Keeping workers safe and productive in a warming world
Risk managers and their organisations need to start planning to keep workers safe and productive in a changing environment, according to John Shane, global head of casualty claims, Zurich Insurance Company and Paul Fauty, global head of risk & underwriting casualty, Zurich Insurance Company.
Climate records were shattered once again in 2023, the warmest year ever, according to the World Meteorological Organization. The city of Phoenix Arizona recorded 31 consecutive days of temperatures above 43°C, way above the previous record of 18 straight days set in 1974. At the same time, the Cerberus heatwave left southern Europe sweltering in temperatures as high as 47°C, just short of the 48.8°C record set in Italy two years earlier.
The impacts of climate change on workers’ health and safety are complex and varied, creating new risks, and exacerbating existing health and safety issues. However, through the process of risk assessment and planning, risk managers can have a positive impact on the wellbeing of workers and the productivity of the business as we adapt to a changing climate.
Hotter and more humid for longer
The biggest consequence of climate change for workers is likely to be more extremes of heat and humidity. Research by New Penn State University in 2022 found that the wet-bulb temperature – the maximum humid air temperature a human can endure – may be as low as 31°C (at 100% humidity) and not the 35°C previously thought. The research also found that just 3°C of warming could see physiologically intolerable conditions begin to appear in the Americas.
Climate change will impact each region differently, but generally speaking more densely populated, cooler parts of the Northern Hemisphere are likely to see significant increased ambient temperatures and more extremes of heat, while already hot parts of the world could see temperatures and humidity pass dangerous thresholds. According to the IPCC, life-threatening heat and humidity are expected to impact between half to three-quarters of the global population by 2100.
Heat related workplace injuries
Working in high temperature and humidity levels is associated with severe health impacts, and can worsen chronic conditions, including cardiovascular, respiratory, and cerebrovascular disease and diabetes-related conditions. It can also impair judgement and cause mental fatigue, leading to increased risk of accidents and injury. Outdoor workers face the additional risk of exposure to ultraviolet radiation (UVR): Around one in four workers are exposed to hazardous ultraviolet radiation globally, according to the WHO, while UVR attributable deaths and disability-adjusted life years almost doubled between 2000 and 2019.
It’s not only extreme heat and humidity impacting workers and their productivity. Air pollution exacerbates existing health conditions as well as contributes to the spread of vector-borne diseases such as malaria, Lyme disease and the Zika virus. Air quality deteriorates with heat and increases in ozone, while wildfires and dust from droughts adds to air pollutants, causing or aggravating respiratory illnesses. Warmer conditions also tend to favour airborne allergens such as pollen, and moulds, while harmful bacteria like Legionella thrive in warm and humid environments.
More intense heat and humidity means greater reliance on air conditioning, especially in older and poorly insulated buildings, with implications for both energy consumption and human health. As a result, office and factory workers potentially face increased exposure to indoor toxins such as Volatile Organic Compounds (VOCs), aeroallergens and moulds.
Impact on worker safety and productivity
A growing body of research shows the economic impact of heat-related illness. According to the International Labour Organization (ILO), productivity levels can halve in jobs that require manual labour at temperatures above 33-34°C. Heat stress is predicted to result in productivity losses of up to $2,400bn by 2030 while up to 3.8% of total working hours could be lost because of climate-induced high temperatures, according to WEF.
In the US, over 65 million workers are in jobs with increased threat from climate-related health risks, accounting for four in ten of non-elderly workers, according to US non-profit KFF. Employers’ duty of care and liability differ by jurisdiction, but companies typically have a duty to prevent injury and make injured workers whole again as quickly as possible.
We have seen claims where heat-induced illness or ‘heat prostration’ has led to minor injuries like temporary renal failure, headaches, and body cramping, through to more serious or even fatal injuries due to heat stroke or hyperthermia.
The claims experience highlights the importance of training and coaching on working in extreme heat for employees and supervisors. Employees often did not take preventative actions, such as taking additional breaks or drinking more water, even though these options were available. By the time an employee reaches the point of feeling unwell, it may be too late. One possible solution would be to insist on mandatory rest periods during periods of high heat and humidity.
Practical preventative steps
Going forward, companies will need to be prepared and flexible to respond to the employee-related risks of climate change, establishing alert systems and protocols to mitigate the harms of extreme heat and humidity while at the same time maintaining productivity levels. There are many simple practical steps that organisations can take to protect employees against climate-related risks.
Heat-related protection measures broadly fall within two categories – organisational and physical protection or controls. Generally, the former are low-investment solutions, while the latter – mainly related to environment inside buildings, as well as their envelopes – require a higher level of investment and timescale to plan and implement.
Possible measures include:
- Organisational measures
- Change of working hours (reducing or adjusting working hours to avoid hottest periods of the day)
- Longer breaks
- Increase consumption of fluids
- Provide more shade at outside work areas
- Education on behaviour in hot conditions
- Warning systems accompanied with advice on behaviour during hot conditions.
- Physical measures
- Regular maintenance of heating, ventilation, and air conditioning (HVAC) systems
- Replace older HVAC systems with modern, more energy-efficient systems
- Develop a program for replacement of building envelope elements, i.e. windows, insulation systems, façade elements, as part of a wider building retrofit investment program that includes installation of sensors and monitoring systems that detect water leakage, energy consumption, etc.
Zurich continues to work with its customers on their specific requests to better understand the potential impacts of climate change on their employees, as well as strategies to mitigate the risks, and is developing broader risk engineering services tailored to heat driven exposures. We all need to recognise that the environment we live and work in is changing, and that with climate change comes more extreme temperatures, weather events, poor air quality and the spread of diseases. Unless managed, these risks threaten the health, safety, and productivity of employees.
Contributed by John Shane, global head of casualty claims, Zurich Insurance Company and Paul Fauty, global head of risk & underwriting casualty, Zurich Insurance Company.
