Climate-driven health impacts, stemming from climate change, could strip the global economy of more than $1.5 trillion, warns a new report from the World Economic Forum.
The report, Building economic resilience to the health impacts of climate change, developed with Boston Consulting Group, highlights the growing economic burden of illnesses linked to rising heat and changing climates. It focuses on four vulnerable sectors: food and agriculture, the built environment, health and healthcare, and insurance.
Under a mid-range scenario, the report estimates losses exceeding $1.5 trillion by 2050 across the first three sectors, with insurance adding further strain due to climate change impacts.
Rising costs for food, infrastructure, and healthcare
Food and agriculture are expected to bear the largest losses, reaching $740 billion, with significant risks to global food security and nutrition. The built environment sector faces projected productivity losses of $570 billion, while the health and healthcare sector could lose $200 billion in workforce output.
At the same time, climate-driven disease among the wider population could increase demand on already stressed healthcare systems, pushing them toward breaking point as climate change effects grow.
Worker health is a strategic priority
Extreme heat, infectious diseases, and other risks accelerated by climate change are now shaping the future of business resilience worldwide. Protecting workers is no longer optional but central to business continuity.
“We are entering an era in which protecting worker health is proving essential to long-term resilience,” said Eric White of the World Economic Forum. He warned that each year of delay raises both risks and adaptation costs, particularly concerning climate change.
Jobs and livelihoods at risk
Rising global temperatures will make millions of jobs more dangerous or unsustainable, pushing vulnerable families deeper into poverty. Changing weather patterns could also alter where people can live and thrive, reshaping communities and migration flows due to climate change.
“This report is a wake-up call for businesses to act urgently and future-proof their operations,” said Naveen Rao of the Rockefeller Foundation, which supported the research regarding climate change concerns.
Opportunities for innovation and growth
Although risks are severe, the report notes that companies adapting early can unlock innovation and new growth opportunities. Climate-resilient crops can safeguard food systems, heat-stable medications can expand access to treatments, and cooling technologies can protect construction workers from heat-related illness, all driven by climate change.
The insurance industry also has the chance to design innovative models that shield communities from escalating climate health shocks. Early movers can benefit not only from reduced risks but also from leadership in emerging markets for resilience solutions against climate change.
Financing adaptation remains a challenge
Despite growing awareness, financing and implementation of health adaptation remain far behind what is needed to keep pace with climate change. Elia Tziambazis of Boston Consulting Group emphasized the need to scale solutions rapidly, mitigate workforce impacts, and invest in next-generation resilience services for climate change adaptation.
The report stresses that supportive public policies, interoperable climate health data systems, and innovative financing models are essential for driving systemic change.
Climate health on the global agenda
The findings arrive ahead of the World Economic Forum’s Sustainable Development Impact Meetings 2025, scheduled for 22–26 September in New York. The meetings will gather more than 1,000 global leaders to address climate change, health, and resilience challenges.
The report also feeds into preparations for COP30 in Belém, Brazil, where climate health adaptation is expected to feature prominently on the global climate agenda.
A pivotal moment for action
Between 2025 and 2050, the report models economic costs of lost output due to climate-driven illness and premature deaths across seven health risks. Its warnings are stark but also actionable: building resilience now can reduce future losses while unlocking innovation and productivity in response to climate change threats.
Governments, businesses, and communities have a rare opportunity to align private-sector innovation with public policy. If acted upon, this alignment could redefine resilience for the decades ahead amid climate change challenges.
The World Economic Forum’s message is clear: safeguarding workforce health is both an economic necessity and a human imperative in the age of climate change.
