The Emerging Importance of Improving Resilience to Hazards Presentation to: West Michigan Sustainable Business Forum November 14, 216 Dale Sands
Agenda Resilience Defined Driving Forces Of Resilience Improvement Urbanization Trends Increase of Threats Sendai Framework Highlights from Small to Mid-Size Business Resilience Survey Questions and Answers 2
Resilience Defined Rebounding Webster s New Dictionary Springing back to a former shape or position Capable of recoiling from pressure or shock unchanged or undamaged Elastic Readers Digest Great Encyclopedia Dictionary The power or ability to return to the original form, position, etc., after being bent, compressed, or stretched; elasticity Random House Dictionary Inc. 216 3
Resilience Defined The ability of human settlements and organizations to withstand, recover quickly from and continue to prosper in the context of increasing impacts of natural and man made hazards or disasters. This includes acute shocks from natural & man made disasters, and chronic stresses such as those from climate change. Resilience is an inescapable attribute of a smarter planet Resilience requires planning and adaptation in advance of a peril. 4
Driving Forces For Resilience Improvement Urbanization Increase Frequency and Intensity of Hazards Sendai Framework 215-23 5
NatCatSERVICE Natural Loss Events Worldwide 215 Severe storms USA, 7 1 Apr Severe storms USA, 24 Dec 2 Jan 216 Wildfires USA, 12 Sep 8 Oct Drought USA, Jan Dec 1,6 Loss events Severe storms USA, 23 28 May Landslide Guatemala, 1 Oct Winter storm USA, 16 25 Feb Heat wave Europe, Jun Aug Flash floods USA, 2 6 Oct Flash floods Chile, 23 26 Mar Floods United Kingdom, Dec Flash floods Ghana, 2 5 Jun Winter Storm Niklas Europe, 3 Mar 1 Apr Floods Malawi, Mozambique, Jan Mar Heat wave India, Pakistan, May Jun Earthquake Pakistan, Afghanistan, 26 Oct Earthquake Nepal, 25 Apr Tornado China, 1 Jun Typhoon Soudelor China, Taiwan, 2 13 Aug Typhoon Mujigae China, 1 5 Oct Winter storm Australia, 19 24 Apr Source: Munich Re, NatCatSERVICE, 216 Geophysical events (Earthquake, tsunami, volcanic activity) Meteorological events (Tropical storm, extratropical storm, convective storm, local storm) Hydrological events (Flood, mass movement) Climatological events (Extreme temperature, drought, forest fire) Loss events Selection of catastrophes 6 216 Münchener Rückversicherungs-Gesellschaft, Geo Risks Research, NatCatSERVICE As at February 216
Trend in Natural Disasters: 198 215 (Munich Re) 7 Source: Munich Re NatCatSERVICE
NatCatSERVICE Loss Events Worldwide 198 215: Overall & Insured Losses US$ bn Overall losses (in 215 values) Insured losses (in 215 values) Inflation adjusted via country specific consumer price index and consideration of exchange rate fluctuations between local currency and U.S. dollar. 8 216 Münchener Rückversicherungs-Gesellschaft, Geo Risks Research, NatCatSERVICE As at February 216
NatCatSERVICE Loss Events Worldwide 215: Percentage Distribution Number of events: 1,6 Overall losses: US$ 1bn Geophysical events (Earthquake, tsunami, volcanic activity) Meteorological events (Tropical storm, extratropical storm, convective storm, local storm) Fatalities: 23, Insured losses: US$ 3bn Hydrological events (Flood, mass movement) Climatological events (Extreme temperature, drought, forest fire) 9 216 Münchener Rückversicherungs-Gesellschaft, Geo Risks Research, NatCatSERVICE As at February 216
NatCatSERVICE Loss events worldwide 215: Insured losses as a % of overall losses for each continent Uninsured losses Insured losses Quelle: Munich Re, NatCatSERVICE, 216 1 216 Münchener Rückversicherungs-Gesellschaft, Geo Risks Research, NatCatSERVICE As at February 216
Sendai Framework For DRR: 215-23 Substantially Reduce: Global disaster mortality Substantially Increase: # of countries with national & local DRR strategies by 22 Numbers of affected people Economic losses in relation to global GDP Disaster damage to critical infrastructure & disruption of basic services International Cooperation to developing countries Access to multi-hazard early warning systems and disaster risk information and assessments 11
An Assessment of Resilience in New Orleans for Small and Mid-Size Businesses Located on Six Corridors 216
13 Project Overview Survey developed based upon Ten Essentials for Disaster Risk Reduction Focus: Six Corridors in New Orleans Focus Group on Scorecard: Businesses, Associations, Government Representatives Pilot Test Scorecard: 24 businesses on Washington/Broad Conducted over 2 Interviews Visited each business up to 3 times Goal:6%; Achieved: 63% Highest: Washington/Broad (75%) Lowest: Gentilly (47%) Training Conducted per Corridor Number of Businesses 1 9 8 7 6 5 4 3 2 1 73% Participation by % of Business 64% 47% 66% 65% 75% Out of Business Non-Surveyable Not Interested/ Non- Responsive Survey Collected 392 Businesses Identified 121 Not Interested/ Non- Responsive 51 Out-of- Business 12 Non- Surveyable 28 Surveys Collected
