Is your financial wellness program climate resilient?

Effective financial wellness programs account for spiking energy costs and your workers’ diminishing ability to afford to stay cool this summer. It’s a matter of life and death for them, with significant implications for the health and productivity of your organization. So, we share 7 tips for workers to save money on energy costs.

Effective financial wellness programs account for spiking energy costs and low-income workers’ diminishing ability to afford to stay cool this summer.

Record heat and your workers’ ability to afford to stay cool is a matter of life and death, for them, with significant implications for the health and productivity of your organization:

A record number of people died from the record heat in 2023, says an AP analysis of Centers for Disease Control and Prevention data; 2024 is expected to be worse.

Low-income workers weather the brunt of the negative effects of global warming:

“Longer and hotter summers are increasing the cost of cooling homes, threatening to leave low-income people unable to afford air conditioning as temperatures skyrocket because of climate change,” writes Thomas Frank in Scientific American.

Making matters worse, Congress cut $2 billion in funding from the Low-Income Home Energy Assistance Program (LIHEAP) this year.

Workers’ financial insecurity exacerbates climate-change impacts

Meanwhile, workers’ worsening financial insecurity overall compounds their financial burden to keep cool.

With energy costs expected to jump this summer by nearly 8% across the nation to an average of $719 — up more than 50% since 2014, according to the National Energy Assistance Directors Association (NEADA) and the Center for Energy Poverty and Climate — workers are feeling the heat.

“Usage is going up. This is not going to change … unless something is done about rising temperatures,” Mark Wolfe, executive director of NEADA, tells Frank.

In the mid-Atlantic and Pacific Coast, electric bills are expected to jump 12 percent this summer.

Workers who live in Texas, Oklahoma, Arkansas, and Louisiana will pay an average of $858, the highest prices nationwide.

Making matters worse (again, geez?), most states prohibit energy companies from disconnecting households for nonpayment during cold weather.

But only 17 states prohibit disconnections during hot weather.

“Shutoff rules go back 30, 40 years before we’ve had continuous heat waves,” Wolfe says. “We’re in a very different environment.”

And it’s up to employers alone to solve the climate crisis and its disproportionate impact on low- and moderate-income workers.

We joke. We shouldn’t joke.

So, what are sophisticated employers to do, ones who understand the connections among worker financial insecurity, global warming, and your bottom lines, in profits and in impacts?

Take a broad view with your financial wellness platforms, including resources to help your workers save money and stay cool during the hottest months.

Financial wellness platforms should account for climate change

Financial wellness platforms should account for climate-change impacts on workers’ wallets.

The financial health of your workers directly impacts their ability to stay cool, healthy, and productive.

An act as simple and low-cost as explaining your broad view of financial wellness platforms and sharing tips on how to save money on energy costs demonstrates that you understand that your workers’ costs are spiking. And that you care.

But you’re not just doing a good deed. You’re creating a cooler, more loyal and engaged workforce, and that’s good for everyone.

7 tips for workers to save on energy costs

Fans over A/C: They use little energy and cost significantly less to operate than A/C.

Mind A/C size: Oversized units often cycle on and off. Undersized units hog energy. Both cost you extra money so make sure you fit the unit to the size of your space.

Seal your envelope: From doors and windows to basements and attics, close obvious gaps in your “building envelope” to improve efficiency and reduce costs.

Wash at night: Use energy during times when it costs you less, like at night. Dishwashers and clothes washers and dryers use significant amounts of energy (compared to house fans). Turn them on at night to keep your place cooler during the day and use cold water, for added savings.

Turn off the (LED) lights: Swap any old incandescent bulbs for LED bulbs which use roughly 85% less electricity and remember to turn them off when you’re not actively using them.

Dress for the temperature: Don’t make fans or A/C do a job that removing clothing layers would accomplish.

Unplug: Electronics, from your smartphone charger to your coffeemaker, are often drawing electricity even when off, in some cases costing you hundreds of dollars per year.

Schedule a time with TrustPlus to discuss strengthening your financial wellness platform.