October 2nd, 2026
The Business of Heat: How Rising Temperatures Are Reshaping Infrastructure and Operations
Extreme heat is no longer simply a seasonal environmental challenge. As temperatures rise and heatwaves become more frequent and intense, they are increasingly affecting the infrastructure, workplaces and supply chains that economies depend on. What was once treated primarily as a temporary weather disruption is becoming a question of business continuity, infrastructure resilience and long-term investment.
A recent analysis by the World Economic Forum highlighted how extreme heat is putting growing pressure on critical infrastructure, from electricity grids and hospitals to transport systems and other essential services. The problem is not limited to individual assets: because energy, water, transport and digital infrastructure are interconnected, disruption in one system can quickly create pressure elsewhere.
Switzerland offers a particularly relevant example. According to Swiss Re Institute, Switzerland now experiences around 10 to 15 days per year when temperatures reach at least 30°C, compared with around five such days in 1990. Swiss temperatures have also been rising faster than the global average, increasing pressure on systems and infrastructure designed for a cooler climate.
The effects became visible during the summer of 2026. Swiss Re reported that high temperatures contributed to transport disruptions, including railway delays linked to heat-related track deformation, while the Beznau nuclear power plant had to reduce electricity production because of heat-related conditions. In the Rhine Valley, extreme heat also contributed to damage to a motorway. These examples illustrate how a seemingly temporary weather event can translate into operational and economic consequences.
Energy infrastructure is particularly exposed. Extreme heat can increase demand for air conditioning and cooling at the same time as it places additional pressure on power generation and transmission systems. This creates a difficult situation: electricity demand rises precisely when parts of the system may be operating under more challenging conditions. For businesses that depend on uninterrupted electricity, the implications can extend from higher operating costs to interruptions in production and services.
The workforce is another important part of the equation. Globally, more than 2.4 billion workers are exposed to excessive heat, according to the International Labour Organization. The World Economic Forum estimates that heat-related productivity losses could reach $2.4 trillion by 2030. For companies, adapting to higher temperatures can therefore involve changes to working hours, workplace design, cooling systems and occupational safety—not simply emergency measures during an occasional heatwave.
The business impact also extends into supply chains. Transport networks, warehouses, industrial facilities and logistics operations can all be affected by extreme temperatures. A disruption to one part of the system can delay deliveries, interrupt production or increase costs elsewhere in the value chain. This makes climate resilience increasingly relevant to decisions about sourcing, inventory, infrastructure investment and business location.
For Switzerland, the challenge is particularly significant because heat is interacting with other risks. Swiss Re describes extreme heat as a “risk multiplier” that can affect health, agriculture, water, energy and infrastructure while potentially amplifying other natural hazards. Its June 2026 Resilient Switzerland initiative brought together public authorities, businesses, researchers and other stakeholders to consider how adaptation can be strengthened at the local level.
For businesses, this changes the way climate risk needs to be considered. Preparing for extreme heat is not only about protecting employees or meeting sustainability objectives. It increasingly involves decisions about building design, energy systems, insurance, supply-chain planning, infrastructure and the location of future investments.
The challenge is therefore shifting from responding to exceptional heatwaves to preparing for a warmer operating environment. Resilience will depend not only on strengthening individual buildings or facilities, but on understanding the connections between the systems businesses rely on every day.
Extreme heat is becoming an operating condition rather than an occasional disruption. For business leaders and infrastructure planners, the question is increasingly how to anticipate that change, invest ahead of it and ensure that the systems supporting economic activity remain reliable under new climate conditions.
by SBS Swiss Business School CSCFS Team
AI Disclosure: The accompanying image was generated using artificial intelligence (AI) for illustrative purposes.
About SBS Swiss Business School
SBS Swiss Business School is a Swiss state-accredited University of Applied Sciences Institute located in Zurich, Switzerland. Through its academic programs, executive education, international conferences, and applied research initiatives, SBS brings together scholars and business leaders to advance research that creates meaningful impact for organizations and society.