Friday, Oct. 26, 2007

Warming to the challenges

Companies move to mitigate — and cope with — climate change

E-mail this article \ Print this article

Photo illustration by Dan Gross⁄The Gazette Earth image⁄NASA Cityscape⁄stockxpert
The threat of severe climate change is spurring many businesses — from insurers, defense companies and hardware stores to the hospitality industry and watermen — to take action.

‘‘There is an urgency in dealing with climate change now that wasn’t there two or three years ago,” said Mary Glackin, deputy under secretary of the U.S. Department of Commerce’s National Oceanic and Atmospheric Administration. ‘‘It’s maybe much later than we think.”

Glackin was among the government officials, scientists and industry leaders who gathered this week at the first national conference linking those disparate business groups with the scientists at the University of Maryland, College Park.

The two-day meeting, organized by the university, NOAA, NASA and the American Meteorological Society, attracted some 400 people from across the nation.

Some businesses are working on innovations to measure and respond to the weather changes. Others work to encourage the use of cleaner energy and products, such as Clean Currents LLC of Rockville, which brokers renewable energy to clients. One client is Strosniders, a small chain of hardware stores, the first such chain in the state to switch to wind-generated electricity.

In addition, a subsidiary of Baltimore giant Constellation Energy recently signed up Bethesda concessions company HMSHost Corp. to use electricity from renewable sources at three travel plazas in Maryland and Delaware.

Insurers are providing incentives for clients to use energy-efficient appliances and machines that reduce emissions of greenhouse gases. FM Global, a Johnston, R.I., insurance company that focuses on commercial and industrial clients, even conducts research into products that help minimize damage in major storms and sends engineers to businesses to recommend changes.

Report: Maryland is especially vulnerable

In Maryland, the Commission on Climate Change is working on a plan to reduce greenhouse gas emissions and prevent sea level rise and coastal flooding. The panel, which is being advised by working groups comprising business, political, education and community leaders, is expected to release preliminary recommendations next month and finalize its plan early next year.

The issue is particularly important to Maryland. Climate change in the form of higher temperatures, more intense hurricanes and longer droughts, plus rising sea levels, will hurt the state’s economy more drastically than most other states’, according to a report by the University of Maryland’s Center for Integrative Environmental Research.

Maryland, which has more miles of shoreline than most states, is the third most vulnerable state to sea level rise behind Louisiana and Florida, according to the report. Over the past century, the sea level in Maryland rose roughly 1 foot, about twice the global average, according to state figures. The sea surrounding Maryland is expected to rise as much as 3 feet by 2100, threatening the state’s $250 billion coastal-related economy, researchers say.

The state’s industries that directly depend on the Chesapeake Bay and Atlantic Ocean, such as lobster, crab and oyster fisheries, will be most significantly damaged by rising sea levels, as well as changes in water quality and higher water temperatures, Matthias Ruth, center director, said during a conference call.

‘‘We often think of sea level rise as a slow, gradual increase in the water level,” Ruth said. ‘‘But what it means, as that happens, storm surges can be significantly magnified ... We’re talking about a very rapid loss of the coastal ecosystems ... that currently provide a natural buffer to roads along coastlines, to developments along coastlines.”

Tourism, forestry and agricultural industries are among others that will likely face declines, he said. Maple syrup production throughout the mid-Atlantic states, which includes operations in western Maryland, could see as much as a $12 million annual decline in production due to lower sap flow, the report says.

Since 1960, the Chesapeake Bay has warmed by an average of 2 degrees Fahrenheit and lost several inhabited islands to erosion and rising sea level, said Donald F. Boesch, a professor of marine science and president of the University of Maryland Center for Environmental Science in Cambridge.

The higher temperatures have increased erosion and led to the decline of natural habitat for crabs and other wildlife that watermen depend on for their livelihoods, he said during recent testimony before the U.S. Senate Committee on Environment and Public Works.

‘‘Experience elsewhere shows that there can be significant net economic benefits to reducing greenhouse gases, although initial investments are usually required to achieve them,” Boesch said.

