At a recent board meeting of a publicly traded company, when the final topic of discussion came down to “other business,” I asked a pointed question. National workforce? ”
From a business perspective, failure to implement climate-resilient solutions will continue to result in: … [+]
The silence that followed sparked my own thinking about the intersection of employee health and climate change, and the responsibility business leaders have to heed this challenge. At the next meeting, I proposed that this theme be put on the agenda as a “new business.” I encourage all organizations and boards to do the same and start participating more actively in this important conversation.
Employee health requires leadership on this topic. And it’s necessary for the health of our business. Here’s why:
Climate change threats to employee and business health
Science has shown that global warming poses an increasing threat to business performance, profits, and economic growth. And more fundamentally, it is a direct threat to the health and well-being of the people who support our commercial and private sectors: the workforce.
Experts agree that climate change will become the biggest health challenge facing us globally in the coming decades. The World Health Organization calls climate change “the single greatest health threat facing humanity.” And the National Academy of Medicine says: “Climate change is one of the most serious threats to human health in the 21st century”cent century. “
Our climate is already impacting the health of our employees.
- Extreme heat, wildfires, and poor air quality directly impact the health of our hearts and lungs. It also causes dehydration as well as mental health stress and cognitive impairment.
- Severe storms cause physical injuries, destruction of food systems, mental health trauma, and waterborne diseases.
- And rising temperatures are allowing some vector-borne diseases (diseases carried and transmitted by insects and other animals) to move further north, expanding their geographic ranges and extending their active periods. I am. This has directly led to increased reports of Lyme disease, West Nile virus, Rocky Mountain spotted fever, and many other illnesses.
Data shows that many of the trends we are seeing will continue to worsen in the coming decades. Extreme weather events such as storms, wildfires, droughts, and floods are becoming more frequent, more devastating, and more damaging. For example, in the past seven years, the United States has experienced 122 multibillion-dollar disasters, killing at least 5,000 people and causing more than $1 trillion in damages. And the average time for these multibillion-dollar disasters to occur has decreased from his 82 days in the 1980s to just 18 days from 2018 to 2022.
This strains resources that are critical for communities to respond and recover effectively. And it also strains our human capital: the physical, mental, and emotional capacities of our families, neighbors, friends, and ultimately our employees. The Office of Management and Budget (OMB) estimates that federal spending on climate-related health costs could increase by up to $824 million in several key areas by the end of the century. I testified about this before a U.S. Senate committee last year. within budget. And for employers, who are responsible for paying the majority of health care costs, costs will continue to rise.
Employers should lead on climate resilience
From a business perspective, failure to implement climate-resilient solutions will continue to result in lower employee productivity, higher absenteeism, higher turnover and lower retention rates, lower morale and job satisfaction, and This will result in increased medical costs for the employer.
Below are some examples of the employee health costs of climate change that businesses are facing now and in the future.
- 62% of workers with employer-sponsored insurance report chronic conditions that can be exacerbated by extreme heat and poor air quality.
- In 2020, 295 billion hours of productivity were lost around the world due to extreme heat.
- Heat stress is projected to reduce total global working hours by 2.2% and global GDP by $2.4 billion in 2030.
- Climate-related health costs in the United States currently total more than $800 billion annually (a number expected to continue to grow).
But so far, many employers and some business sectors as a whole have been slow to recognize their responsibility to drive sustainability initiatives and protect their workforces. With all the current trends so obvious, this is not a challenge we can continue to ignore. That’s why I’m personally partnering with the Health Action Alliance to co-chair a new national commission on climate and worker health.
A recent report released by the commission found that half of employees are exposed to climate-related risks related to their work, but only five CEOs have strategies in place to protect their employees from these risks. It turns out that less than one person has it. This is unacceptable. And our committee was created to help business leaders and the private sector at large understand the need to take action and better protect the health of their employees.
Our climate change challenges represent a growing and accelerating threat to our health and well-being, and thus to the human capital of our workforce. For our businesses to grow, as business leaders and board members, we must begin to better protect and advocate for the health and well-being of people and the planet. And these impacts will affect every business sector, from agriculture, construction, forestry and landscaping to emergency services and health care providers.
Prioritize employee health
In the face of a changing climate, it is time for companies to more intentionally recognize their unique responsibility for the safety and well-being of their employees. Global communications firm Edelman noted that “my employer” is viewed by workers as more ethical and competent than the media, government, and non-governmental organizations (NGOs). This self-asserted trust requires leadership from the employer. And in this day and age of disinformation and politicization, trusted leadership is desperately needed.
Nature conservation activities and companies should inherently have a cooperative relationship. The challenge is clear. It’s about striking the right balance between bottom line and bottom line, while protecting and hopefully promoting the health of our employees, consumers, communities and the planet. And finding sustainable solutions to this challenge is imperative for every organization and every sector. Not doing so will prove costly on many levels.
But this is not a lost cause. Additionally, commissions like the National Commission on Climate and Worker Health can help raise awareness, improve the knowledge base, outline clear and actionable steps towards progress, and build trust. Masu.
Employers and business leaders have a real opportunity to take a leadership role here. We all need to consider issues in more creative and enlightening ways. Climate change and its impacts will be more deliberately put on the agenda as ‘new business’. Together, we can empower businesses and each other to protect the health of their employees and businesses from increasingly volatile and extreme weather conditions.
