Climate health risks threaten global productivity, warns WEF

Climate-related health impacts could strip at least $1.5 trillion from global productivity by 2050, according to a new report from the World Economic Forum (WEF). The study warns that food and agriculture, the built environment, and health and healthcare are among the sectors most at risk unless businesses take urgent steps to adapt. The report, Building Economic Resilience to the Health Impacts of Climate Change, produced in collaboration with Boston Consulting Group, highlights the growing economic burden of heat stress, infectious disease and other climate-driven health threats. It argues that protecting workforce health is now a strategic priority, not only for humanitarian reasons but also to safeguard business continuity and economic stability.

Eric White, Head of Climate Resilience at the WEF, said that each year of delay in embedding resilience into business planning increases both the risks to workers and the costs of adaptation. He described climate health as a business issue as much as an environmental one, with productivity losses mounting as conditions worsen.

The report outlines substantial projected losses across different industries. Food and agriculture could face $740 billion in lost output by 2050 as higher temperatures and disease disrupt production and supply chains. The built environment, which includes construction and building operations, may see losses of $570 billion as workers are increasingly exposed to unsafe conditions. Health and healthcare are also under pressure, with $200 billion in potential productivity losses linked to worker illness and the rising demand on health systems from climate-related disease. The insurance sector, while not included in the headline estimate, is forecast to experience a surge in climate health claims, compounding financial strain.

The research also identifies opportunities for innovation in adaptation. Companies that invest early could benefit from the development of climate-resilient crops, medicines that remain effective in high temperatures, advanced cooling technologies to protect outdoor workers, and insurance models designed to close coverage gaps. Naveen Rao, Vice-President for Health at the Rockefeller Foundation, which supported the study, described the findings as a wake-up call to businesses to future-proof their operations and protect vulnerable workers.

Beyond specific industries, the report stresses the need for coordinated global action. It calls for stronger policies, interoperable climate health data systems and innovative financing to mobilize capital at scale. Elia Tziambazis, Managing Director and Partner at Boston Consulting Group, warned that although momentum is growing, financing and implementation are still well below what is needed to keep pace with climate change.

The findings are published ahead of the WEF’s Sustainable Development Impact Meetings, which will take place in New York from 22 to 26 September, bringing together more than 1,000 leaders from government, business and civil society. With preparations also underway for COP30 in Brazil next year, health adaptation is expected to feature prominently in the global climate agenda. The WEF argues that aligning private sector innovation with international policy could accelerate the development of solutions and reduce long-term risks to productivity and economic resilience.