Skeptics callit ‘a fad’

Even in the face of such testimony and studies by environmental scientists, some are skeptical.

It’s the Y2K syndrome, said Peter Gourlay, a board member of the industry group Regional Manufacturing Institute of Maryland. He was referring to the computer bug of 2000 that companies spent millions of dollars to address — an effort that some say was unnecessary, though there’s no way of knowing.

‘‘To many in the industry, this is a fad,” Gourlay said of the rush to energy efficiency and other measures.

Still, numerous major multinational companies are ‘‘committed to sustainability,” he said. ‘‘Pressure is on companies by consumers, shareholders and others to do the right thing.”

Even businesses that seemingly are not directly affected by warming trends, such as Bethesda defense and aerospace giant Lockheed Martin Corp., are working to address changes in climate.

There are opportunities to gain contracts by pursuing cutting-edge research on new technologies, such as laser instruments and space-based optics, to address climate change, said Jonathan T. Malay, Lockheed’s director of civil space programs.

‘‘Innovation is a core value that drives our company,” Malay said.

Northrop Grumman Corp., another defense and aerospace giant that is also one of Maryland’s biggest employers, is also conducting much research in this realm, said Robert F. Brammer, vice president and chief technology officer in Northrop’s information technology division.

Sensor technology to detect ocean acidification is something that has only recently come on the radar screen, said Mario Tamburri, a University of Maryland professor who directs the Alliance for Coastal Technologies.

All companies have roles to play to address climate change, said Norman R. Augustine, who was CEO and chairman of Lockheed before retiring in 1997. He addressed the conference, speaking about what businesses should know about climate change.

‘‘Global warming, while presenting an enormous threat, also affords significant opportunities to forward-looking businesses,” Augustine said.

Majority of lossis ‘preventable’

Companies that do what engineers suggest — which can be something as simple as installing stronger screws in roof decks of plants to make sure they stay intact — sustain far less damage during storms and thus have fewer and smaller insurance claims, said Louis Gritzo, FM Global vice president and manager of research.

‘‘We believe that the majority of loss is preventable through research and engineering,” Gritzo said.

Climate change already factors into insurers’ underwriting, said Robert Flynn, vice president for strategic policy at The Travelers Cos. The company encourages the use of cleaner energy through programs such as discounts for people who own hybrid vehicles, he said.

With some insurers refusing to provide coverage for coastal property owners or charging much higher rates, steps should be taken to make sure they can obtain insurance at reasonable rates, said Ralph Tyler, Maryland’s insurance commissioner.

Even financial disclosure by public companies is making its way onto the global warming radar screen. A group of state treasurers and asset management companies recently petitioned for companies’ disclosure of climate change risk in filings with the U.S. Securities and Exchange Commission.

While there may be debate as to the severity of climate change’s impact in the future, that doesn’t really matter any more in the homebuilding industry, said David A. Crowe, senior staff vice president for regulatory and housing policy at the Washington trade group National Association of Home Builders.

‘‘Our industry isn’t asking if climate change is a threat,” Crowe said. ‘‘It doesn’t matter because it’s here. Consumers and regulators want green buildings.”

Resources

Center for Integrative Environmental Research at University of Maryland, College Park. 301-405-3988, www.cier.umd.edu.

Earth System Science Interdisciplinary Center in College Park. Joint center between the University of Maryland and NASA’s Goddard Space Flight Center. Administers the Cooperative Institute for Climate Studies sponsored by NOAA. 301-405-0050, www.essic.umd.edu.

Joint Global Change Research Institute in College Park. Collaboration between the University of Maryland and Pacific Northwest National Laboratory. 301-314-6737, www.globalchangeumd.edu.

University of Maryland Center for Environmental Science in Cambridge, one of 13 institutions under the University System of Maryland. 410-228-9250, www.umces.edu.

Climate Information: Responding to User Needs Conference site. 301-314-2628, www.climateneeds.umd.edu.

 Top Jobs

 Search Directories

Search all directories

Resources

 Search Directories

Search all directories
or pick a category below to search now

Categories