Management Consulting

Employers are increasingly recognizing the need to protect their workforce from the health risks associated with climate change. A significant challenge is the impact of extreme weather events, such as heatwaves, wildfires, and floods, which can adversely affect employee health and productivity. For instance, outdoor workers are particularly vulnerable to rising temperatures, which can lead to chronic health issues and decreased labor productivity, especially in sectors like construction. This situation not only threatens employee well-being but also poses risks to talent retention and recruitment, as workers may relocate to avoid extreme conditions. To address these challenges, companies are encouraged to collaborate between HR and risk management teams to model climate risks and develop tailored mitigation strategies. Aon has implemented a three-step approach to help organizations quantify these risks effectively. This involves analyzing data on employee health, absence, and disability claims, identifying vulnerable populations through predictive modeling, and developing targeted interventions to provide access to preventative healthcare and support for at-risk employees. The results of these initiatives can be significant. For example, Aon’s modeling of climate impacts for various clients has revealed that extreme heat alone can lead to a loss of 295 billion hours of productivity globally. By proactively addressing these risks, companies can not only safeguard their employees but also enhance business continuity and operational resilience. Implementing effective disaster response plans and utilizing parametric insurance solutions can provide timely funding for emergency needs, further supporting workforce stability in the face of climate-related challenges.