Resilience Against the Haze: Implementing Business Continuity for Haze Season [MTE]

Synopsis of Presentation

The agenda includes an introduction, a discussion on lessons learned from past incidents, including haze occurrences in Singapore in 1997, 2013, and 2015, and insights gained from the recent COVID-19 pandemic.  The webinar will cover:

• Understanding the Impact and the potential consequences of the haze on businesses and communities, emphasising the importance of proactive business continuity planning.
• Developing a Haze-Specific Business Continuity Plan with guidance on tailoring business continuity plans to address the specific challenges of the haze scenario.
• Establishing Communication Strategies and Protocols for effective communication during the haze season.
• Identifying and Prioritising Critical Business Functions that need safeguarding during the haze season.
• Creating Alternate Work and flexible Arrangements such as remote work options and resource-sharing arrangements to maintain essential operations.
• Testing and Drills to validate the effectiveness of BC plans and enhance preparedness for any eventuality.
• Collaborating with External Agencies by Building partnerships with external agencies, local authorities, and neighbouring organisations to enhance collective response.

This session explores practical strategies for implementing business continuity measures to tackle the haze scenario anticipated soon in this region in 2023.

Similar fires experienced in Canada, Greece and Spain destroyed the forests and created a haze condition for its neighbours. Join us to re-visit your business continuity plan for the haze scenario.

This is a summary of the presentation by  Kenneth Yap, Senior Vice President GIC, at the Meet-the-Expert Webinar on 21 September July 2023.

Meet-the-Expert Webinar 26 October 2023

The presentation's theme is "Implementing Business Continuity for Haze Season."

Expectations from Past Episodes of Haze

The Urgent Need for Environmental and Mental Health Resilience

The haze situation in Southeast Asia remains a pressing concern, with land and forest fires contributing to air pollution and health problems. Despite some relief from wet weather, fires in Indonesia have reached nearly 4,000, causing about 200,000 respiratory illnesses in South Kalimantan alone. The impact extends to South Sumatra, where 4,000 new cases were reported in August 2023.

This issue not only affects Indonesia but also resonates throughout the region, including Singapore and Malaysia. Moreover, beyond the health implications, the economic losses are substantial, with a recent study revealing that the haze cost Singapore approximately 1.34 billion USD in tangible damages, including health, tourism, and productivity losses.

It is crucial to recognise that the haze is just one facet of a broader global concern – mental health.

The World Health Organization reports that mental health issues result in an annual global economic loss of approximately 1 trillion USD due to decreased productivity.

This backdrop extends beyond the haze problem, encompassing severe weather events, geopolitical tensions, cyberattacks, and supply chain disruptions. In the face of these challenges, addressing individuals' well-being and mental health is paramount, as it is a fundamental component of stability and resilience in the face of environmental and geopolitical threats. 

The survey by BCI highlights the far-reaching consequences of disruptions, with over 61.8% of respondents reporting negative impacts on staff morale, well-being, and mental health as the top consequence.

This underscores the critical importance of addressing mental health as an integral part of preparedness and response strategies in the face of environmental and geopolitical challenges.

The haze problem, along with the larger global risk landscape, emphasizes the necessity for proactive measures to tackle both environmental issues and mental health concerns. Understanding and mitigating these challenges is vital for the health and well-being of individuals and the stability of economies and societies as a whole.

Adaptation Strategies for Haze Episodes: Meeting Stakeholder Expectations

The recurring issue of transboundary haze presents multifaceted challenges for organizations, requiring them to address the expectations of various stakeholders. Internal and external stakeholders have specific expectations, including shareholders, management, employees, and the wider community.

While it may be challenging to prevent haze, organizations can focus on adaptation strategies. This includes preparing for haze episodes by equipping employees with N95 masks, installing air filtration systems, and providing shelters, as past experiences have shown that preparedness can significantly mitigate damage, particularly to mental health and well-being.

The COVID-19 pandemic has also prepared organizations to take proactive actions, such as implementing work-from-home arrangements and timely communication, similar to what is needed during haze episodes.

Within the organisation, there are vital considerations, such as restricting outdoor activities during haze, supporting remote work for employees and school-going children, and prioritising staff welfare to prevent burnout. Additionally, organisations must determine their response thresholds for air quality levels based on their specific circumstances.

Timely communication is vital, given the rapidly changing conditions during haze incidents. Furthermore, digital transformation and data management play a crucial role, ensuring that organisations empower supervisors to exercise judgment, especially for vulnerable individuals, and maintain data compliance and governance in the remote work environment.

The expectation from stakeholders is that organisations will apply the lessons learned from past episodes, adapt to the changing landscape, and prioritise employee well-being and business continuity.

Comprehensive Haze Management Strategy: Four Phases for Business Continuity and Resilience

Addressing haze can be divided into four key phases: strategy, drivers, crisis management or business continuity management response, and validation.

From a strategic perspective, organisations need to define their Minimum Business Continuity Objectives (MBCO) based on their industry and specific needs.

This is essential, especially for sectors like tourism, aviation, construction, or outdoor businesses, as they have unique concerns. Operationally readiness and resilience, digital transformation, remote work, data security, and public-private collaborations are key drivers that organisations need to consider. 

Next, organisations should develop a robust crisis management or business continuity plan encompassing leadership roles and responsibilities, risk assessment, and mitigation strategies. It's important to differentiate between haze and other disasters like floods, understanding that in a haze event, there's still a possibility of commuting to the workplace with precautions.

Additionally, it is crucial to identify critical business functions and their dependencies, both internal and with third parties. Organisations should also decide on the activation levels for their business continuity strategy, considering factors like remote work and communication with stakeholders. 

Lastly, thorough validation is essential. This includes testing plans with realistic scenarios, not just for the haze but also for scenarios that involve multiple disruptions, like data centre outages or cyberattacks. The validation process should also encompass a debrief or hot wash to identify areas for improvement and positive aspects that can be taken away from the experience.

Furthermore, organisations should consider cross-training and succession planning to address personnel changes. Overall, a comprehensive approach to haze management includes these four phases to ensure the continuity and resilience of the organisation during such events.

In Conclusion ...

This executive summary underscores the critical importance of being proactive in addressing the challenges posed by haze events. It raises a fundamental question: should we set aside haze readiness when the current threat level is low? The response is clear: we must not.

Haze readiness should be an ongoing priority, given its substantial environmental and health impact. It is essential to recognise "what's in it for me" regarding personal and corporate well-being. Integrating sustainability and supply chain resilience into business operations is imperative, transcending a mere strategic choice and becoming an ethical obligation.

Such practices contribute to a healthier environment and enhance business resilience by identifying vulnerabilities and building preparedness in procurement and distribution processes. These policies are not merely good practices but lifelines for business continuity and a demonstration of corporate responsibility.

Summary by Moderator ...

The summary also emphasises that preparedness should never be underestimated.

The speaker stresses the importance of thorough planning and validation with realistic scenarios, echoing the mantra of "prepare, prepare, and prepare."

Furthermore, it draws parallels between remote work and employee well-being strategies during the pandemic, highlighting their relevance to business continuity in the face of poor air quality.

In conclusion, the document advocates for a commitment to a more sustainable and resilient future, emphasising that preparing for haze events is a pragmatic endeavour and a contribution to a world where such events become increasingly rare. This underscores the significance of integrating environmental sustainability and supply chain resilience into long-term business strategies.

Dr Goh Moh Heng moderates the session.

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