Climate change-driven heat waves are impacting everything from nuclear reactors in France to glaciers in Pakistan. As millions of people around the world are forced to cope with more stifling temperatures, some are turning to hacks like air-conditioned clothing. Cities are doing everything from planting trees to deploying 1,000-year-old underground canal technologies in a bid to keep cool.
Despite these efforts to adapt, heat waves are putting costly burdens on businesses and individuals. To meet this problem, some financial service providers have started to offer instruments aimed at reducing personal and economic risk associated with heat waves. From heatstroke insurance to plans that reimburse dairy farmers when cows are too hot to produce milk, this new wave of products may help communities build financial resilience to the impact from warmer temperatures.
Here are five ways the financial industry is trying to de-risk the impact of more extreme heat waves.