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Turning Up the Heat: How to Future-Proof Your Business Against Rising Temperatures

By: Emma Ritson and Carly Dominick-Sobol

Over the past few months, the Summit ESG team—spread across the country—has frequently discussed the topic of ‘heat.’ From the fire-impacted air quality in New York City, to the heat wave that choked Seattle in May, it’s been a summer of record-breaking heat. Whether you’ve read the headlines or experienced its effects firsthand, the increasing temperatures are inescapable.

As temperatures steadily rise, you may ask: How will the vital systems we depend on—infrastructure, supply chains, and essential industries—be impacted? What strategies and tools can be used to predict and prepare for the impact of heat and climate change on business operations and growth? The first step to addressing these concerns is for decision-makers to cultivate a deep understanding of both the risks and opportunities linked to a changing climate. This knowledge enables informed decision-making in a world grappling with soaring temperatures.

Extreme heat and weather are a looming threat for all stakeholders. Investors, for example, are now having to carefully evaluate how heat-related disasters—like droughts or wildfires— can destabilize investment portfolios. Many physical corporate assets—such as infrastructure or real estate—are exposed to heightened weather risks as water scarcity or abundance, outdated infrastructure, and hazardous labor conditions become more prevalent. Providing investors insight into heat-associated risks is a complex task and raises pertinent questions like: How can business leaders effectively communicate and ease investor concerns regarding operational and strategic risks amidst such climate trends?

In this context, corporate Climate Risk Analysis (CRA) emerges as an essential tool for forward-thinking business leaders. CRA assesses the likelihood of future climate risks, hazards, and potential impacts on businesses and communities. It plays a critical role in revealing vulnerabilities and climate risks, ensuring long-term resilience and sustainable growth. This summer’s extreme heatwaves have underscored the urgency for business leaders to confront rising temperatures directly. This pressing situation poses not only challenges but also unique opportunities. By taking proactive steps to identify, adapt to, and mitigate potential risks, business leaders can simultaneously ensure resilience and unlock sustainable value.

At Summit Strategy Group, we empower our clients with strategies and tools, like Climate Risk Analysis, which includes comprehensive mapping and climate modeling. Are you interested in delving into Climate Risk Analysis and implementing proactive strategies to protect your organization from potential risks? Connect with us today!

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Diana Wan
Diana Wan
04 de abr.

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