BCG-WEF Project: Climate and Health Sector Impact and Adaptation Opportunities

Building Economic Resilience to the Health Impacts of Climate Change

The impact of climate change on health is already significant and will only increase. Estimates suggest that climate change, if unaddressed, could result in 14.5 million excess deaths by 2050. These deaths would be concentrated in the most disadvantaged regions and populations globally, areas where deaths from extreme weather events have been 15 times higher over the past decade.

Climate-health impacts also threaten business resilience. Less than 5% of global adaptation funding currently targets health protection—a dangerous gap that also presents an opportunity for private-sector action.

This report, a collaboration between the World Economic Forum and BCG, explores four highly exposed sectors to identify specific climate-health risks and opportunities.

• Food and Agriculture. By 2050, an estimated 24 million additional people will face hunger. And agricultural workers are expected to experience growing climate-health risks. This report estimates a likely mid-range scenario of $740 billion in worker availability losses from 2025 to 2050. Businesses that invest in resilient and precision agriculture practices and modified working practices will be best positioned to meet growing global needs for consistently available, healthy foods.
• Built Environment. Over half the world’s population lives in urban areas, and most buildings and infrastructure are poorly adapted for extreme heat and air pollution. Construction workers are particularly vulnerable; it’s projected that the industry will lose at least $570 billion owing to worker availability losses from 2025 to 2050. Climate-resilient design and retrofits have the potential to safeguard communities and yield economic benefits.
• Health and Health Care. The health and health care sector is expected to face an additional $1.1 trillion treatment burden owing to climate change by 2050, necessitating a focus on preventative care. There is tremendous opportunity for companies to lead this transformation by creating new climate-resilient medicines and robust care pathways and improving public health engagement.
• Insurance. Climate change is driving up claims in health, life, and casualty coverage, with Swiss Re forecasting 0.75% excess mortality annually by 2050. Meanwhile, only approximately 8% of people in low-income communities are covered by health insurance. Insurers can support and accelerate resilience by offering innovative products, improving forecasting capabilities, and incentivizing risk reduction.

While institutions in each sector can act, no sector can tackle the climate-health challenge alone. Success depends on enabling coordinated action through supportive policies, interoperable climate-health data systems, and innovative financing to mobilize capital. These foundations can help ensure long-term, scalable resilience.

The cost of inaction on climate-health risks is enormous. There are opportunities for businesses to adapt, build resilience, and forge a clear path forward to create economic and social value, differentiation, and sustainable growth.