El Niño’s extreme weather turns up heat on business

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Industries that are more susceptible to the physical risks will receive greater scrutiny and need to demonstrate a proactive approach.

, sending a wave of concern across the country. As the effects of climate change continue to intensify, the threat of extreme heat and its far-reaching impacts on businesses and communities become increasingly apparent.

The 2015-16 El Niño brought about a rollercoaster of weather events. Initially, warm temperatures in the Indian Ocean tempered the drying influence, leading to above-average rainfall in some regions. However, as the season progressed, Australia had its third-driest spring on record, limiting growth at the end of the cropping season.

For example, the combination of high electricity demand and lower electricity supply availability caused by extreme heat in South Australia and Victoria on January 24-25, 2019, prompted load-shedding, which left 200,000 people without access to electricity. Some industries are more susceptible to the physical risks of extreme heat than others. These are the industries that will receive greater scrutiny and need to demonstrate a proactive approach with measures to build resilience.The agriculture sector needs to implement water-efficient farming techniques, diversify crops and invest in climate-resistant seeds to mitigate the impact of droughts on crop yields and livestock production as it has in previous El Niño events.

Local infrastructure and transport need to develop robust designs that can withstand extreme weather events, and establish efficient maintenance and repair protocols to minimise disruptions to roads and railways. Companies can also look to space technology to help assess and mitigate risks associated with extreme heat. Advanced climate modelling and data analytics can help businesses make informed decisions about resource allocation, risk assessment and long-term planning, and satellite imagery and data can be used to monitor and predict the spread of bushfires, allowing for more effective disaster response.

 

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