A Trillion-Dollar Warning: Climate Change's Impact on Health and Productivity

Rising global temperatures linked to climate change could trigger severe health risks and wipe out more than $1.5 trillion in productivity by 2050, according to a new report released by the World Economic Forum (WEF) in collaboration with Boston Consulting Group (BCG) (1^✔ ✔Trusted Source
Climate Health Risks Put $1.5 Trillion in Productivity at Stake by 2050

Go to source). The study, published ahead of the WEF’s Sustainable Development Impact Meetings 2025 and in the run-up to COP30 in Belém, Brazil, warns that urgent action is needed to embed climate resilience into business and policy decisions.

Health at the Core of Climate-Driven Productivity Loss

The report identifies four key sectors that will bear the brunt of climate-related health risks: food and agriculture, the built environment, health, and healthcare.

• Food and Agriculture: Rising heat and disease outbreaks could lead to a $740 billion loss in output, undermining food security worldwide.
• Built Environment: Productivity losses from extreme weather and worker health risks could amount to $570 billion.
• Health and Healthcare: Workforce illnesses driven by climate conditions may result in $200 billion in productivity losses, while increasing disease burdens will intensify pressure on already strained healthcare systems.
• Insurance: Climate-linked health claims are expected to rise sharply, threatening financial stability within the insurance industry.

“Protecting worker health is no longer just a welfare issue—it’s becoming central to business continuity and long-term resilience,” said Eric White, Head of Climate Resilience at the WEF. “Every year we delay embedding resilience into business decisions, the risks to human health and productivity climb, and the costs of adaptation rise.”

A Call for Proactive Climate Health Adaptation

The WEF report stresses that investing early in climate health adaptation is not just about reducing risks—it could also unlock new opportunities for innovation and growth.

Potential areas of opportunity include:

• Climate-resilient crops to safeguard food systems.
• Heat-stable medications that expand access to essential treatments.
• Cooling technologies to protect construction and outdoor workers.
• Innovative insurance models to shield communities from climate-health shocks.

The report concludes that tackling climate-related health threats must become a strategic business imperative, with companies urged to prioritize workforce health, strengthen operational resilience, and support global adaptation efforts.

Reference:

1. Climate Health Risks Put $1.5 Trillion in Productivity at Stake by 2050 - (https://www.weforum.org/press/2025/09/climate-health-risks-put-1-5-trillion-in-productivity-at-stake-by-2050/)

Source-Medindia