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How to build a more resilient manufacturing sector 'by putting human health at the centre'

Angled aerial view of workers in a green plantation: Climate change impacts on supply chains directly impact workforce health.

Climate change impacts on supply chains directly impact workforce health. Image: Unsplash/Matthias Mitterlehner

Rashmi Rao
Fellow, US Center for Advanced Manufacturing

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  • Climate change’s impacts on manufacturing and supply chains are transferred to the manufacturing workforce with adverse health effects.
  • Developing 'workforce vulnerability' as a monitored metric to track workforce health will be critical to mitigating climate risks and adequately managing and responding to those exposures.
  • Businesses and policymakers can implement smart climate adaptation and mitigation strategies that rethink business models and supply chains, incentivize, promote economic benefits and foster collaboration.

The impact of climate change and extreme weather events on manufacturing and supply chains directly affects the health and well-being of the manufacturing workforce. As we strive to enhance the long-term resilience of our systems and institutions, we must understand the effects of climate change on workforce health and ensure the resilience of our precious manufacturing human assets.

In this dynamic landscape, healthcare access, cost and quality face significant challenges, exacerbating health disparities among underrepresented populations.

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A precarious health risk

The diverse health consequences of climate change, from chronic conditions like asthma and cardiovascular ailments to mental health struggles, are well-documented. These health risks stem from exposure to extreme heat, severe weather, and diminishing air, food and water quality. The Lancet Countdown report underscores the gravity of climate change as the “greatest threat to global health” in the 21st century.

This threat extends directly to the manufacturing workforce, spanning various sectors and industries. For instance, extreme heat alone led to a staggering loss of 295 billion work hours in 2020. As climate change continues advancing, these impacts are projected to intensify in frequency and severity.

A looming financial challenge

The Task Force on Climate-related Financial Disclosures (TCFD) has highlighted the multifaceted financial implications of climate change, from health impacts and infrastructural damage to economic disturbances and resource scarcities. Moreover, the transition to a low-carbon economy, without careful management, could trigger additional financial disruptions.

The increasing demand for climate-related disclosures from financial institutions and investors underscores the growing acknowledgement of climate change as a critical financial risk. Therefore, integrating climate considerations into financial decisions becomes pivotal, ensuring the global economy’s resilience and the workforce’s well-being.

Vulnerable populations and manufacturing’s role

The root causes and upstream drivers of climate change and health inequities are often the same. Vulnerable communities often bear the brunt of climate change’s adverse effects. That holds for many segments of the manufacturing workforce, especially those in remote areas with limited access to healthcare. Even if primary business operations aren’t located in such regions, suppliers often are. As we assess climate change’s risks to businesses, we must reconsider healthcare provisions for the most vulnerable workforce segments.

As Seema Wadhwa, Executive Director of Environmental Stewardship at Kaiser Permanente, says, “By integrating expertise from diverse stakeholders, comprehensive strategies can be developed to address the complex intersection of sustainability, climate change and workforce health, ensuring inclusivity and impact.”

Workforce health and manufacturing resilience

As employers often provide health benefits, businesses substantially influence population health. Therefore, business leaders must proactively build workforce resilience to climate health impacts. The Building Resilience Against Climate Effects (BRACE) framework was developed by the US Centres for Disease Control and Prevention to provide a roadmap for community resilience to adverse climate impacts on health.

To navigate this complex landscape, businesses can adopt a combination of strategies:

  • Assessing workforce vulnerabilities: Assessing industry-specific and job-specific workforce vulnerabilities to climate-related workforce health hazards and developing programmes to promote workforce health equity and resilience.
  • Tailoring occupational health policies: Adapting safety policies, equipment and workflows to mitigate climate impacts on employee health; adopting automation and artificial intelligence; changing work schedules to avoid extreme heat or other hazardous conditions; and improving safety equipment.
  • Leveraging advanced health tech: Implementing robust, inclusive strategies that ensure access to quality healthcare for all employees, regardless of location, by leveraging telehealth and other virtual health services and expanding access to mental health and stress-reduction programmes.
  • Educating for informed choices: Equipping manufacturing workers with access to educational programmes that increase awareness of climate change’s impact on their health, climate change-induced food safety and security issues and adopting sustainable practices, empowering them to make informed decisions and contribute to mitigating climate-related risks.
  • Tracking workforce health: Developing workforce vulnerability as a monitored metric, tracked by its sensitivity to mitigating climate risks and its capacity to adequately manage and respond to those exposures.

Stephanie Wright, Chief Operating Officer at the US Center for Advanced Manufacturing, reflects, “Repeated exposures and stressors on certain workforce populations accumulate over time into physical and mental health issues. Hence, businesses should develop and adopt metrics to track workforce health.”

Embedding climate policy initiatives

Policymakers play a pivotal role in advancing sustainability, resilience and workforce well-being.

  • Rethinking supply chains and business models: Transitioning linear supply chains, grounded in a direct producer-to-consumer value flow, to digitally networked agile ecosystems to stimulate demand-side economies of scale and prioritize suppliers committed to sustainable manufacturing. Digitization of supply chains to nurture fluid processes and innovative business models like the circular economy (secondary markets).
  • Driving change through incentives: Leveraging incentives such as tax breaks, grants and funding programmes to encourage manufacturers to embrace sustainable practices while safeguarding the health and well-being of manufacturing workers.
  • Promoting economic benefits of sustainability: Emphasizing the economic advantages of sustainable manufacturing can encourage policymakers and manufacturers to prioritize sustainable practices and incentivize adopting green technologies and creating green jobs.
  • Forging collaborative partnerships: Fostering collaborative partnerships among businesses, healthcare providers and community organizations towards reducing environmental impact, supporting a transition towards sustainable and health-conscious manufacturing.

“The pathway to sustainability is indeed through human health,” says Andrew Moose, Head of Health and Wellness at the World Economic Forum. “By putting human health at the centre, we can increase the level of societal engagement, building momentum toward policy changes and impactful solutions.”

It is critical to embed climate and resilience initiatives to support the work of state, local, territorial and tribal health services nationwide.

By putting human health at the centre, we can increase the level of societal engagement, building momentum toward policy changes and impactful solutions.

Andrew Moose, Head of Health and Wellness, World Economic Forum

By prioritizing the health and well-being of our workforce, we can build a more resilient and sustainable manufacturing sector capable of withstanding the challenges posed by climate change.

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