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Climate Crisis Threatens Health and Economy
20 Aug 2025The "Building Economic Resilience Against the Effects of Climate Change on Health" report, prepared in cooperation with the World Economic Forum (WEF) and Boston Consulting Group (BCG), shows that the effects of climate change on health are deeply affecting the global economy. He warns that it will shake us.
According to the report, if the necessary measures are not taken, more than 14.5 million deaths and a loss of 12.5 trillion dollars in the global economy are predicted by 2050. Most of these losses are expected to be seen in regions with weak infrastructure, limited access to health services and unprepared for disasters.
There may be a production loss of $1.5 trillion in the next 25 years
Health problems caused by climate change are no longer just a humanitarian crisis; It is also seen as a massive threat that fundamentally shakes the global economy. According to the report, climate-related health risks such as rising temperatures, new epidemics, food insecurity and air pollution will significantly reduce economic productivity over the next 25 years. Employees being away from the workforce due to illness or experiencing loss of productivity will cause a total production loss of more than 1.5 trillion dollars in the 2025-2050 period.
These losses will directly affect not only company balance sheets but also the economic growth of countries. Especially in labor-intensive sectors such as agriculture, construction and healthcare, workforce losses will disrupt supply chains, increase costs and reduce competitiveness.
On the other hand, health systems will also have difficulty bearing the burden of climate change. According to the report, increasing health risks in a wide range from extreme heat-related deaths to infectious diseases, from malnutrition and chronic diseases to mental health problems will impose an additional treatment cost of 1.1 trillion dollars on global health systems. The public and private sectors will have to invest more to cope with these costs. However, the report states that future losses can be reduced and new opportunities can be created with measures taken today.
Which sectors are the most fragile?
The report examines in detail the four sectors most exposed to climate-health impacts and therefore most vulnerable. These sectors include food and agriculture, built environment, healthcare and insurance.
- Food and Agriculture: It is predicted that 24 million more people will face the risk of hunger by 2050. It is expected that there will be a production loss of 740 billion dollars between 2025 and 2050 due to health problems of agricultural workers. Precision agriculture technologies, climate-resistant methods and occupational safety are recommended for the solution.
- Built Environment: More than half of the world's population lives in cities, but most city infrastructures are inadequate against extreme heat and air pollution. A workforce loss of $570 billion is predicted in the construction industry in the 2025-2050 period. The report states that climate-resilient buildings and green city planning can protect human health and the economy.
- Health and Healthcare: The sector is expected to experience a workforce loss of at least $200 billion by 2050. In addition, new epidemics, increased heat-related deaths and air pollution will place a great burden on the healthcare system. The report calls for investment in preventive health systems, new medicines and telehealth solutions.
- Insurance: Increasing health, life and financial losses due to climate change are also transforming the insurance industry. Today, health insurance coverage in low-income areas remains at just 8 percent. According to the report, the sector's development of innovative insurance products, offering risk-reducing incentives and introducing more inclusive models will both provide social benefit and create a new growth area for insurance companies.
What steps should companies take?
The report lists basic recommendations not only for four critical sectors, but also for the entire business world:
- To disseminate measures to protect worker health such as protective equipment, flexible working hours, and cooling solutions,
- Developing climate-sensitive health insurance,
- Establishing early warning and risk monitoring systems,
- Investing in climate and health research,
- Strengthening food, shelter and health infrastructure,
- Creating emergency preparedness plans,
- Providing climate-health training for employees and society,
The report warns that if action is not taken today, we will face great costs in the future. According to the report, if companies do not integrate climate-health risks into their business strategies, increasing costs, production losses, workforce problems and social instability will be inevitable.
Therefore, the report makes three basic calls to the business world: establishing global cooperation, developing innovative financing models and integrating climate-health resilience into business strategies.
Source: ISO Green Blog
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