Searing July Temperatures Threaten Global Productivity and Industry Resilience

In the past July, the global temperature reached its highest recorded levels, affecting hundreds of millions of people worldwide. The World Meteorological Organization (WMO) highlighted that this extreme heat underscores the ongoing impact of human activities on climate change. The International Labour Organization (ILO) warned that current protective standards need to keep pace with climate changes. If global temperatures rise by 1.5 degrees Celsius by the end of the century, it is projected that by 2030, 2.2% of total global working hours could be lost due to heat, equating to the productivity loss of 80 million full-time jobs.
Extreme heat has posed additional challenges for various industries. Cambridge University Assistant Professor Ramit Debnath emphasized that investment decisions must incorporate climate risks. He suggested employing tools such as credit ratings, supporting companies with efficient and resilient plans, leveraging AI for better risk assessments, and investing in energy transition initiatives. The mining sector, particularly in Australia’s Pilbara region, faces increasing risks. By 2070, the region could experience over 124 days annually with temperatures exceeding 40°C, up from the current 54 days.
This projection is not just for the distant future but holds immediate relevance, as these high temperatures have already been recorded. Companies like BHP and Rio Tinto, which have heavily invested in Pilbara projects, might see a significant increase in asset exposure to heatwaves by mid-century. Mining operations in Pilbara, with their 60,000 workers, are akin to laboring in an oven-like environment. This situation reflects a broader trend, with extreme heat impacting workers around the globe, from the U.S. Gulf Coast to India's agricultural fields.
In India, the frequency and severity of heatwaves have disrupted supply chains and operations. Industries such as agriculture, food, and forestry are particularly vulnerable due to their direct reliance on natural conditions like rainfall and temperature. Hong Kong University Professor Derrald Stice noted the increasing awareness among managers about the operational impacts of extreme temperatures. The rising recognition of “heat waves” mirrors this trend.
Governments worldwide are devising measures to protect workers. The Biden administration proposed enhanced rest periods, shade, and drinking water provisions for construction and steel workers. Meanwhile, India’s Self-Employed Women’s Association implemented a plan to compensate 46,000 women for lost work when temperatures exceed a certain threshold.
Agricultural and food production are significantly affected, with high temperatures leading to reduced productivity and quality. High temperatures also impact livestock and aquaculture, where excessive heat can hinder growth, productivity, and health, potentially leading to disease outbreaks. Experts suggest increased irrigation, crop shading, and other interventions to mitigate these impacts.
Climatologists predict that extreme weather will continue, with droughts often accompanying prolonged high temperatures. These conditions pose substantial risks to crops during critical growing periods. For instance, China's Yangtze River basin recorded high temperatures affecting crop production. To combat such impacts, meteorologists recommend measures like artificial rain and efficient water management.
Extreme temperatures are also driving up the frequency and severity of wildfires. In Greece, persistent high temperatures and dry winds have led to numerous wildfires, prompting emergency evacuations and international aid. The European Union has deployed firefighting units and equipment from various member states to assist Greece. Overall, the global response underscores the urgent need for adaptive measures and robust disaster preparedness to address the escalating frequency of extreme weather driven by climate change.