Heat stress poses threat to SE Asia productivity
Rising temperatures and humidity will adversely impact on the productivity of national labour forces over the next 30 years.
Rising temperatures and humidity will adversely impact on the productivity of national labour forces over the next 30 years.
Rising temperatures and humidity will adversely impact on the productivity of national labour forces over the next 30 years, with the effects felt most acutely in South East Asia according to a newly-released study.
The ‘Heat Stress Index’ (HIS), issued annually by Verisk Maplecroft, is based on research conducted by the global risk analytics and business advisory group to help business respond to risks to the operations, assets and supply chains
The HIS used the latest future climate projections to calculate the drop in labour capacity for each country based on the increasing occurrence of conditions that prompt heat stress, and reduce the ability of a workforce to undertake physical activity.
Among its key findings:
Verisk Maplecroft comments that SE Asia is expected to undergo some of the greatest economic growth in the coming decades: the region’s gross domestic product (GDP) is set to increase 50% to US$9 trillion, accounting for 13% of the projected rise in global GDP.
However, the potential impact of heat stress on labour capital in the region has been largely overlooked in financial modelling and the challenges heat stress presents national workforces in ‘extreme risk’ countries may need to be addressed if these forecasts are to be met.
Investors in ‘extreme risk’ countries may also be exposed to rising costs for manufacturing and health care provisions, alongside disruption risks in their supply chains.
Far-sighted companies are already implementing policies addressing heat stress across their operations and supply chains to reduce the impact of absences and sickness. The group believes that organisations incorporating climate threats into risk analyses, investment decisions, and employee health guidelines will better prepare themselves for the future business environment.
“Climate change will push heat stress impacts to boiling point with significant implications for both national economies and the health of vulnerable workers,” said Dr James Allan, head of environment at Verisk Maplecroft. “Governments and business need to identify which assets, sectors, commodities and groups are most at risk and what protective measures should be put in place.”