MSP Resiliency and the New Climate Economy
Problem-solving is the heart of innovation and the Minneapolis Saint Paul region is a place that prides itself on solving big problems. In times of crisis, we innovate. The COVID-19 pandemic is a major challenge for the region, and the economic upheaval that has followed is a threat to MSP’s prosperity. But it is our innovative capacity, our agility and adaptability, that brings hope for a reimagined MSP. I’m inspired this week by the conversation Peter had with Jessica Hellman, Director of the Institute on the Environment at the University of Minnesota, on our opportunity at this moment to create solutions the world needs to adapt and mitigate climate change. MSP has the assets to make it happen, but we cannot wait until the economy has restarted to get serious about the climate crisis. We can problem-solve our way through this, collaboratively, because it is what we do. Here are five regional assets that position the MSP region to move quickly and innovatively to be a global leader in the New Climate Economy.
1. MSP is economically and environmentally resilient.
Resiliency embodies our can-do, problem-solver mentality and recognizes the attributes that make our region best prepared to recover quickly from, withstand, and avoid economic and environmental shocks. The region is positioned to recover from the economic shocks of COVID-19 in part because of our diverse industry base and robust talent pool. But in the dynamic global economy, companies are undergoing a significant strategic overhaul to mitigate risks and reduce uncertainties. That means a reevaluation of supplier locations, proximity to customers, and susceptibility to disruption from natural hazards.
The MSP region’s location in the Upper Midwest places us in a zone of the U.S. considered one of the most resilient in the world, according to FM Global. The central U.S. is ranked the 9th most resilient places in the world, in the latest FM Global Resilience Index, which compiles 12 economic, risk quality and supply chain drivers to gauge the business resilience of nearly 130 countries. MSP’s economic and environmental resiliency means that we have a competitive advantage in supporting the growth and success of companies as they reassess risk and resiliency.
2. MSP has private-sector leadership walking the walk and building solutions.
Corporate leaders are faced with increasingly complex decision making in this time of considerable uncertainty. Building economically and environmentally resilient companies in a time of COVID-19 requires bold vision and strategy. The MSP region is home to companies large and small that are leading through example and building solutions that are foundational to the New Climate Economy.
Xcel Energy is a national leader in renewable energy, delivering almost 30% of electricity from renewable sources today, and the first major U.S. utility to announce plans to reduce its carbon emissions to zero. Xcel is also focused on electrifying the transportation sector, announcing this week a $300 million investment to drive toward powering 1.5 million electric vehicles in its services areas, a plan that would help cut nearly 5 million tons of carbon emissions annually by 2030.
Ecolab, headquartered in Saint Paul, is the global leader in water, hygiene and infection prevention solutions and services. Earlier this month Ecolab joined the RE100, the global corporate renewable energy initiative bringing together companies committed to 100% renewable electricity. They join the ranks of other major MSP-based companies on the list, including 3M, Bank of America, General Mills, and Target. Check out CEO Doug Baker’s recent post on Ecolab’s 2030 sustainability goals here.
Bloomington-based 75F is a major start-up success story in the region and global leader in smart building technology innovation. The company developed a predictive building intelligence system by self-optimizing solutions like HVAC, indoor air quality and lighting, based on inputs from sensors, weather data, configuration settings and predictive algorithms. In addition to their tech that is allowing building users to reduce the use of energy, 75F has recently launched Epidemic Mode™, a new HVAC software sequence to make commercial buildings healthier and safer for employees. Epidemic Mode™ is updated by 75F in the cloud as guidelines evolve or new data emerges.
3. MSP has research institutions leading the creation of solutions the world needs to adapt and mitigate climate change.
A major institutional asset for the MSP region is the University of Minnesota, ranked one of the best research institutions in the world and a global leader in patent activity. The University’s Institute on the Environment (IonE) conducts applied research related to climate adaptation, energy, food and land use, urban resilience, whole systems, and more. It does this in partnership with and across different sectors of the economy and by engaging leaders in business, government, academia, and media. IonE’s global research relationships bring thought leadership and the newest insights on environmental resiliency to the MSP region.
4. MSP has effective public-private coalitions that can accelerate a circular economy.
Moving at an accelerated pace with two-feet forward into the New Climate Economy requires regional and state collaboration. MSP benefits from an existing coalition of cross-sector leaders through the Minnesota Sustainable Growth Coalition, which is accelerating circularity in Minnesota. The coalition is committed to uncover business growth opportunities, drive innovation, and promote thriving communities and regions. The coalition includes over 30 leaders across the public and private sector, including GREATER MSP. Priorities focus on clean energy, water, and materials use.
5. MSP brings thought leadership together to do the future visioning to get there.
The New Climate Economy requires a focus on bold future visioning. The MSP region has the human capital assets that it will take to reimagine the next economy, and celebrate the regional strengths of MSP, our seasons. The Great Northern is a festival that celebrates winter in Minneapolis and Saint Paul, centered around iconic winter events. In 2021, the GREATER MSP Partnership is supporting the Greater Northern to explore our changing climate through the lenses of culture and heritage, the economy, and social equity. GREATER MSP will host two panels at The Great Northern (Jan. 28-Feb 7, 2021): The New Climate Economy, focusing on Minnesota business leadership in the climate crisis, and Food/Ag Solutions.
What do we do next?
While we focus on COVID-19 and the challenge of economic recovery, it is also critical that we integrate the thinking and planning required to build stronger economic and environmental resiliency. McKinsey & Company presents a global perspective on how government, companies, and individuals can address climate change in a post-pandemic world here. Here are a few actions that we can consider as we build New Climate Economy strategies for the MSP region that build on McKinsey’s recommendations.
- Governments should build the capability to model climate risk and to assess the economics of climate change. At the regional scale, we can monitor more indicators of environmental health and track against our peer regions. This year we added a new indicator to the Regional Indicators Dashboard, the number of electric vehicle charging stations per capita. Be on the lookout for the release of the 2020 Regional Indicators Dashboard in September!
- Governments should reinforce national and international alignment and collaboration on sustainability. At the regional scale, we can build on already strong public-private partnerships and ensure broad and inclusive engagement when building strategies for the New Climate Economy.
- Companies should take a systemic and through-the-cycle approach to building resilience, through shorter supply chains, higher-energy efficiency manufacturing, videoconferencing/remote work, and increased digitization. At the regional scale, we can provide support to companies that are investing in resiliency and circularity, and building stronger environmental, social, and corporate governance goals.
We can all raise awareness of the impact of a climate crisis, which could create disruptions of great magnitude regionally, nationally and globally. We can all build upon the mindset and behavioral shifts that emerged during the COVID-19 crisis that had a positive impact on the environmental health of the region. Shifts in where and how we work, how we get around, where we shop, and products we purchase, can have a major impact on the health of our region.