How Are Businesses Responding to Climate Risk?

Jargalsaikhan, Hishgee; Leduc, Sylvain; Oliveira, Luiz E.

Journal Article

How Are Businesses Responding to Climate Risk?

Abstract: Understanding what kinds of climate-related risks businesses could face is part of the Federal Reserve’s work to support a thriving economy and well-functioning financial system. To advance these goals, the San Francisco Fed surveyed businesses in its nine-state region to learn how they perceive and approach climate risk. Findings show that businesses view a changing climate as a moderate risk to their activities, particularly through possible regulation changes, higher input costs, and variations in demand. Many businesses are adopting formal risk mitigation strategies, including monitoring climate-risk exposure and reducing carbon dependence.

Keywords: climate; climate risks; risk mitigation; business; Twelfth District;