Extreme heat, driven by climate change, presents serious health, economic and social challenges, particularly for vulnerable communities.
The effects of rising temperatures can include increased healthcare costs, reduced productivity and threats to food security through diminished agricultural yields. The impact is amplified by existing inequalities, as marginalized groups face greater risks.Ìý
To effectively manage heat risks, a collaborative and proactive approach by governments and organizations is essential. This approach should integrate resilience strategies across sectors and address the root causes of vulnerability to ensure community well-being and sustainability.
Although the urgency and scale of the challenge differ across regions and geographies, so does the availability of tools and measures to address extreme heat.
To assist with your heat risk management, climate experts from across our four global businesses have prepared this strategic blueprint for you.
Turning down the heat
Use this report to:
Develop your heat risk management strategy
Engage in cross-sectoral initiatives to increase heat resilience
Enhance your team’s understanding of the interconnectivity of climate and societal risks
Future-proof your business processes and assets
Report FAQs
Extreme heat — What is it, and why is it an issue?
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 waterÌý°ù±ð²õ´Ç³Ü°ù³¦±ð²õ.Ìý
How can we transform society’s approach to heat risk management?
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.Ìý
What steps should governments and organizations take?
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.
Why is increasing heat resilience an important building block in achieving decarbonization efforts?
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.
Authors and Contributors
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Marsh
- Amy Barnes, Head of Climate & Sustainability Strategy, MarshÌý
- Nick Faull, Head of Climate & Sustainability Risk, Marsh
- Jack Watt, VP, Climate & Sustainability Strategy, Marsh Global Specialty
Mercer
- Tracy Watts, Senior Partner, National Leader for US Healthcare Policy, Mercer
- Cara Williams, Senior Partner, Global Head of ESG, Climate and Sustainability, Mercer
Guy Carpenter
- Bridget Carle, SVP, Public Sector Practice, Guy Carpenter
- Ruth Lux, Head of Public Sector, UK, Europe, Middle East and Africa, Guy Carpenter
°Ä²ÊÍøAPP
- Swenja Surminski, Managing Director, Climate and Sustainability, °Ä²ÊÍøAPP
°Ä²ÊÍøAPP @ COP29
Our specialists wereÌýin attendance to share insights on climate risk and help organizations build resilience.
°Ä²ÊÍøAPP @ COP29
Our specialists wereÌýin attendance to share insights on climate risk and help organizations build resilience.