Turning down the heat

Extreme heat refers to sustained periods of unusually high temperatures, which are becoming more common due to global climate change. This phenomenon presents a broad range of risks, affecting health, the economy, agriculture, transportation and water resources. 

Extreme heat risk management requires a people-centric view alongside more efficiency in our supply chains, use of technology and innovative building approaches. This requires different tools and measures. Some simple, common-sense solutions can go a long way; for example, shifting work patterns to cooler periods or ensuring that people stay hydrated. But there is also the need for more strategic and forward-looking planning. 

To transform the way society responds to extreme heat requires action from many stakeholders, but, in particular, there are key roles for corporates, public sector and government, and insurance. Corporates can increase heat resilience by moving from risk analysis to action. The public sector and governments can apply policy and public finance levers and engage in cross-sectoral initiatives to increase heat resilience. And the insurance industry can help mobilize financial resources for heat resilience.

As temperatures increase, the demand for cooling in buildings rises, resulting in higher electricity usage and a possible increased dependence on fossil-fuel-based energy sources during the net-zero transition phase. This spike in energy demand can put pressure on power grids and negate progress made in lowering carbon emissions. Furthermore, lack of heat resilience could diminish the efficiency of renewable energy technologies, including solar panels and wind turbines, complicating the shift to clean energy solutions. This underlines the importance of pursuing adaptation and decarbonization efforts in parallel.