The increasing frequency and severity of natural disasters pose a growing threat to our communities. Few places are immune, but some are especially vulnerable, like Sacramento, California.
That’s why the U.S. Chamber of Commerce, Allstate, the Sacramento Metro Chamber, and the U.S. Chamber of Commerce Foundation hosted a forum that brought together more than 70 cross-sector local leaders with expertise in resiliency. There, they explored different actions and investments the community could take to build a more resilient Sacramento that’s better able to manage the impacts of natural disasters they may face.
Read the Report
The discussions were guided by new economic data from The Preparedness Payoff: Sacramento report, which models three Sacramento disaster scenarios: drought, major storm/mudslide, and wildfire. The projected recovery costs for these events ranged from $1 billion to $3.4 billion. The findings reveal that, on average, for every $1 spent on resilience, Sacramento would stand to save $10.80 in economic productivity, damages, and cleanup.
Recognizing the Risks: Sacramento Scenarios
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$25B
Annual damages resulting from 5 of the largest wildfires in California state history that occurred over the last decade
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20%
Share of Sacramento workforce employed in agriculture, where climate impacts are especially severe
Sacramento’s unique geography and emerging disaster cycle of droughts, wildfires, extreme rainfall, and mudslides drive these steep costs. Forum attendees agreed that the report’s hypothetical scenarios reflect the very real threats Sacramentans face.
A poll taken by the forum attendees found that 92% believed the region had done decently well investing in flood resiliency but that similar investments were needed to target other risks, like wildfires.
Jennifer Barrera of California Chamber of Commerce moderates a panel with (L-R): Robyn Fennig of California Governor's Office of Emergency Services, Laura Lewis of SMUD (Sacramento Municipal Utility District), Monika Stoeffl of California Resiliency Alliance, and William Witzke of Allstate Insurance Auburn and Grass Valley.
Rob Glenn, Vice President of Global Resilience, U.S. Chamber of Commerce Foundation
Attendees at the Sacramento Climate Resilience Forum.
Alison Kearns, FEMA Region 9, Planning and Implementation Branch Chief, Mitigation Division.
KCRA's Lee Anne Denyer interviews the U.S. Chamber of Commerce's Chuck Chaitovitz.
The Chamber Foundation's Rob Glenn and FEMA Associate Administrator Justin Knighten.
Attendees at the Sacramento Climate Resilience Forum.
Robert Heidt Jr., Sacramento Metro Chamber of Commerce President & CEO
Representatives from FEMA who spoke at the forum commended the new research for clearly demonstrating the benefits communities can reap through preparedness and resiliency investments. They emphasized that this kind of economic modeling helps make clear the benefits of investing proactively in resilience. It also highlights what communities stand to lose if they don’t, and that can help encourage folks to take action.
“We've always had a part of our business focused on preparedness and mitigation, but in recent years, I felt, and have seen, a real sense of urgency to change and to not be as hyper-focused on response and recovery, but start putting our resources, our efforts, ahead of events, because we know that they're cost-effective," said Alison Kearns, FEMA Region 9 Risk Analysis Branch Chief.
The Golden State’s Response: California’s Challenges and Investments
While there are numerous efforts focused on investing in preparedness to combat the challenges of increasing catastrophic events—such as FEMA’s “Ready California,” the recent passage of a $10 billion state climate bond known as Proposition 4, and California’s Climate Strategy Plan—attendees repeatedly suggested there is a need for more cross-sector collaboration between government, business, and the community-at-large on the issue resiliency.
Research shows that 80% of Californians acknowledge the need for disaster preparedness but are deterred by perceptions of it being too expensive, time-consuming, and overwhelming to do so. Several speakers commented on the need for a mindset shift toward investing in preparedness.
The Path Forward: Incentives and Partnership
Throughout the afternoon, speakers expressed broad support for expanding resiliency incentives for individuals, businesses, and communities. This includes substantial state and federal incentives that could promote more widespread adoption of resilience measures.
“It can't only be the companies that are incentivizing this behavior. The state needs to be incentivizing local governments to do their part, and the state needs to be incentivized to do their part as well,” said Adey from the Personal Insurance Federation of California. “It needs to be everybody encouraging good behavior.”
These types of incentives could be particularly effective for small businesses. Securing adequate insurance, particularly in high-risk wildfire areas, remains a challenge for many small business owners. Stronger incentives, such as tax credits, could encourage those businesses to make resiliency investments they might otherwise not.
“As a small business owner myself, anytime there's a tax credit that I actually can qualify for, it's a big deal,” said William Witzke, Owner, Allstate Insurance Auburn and Grass Valley. “It can work as far as specific mitigation that we can absolutely qualify what needs to be done.”
This is why cross-sector collaboration is so important. The forum attendees made clear that’s what’s needed to raise awareness and encourage widespread investment in preparedness and resiliency. They advocated for breaking down silos in planning and fostering partnerships across public and private sectors to create the political will and public accountability that can help make resilience a mainstream priority.
Local NBC television station KCRA covered the Sacramento Climate Resilience Forum. Read and watch their coverage here. Read KCRA President and General Manager Ariel Roblin's commentary on the gathering here.
Supporting Communities and Small Businesses
The Sacramento research builds on a report earlier this year that analyzed 25 disaster scenarios in cities across the U.S. and found that, on average, each $1 spent on climate resilience saves $13 in economic savings, damages, and cleanup costs. For more information and a detailed methodology, download the 2024 Climate Resiliency Report here.
The partnership builds on Allstate’s work to strengthen communities to empower people so they can thrive and the U.S. Chamber and Chamber Foundation’s disaster response and resiliency solutions, which include training and resources to help businesses and communities prepare for and recover from disasters.
