IS YOUR BUSINESS READY FOR CLIMATE-RELATED DISASTERS?​

​

4 Steps to Stay Ahead of the Next Crisis

​

The headlines are horrifying.  From deadly wildfires in Hawaii, earthquakes in Morocco and Syria, hurricanes in the Eastern US, brushfires in Australia, floods and typhoons across Asia, to increasingly hot and devastating summer heat waves, it is clear that the climate crisis is upon us. Not only are these events often deadly, they are also extremely costly.  In the first 9 months of 2023, it is reported that the US alone had 23 separate billion dollar disasters, as compared to just 3 similar disasters in 1980.  The California wildfires in 2017 and 2018 are estimated to have cost over $328 billion in damages.

As climate crisis events increase across the globe, they are not only impacting our day to day lives, but also our businesses and livelihoods.  Have you considered how a sudden flood in your city, a wildfire down the road, or how a month-long heatwave will impact your business?  In the past few months, many businesses did not have time to think about it.   Rather businesses, large and small, have had to respond to these emergencies effecting their employees, utilities and infrastructure, supply chains, and in some cases, the viability of their businesses.  While it is still difficult to even imagine some of these disasters, it is necessary for businesses to be better prepared and more resilient in the face of climate related emergencies.

The first step is not to be caught off guard.  Many businesses have done an Environmental Impact study about how their activities impact the environment, but now it is time to do a ‘Reverse Impact Study’ to better understand how the environment, climate change in particular, impacts you and your business.  Will it be too hot for your workers to carry out their activities during the summer months?  Are some of your key raw materials threatened because of drought or floods?  Is your facility suddenly in the path of hurricanes?  Will climate refugees be coming to your city?  Does your business depend on seasonal factors that are now totally unpredictable?  It is important to assess all the risks facing each aspect of your business so you can plan effectively and take preventive steps before you find yourself in an emergency situation.  It is also important to make sure the disaster planning is kept current and revisited regularly based on evolving circumstances.  Funding a budget line item for Climate Disasters may also help prevent such events bankrupting your company. 

The second step is to galvanize community support. Just as climate change does not respect borders or territories, a collaborative response is necessary. Reach out to your local governments to see how they are responding and preparing for climate emergencies.  For example, the US state of Arizona now has a “Heat Czar” who is tasked with finding ways for the population to manage rising temperatures.  Local chambers of commerce and business organizations can help bring the business community together to create coordinated response plans with government agencies, allowing for the use of shared resources like physical space, logistics, emergency supplies, manpower, tech etc.  In many cases the private sector has access to more resources (heavy machinery, building materials etc.) than local governments.  In the US, small businesses can sign up for the government’s Resiliency Program to be eligible for disaster-related grants.  Working in coordination, businesses and governments can have a more efficient and effective emergency response, especially if planning is done before disaster strikes. 

The third step is to make sure you care for your workforce during and after disasters.  During a crisis, make sure to have a continuity plan, strong communication systems and clear instructions for staff about what is expected from them in the midst of an emergency.  It is also important to help make sure your employees have whatever resources (water, food, generators, etc) they need to get through the disaster.  Involve employees from all departments in emergency planning, to help mitigate the risks for them and their families.  Bring in an expert to help educate staff on how to respond in various emergency situations, and how they can best prepare themselves and their families for future disasters.  In some cases, it may be helpful to provide counselling to employees who have suffered the loss of family, friends or property. 

The fourth step is prevention.  The business sector cannot afford to wait for governments to make watered-down regulations. The economic and social might of the business community can create change faster and with greater impact than governments or regulatory agencies.  How close is your company to Net Zero?  Can you find more sustainable solutions for your raw materials?  Have you looked down your supply chain to see if your suppliers are doing their best to mitigate environmental damage?  Are you encouraging your customers to make choices that protect wildlife and habitats, reduce waste, and to make small changes towards a more environmentally-friendly lifestyle?  Based on your Reverse Environmental Impact Study, what risks can you help mitigate in your community?  Can you lobby for infrastructure spending, help protect the most vulnerable and use your platform to help raise awareness?

Corporate Boards and CEOs need to accept that climate emergencies are not someone else’s problem.  Radical responsibility is required to avert disaster where possible and to be part of the response during and after disasters. Maybe this summer there was no heatwave in your city or flood that wiped out your inventory, but the crisis is here and billion dollar environmental emergencies are now a fact of life.  The business sector has a huge role to play not only in assuring their own ability to survive through fires, floods and hurricanes, but to support their communities in times of crisis and help mitigate the causes of these events in the first place.