Navigating the Climate Crisis: Michigan’s Path to Business Stability

With vast freshwater resources, extensive forests, and diverse ecosystems, Michigan’s natural landscape is as much a part of our identity as our local economies. As climate change continues to impact the nation, Michigan stands out as a climate haven, offering businesses a stable setting to support growth while safeguarding irreplaceable assets for future generations.

Stewardship of our natural resources is a priority for the state, including how businesses engage with these resources. To explore and better understand how climate change impacts business leaders in the U.S., the Michigan Economic Development Corporation (MEDC) partnered with MIT Technology Review Insights to survey over 300 business executives and conduct in-depth interviews with industry experts. The results of the climate study are clear: extreme weather and rising operational costs are forcing companies to adapt.

All survey respondents agree that climate-induced extreme weather is either harming our economy today or will do so in the future. Executives expressed concerns over climate change driving rising operational costs, increases in insurance premiums, disruptions to operations, and damage to infrastructure. In fact, 81% say that climate planning is critical to their operations. A staggering 75% of respondents have considered relocating, with 24% already having relocated physical infrastructure to prepare for climate-related impacts and 6% indicating they have concrete plans to relocate within the next five years.

Regions less exposed to climate risk are viewed favorably and are gaining popularity among businesses. Forty-seven percent of surveyed executives identified the Midwest as the least exposed to climate risks, and with over 3,200 miles of freshwater coastline, Michigan’s geographic advantage makes it ideal for companies seeking long-term stability and climate resilience. The Great Lakes State was ranked as the best state for climate change when considering drought, extreme heat, wildfires, flooding, and climate change preparedness (2021 Policygenius Best & Worst States for Climate Change Index).

When assessing climate risk, companies evaluate a location’s exposure to extreme weather events causing floods, storms, droughts, rising sea levels, and heatwaves, as well as how susceptible key office locations are to supply chain disruptions. Grid resilience is also a key factor; nearly two-thirds (64%) of executives cite the importance of access to critical natural resources. Businesses can implement strategies to manage environmental risks by assessing what climate planning resources are available in their communities, as some state and local authorities have been more proactive than others in offering information and advice for climate risk mitigation.

In light of growing climate concerns, businesses increasingly seek regions with stability and a commitment to sustainability. Michigan’s commitment to safeguarding its freshwater lakes, forests, and agriculture resources positions the state as both a climate refuge and a wise choice for business investment. Michigan also provides financial incentives and innovative technologies to help companies reduce their carbon footprint and improve sustainability.

Supporting these goals, Michigan’s 2022 MI Healthy Climate Plan charts a course toward security for the state’s residents and a more sustainable future across all its industries. The Plan’s comprehensive set of policies includes a commitment to reach 100% carbon neutrality by 2050 and to drive clean innovation, promote clean energy jobs, and support infrastructure solutions that will help prevent and prepare for natural adversities.

Ninety-nine percent of America’s population has been under at least one extreme weather alert this year, with only 79 counties remaining unaffected. As businesses increasingly prioritize climate planning, Michigan’s forward-thinking policies make it an attractive hub for growth in a low-risk environment.

With the MI Healthy Climate Plan in place, companies investing in Michigan feel optimistic about the future in a state that understands climate challenges and actively works to overcome them. The state’s abundant natural resources and commitment to sustainability position it as a leading destination for businesses seeking to balance growth with climate consciousness. To learn more about how Michigan is leading the way in clean energy and sustainability initiatives, visit Michigan’s Clean Energy Industries.