How Will Global Warming And Rising Sea Levels Impact Your Business?

• Rising sea levels due to global warming threaten coastal cities with potential geological issues, infrastructure damage, and economic consequences for businesses.
• Businesses can adopt sustainable practices to address environmental concerns and need to prepare for climate-related challenges by assessing risks, diversifying supply chains, engaging with community resilience initiatives, utilizing technology for warnings, and ensuring appropriate insurance and financial planning.
• There are a few sustainable business practices that you can employ to contribute to fighting global warming while impressing consumers with continued empathy.

There’s a lot to love about living in coastal areas, and for businesses the best part might be that it’s often the most lucrative location — many economic power hubs are located on the coast. 

Unfortunately, global warming and the corresponding increasing geological problems stand to introduce a new slew of problems for workers and businesses in these coastal cities. Rising sea levels, in particular, could cause serious harm in waterfront business hubs.

According to the National Oceanic and Atmospheric Administration, the sea has risen approximately 8-9 inches since 1880, but the rate is rapidly increasing, as 4 of these added inches have been added since 1993.

It’s important to understand some of the potential consequences that could arise from rising tides. Understanding is step one, but then what can business owners even do? Facing monumental issues can lead to paralysis, but there are strategies leaders can use to help prepare themselves for geological disasters and even to attempt to reduce the harms from rising sea levels.

Consequences of rising sea levels

The consequences of unchecked global warming and the continued trajectory of the rise of global sea levels will be vast, expensive, and disorienting for millions.

Although landlocked cities won’t face the initial bulk of the problems, which is potentially a reason why America’s Sunbelt cities are some of the hottest job markets, coastal cities are not so lucky.

The three biggest concerns for businesses in these coastal cities are infrastructure damage and disruption, loss of property value and investments, and increased insurance costs.

Infrastructure damage and disruption

As sea levels rise, the risk of storm surges and increased flooding becomes more pronounced. This can lead to damage or destruction of critical infrastructure like roads, bridges, ports, and other utilities.

Businesses relying on a city’s infrastructure will face disruptions in supply chains, increased maintenance costs, and potential business closures.

Loss of property value and investments

Coastal properties are at the greatest risk of inundation and damage as a result of rising sea levels. This poses a real threat to the value of real estate assets in these areas, and businesses that own or lease properties in coastal cities may face declining property values.

Increased insurance costs

Rising sea levels contribute to higher risks of flooding and other climate-related events. As a result, insurance companies will raise premiums for businesses affected by rising sea levels. 

This increased cost could be a financial burden for businesses, affecting bottom lines and making organizations less competitive.

Although these issues may be relatively unavoidable on a long enough timeframe, there are several ways that entrepreneurs can prepare their businesses.

Championing sustainability

One often-expressed sentiment is that we are simply too late to reverse the harm we’ve done to the planet. Many environmentalists, though, claim that there’s still some time (though reportedly not much) to help curb effects of global warming and rising sea levels.

No matter which side business leaders personally believe, it’s a foolish business approach to make no actionable changes. From a purely economic standpoint, sustainable practices show customers a business is concerned with guaranteeing a future for later generations. It can also help with recruitment and retention as young workers are increasingly concerned about climate change in the workplace and are seeking employers who share their values and commitment to addressing environmental issues. 

From a practical standpoint, for coastal cities particularly, addressing local sustainable practices could have a lasting impact on the city’s infrastructure should the rising sea levels continue on their current trajectory.

Here are just a few examples of sustainable business practices that you can engage in, and initiatives to support, to try and reduce the rising sea level:

1.Green infrastructure development

• Designing and implementing green infrastructure projects, like vegetated buffer zones and permeable surfaces, to absorb excess rainwater and reduce runoff that contributes to rising sea levels.

2.Sustainable urban planning

• Incorporating sustainable urban planning principles, including elevated or flood–resistant building designs.

3.Net Zero Real Estate Planning

• In 2020, the real estate industry accounted for 36% of global final energy consumption and 37% of energy related CO2 emissions, according to the U.N.’s 2021 Global Status Report For Buildings and Construction.
• Transitioning to renewable energy can help a building reduce its operational CO2 emissions while increasing its energy efficiency and reducing its energy costs. Natural additions such as green roofs can act as insulation and support local wildlife.

4.Water management systems 

• Upgrading and maintaining efficient water management and drainage systems to prevent flooding and manage stormwater runoff effectively.
• Supporting and participating in mangrove restoration projects, as mangroves act as natural buffers against storm surges and help stabilize coastlines.

5.Coastal erosion mitigation

• Invest in and implement strategies to prevent or mitigate coastal erosion like the construction of artificial reefs or planting vegetation to stabilize shorelines.

6.Use data to support changes

• Using data will help workspaces stay on track with their emissions targets, while staying transparent with sustainable efforts.
• The coworking sector in particular could prioritize reducing electricity and gas emissions and reviewing operations times, while developing stronger partnerships with landlords.

These are just a few sustainable business practices that you can employ to contribute to fighting global warming while impressing consumers with continued empathy.

Preparation

Reversing global warming and rising sea levels may well be impossible. If that’s the case, business owners in coastal cities should begin making preparations now to ensure their companies’ survival.

Unfortunately, there’s no existing framework for exactly how business owners should react to rising sea levels, so the best course of action is planning for everything.

Below, we’ve covered some of these preparations.

1.Risk assessments

• Conduct a comprehensive risk assessment to understand specific threats and vulnerabilities your business may face.
• Develop a plan that includes strategies for mitigating risks, like improving your infrastructure, relocating critical or expensive assets, or implementing in-house water management systems.

2.Diversify supply chains

• Evaluate and diversify your supply chains to reduce dependence on vulnerable coastal routes. If you’re relying entirely on one coastal supply source, you may find yourself in a position where you can’t secure source materials.

3.Engage in community initiatives

• Collaborate with local governments, other businesses, and community organizations to participate in resilience initiatives.
• This collaborative approach doesn’t just introduce the possibility of shared resources and emergency response plans, it introduces a supportive network that you can call on during trying times.

4.Use technology for warning systems

• Ultimately, we have no idea when rising sea levels will bring bonafide natural disasters to coastal cities. Thankfully, you can leverage technology to implement early warning systems for weather-related events.
• Early warnings allow for timely decision-making and evacuation if necessary.

5.Insurance and financial planning

• Review and update insurance coverage to ensure it addresses the risks associated with rising sea levels. To help guarantee that you don’t find yourself without coverage, you need to work closely with your insurance provider to understand the terms and conditions.
• In addition, explore financial planning strategies designed for resilience.

Using the steps above, coastal entrepreneurs should create concise plans that perfectly outline what steps to take during the event of a natural disaster.

Ultimately, the widespread effects of global warming and rising sea levels remain to be seen. Nevertheless, the information is clear. Sea levels are actively rising and their continued rise will spell disaster for coastal cities first.

Thankfully, entrepreneurs can negate some of this coming disaster through sustainable business practices and careful preparation.