Survey: Businesses Respond to Extreme Heat Risks
Survey evidence shows heat adaptation now a mainstream business priority
About six in ten UK firms are investing or planning to invest in technology to cope with hotter weather. That figure comes from a recent survey backed by Barclays, and it signals a clear shift in how businesses think about extreme heat. What was once treated as a seasonal inconvenience is now recognised as a recurring operational risk.
The response is not limited to the UK. Recent research from Morgan Stanley found that 57% of companies said climate events affected operations in the past year. Of those affected, 55% named extreme heat as a key disruption. In another corporate resilience survey, 82% of companies said investing in operational resilience produced positive financial or reputational outcomes. Meanwhile, 80% were preparing to increase resilience in the future.
This pattern is appearing across sectors and geographies. Consequently, businesses are responding with a mix of technology investment, schedule changes, worker protections, and infrastructure upgrades. Heat adaptation is becoming part of routine business planning rather than an emergency response.
For UK SMEs, the implications are both financial and operational. Heat stress affects productivity, increases absenteeism, raises cooling costs, and can disrupt supply chains. Small firms are particularly exposed because they tend to have fewer resources to adapt quickly. However, the evidence also shows that early investment in resilience measures can deliver tangible returns.
Growing body of evidence links heat stress to productivity losses
The Barclays-linked survey reflects a wider economic pattern identified by the OECD and the World Bank. Both organisations have found that heat stress reduces labour productivity and can materially lower revenues, especially for smaller firms and businesses in lower- and middle-income economies.
The OECD noted that common adaptation measures include changing working hours, enabling telework, and installing air conditioning or mechanical ventilation. These steps are not theoretical. They are being implemented by businesses across multiple markets in response to measurable operational impacts.
A separate 2026 assessment backed by the World Resources Institute examined manufacturing micro, small, and medium enterprises in Gujarat and Tamil Nadu. The study found that 92% of surveyed firms reported operational impacts from heat stress. Additionally, 78% said worker productivity had fallen. More than half reported increased absenteeism linked to high temperatures, and 41% reported worker illnesses.
Japanese survey data released in 2026 shows how quickly companies are adapting. In total, 87.8% of firms surveyed said they had introduced or strengthened heat-risk measures in the previous one to two years. Common steps included water and salt supplements, more air conditioning, and heat-shielding equipment. That supports the broader conclusion that extreme heat is shifting from a seasonal issue to a recurring management challenge.
British businesses report technology investment and policy changes
The Barclays-linked survey reported that 60% of British businesses are investing or planning to invest in technologies to adapt to extreme heat. This reflects growing concern about business continuity during heatwaves. Furthermore, it indicates that firms are moving beyond reactive measures to plan ahead.
The survey also found that 28% of companies have introduced employee well-being measures for hot weather. Meanwhile, 23% offer flexible schedules or remote work, and 21% are changing working hours. These measures suggest that businesses are addressing heat stress through multiple channels, not relying on a single solution.
Small businesses are especially exposed. The survey found that more than a quarter said high temperatures have hurt productivity. That finding is consistent with wider research showing that smaller firms tend to face greater productivity losses from heat and have fewer resources to adapt quickly.
Nevertheless, the survey results suggest that awareness is spreading. Businesses are not waiting for extreme heat to become a crisis before acting. Instead, they are investing now to protect operations, support staff, and maintain competitiveness.
Heat stress creates financial and operational consequences for SMEs
The significance of this trend is that extreme heat is no longer treated only as a health-and-safety issue. Instead, it is recognised as an operational, financial, and supply-chain problem. Firms are responding with a mix of technology investment, schedule changes, worker protections, and infrastructure upgrades.
The impact is likely to grow as heatwaves intensify and become more frequent. Research across regions shows the costs include lower output, more absenteeism, higher cooling and compliance expenses, and greater vulnerability among small and medium-sized firms. In practical terms, this means heat adaptation is increasingly tied to competitiveness, not just resilience.
For SMEs, the financial consequences can be immediate. Productivity losses reduce output and delay deliveries. Absenteeism increases labour costs and disrupts workflows. Cooling systems and ventilation upgrades require capital investment. Moreover, supply chains can be affected if suppliers or logistics partners face similar disruptions.
