The 10 U.S. states that are best equipped to handle climate change and severe weather are located in America.

• Companies are increasingly considering the rising cost of climate risks and insurance when making decisions about where to locate.
• As energy demands increase, companies are seeking sustainable and dependable energy sources.
• The annual America's Top States for Business rankings by CNBC take into account multiple sustainability metrics.

No matter your stance on climate change, it's likely that you're already footing the bill for it.

Since 2021, the cost of homeowners insurance has increased by 27% nationwide, according to data from Insurify. In some states, such as Louisiana, the rise in premiums is even more significant, with a projected increase of 23% this year alone.

According to Jeremy Porter, head of climate implications for First Street Foundation, insurance companies are reacting to the increasing occurrence of severe and frequent climate events, which results in higher payouts than inflows.

The Bipartisan Infrastructure Law includes $550 billion for hardening infrastructure to withstand climate change, which is expected to be a significant component of future spending, according to U.S. Transportation Secretary Pete Buttigieg.

"There is a massive demand for that," he said to CNBC in June. "Building roads on higher ground instead of rebuilding them annually when they get washed out, and ensuring seismic retrofits for crucial bridges are some of the measures we're taking."

"No one can oppose resilience, as it is a personal decision-making skill that everyone must possess, according to Maria Lehman, director of U.S. infrastructure for global engineering firm GHD and president of the American Society of Civil Engineers. There is a financial cost if the asset is not handled correctly."

Companies are paying more attention to climate risk, resilience, and sustainability when deciding where to locate, and this is reflected in CNBC's Infrastructure category in the America's Top States for Business study. Infrastructure is the most heavily weighted category in this year's methodology, accounting for 17% of a state's overall ranking.

We examined factors such as state-level data from First Street for properties susceptible to significant harm from flooding, heat, wildfires, and wind in the upcoming 30 years.

We examined NOAA data on extreme weather in primary geographic regions where U.S. states are located, as well as DOE data on renewable power.

While some states are more susceptible to climate risks, these ten states are best prepared for the challenges that Mother Nature presents.

10. Oregon

Oregon is well-equipped to handle climate issues, including intense winter storms and wildfires. The state is a leader in renewable energy, with more than two-thirds of its power coming from renewable sources. Now, with funding from the federal infrastructure law and a mandate from the state legislature, the Oregon Department of Energy is developing a comprehensive strategy to harden its energy systems.

The 2024 Infrastructure Score is 242 out of 425 points, with the top states receiving a grade of B+.

Climate Extremes Index (National Average: 32.92%): 16.54%

Properties at risk: 100%

Renewable energy: 68%

9. Arizona

The Grand Canyon State's desert climate can be harsh, with 645 heat-related deaths last year in Maricopa County, home to Phoenix. On the other hand, only about 5% of properties are at risk of flooding, according to First Street Foundation. Despite the massive demands due to population growth and economic development, the Arizona power grid is one of the nation's most reliable. However, the state gets a relatively small percentage of its power from renewable sources.

The 2024 Infrastructure Score is 276 out of 425 points, with the top states receiving an A+ grade.

Climate Extremes Index: 14.9%

Properties at risk: 96%

Renewable energy: 24%

8. Washington

The Evergreen State is a leader in renewable energy, with nearly three-quarters of its power coming from renewable sources. However, the state is not stopping there, as it has awarded $150 million in grants to develop more renewable power sources through its Clean Energy Fund. This is part of a broader strategy mandated by the state legislature to eliminate the state's reliance on fossil fuels by 2050.

The 2024 Infrastructure Score is 239 out of 425 points, with the top states receiving a grade of B+.

Climate Extremes Index: 16.54%

Properties at risk: 100%

Renewable energy: 72%

7. New Mexico

New Mexico has published a Climate Adaptation and Resilience Plan in response to the massive Calf Canyon/Hermits Peak wildfire that burned over 340,000 acres in 2022. The plan aims to bring together state agencies, local governments, Tribal communities, and the private sector to prioritize resilience. Despite the challenges, the state has a strong foundation in some areas, such as abundant renewable energy and minimal flood risk.

