This week, the National Climate Assessment and Development Advisory Committee released its third report on the impact of climate change on regions across the country.
A team of more than 300 experts, a 60-person Federal Advisory Committee, and 13 federal departments contributed to the report
The findings are stark. The report shows that America is already feeling the effects of climate change, and the extreme weather we’ve experienced lately—from record draughts in the West to record cold and snow this past winter—will only worsen.
Here are five key areas where the report’s findings are a cause for concern for the business community.
1. Increased Supply Chain Disruptions
Much of America’s supply chain runs through coastal cities, ensuring that even businesses located far away from the ocean are at risk. Sea level rise and coastal storms threaten costal infrastructure, including roads, rail lines, energy infrastructure, airports, and port facilities that businesses rely on to move products every day. Thirteen of the nation’s 47 largest airports, including those that serve the New York, Miami, DC, and the Bay Area, have a least one runway that is less than 12 feet above sea level, putting these airport at greater risk from storm surge with a sea level rise. In addition, nearly five million Americans and hundreds of billions of dollars of property are located in areas that are less than four feet above the local high-tide level.
One of the most extreme cases is in Alaska, which built much of its transportation infrastructure on frozen permafrost. The rising temperatures will lead many permafrost areas to unfreeze, necessitating great repairs. Alaska currently spends $10 million a year to repair infrastructure built on permafrost, and these costs will rise as climate change continues.
2. Net Loss for Agriculture
Some farmers in the Corn Belt might actually benefit initially from a longer growing season, but droughts and an increase in the number of hot nights will likely reduce yields. The United States produces nearly $330 billion per year in agricultural commodities. Climate change can positively and negatively affect crop, livestock, and fishery systems depending on the product and the region, but the net effect is projected to be negative.
3. Increased Cooling Costs
With warmer temperatures overall, businesses might spend less on heating during the winter, but they will spend far more on cooling costs the rest of the year. 2012 was the hottest year on record in the continental United States. The NCA says that human influence on climate has already roughly doubled the probability of extreme heat events – Texas and Oklahoma saw record-breaking summer heat in 2011.
4. Lost Worker Productivity
Climate change may reduce air quality by increasing pollen concentrations, lengthening the pollen season, and increasing the growth of molds and indoor fungi. Asthma is already on the rise: prevalence rose from 7.3 percent in 2001 to 8.4 percent in 2010. More sick days will reduce productivity and increase health insurance costs for employers. Heat waves can reduce productivity in many sectors, especially in labor-intensive industries like construction and agriculture because workers cannot work as long or as hard in the extreme heat.
5. More Extreme Weather is Expected
Small businesses that depend on the surrounding communities as customers can be particularly affected by weather disasters. Hurricane Sandy caused an estimated $65 billion in damages and cut power to 8.5 million users. Industry clustering may increase efficiency, but it may also lead to a breakdown in the supply chain if a key link experiences a major weather-related disaster. For example, about half of the nation’s oil refineries are located in four states. Many of the Gulf refineries shut down in the aftermath of Hurricane Katrina, causing a large increase in the price of oil.
Learn more about the National Climate Assessment at https://nca2014.globalchange.gov