Worsening health crises driven by climate change could wipe out more than $1.5 trillion in economic output by 2050, according to a new report from the World Economic Forum (WEF) and Boston Consulting Group (BCG). The analysis warns that businesses must act now to protect their workforce and build resilience before the costs of adaptation spiral out of control.
The report, “Building Economic Resilience to the Health Impacts of Climate Change,” assesses the financial fallout from worker illness across key sectors, including food and agriculture, the built environment, and healthcare. The staggering $1.5 trillion estimate is based on a mid-range scenario and does not include the insurance sector, suggesting the true economic burden could 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 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.”
The analysis reveals significant vulnerabilities across different industries. The food and agriculture sector is projected to suffer the most, with $740 billion in lost output, a blow that threatens global food security. The built environment, which includes construction and real estate, faces productivity losses of $570 billion. Meanwhile, the health and healthcare sector itself is expected to lose $200 billion as its workforce grapples with climate-related illnesses while simultaneously facing surging demand from the wider public. The insurance industry is also forecast to face a sharp increase in climate-related health claims.
Africa on the Frontline of a Global Crisis
While the economic impact is global, the report underscores Africa’s acute susceptibility.
“Africa’s vulnerabilities are particularly acute,” stated Regina Osih, Associate Director for Global Health at BCG in Johannesburg. She noted that with 94% of global malaria cases, a 63% surge in zoonotic diseases in the last decade, and over half a million diarrhoeal deaths in 2022 alone, the continent’s health infrastructure is at a breaking point.
“These aren’t just health statistics,” Osih added. “They’re productivity indicators showing how climate-driven health impacts will disproportionately affect regions with limited adaptive capacity, creating ripple effects that extend beyond Africa into global supply chains and economic stability.”
An Urgent Call for Proactive Investment
The report urges companies to view climate-health adaptation not just as risk mitigation but as an opportunity for innovation. Examples already emerging include climate-resilient crops, heat-stable medications, advanced cooling technologies for outdoor workers, and new insurance models.
“Momentum on health adaptation is building, but financing and implementation are still far below what’s needed,” said Elia Tziambazis, a managing director and partner at BCG. “The challenge now is to scale proven solutions fast enough to keep pace with climate change.”
Published ahead of the WEF’s Sustainable Development Impact Meetings and with an eye on the upcoming COP30 climate negotiations, the report calls for a global shift supported by robust policies, better data systems, and innovative financing.
Osih concluded that the findings make a clear business case for action. “The $1.5 trillion figure shows climate-health adaptation must become central to global business competitive strategy, not peripheral. The upcoming B20 in South Africa offers a critical opportunity to mobilise private capital toward climate-resilient health systems, particularly in Africa where the need and return on investment are greatest.”
