources is discussed in Part V: Unquantified Impacts.
See a related story about the Risky Business group in AMWA's January 2014 Sustainability & Security Report.