Heatwaves spell new risks that businesses must prepare for

AS GLOBAL temperatures soared the past month, an unusual report emerged from Italy: Dairy farmers were ramping up the use of giant fans and sprinklers to cool down their cattle. Such “cow coolers” were previously only used in the two hottest months, one farmer told the Financial Times. But these systems now have to be kept running five months a year, racking up significant costs.

Over in Greece, another oddity surfaced: Two flights of budget carrier Scoot had to fly without passengers’ baggage. The reason was once again extreme heat. Under high temperatures, it becomes harder for plane engines to generate sufficient lift for take-off. As one columnist put it: “Lest you think air travel couldn’t possibly get more miserable, climate change is here to prove you wrong.”

From flying to farming, a whole gamut of industries is facing unprecedented risks from a hotter planet. It is imperative that businesses start tracking these risks and planning ahead for them, as part of their environment, social and governance (ESG) responsibilities.