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The Pentagon said Iran War costs $29 billion, but the real cost is closer to $200 billion—and counting

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After forcing workers back to the office, Goldman Sachs and JPMorgan Chase are now letting their staff work remotely—but only for the World Cup

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Amazon's record Prime Day masks a darker truth: Americans are spending more and getting less
NewslettersCEO Daily

The return of the siesta: How extreme heat is going to change your work day

By
Peter Vanham
Peter Vanham
and
Nicholas Gordon
Nicholas Gordon
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By
Peter Vanham
Peter Vanham
and
Nicholas Gordon
Nicholas Gordon
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July 21, 2023, 2:31 AM ET
Updated July 21, 2023, 4:38 AM ET
Companies may have to give their workers a break during the hottest hours of the day to protect them from extreme heat.
Companies may have to give their workers a break during the hottest hours of the day to protect them from extreme heat.Getty Images
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Good morning, Peter Vanham here from a sweltering Nimes in Southern France, filling in for Alan.

Call it the vindication of the siesta.

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As another round of summer heatwaves hit much of the U.S., southern Europe, and parts of Asia, the Red Cross Red Crescent Climate Centre this week called on businesses to shift their working schedules, and allow affected workers to rest during the hottest hours of the day.

“Extreme heat is rising around the world and our pace of adaption needs to increase as well to meet the rising risk and reduce it,” Julie Arrighi, the director of the center told me over the phone from upstate New York. The two types of workers most at risk, she told me, are those working outdoors, and those working indoors in unventilated areas, covering any sector from tourism to construction.  

The warning comes at a historical moment: Last month was the hottest June ever globally, and if this month’s heat wave continues, 2023 may well be the hottest year ever, the Wall Street Journal reported this week. It has business leaders everywhere thinking about how to respond because the warming has consequences for workers. Last year was Europe’s deadliest summer on record with 60,000 people dying from heat-related causes. Back in air-conditioned America, the death toll was much lower, but $68 billion (0.3% of the U.S. GDP) was nevertheless lost in potential income from reduced labor due to extreme heat, according to a study by The Lancet.

To adapt, it’s not all about taking more siestas. Arrighi’s team recommends a series of measures, which include reducing workload or suspending work entirely during the hottest hours of the day, but also providing frequent breaks in cool settings, providing access to water and encouraging hydration, and training employees in warning signs of heat stress as well as basic first aid.

The Red Cross itself went into overdrive these past days, Arrighi told me, counting on volunteers to hand out water and checking in on the most vulnerable people. But long-term, society will need to make a more concerted effort to reduce the effects of extreme heat: more green spaces in cities, different building codes, adapted transport, water and electricity systems. “There’s a need for all sectors in society to react,” she said.

More news below.

Peter Vanham
peter.vanham@fortune.com
@petervanham

TOP NEWS

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Taiwan Semiconductor Manufacturing Company won’t start production at its Arizona facility until 2025 at the earliest. The factory, which originally planned to start operation in late 2024, is a key success story for the Biden administration and its CHIPS and Science Act. Chairman Mark Liu blamed a labor shortage for the delay, suggesting the chipmaker might have to fly in Taiwanese engineers temporarily. The Wall Street Journal

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AROUND THE WATERCOOLER

Fight, flight, freeze, follow, or ‘f*** it’: How stressed employees can make or break company strategy by Lila MacLellan

Hybrid work is not the future, says Meta’s former director of remote work: It’s an ‘illusion of choice’ by Jane Thier

Six-figure bosses—not Gen Z—are leading the resistance to the 5-day office week by Orianna Rosa Royle

Florida’s CFO blames wokeness for insurers leaving the state: ‘I do call them the Bud Light of the insurance industry’ by Chris Morris

Elon Musk says Tesla will spend $1 billion to build a ‘Dojo’ A.I. supercomputer—but it wouldn’t be necessary if Nvidia could just supply more chips by Christiaan Hetzner

L’Oréal’s CHRO was used to being away from her kids for business travel. Returning to the office was another story by Stephanie Kramer and Joseph Abrams

This edition was CEO Daily was curated by Nicholas Gordon.

This is the web version of CEO Daily, a newsletter of must-read insights from Fortune CEO Alan Murray. Sign up to get it delivered free to your inbox.

About the Authors
By Peter VanhamEditorial Director, Leadership
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Peter Vanham is editorial director, leadership, at Fortune.

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Nicholas Gordon
By Nicholas GordonAsia Editor
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Nicholas Gordon is an Asia editor based in Hong Kong, where he helps to drive Fortune’s coverage of Asian business and economics news.

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