The 2024 Infrastructure Score is 179 out of 425 points, with the top states receiving a grade of D+.

Climate Extremes Index: 14.9%

Properties at risk: 69%

Renewable Energy: 54%

6. Nebraska

Nebraska's heartland location protects the state from some of the worst effects of climate change, with only 18% of properties at risk from a major climate disaster in the next 30 years. However, the state is not immune to dangers, particularly in terms of wildfires. According to the Nebraska Forest Service's 2023 Annual Report, "Nebraska fires are increasing in size and the fire season is extending," said State Forester John Erixson.

The 2024 Infrastructure Score is 202 out of 425 points, with the top states receiving a grade of C.

Climate Extremes Index: 22.12%

Properties at risk: 18%

Renewable Energy: 33%

5. Colorado

Colorado, known as the Centennial State, takes pride in being an early adopter of sustainability. In 2021, Gov. Jared Polis' administration released its first Greenhouse Gas Pollution Elimination Roadmap, with a goal of achieving 100% renewable energy by 2040. According to the Polis administration dashboard, the state is currently halfway towards all green energy in government. Although wind, wildfire, and heat are significant risks, extreme weather is less common in Colorado compared to other parts of the country.

The 2024 Infrastructure Score is 247 out of 425 points, with the top states receiving a grade of B+.

Climate Extremes Index: 14.9%

Properties at risk: 67%

Renewable Energy: 46%

4. California

California, with its more than 11 million properties, faces significant climate risks, including wildfires, coastal storms, and mudslides. According to First Street Foundation, 95% of the state's properties are at risk of a major disaster. However, the state is taking steps to mitigate these risks, particularly in terms of its power grid. California generates 87% of its power from renewables, making it the fourth-lowest per capita energy consumer in the country. On July 11, during a heatwave that pushed power demand to nearly 44,000 megawatts, California's grid operator successfully met the demand "with room to spare."

The 2024 Infrastructure Score is 245 out of 425 points, with the top states receiving a grade of B+.

Climate Extremes Index: 20.58%

Properties at risk: 96%

Renewable Energy: 87%

3. South Dakota

The state of South Dakota, with its comparatively small population of about 919,000 people, avoids some of the property risks associated with climate change. Only 34% of South Dakota properties are at risk of major climate-related damage. However, the state excels in sustainability, particularly in renewable energy. South Dakota generates around 80% of its energy from renewables, with wind power being its most abundant source. Additionally, agricultural waste and other biomass are also plentiful energy sources.

The 2024 Infrastructure Score is 189 out of 425 points, with the top states receiving a grade of C-.

Climate Extremes Index: 22.12%

Properties at risk: 34%

Renewable Energy: 77%

2. Idaho

Idaho is another leader in renewable energy, with a focus on hydropower. The state has five of the ten largest power plants, all of which are hydroelectric, including the Idaho Power's Brownlee plant, the largest privately owned conventional hydroelectric facility located along the Oregon border. Despite the fact that a large percentage of Idaho properties are susceptible to climate risk, the danger of flooding is relatively minimal.

The 2024 Infrastructure Score is 195 out of 425 points, with the top states receiving a grade of C.

Climate Extremes Index: 16.54%

Properties at Risk: 90%

Renewable Energy: 78%

1. Nevada

Nevada's desert heat is a significant risk factor, but the state is less vulnerable to other hazards such as flooding, winds, and wildfires. Like its neighbors, Nevada relies heavily on renewable energy, with solar being the preferred choice. Since 2016, solar power has nearly tripled in the state, and Nevada leads the nation in solar power potential due to its abundant sunshine. Additionally, the state is a leader in geothermal energy production, trailing only California in this area. These renewable sources power a reliable grid, making Nevada America's most sustainable state.

The 2024 Infrastructure Score is 236 out of 425 points, with the top states receiving a grade of B.

Climate Extremes Index: 14.9%

Properties at Risk: 98%

Renewable Energy: 74%