Opinion article for Jornal Económico | The Effects of Rising Temperatures on Productivity Reduction
Nuno Couceiro, Founder and Manager of Ameno Climatização, and a Board Member of The Lisbon MBA Alumni Club, wrote an insightful opinion article for Jornal Económico, under the topic “The Effects of Rising Temperatures on Productivity Reduction.”
The World Meteorological Organization has confirmed that the month of July 2023 was the hottest ever recorded. In Portugal, the average maximum annual temperature has been increasing by 0.4ºC per decade since 1980, reaching an average value of around 30ºC in July.
The effects of climate change are widely reported, but the impact of rising temperatures on productivity reduction is still not extensively discussed. According to a scientific report from NASA (CR-1205-1), the optimal working temperature is set at 24ºC. The same report details that an increase in workplace temperature to 27ºC results in an 8% loss of work output and a 5% reduction in task accuracy. However, when the workplace temperature rises to 32ºC, there is a 29% loss in work output and a 300% decrease in task accuracy. In the extreme case, it was found that working at a temperature of 35ºC leads to a 45% loss in productivity and a 700% reduction in the accuracy of tasks performed.
The impact of high temperatures on productivity is even more concerning in the industrial sector. The operation of industrial machinery generates additional heat inside buildings, which can be up to 4ºC higher than the outside temperature. Faced with this scenario, companies will experience effective productivity losses if they cannot reduce the temperature of their work environments.
In this context, companies are confronted with a significant challenge: dealing with temperature increases and the consequent loss of worker productivity, along with associated work risks. This comes at a time when there is an increase in electricity costs and when energy sustainability becomes a requirement of the new global reality.
In this new paradigm, companies must seek alternative cooling solutions beyond traditional energy-consuming air conditioning. These alternative solutions include adiabatic cooling, as well as improving building insulation and ventilation, to achieve sustainability metrics, control energy costs, and ensure optimal working conditions for employees.
In the United States, specific regulations have been established by the Occupational Safety and Health Administration (OSHA), which has the authority to legislate and impose fines for compliance with safety rules. However, in Europe, individual countries are responsible for regulating and implementing workplace safety legislation. Some European countries, such as the United Kingdom, Spain, and Germany, have already moved towards specific legislation. Nevertheless, the European Agency for Safety and Health at Work, while acknowledging the risks related to heat in workplaces, has only issued some guidelines on the topic without regulating the temperature conditions under which workers can perform their tasks.
In Portugal, only Decree-Law No. 243/86, which approves the General Regulation of Hygiene and Safety at Work in Commercial, Office, and Service Establishments, states that “the temperature of workplaces should, as far as possible, fluctuate between 18ºC and 22ºC, except in certain weather conditions where it may reach 25ºC. Once again, no strict limits are imposed.
The increase in average temperatures will likely lead to more legislation on this topic that companies need to be prepared for. Above all, it is crucial for managers not to underestimate the effects of high temperatures on reducing their companies’ productivity and to seek ways to mitigate these effects.
Nuno Couceiro, Founder and Manager of Ameno Climatização, and a Board Member of The Lisbon MBA Alumni Club, wrote an insightful opinion article for Jornal Económico, under the topic “The Effects of Rising Temperatures on Productivity Reduction.”
The World Meteorological Organization has confirmed that the month of July 2023 was the hottest ever recorded. In Portugal, the average maximum annual temperature has been increasing by 0.4ºC per decade since 1980, reaching an average value of around 30ºC in July.
The effects of climate change are widely reported, but the impact of rising temperatures on productivity reduction is still not extensively discussed. According to a scientific report from NASA (CR-1205-1), the optimal working temperature is set at 24ºC. The same report details that an increase in workplace temperature to 27ºC results in an 8% loss of work output and a 5% reduction in task accuracy. However, when the workplace temperature rises to 32ºC, there is a 29% loss in work output and a 300% decrease in task accuracy. In the extreme case, it was found that working at a temperature of 35ºC leads to a 45% loss in productivity and a 700% reduction in the accuracy of tasks performed.
The impact of high temperatures on productivity is even more concerning in the industrial sector. The operation of industrial machinery generates additional heat inside buildings, which can be up to 4ºC higher than the outside temperature. Faced with this scenario, companies will experience effective productivity losses if they cannot reduce the temperature of their work environments.
In this context, companies are confronted with a significant challenge: dealing with temperature increases and the consequent loss of worker productivity, along with associated work risks. This comes at a time when there is an increase in electricity costs and when energy sustainability becomes a requirement of the new global reality.
In this new paradigm, companies must seek alternative cooling solutions beyond traditional energy-consuming air conditioning. These alternative solutions include adiabatic cooling, as well as improving building insulation and ventilation, to achieve sustainability metrics, control energy costs, and ensure optimal working conditions for employees.
In the United States, specific regulations have been established by the Occupational Safety and Health Administration (OSHA), which has the authority to legislate and impose fines for compliance with safety rules. However, in Europe, individual countries are responsible for regulating and implementing workplace safety legislation. Some European countries, such as the United Kingdom, Spain, and Germany, have already moved towards specific legislation. Nevertheless, the European Agency for Safety and Health at Work, while acknowledging the risks related to heat in workplaces, has only issued some guidelines on the topic without regulating the temperature conditions under which workers can perform their tasks.
In Portugal, only Decree-Law No. 243/86, which approves the General Regulation of Hygiene and Safety at Work in Commercial, Office, and Service Establishments, states that “the temperature of workplaces should, as far as possible, fluctuate between 18ºC and 22ºC, except in certain weather conditions where it may reach 25ºC. Once again, no strict limits are imposed.
The increase in average temperatures will likely lead to more legislation on this topic that companies need to be prepared for. Above all, it is crucial for managers not to underestimate the effects of high temperatures on reducing their companies’ productivity and to seek ways to mitigate these effects.
Read the full article (original) in Portuguese here.
Source: Jornal Económico
