Businesses, agriculture and the health sector stand to lose up to USD 1.5 trillion (over ₹131 lakh crore) due to climate change, a new study has revealed.
The next 25 years may look very different in terms of rising illnesses and labour shortages across key sectors, reported the World Economic Forum (WEF) on Thursday, underscoring the urgency of assessing climate-driven health impact and protecting workforce health besides building resilience in fighting climate change.
The report by WEF, developed in collaboration with the Boston Consulting Group, looked at climate-driven health impacts in four of the most affected economic sectors: food and agriculture; the built environment; health and healthcare; and insurance. Of these, the report predicted losses of USD 1.5 trillion in the first three sectors under a mid-range scenario.
The findings, published ahead of the World Economic Forum's Sustainable Development Impact Meetings 2025, come as preparations intensify for COP30 in Belem, Brazil.
The burden on the global economy, says the report, could actually be far higher.
"We are entering an era in which protecting worker health is proving essential to business continuity and long-term resilience," said Eric White, Head of Climate Resilience, World Economic Forum.
"Every year we delay embedding resilience into business decisions, the risks to human health and productivity climb and the costs of adaptation rise," he added.
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The findings highlighted that adapting to extreme heat, infectious diseases and other health risks accelerating due to climate change is now a strategic business imperative, which makes it imperative for companies to act now to protect workforce health, build operational resilience and safeguard productivity before the costs of climate adaptation become unmanageable.
Yet, if companies invested early in climate health adaptation, they stand to benefit beyond risk mitigation, unlocking new opportunities for innovation and growth while meeting emerging market needs, the report adds.
In other sectors, the report outlines losses amounting to billions of dollars. In food and agriculture, for instance, climate health impacts could lead to USD 740 billion in lost output, triggering serious consequences for global food security, according to the report.
Similarly, in the built environment sector, climate health impacts are projected to result in productivity losses of USD 570 billion.
The health and healthcare sector stands to lose close to USD 200 billion in productivity due to workforce climate health issues, while rising climate-driven disease rates among the wider population could compound demand pressures. The insurance industry, meanwhile, is projected to experience a sharp rise in climate health claims.
"As temperatures rise, millions of jobs become more dangerous – or disappear entirely – pushing families deeper into poverty and changing where and how people can live and thrive," said Naveen Rao, Vice-President for Health, Rockefeller Foundation, which supported this research.
The report by the Geneva-based international organisation for public-private partnership elaborates how each sector is uniquely positioned to develop and scale solutions to emerging climate health challenges.
The agriculture sector, for instance, can innovate in climate-resilient crops that protect food systems; the pharma sector can research on heat-stable medications that expand medicine availability; scientists can bring out cooling technologies that keep construction workers safe; and new insurance models can protect communities against climate health shocks.
"Momentum on health adaptation is building, but financing and implementation are still far below what's needed," said Elia Tziambazis, Managing Director and Partner, BCG.
Sourcing health data from scientific literature and employment data; and economic cost from the International Labour Organisation and World Bank data, the report pointed out that a global shift to health resilience must be underpinned by supportive policies, interoperable climate health data systems and innovative financing to mobilise capital.
This year's COP30 climate negotiations are set to bring health adaptation to the forefront of the global climate agenda, signalling a unique opportunity to align private sector innovation with policy action.
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