Category Archives: Climate Change

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Global Heat Waves Signal Climate Risks

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India is currently suffering under a heat wave that has lasted over a month, with temperatures reaching a record 118 degrees Fahrenheit (48 degrees Celsius) in New Delhi on June 10 and 122 degrees (50 degrees Celsius) in the western city of Churu. The death toll has been estimated to be at least 36, though some sources put the number at more than 150. Europe is also preparing for its own massive heat wave this week, with temperatures expected to be 36 degrees Fahrenheit (20 degrees Celsius) higher than the seasonal average of 72 degrees (22 degrees Celsius).

This pattern of heat waves has become a yearly occurrence across the globe. Europe faced similar heat last year, as did Asia, with Japan experiencing record-breaking temperatures in 2018, which sent more than 71,000 to hospitals, killing 138. North America also saw extended higher temperatures in 2018, with 41 heat records across the United States, and heat-related deaths overwhelming Montreal’s city morgue.

Experts say that these global record-breaking incidents are the result of climate change, and likely forecast a new normal of dangerous summer heat.

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According to Stefan Rahmstorf, co-chair of Earth System Analysis at the Potsdam Institute for Climate Research (PIK), “Monthly heat records all over the globe occur five times as often today as they would in a stable climate. This increase in heat extremes is just as predicted by climate science as a consequence of global warming caused by the increasing greenhouse gases from burning coal, oil and gas.

” French national meteorological service Météo-France echoed these concerns, saying that heat waves’ frequency “is expected to double by 2050.” And according to a 2017 study from The Lancet Planetary Health journal, the number of deaths resulting from weather-related disasters could skyrocket in the future, killing as many as 152,000 people each year between 2071 and 2100, more than 50 times greater than the average annual deaths from 1980 to 2010.

As Risk Management has previously reported, these changes are also already impacting business operations globally, with direct economic losses from climate-related disasters (including heat waves) increased 151% from 1998 to 2017, according to the United Nations Office for Disaster Risk Reduction. Heat waves have serious effects on business operations, impacting things like road conditions and agriculture, as well as workers’ health and safety. More than 15 million U.S. workers have jobs requiring time outdoors, and according to the World Bank, even for indoor workers, productivity declines by 2% per degree Celsius above room temperature.

Many countries have taken steps to mitigate the effects of heat waves on their populations. For example, since 2016, India has been providing shelter for homeless people, opening water stations for hydration, cutting building heat absorption by painting roofs white and imposing working hour changes, curfews and restrictions on outdoor activities. These efforts have successfully reduced heat-related deaths from more than 2,400 in 2015 to 250 in 2017.

The U.S. Environmental Protection Agency (EPA) recommends similar steps to the ones India is taking, as well as ensuring that energy and water systems are properly functioning, establishing hotlines for reporting cases of high-risk individuals and encouraging energy conservation to reduce the chances of overwhelming electric systems. The U.S. Occupational Safety and Health Administration (OSHA) recommends that employers and workers facing higher temperatures in the workplace pay close attention for the signs of heat stroke, and keep three words in mind: water, rest and shade.

While these on-the-ground measures can reduce the immediate effects on workers and vulnerable populations like the elderly, children and the homeless, PIK’s Rahmstorf warns that “Only rapidly reducing fossil fuel use and hence CO2 emissions can prevent a disastrous further increase of weather extremes linked to global heating.”

Texas Study Shows Business Impact of Major Storms

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A new study conducted by Texas A&M University at Galveston and the Texas General Land Office examines the 50-year impact of a major storm hitting Galveston Bay on the Texas coast near Houston, including secondary effects to the economy. The study focused on catastrophic “500-year” flood events (with a one-in-500 chance of occurring in a year), which, while rare, have hit the state 3 times in recent years. This includes Hurricane Harvey, which struck Louisiana and Texas in August 2017, causing $125 billion in damage, according to the National Hurricane Center.

These larger storms have serious economic impacts locally, regionally and nationally. Over a 50-year time frame, the study notes, “the projected economic impact on Texas’ Gross State Product (GSP) of storm surge without coastal protection is substantial.” In the wake of a 500-year magnitude event, the regional petroleum and chemical manufacturing sectors would see their output decline by 19% (or $175.4 billion) in lost revenue, as well as a projected 17% loss of petroleum jobs (approximately 155,000 jobs) and a petroleum price increase of 13%. It would also impact the region’s housing, with the sector declining by 8%, or $39.5 billion lost in sales.

A 500-year surge event striking Galveston Bay would also have serious impacts for national economic activity, especially because the region processes 25% of the petroleum and more than half of the jet fuel used in the United States. According to the study, U.S. GDP could drop 1.1% (approximately $883 billion), U.S. exports would suffer a 4% drop (approximately $1.66 billion) and “30 states not including Texas will have lower GSP in response to a surge event in Texas.”

“The Galveston Bay region is one of the most flood- and surge-prone areas in the United States with vast amounts of vulnerable residential, commercial, industrial and petro-chemical areas at risk,” said Texas Land Commissioner George P. Bush. “This study clearly demonstrates that, without any new protections in place, future storm surges could have substantial and lingering impacts on Texas’ economy and send lasting ripples through other economic sectors nationwide.”

Turning to mitigation, the authors of the report assessed the potential measure of a 17-foot “coastal spine,” also called a “coastal storm suppression system,” made up of “connecting seawalls and fortified dunes/levees along the coastline to retractable gates.” In October, the Army Corps of Engineers released the study Coastal Texas Protection and Restoration Feasibility Study proposing a similar example of this sort of structure—74 miles of barrier, including “floodwalls (inverted T-walls), floodgates (both highway and railroad floodgates), seawall improvements, drainage structures, pump stations, and surge barrier gates.”

