As climate change intensifies wildfire risks, global re/insurance broker Aon highlights how organisations can protect their workforce before and after such events.
In its recent report, Aon notes that North America has experienced at least one billion-dollar wildfire event in eight of the past 10 years. In contrast, such significant losses occurred in only five out of the previous 50 years.
The increase in wildfire severity, especially in the western U.S., is directly linked to climate change, with drier conditions significantly expanding burn areas.
Wildfires become especially dangerous when dry fuels and strong winds combine, making them spread rapidly and harder to control.
Aon highlights the increasing importance of the secondary impacts of wildfires on organisations’ workforce and operations. These indirect effects, such as prolonged periods of wildfire smoke, can disrupt business operations across various industries.
These secondary effects also pose serious health risks. For instance, tens of millions experienced the downstream effects of the Canadian wildfires, prompting organisations to address the health, wellbeing, and financial challenges their employees faced as smoke drifted south and affected several major U.S. cities.
This situation raises critical questions about how companies can support their workforce, including flexible work policies, access to emergency medical supplies, and resilience measures for homes and offices, such as air filtration systems.
Patrick Kelly, Head of Climate Analytics for North America, Climate Risk Advisory at Aon, stated, “Organisations need to think beyond property damage within their risk management strategy and consider the total impact of climate hazards on their people.”
Aon noted, “From a human capital perspective, building chronic (slowly evolving changes in temperature and rainfall patterns such as heatwaves, drought and rising sea levels) and acute (infrequent, short-acting events like earthquakes and tornadoes) climate risks into workforce resilience strategy requires a holistic approach across HR policy (including health, safety and environment), benefits and disaster preparedness.
“Pre- and post-disaster event, organisations have a unique ability to positively influence both physical and mental health, as well as the financial well-being of their workforces.”
The firm suggests four ways companies can support their workforce in the wake of wildfires: improving communication and training on climate resilience, integrating disaster preparedness into workplace policies (such as flexible work schedules and leave guidance), providing medical services and disaster relief for climate risks, and establishing disaster relief programs.
According to E4E Relief, 57% of U.S. employees cannot afford a $1,000 emergency, and one in five lacks emergency savings.
“In the face of increased risk from climate events, and especially for operations located in areas of higher exposure, an organisation’s approach to supporting their employees can be an important element of their employee value proposition and a key factor in talent attraction, retention and mobility,” Aon concluded.
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