As climate risks grow, businesses are increasingly turning to regions offering stability and resilience. According to an MIT Technology Review Insights survey in partnership with the Michigan Economic Development Corporation (MEDC), 75% of business leaders surveyed report that their organizations have considered relocating due to climate risk.
Conducted in 2024, the survey aimed to explore and better understand how climate change impacts business leaders in the U.S. The results of the study are clear: extreme weather and rising operational costs are forcing companies to adapt, consider climate criteria when evaluating locations, and utilize state and local resources for climate risk mitigation.
The study surveyed 300 business executives across the United States in a wide range of industries, from consumer goods to tech. While the business leaders came from diverse backgrounds, 100% of survey respondents agreed that extreme weather events induced by climate change will harm the economy today or in the future and 81% say climate planning and preparedness are important to safeguard their organizations’ operations.
The Factors to Consider for Low-Risk Climate Locations
No region is immune to the effects of climate change, but some areas are at lower risk than others. When assessing a location’s climate risk, companies evaluate 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, and 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 these growing concerns, businesses are actively seeking regions with stability and a commitment to long-term climate resilience. Forty-seven percent of executives surveyed identified the Midwest as the least exposed to climate risks, making it a prime location for businesses seeking stability.
Michigan stands out as a front-runner, having been ranked as the best state for climate change when considering drought, extreme heat, wildfires, flooding, and climate change preparedness according to Policygenius.
Leveraging State Support to Combat Climate Change
The Great Lakes State also provides financial incentives and innovative technologies to help companies reduce their carbon footprint and improve sustainability.
Launched in 2022, the MI Healthy Climate Plan outlines a path toward a more sustainable future across all its industries and communities. 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.
Additionally, the U.S. Department of Energy ranked Michigan as the #1 state for energy-sector job growth. From the manufacturing of EV charging stations and solar panels to wind turbines, Michigan is at the forefront of clean energy investments. For example, Michigan’s focus on hydrogen power presents significant opportunities for innovation, with projects like Nel Hydrogen’s $400 million investment creating over 500 jobs for green hydrogen production. As evidenced by the shift from internal combustion engines to electrification, and now with hydrogen development, Michigan is serious about being a leader in clean energy and sustainability initiatives.
Ninety-nine percent of America’s population has been under at least one extreme weather alert this year. As businesses increasingly prioritize climate planning, Michigan’s proactive approach offers growth opportunities in a stable and low-risk environment. With Michigan’s low risk for climate impact paired with the MI Healthy Climate Plan, companies investing in Michigan feel optimistic about the future in a state that understands climate challenges and actively works to overcome them.
To learn more about how Michigan is leading the way in clean energy and sustainability initiatives, visit Michigan’s Clean Energy Industries
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