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Businesses Are Losing Billions To Extreme Heat, But Trees Can Help

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Dan Lambe is the CEO of the Arbor Day Foundation. He can be reached at [email protected]. Follow him on Twitter at @DanLambe.

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Less than 24 hours after the record for Earth’s hottest day was set, it was broken yet again. This summer’s back-to-back record high temperatures, while unprecedented, weren’t entirely unexpected. Average global temperatures have been at their highest in the last 10 years as a result of climate change. In the U.S., extreme heat accounts for more deaths annually than any other natural disaster. Temperatures are so high in some parts of the country that people are being treated for severe burns after simply falling on the ground.

Heat is at the root of a public health crisis. And it has created a strain on the private sector, too. Data shows almost every sector of business is impacted by heat stress. When drought and extreme temperatures kill crops, retailers see major blows to their supply chain. In tourism and travel, excessive heat can shift consumer behaviors and reduce demand. High temperatures drive up the costs to keep corporate facilities and offices cool. Industries that rely on employees working outside are losing billions of dollars and countless hours of labor to heat exposure. On a global scale, researchers estimate that climate-change-induced heat waves cost the global GDP at least $16 trillion between 1992 and 2013.

Extreme heat is bad for business. Trees can help cool off the high cost of a changing climate. Trees can reduce urban air temperatures by up to 10 degrees Fahrenheit. In dense urban areas, unshaded pavement can be, on average, 60 degrees hotter than shaded pavement. Individually, trees can be a needed reprieve from brutal, life-threatening heat. When planted in mass, trees can slow climate change and cap the heat that’s draining resources. Trees are a critical heat mitigation tool that companies can use to protect the productivity of their operations, no matter their business sector. Investing in urban forestry is a way for companies to mitigate heat-related risks while supporting communities.

Planting trees can also be financially profitable for businesses. Researchers from the U.S. Forest Service found that shoppers will spend 9-12% more for products in business districts with robust tree canopies. People will also travel farther to shop in areas with quality trees and spend more time there once they arrive. Proximity to trees was also proven to boost employee productivity and job satisfaction. Study results showed that “10% of employee absences can be attributed to architecture with no connection to nature.” Our Foundation also found that 71% of people say they’re more loyal to businesses that demonstrate their commitment to the environment through actions like tree planting.

Urban and community forestry can also help grow local economies. Tree planting and maintenance jobs are directly tied to the community they exist in and are unable to be outsourced. So when businesses step up to fund tree planting projects or tree maintenance services, they’re often helping to create or support income streams, which are often invested back into the community. It’s a cycle of investment and returns that strengthens businesses and the neighborhoods they serve.

Protecting people from extreme heat is a win for business, and trees play a key part. Of course, while planting trees is good, planting trees in the right areas and for the right reasons is infinitely better. Driving meaningful impact begins with understanding the needs of the community and how trees can act as a solution. Companies hoping to engage in urban tree planting should ideally be guided by the desire to get trees where they are needed most, not where it’s most convenient for their business. More than 90% of low-income neighborhoods are drastically under-canopied when compared to high-income areas and are at least 1.5 degrees hotter, on average.

Understandably, many corporations may not know where to start to create impact through tree planting. At the Arbor Day Foundation, we’ve helped hundreds of businesses create a lasting legacy in cities around the world by connecting them with a network of on-the-ground planting partners. These local experts are armed with the insight that’s crucial to effective tree planting.

Backed by the guidance of experts, companies have the power to slow climate change, reduce extreme heat and foster resiliency. Through trees, they can support thriving communities that help set people up for success. Our research reports that 9 in 10 Americans say trees and green spaces contribute to their mental well-being, and 91% “believe that trees help make neighborhoods more livable.” Science proves people living near trees have lower stress levels, have reduced rates of respiratory and cardiovascular illness and are more likely to exercise. What other heat mitigation tool can also claim those benefits?

Investing in nature helps grow more than trees. It grows the bottom line by reducing heat-related costs and risks. It grows opportunities for businesses to build resiliency in their operations and thrive sustainably. Most importantly, it grows leaders bold enough to build stronger communities in the face of a changing world.


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