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Earth Day 2020: What Does Climate Change Mean for Risk Management?

On Earth Day 2020, risk professionals can reflect on ways to protect both the environment and their businesses. Worldwide, climate change poses countless risks, including increasing the frequency and magnitude of natural disasters, reducing access to resources and disrupting supply chains.

To celebrate Earth Day and help risk management professionals address environmental risks and climate change, here is a roundup of some of our coverage from the past year about these critical topics:

From Risk Management Magazine:

Aligning Sustainability and Risk Management: A collaborative approach between sustainability and ERM can best drive real change.

Taking Action on Climate Change: As the potentially devastating impacts of climate change become clear, risk managers must assess the resulting risk exposures and ­opportunities for their companies.

Insurers Divest from Coal Over Climate Risks: Insurers are pulling coverage and investments related to the mining and use of coal.

Will Climate Change Impact Reinsurance Rates?: As natural disaster losses mount, the reinsurance response could spur action on climate change.

Getting Serious About ESG Risks: Investors are increasingly scrutinizing environmental, social and governance activity.

From the Risk Management Monitor blog:

Venice Sees Near-Record Flooding: The city of Venice, Italy, faced the worst flooding of its famous canals since the devastating floods of 1966, suffering major economic impacts.

Catastrophic Floods More Frequent in 2019: Major flooding has become a normal occurrence for many regions of the country, and by all indications, it is becoming worse each year.

Global Heat Waves Signal Climate Risks: The pattern of dangerous heat waves has become a yearly occurrence across the globe. 

Texas Study Shows Business Impact of Major Storms: The large storms hitting the coast of Texas are having serious impacts on industries across the state and country.

Limit Organizational Exposure During the Polar Vortex: Tips for protecting businesses during the frigid weather phenomenon.

Global Heat Waves Signal Climate Risks

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.”

Preventing Heat Illness: Water, Rest, Shade

With summer comes hot, humid weather and a greater chance of heat-related illness for outdoor workers.

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How to prevent heat illness? Three words: water, rest and shade, according to the Occupational Safety and Health Administration (OSHA).

MedicalNewsToday

Heat illness is not to be taken lightly—in 2014, 2,630 workers suffered from heat illness and 18 died from heat stroke and other heat-related conditions on the job. Workers most at risk are those exposed to hot and humid conditions, especially those whose jobs require heavy lifting or heavy work tasks and who wear dense or bulky clothing and equipment.

Industries most affected by heat-related illness are construction, trade, transportation and utilities, agriculture, grounds maintenance, landscaping services and support activities for oil and gas operations, OSHA said. Workers who have not built up a tolerance to heat, including new workers, temporary workers, or those returning to work after a week or more off are all at greater risk, and all workers are at risk during a heat wave.

The body normally cools itself by perspiring. During hot weather, however, especially in high humidity conditions, sweating isn’t enough to keep the body cool. To keep body temperature from rising to dangerous levels, OSHA suggests drinking water and resting in the shade to prevent heat exhaustion or heat stroke.

If a worker becomes ill, OSHA recommends:

According to the Mayo Clinic, heatstroke symptoms include:

  • High body temperature. A body temperature of 104⁰ F or higher is the main sign of heatstroke.
  • Altered mental state or behavior. Confusion, agitation, slurred speech, irritability, delirium, seizures and coma can all result from heatstroke.
  • Alteration in sweating. In heatstroke brought on by hot weather, your skin will feel hot and dry to the touch. However, in heatstroke brought on by strenuous exercise, your skin may feel moist.
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  • Nausea and vomiting. You may feel sick to your stomach or vomit.
  • Flushed skin. Your skin may turn red as your body temperature increases.
  • Rapid breathing. Your breathing may become rapid and shallow.
  • Racing heart rate. Your pulse may significantly increase because heat stress places a tremendous burden on your heart to help cool your body.
  • Headache. Your head may throb.

The Mayo Clinic urges immediate action to cool the overheated person while waiting for emergency treatment, including:

  • Get the person into shade or indoors.
  • Remove excess clothing.
  • Cool the person with whatever means available—put in a cool tub of water or a cool shower, spray with a garden hose, sponge with cool water, fan while misting with cool water, or place ice packs or cold, wet towels on the person’s head, neck, armpits and groin.