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16 Surveyed Business: When They Opened A majority of businesses were established after Hurricane Isaac, and nearly two-thirds of businesses were established after Hurricane Katrina. 6 5 Number of Businesses 4 3 2 1 Before 195 195-1989 199-1999 2-26 (before Katrina) 26-212 (before Isaac) 213-214 215-216 May 216
17 Building Ownership 35 29% (54) 71% (131) Lease/Rent Owner Number of Businesses 3 25 2 15 1 5 n=185 (23 NR) Number of Businesses 1 9 8 7 6 5 4 3 2 1 Lease/Rent Owner Number of Businesses 4 35 3 25 2 15 1 5
Big Picture
19 Major Themes 1. Vulnerability Remains High Throughout Six Corridors Risk Profile is high: Low elevation, 4 / 6 corridors within 1-yr/5-yr floodplains Disaster (Hurricane) can cause greater than 7 days of impact High dependency on supply chain High dependency on utilities Often not connected with community group 2. Disaster Preparedness is Low Preparedness slightly higher among businesses that have been through an event Emergency Plans are not common; less so for newer businesses, individual partnerships Recognition of reliance on other businesses and utilities; yet few have taken action and have backup Low percentage of businesses have enacted storm/flood proofing measures 3. Need to Raise Disaster Risk Reduction Awareness for Most; but Resilient Champions do exist! Desire for more information, training requested No one characteristic defining a more prepared/resilient business; though businesses that were established pre-katrina appear to be more prepared
2 Key Findings At least 1/3 of businesses reported having never been impacted by a disaster 65% (134) of businesses said they are dependent on other businesses while 75% (154) said that businesses are not dependent on them. Less than half of businesses have an Emergency Plan The larger businesses tended to have Emergency Plans Only 18% of businesses surveyed have an awareness of Natural Disaster Programs 87% of respondents have confidence in their insurance Insurance confidence is higher in business established post-katrina and among larger businesses
21 Key Findings 95% Respondents are dependent upon Power, 86% are dependent upon Water to operate their business Backup systems are not common, with fewer backup systems typical of newer businesses Most businesses are not aware or knowledgeable of Green Infrastructure Businesses established pre-katrina were twice as likely to have taken Storm/Flood Proofing Measures 25% of Individual/Partnerships have taken Storm/Flood Proofing Measures 64 businesses have an Evacuation Plan 75% of Individual/Partnerships do not have an Evacuation Plan Over half of respondents did know the Process To Return after Evacuation Newer businesses are less familiar with the Process to Return after Evacuation
Select Findings
23 Less Than Half of Businesses Have An Emergency Plan Q.9: Does your business have an emergency plan? 7% (15) Yes No 91 of 26 businesses have A Plan: 45% had a plan documented; 21% of 71 respondents stated they have regular drills to prepare 44% (91) Don't Know 49% (1) Healthcare had largest percentage with an Emergency Plan (67%) n=26 Personal Care had the lowest percentage (24%) Several business sectors might feel a higher necessity to have emergency response plans and may be able to share best practices with other sectors. Gentilly had the largest percentage of businesses with an emergency plan (65%) Number of Businesses Number of Businesses 35 3 25 2 15 1 5 35 3 25 2 15 1 5 Retail Healthcare Professional Services Restaurant Personal Care Other Freret had the lowest (33%).
24 The Larger Businesses Tended to Have Number of Businesses Emergency Plans 8 51% (7) 7 6 39% (54) 5 4 31 (49%) 3 (48%) 3 2 9% (13) 1 2 (3%) Pre Katrina Post Katrina n=26 Yes No Don't Know 49% of the businesses established before Katrina have an emergency plan, while 39% of businesses established after Katrina have an emergency plan Corporate and Franchise businesses are more likely to have emergency plans than Individual/Partnership businesses Corporate Individual/Partnership Franchise 5% (1) 8% (12) 6% (2) 2% (4) 75% (15) 55% (83) 37% (55) 36% (13) 58% (21) Yes No Don't Know
25 EMERGENCY PLAN Written Plan? If yes to having a plan, is it written? n=91 Distribution of Written Emergency Plans 41% (37) 4% (4) 55% (5) Yes No Don't Know 14% (7) 18% (9) 2% (1) 2% (1) 24% (12) Bullard Freret Gentilly Blvd. Harrison Leonidas / Oak 22% (11) Washington/Broad 14 12 1 8 6 4 2 Written Plan 18 16 14 12 1 8 6 4 2 Yes No Don't Know
26 Emergency Plan Question 9 14 Businesses said yes to all parts of Q9 (Emergency Plan) Yes to having an emergency plan If yes, is the plan written? If yes, has this plan been shared with your employees? If yes, do your employees know about the plan? If yes, do you have regular drills to prepare? 29% (4) 43% (6) Franchise Corporate 6 5 5 6 5 6 28% (4) Individual/Partners hip 4 3 3 3 3 4 3 4 3 2 2 1 1 1 Bullard Gentilly Harrison Oak Professional Services Restaurant Retail Healthcare