The researchers estimate that a coastal spine would reduce the region’s lost petroleum and chemical manufacturing sector losses to 3% and 5%, respectively, a 1% reduction in regional unemployment, and a 1% increase in petroleum product prices. The report also claims that a coastal spine mitigation plan would reduce Houston-Galveston regional insurance premiums by as much as 28%. This could provide significant relief for insurers as well. Even though insurance and reinsurance only covered about 30% of the total wind and flood damage from Hurricane Harvey, this amounted to tens of millions in losses.

In terms of construction cost, the Texas researchers polled residents of three local counties and found that 56% “believed that both government and port industries should be responsible for financing the coastal barrier system,” and a majority agreed that some form of taxation should support its construction.

Limit Organizational Exposure During the Polar Vortex

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A polar vortex has gripped large areas of the Northern United States, and all-time lows are being approached in parts of Midwest states like Iowa and Illinois. This frigid weather phenomenon is defined by the National Oceanic and Atmospheric Association (NOAA) as a large area of low pressure and cold air that normally surrounds the North and South poles. But during unstable conditions, the Arctic air can expand and drift southward to North America.

The extreme cold has led to several injuries and six deaths, including an auto accident that killed a couple, a man who likely froze to death in his Milwaukee garage and another man struck by a snow plow in the Chicago area.

The weather system has also forced the closure of schools, businesses, flights and even the United States Postal Service in some areas, and warnings are in effect for workers to stay home and keep off the roads.

Driving Tips

Some people must get out and drive, however, and so whether making deliveries, heading to or from work, or running necessary errands, drivers and asked to use heightened caution.

At this time last year when preparing for the “weather bomb,” AAA recommended precautions that can be applied during a polar vortex, including this basic tip: Accelerate and decelerate slowly. Applying the gas slowly when accelerating is the best method for regaining traction and avoiding skids, AAA said, cautioning that it takes time to slow down for a stoplight as it takes longer to slow down on icy roads.

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Building Tips

Looking inside your organization’s physical foundation is also critical to its resilience. In addition to clearing snow from driveways and de-icing entrances, organizations should be cognizant of how such brutally low temperatures can impact their workplaces. Interstate Restoration offers tips on how to address a building’s infrastructure during winter weather.

For example, if your pipes are found to be frozen, Interstate Restoration offers suggestions to reduce the likelihood of a burst:

  1. Turn off water to the building at the main water shutoff valve
  2. Inspect the pipe closely for cracks and note any that you find
  3. If you find cracks, call a plumber for advice before doing anything else
  4. If there is no damage present, add a space heater to the area or use a hair dryer to gradually warm the pipe. If the outside temperature is expected to rise, you can also wait for the pipe to thaw on its own before turning the water back on. PROCEED WITH CAUTION: Never use any type of open flame or torch to thaw pipes.

Outdoor Working Tips

The Department of Labor recommends that employees working in frigid temperatures avoid alcohol, smoking and some medications to help minimize risks.

As previously reported, the best way to avoid cold stress is by wearing proper clothing.

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The type of fabric makes a difference as well. For example, cotton loses its insulation value when it becomes wet, while wool, silk and most synthetics retain their insulation even when wet.

Here are some clothing tips for workers in cold environments:

  • For better insulation wear at least three layers of clothing: An inner layer of wool, silk or synthetic to wick moisture away from the body; a middle layer of wool or synthetic to provide insulation even when wet; and an outer wind and rain protection layer that allows some ventilation to prevent overheating.  Avoid tight fitting clothing.
  • Wear a hat or hood to help keep the entire body warm. Hats reduce the amount of body heat that escapes from the head.
  • Wear insulated boots or other appropriate footwear.
  • Keep extra clothing (including underwear) handy in case clothing gets wet.
  • Do not underestimate the wetting effects of perspiration. Venting of the body’s sweat and heat can be more important than protection from rain or snow, according to the DOL.

The Occupational Safety and Health Administration (OSHA) also issues guidelines, suggesting that heavy work be scheduled for the warmer part of the day, and to assign employees to work in pairs to lessen the risk of cold stress.

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Press Release: RIMS Commends Congressional Foresight to Extend Flood Program Prior to Government Shutdown

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National Flood Insurance Program May 31st Extension Avoids Dangerous Lapse in Coverage

NEW YORK – In the waning hours prior to the U.S. Federal Government’s partial shutdown, RIMS, the risk management society™, welcomed congressional action to extend the National Flood Insurance Program (NFIP). Extended through May 31, 2019, the program will become the responsibility of incoming House Financial Services Chairwoman Maxine Waters (D-Calif.) to draft a longer-term reauthorization.

A long-term reauthorized NFIP bill would provide critical financial support to a wide range of businesses experiencing flood emergencies and continues to be a RIMS legislative priority. The NFIP was the focus of the Society’s 2018 Legislative Summit held in October in Washington, DC. Additionally, this November, RIMS signed a joint letter with other insurance, real estate and banking organizations, urging Congress to take immediate action to avoid a lapse in the program.

“Business leaders, especially those located in areas of the country most susceptible to flood disasters, can breathe a sigh of relief knowing that an NFIP lapse has been avoided,” said RIMS CEO Mary Roth. “While RIMS is happy that the NFIP received an extension, the Society will continue to work diligently with elected officials, offering our support to help create a more permanent, long-term solution.”

RIMS’ Political Action Committee (RISK PAC) has been soliciting donations to allow the Society to continue to engage and support Members of Congress who have demonstrated their commitment to the reauthorization of the NFIP. For more information about RISK PAC or to donate, visit www.riskpac.org.