There are also longer-term considerations. Businesses that fail to adapt may struggle to meet tender requirements, particularly in the public sector. Procurement frameworks increasingly include environmental and social criteria, and heat resilience can be part of that assessment. Similarly, larger corporate clients may expect suppliers to demonstrate operational resilience under extreme weather conditions.
However, the evidence also shows that proactive investment can deliver positive outcomes. The corporate resilience survey found that 82% of companies said investing in operational resilience produced positive financial or reputational outcomes. This suggests that heat adaptation is not only a cost to be managed, but also an opportunity to strengthen business performance.
Core facts from recent surveys and assessments
- 60% of British businesses are investing or planning to invest in technologies to adapt to extreme heat.
- 28% have added hot-weather well-being measures for employees.
- 23% offer flexible schedules or remote work, and 21% are changing working hours.
- 57% of companies in Morgan Stanley's 2025 survey said climate events affected operations in the previous year, and 55% of those affected said extreme heat was a cause.
- 92% of surveyed Indian manufacturing micro, small, and medium enterprises reported operational impacts from heat stress, while 78% reported reduced worker productivity.
- 87.8% of Japanese firms surveyed said they had introduced or strengthened heat-risk measures in the previous one to two years.
- 82% of companies said investing in operational resilience produced positive financial or reputational outcomes.
Practical steps businesses are taking to manage heat risk
The survey data reveals a range of practical measures businesses are adopting. Technology investment is a common response, with firms installing or upgrading air conditioning, ventilation systems, and heat-monitoring equipment. These steps aim to create safer working environments and maintain productivity during heatwaves.
Schedule changes are also widespread. Businesses are shifting working hours to avoid the hottest parts of the day, particularly in sectors where staff work outdoors or in non-air-conditioned environments. Flexible working arrangements, including remote work, allow employees to avoid commuting or working in overheated buildings.
Employee well-being measures include providing additional breaks, access to cool drinking water, rest areas, and heat-safety training. Some businesses are also reviewing uniform and equipment policies to ensure staff can work safely in hot conditions. These measures are not only protective but also help reduce absenteeism and maintain morale.
Infrastructure upgrades are another area of investment. Businesses are improving insulation, installing shading, and upgrading building management systems to reduce heat gain. These changes can also lower energy costs and improve overall building performance.
The OECD research noted that adaptation measures vary by sector and geography, but the common theme is that businesses are taking a proactive approach. They are not waiting for regulation or extreme weather events to force action. Instead, they are integrating heat resilience into broader operational planning.
For SMEs, the challenge is often resource availability. Smaller firms may not have the capital to invest in large-scale infrastructure upgrades or the internal expertise to assess heat risk. However, even modest measures such as schedule changes, remote work policies, and staff training can deliver meaningful improvements in resilience.
Support available for UK businesses adapting to climate risks
UK businesses seeking to improve their resilience to extreme heat can access a range of support. The SBS compliance team helps SMEs understand environmental risks and develop practical responses that align with regulatory requirements and tender expectations.
For businesses working towards carbon reduction targets, our net-zero program provides structured support on emissions reporting, climate risk assessment, and operational efficiency improvements. These measures often overlap with heat resilience planning, particularly in areas such as energy use, building performance, and supply chain management.
The UK government's climate adaptation reporting framework provides guidance for businesses on assessing and managing climate risks. The Department for Environment, Food and Rural Affairs publishes resources on climate adaptation for businesses, including sector-specific guidance.
The Health and Safety Executive offers detailed advice on managing heat stress in the workplace, including risk assessment templates and practical measures to protect employees. This guidance is particularly relevant for businesses with outdoor workers or those operating in environments without mechanical cooling.
The Climate Change Committee publishes regular assessments of climate risks facing the UK, including projections for future temperature increases and heatwave frequency. These reports provide valuable context for businesses planning long-term resilience measures. Additionally, the Met Office provides climate projections and seasonal forecasts that can help businesses prepare for extreme weather events.