27 87% of Respondents Have Confidence in Their Insurance Q. 13: How confident are you in your insurance coverage to help your business recover from this disaster scenario? Majority of Very Confident cited having good coverage (21) or having a previous good experience (8). 61% (11) 13% (23) 26% (48) Not Confident Confident Very Confident n=181 Number of Businesses Majority of Not Confident cited a previous bad experience (5) 3 25 Not Confident 2 Confident 15 Very Confident 1 5 Number of Businesses Who Answered the Question 6 5 4 3 2 1 Not Confident Confident Very Confident Owner Manager Employee Number of Businesses 4 35 3 25 2 15 1 5 Not Confident Confident Very Confident
28 Insurance Confidence Higher in Business Established Post Katrina & Among Larger Business n=181 Businesses established after Katrina reported being very confident in their insurance: Pre Katrina: 56% Post Katrina: 62% Number of Businesses 8 7 6 5 4 3 2 1 Pre Katrina Post Katrina Not Confident Confident Very Confident Corporate/franchise businesses are very confident in their insurance: Franchise: 88% Corporate: 71% Individual/Partnership: 53% Number of Businesses 8 7 6 5 4 3 2 1 Not Confident Confident Very Confident
29 95% Respondents are Dependent Upon Power, 86% are Dependent Upon Water to Operate Their Business Number of Businesses 2 18 16 14 12 1 8 6 4 2 Q. 15: How dependent is your business on public utilities? Power Water Internet Landline Phone Mobile Phone n=27 n=26 n=193 n=192 n=192 Very Somewhat Not at all 94% of Restaurants are very dependent on water 6 Very Dependent Only 89% of Restaurants and Healthcare facilities are very dependent on power 83% of Healthcare facilities are very dependent on landline phones Number of Businesses 5 4 3 2 1 Retail Healthcare Professional Services Restaurant Personal Care Other Water Power Internet Mobile Landline
3 Businesses Have Back Up Power and Water Number of Businesses 18 16 14 12 1 8 6 4 2 Q. 16: Does your business have back-up systems for: Power Water Communications 47 or 23% responded that they have a back-up power system (n=28) 27 or 13% responded that they have a back-up water system (n=26) 37 or 18% responded that they have a back-up system. (n=25) Yes No Don't Know Power Water Communications Median Household Income 13% (6) 21% (1) 22% (6) 18% (5) 19% (7) 8% (3) Less than 3, 3,-6, 28% (13) 38% (18) 19% (5) 41% (11) 22% (8) 51% (19) 6,-1, Greater than 1,
Recommendations
32 Recommendations Provided to Businesses Understand risk profile; Have an emergency plan; Specific to Businesses that Own their property o Take flood/storm-proofing actions Specific to Businesses that Lease/Rent their property o Understand rights as a tenant; Consider Renter s Insurance. Commercial Corridors Conduct Corridor disaster rehearsal drills Establish or strengthen neighborhood groups City of New Orleans Develop and distribute emergency plan template Provide resilience information to all new businesses Maintain a supply of backup power systems
33 Recommendations for Businesses Understand your risk profile Have a written emergency plan Elevate critical equipment and files/information Develop evacuation plan and define criteria to evacuate Have inventory of sandbags on site Back-up electronic data; keep at a separate location Consider backup systems for power and water Join/Participate in Neighborhood Group
34 Recommendations for Businesses Own Your Space Purchase/Review Insurance Understand what natural disaster grant programs exist Take flood/storm-proofing action Establish rain garden, other green infrastructure Consider elevating building footprint if within floodplain Lease Your Space Understand rights as a tenant Communicate with property owner Recommend Owner takes action Consider renter s insurance Make sure critical inventory is backed up and out of harm s way
35 Recommendations for Corridors Establish a Corridor Resilience Champion Corridors fully within 1-yr and 5-yr floodplains should better understand risk and take specific actions to reduce flood vulnerability to businesses Identify existing businesses on corridor with backup power supply and businesses that might be focal points during event Conduct corridor disaster rehearsal drills Establish or strengthen neighborhood groups
36 Recommendations for The City Develop and distribute emergency resource materials Establish and publicize training/awareness programs Provide resilience information to all new businesses Develop and distribute emergency plan template Establish program in which prepared businesses could train less prepared businesses on basic actions/steps No- or Low-interest loan program for preparedness actions Establish mechanism to support Corridor Resilience Champion program Maintain a supply of backup power systems Consider repeating the Business Survey on additional corridors Review building codes for applicability given climate change
37 In Summary Vulnerability exists for small/mid-size businesses. Businesses established after natural disaster are less likely to be prepared than their more established peers. Resilient Champions exist! Need to better tap into them. Some recommendations to improve disaster preparedness could be easily accomplished. This study can help inform decision-making at the business, corridor, and City levels in order to increase preparedness and resilience for all.
Thank You!