As climate change continues to intensify, its effects are becoming more evident in all sectors, including education. Schools, which are essential to the development of future generations, now face significant operational and financial risks due to rising temperatures. An Enterprise Risk Management (ERM) approach is critical for identifying, assessing, and mitigating these risks, ensuring that institutions are resilient and capable of providing a stable learning environment for students.

Climate Change as an Emerging Risk
From an ERM perspective, climate change is no longer just a distant or abstract concern—it has emerged as a direct operational risk that is disrupting the ability of schools to function effectively. Rising temperatures are a growing threat to the physical environment of schools and the well-being of students and staff. Traditional school infrastructure, often designed for milder climates, is increasingly unfit to handle the hotter conditions of today and tomorrow.

ERM identifies these operational disruptions as a risk to both short-term objectives (day-to-day learning) and long-term educational outcomes (academic achievement). Schools must recognize that without adapting their infrastructure, they are vulnerable to multiple risks, including reduced student performance, declining attendance, and deteriorating facilities.

The Risk to Learning Outcomes
One of the primary risks schools face is the effect of temperature on learning outcomes. Research consistently shows that students struggle to focus, retain information, and perform well academically in uncomfortable, hot environments. This becomes a significant operational risk when high temperatures persist, particularly in regions without adequate climate control.

ERM frameworks prioritize assessing this risk by gathering data on the frequency of high-temperature events, monitoring classroom conditions, and evaluating the impact of poor learning environments on student performance. The decline in cognitive function and engagement due to heat not only compromises educational objectives but also exposes schools to reputational and stakeholder risks if students consistently underperform due to factors within the school’s control.

Financial and Operational Risk
From a financial standpoint, climate change poses a direct risk to school budgets, especially as schools are forced to install and maintain air conditioning systems or upgrade existing infrastructure. These costs, combined with rising energy bills due to more frequent and intense heatwaves, can strain school budgets that were already tight before factoring in the growing climate risk.

An ERM approach emphasizes the need for schools to quantify these costs, assess their financial resilience, and plan for the long-term impacts of climate change. This includes identifying funding sources for infrastructure upgrades, calculating the opportunity cost of diverting funds from other critical areas (such as educational programs or staffing), and managing the operational risks associated with equipment failures or insufficient cooling capacity.

The Importance of Scenario Analysis and Planning
A key element of ERM is scenario analysis—evaluating how different future climate scenarios could impact school operations. Schools must assess a range of potential outcomes, from moderate temperature increases to extreme heatwaves, and determine how prepared they are to respond. For instance, what happens if a region experiences consecutive days of record-breaking heat? Does the current infrastructure support continuous, safe operations, or will students need to be sent home, cutting into instructional time?

ERM encourages schools to think proactively, identifying potential worst-case scenarios and developing mitigation strategies. This could involve capital investments in sustainable cooling systems, adjusting the academic calendar to account for peak heat periods, or creating contingency plans for heat-related closures that minimize disruption to learning.

Equity and Climate Risk
A comprehensive ERM strategy also considers how climate change may impact different schools disproportionately, particularly when it comes to access to resources. Wealthier districts are often better equipped to install advanced climate control systems, while lower-income districts may struggle to fund even basic repairs. This creates an additional layer of risk, as the disparity in learning environments could widen the achievement gap and lead to negative social and reputational consequences.

​To address this, school districts and policymakers must evaluate climate risk through an equity lens. Ensuring that vulnerable schools have the resources to protect their students from rising temperatures is a critical part of mitigating long-term educational risks.

Integrating Climate Change into ERM Strategy
Effectively managing the risks posed by climate change requires an integrated approach within the broader ERM framework. Schools must adopt a holistic view of their risk exposure, ensuring that climate risks are identified, monitored, and incorporated into decision-making processes at every level of the organization. This includes:

Risk Identification: Schools should regularly review and update their risk registers to include climate-related risks, focusing on both immediate and long-term effects on infrastructure, students, and staff.

Risk Assessment: Quantifying the likelihood and impact of temperature increases on learning outcomes and financial health is essential. This involves scenario planning, energy cost projections, and infrastructure assessments.

Risk Mitigation: Schools must invest in proactive measures to reduce their exposure to climate risks. This can include upgrading HVAC systems, adopting energy-efficient technologies, and developing adaptive operational policies.

Monitoring and Reporting: Tracking the effectiveness of mitigation strategies and reporting on climate-related risks to stakeholders (e.g., school boards, parents, and local governments) ensures transparency and accountability.

​As schools face the realities of a changing climate, implementing an ERM strategy to address rising temperatures is essential for maintaining both educational and financial stability. By adopting a proactive and comprehensive risk management approach, schools can mitigate the impacts of climate change, protect learning environments, and ensure they remain resilient in the face of this growing threat. The future of education depends on our ability to adapt to these evolving risks, safeguarding both students and schools from the challenges ahead.