Investing in resilience protects jobs and incomes, new report finds

Northbrook, Illinois, June 25, 2024 – For every dollar spent on climate resilience and preparation, communities can save $13 in damages, cleanup costs and economic impacts, new economic research finds. Allstate, U.S. Chamber of Commerce And that U.S. Chamber of Commerce Foundation.

The study, titled “The Payoffs of Preparedness,” modeled 25 disaster scenarios ranging from $1 billion to $130 billion in damage and cleanup costs for communities across the country. Each model found that upfront investments in programs and resources to increase disaster resilience could result in significant economic savings: preserving millions of jobs and household incomes, reducing the number of people displaced, and maintaining production to help local economies recover faster. On average, every dollar spent on increasing resilience saves communities $7 in economic costs alone.

As weather disasters become more frequent and severe Billion-dollar disasters are now commonplaceIt is essential that governments, businesses and households invest in resilience to help their communities thrive. In 2022 alone, the costs of natural disasters will be Over $360 billion worldwideThis includes more than 40 weather events that caused more than $1 billion in damage.

“Each scenario we modeled shows that investing in resilience can deliver remarkable benefits to communities,” said Marty Durbin, senior vice president for policy at the U.S. Chamber of Commerce. “This important study helps identify opportunities to reduce the economic costs of natural disasters, including job losses, reduced incomes, reduced economic activity and workforce losses.”

The study found that if a large city invested $10.8 billion in resilience and preparedness before a Category 4 hurricane, it could protect 184,000 jobs, $26 billion in GDP, and $17 billion in resident income. If a city doesn’t make such investments, lose 361,000 jobs, $46 billion GDP, $29 billion in resident income.

What’s more, even if a disaster never occurs, the community would still reap the benefits of preparedness: In the above scenario, the city would create more than 126,000 jobs, increase production by nearly $13 billion, and increase revenue by more than $8.5 billion.

“The economic benefits of investing in resilience are clear, as is ensuring insurance remains available and affordable for years to come,” said Elliot Stults, Allstate’s chief sustainability officer. “As communities continue to suffer the impacts of frequent and severe weather, investing in resilience today can empower them to thrive.”

Below are some examples of resilience investments that communities, businesses and families can make:

• green infrastructure to manage stormwater runoff and protect floodplains;
• Restore wetlands and allow natural areas to store excess water.
• Barriers, floodgates, and embankments to prevent damage to structures from floodwaters.
• Strengthening evacuation routes in case of floods or hurricanes.
• Structural improvements and accessibility updates for homes and businesses.
  • Install electrical systems and equipment above flood danger levels.
  • Seawalls, drainage pumps, and backflow prevention valves.
  • Removal of combustible materials near the residence.
  • Fire-resistant roofing or landscaping.

“It’s important that decision-makers at all levels of government and business understand that these investments can make communities safer and more resilient,” said Mark DeCourcy, senior vice president of the U.S. Chamber of Commerce Foundation.

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methodology

To determine the economic impact of resilience and preparedness measures, seven types of natural disasters were analyzed: hurricanes, major storms, earthquakes, tornadoes, floods, wildfires, droughts, and heat waves. Different methodologies were used to calculate the damages and their economic impacts from these disasters. See the Methodology section for more details.

Supporting local communities and small businesses

The study is the first of its kind, a new collaboration between the U.S. Chamber of Commerce, Allstate and the U.S. Chamber of Commerce Foundation, to strengthen community resilience to increasingly severe weather.

This partnership builds on Allstate’s efforts; Strengthening communities and empowering people to thrive U.S. Chamber of Commerce and Chamber of Commerce Foundation Disaster Response and Resilience SolutionsThis includes training and resources to help businesses and communities prepare for and recover from disasters.

About the U.S. Chamber of Commerce

The U.S. Chamber of Commerce is the world’s largest business organization, representing businesses of all sizes across all sectors of the economy. Membership ranges from small businesses on America’s Main Street and local chambers of commerce to major trade associations and major corporations.

What they have in common is that they rely on the U.S. Chamber of Commerce to make their voices heard in Washington, around the country and around the world. For more than 100 years, we have advocated for pro-business policies that help companies create jobs and grow our economy.

About Allstate

Allstate Corporation (NYSE: ALL) protects people against life’s uncertainties with a wide range of protections, including auto, home, electronics, benefits and identity theft. Its products are available through an extensive distribution network, including Allstate agents, independent agents, major retailers, online and at workplaces. Allstate is known for its slogans: Allstate gives you peace of mind®.

About the U.S. Chamber of Commerce Foundation

U.S. Chamber of Commerce Foundation We harness the power of business to create solutions that benefit America and the world. We anticipate, develop and deploy solutions to the challenges facing our communities — now and into the future.

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