In the next 25 years, climate-driven health impacts could result in the loss of more than $1.5 trillion in lost output from select climate-health illnesses. This is according to a new report from the World Economic Forum, developed in collaboration with Boston Consulting Group (BCG), assessing climate-driven health impacts across four of the most affected economic sectors: food and agriculture, the built environment, health and health care, and insurance. The $1.5 trillion estimate reflects losses in only the first three sectors, under a mid-range scenario, suggesting the burden on the global economy could be far higher.
The report, “Building Economic Resilience to the Health Impacts of Climate Change,” urges companies to act now to protect workforce health, build operational resilience, and safeguard productivity before the costs of climate adaptation become unmanageable. The findings highlight that adapting to extreme heat, infectious diseases, and other health risks accelerating due to climate change, is now a strategic business imperative.
“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 World Economic Forum. “Every year we delay embedding resilience into business decisions, the risks to human health and productivity climb, and the costs of adaptation rise.”
Alongside shared disruptions, the analysis also outlines sector-specific vulnerabilities. In food and agriculture, climate-health impacts could drive $740 billion in lost output, placing the sector under strain and triggering cascading impacts on global food security. In the built environment sector, climate-health impacts are projected to result in productivity losses of $570 billion. The health and health care sector stands to lose $200 billion in productivity due to workforce climate-health illness, while rising climate-driven disease rates among the wider population could compound demand pressures. The insurance industry, meanwhile, is projected to experience a sharp rise in climate-health claims.
Highlighting Africa’s unique susceptibility, Associate Director, Global Health at BCG in Johannesburg, Regina Osih said: “While the global economy faces $1.5 trillion in climate-driven productivity losses, Africa’s vulnerabilities are particularly acute. With 94% of global malaria cases concentrated in Sub-Saharan Africa, a 63% surge in zoonotic diseases over the past decade, and 515,000 diarrheal deaths in 2022 alone, the continent’s health infrastructure is at breaking point. These aren’t just health statistics, 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.”
The report finds that companies investing early in climate-health adaptation can benefit beyond risk mitigation. They can unlock new opportunities for innovation and growth, while meeting emerging market needs. Each sector is uniquely positioned to develop and scale solutions to emerging climate-health challenges. From climate-resilient crops that protect food systems and heat-stable medications that expand medicine availability, to cooling technologies that keep construction workers safe and new insurance models protecting communities against climate-health shocks, examples of innovation are already taking shape.
“Momentum on health adaptation is building, but financing and implementation are still far below what’s needed,” said Elia Tziambazis, managing director and partner at BCG. “The challenge now is to scale proven solutions fast enough to keep pace with climate change, mitigate its impact on workforces, and invest in the innovation that will define the next generation of resilience services and products.”
The report’s analysis covers seven major health risks exacerbated by climate change and models the economic cost of lost output due to climate-driven worker illness and death between 2025 and 2050. It sources health data from scientific literature and employment data and economic cost from the International Labour Organization and World Bank data.
While organisations in each sector can act, a global shift toward health resilience must be underpinned by supportive policies, interoperable climate-health data systems, and innovative financing to mobilize capital. The report’s findings, published ahead of the World Economic Forum’s Sustainable Development Impact Meetings, arrive as preparations intensify for COP30 in Belém, Brazil. This year’s climate negotiations are set to bring health adaptation to the forefront of the global climate agenda, signalling a unique opportunity to align private sector innovation with policy action.
Commenting on the steps to be taken, Regina Osih concludes: “The $1.5 trillion figure shows climate-health adaptation must become central to global business competitive strategy, not peripheral. Driving this will take a coordinated and sustained effort. Beyond the WEF meetings, the upcoming B20 in South Africa themed ‘Solidarity, Equality, Sustainability’ offers this, offering a critical opportunity to mobilise private capital toward climate-resilient health systems, particularly in Africa where the need and return on investment are greatest.”
Download the publication here.
World Economic Forum public.affairs@weforum.org
About the Sustainable Development Impact Meetings 2025
The Sustainable Development Impact Meetings 2025 will take place from September 22 to 26 in New York and bring together over 1,000 global leaders from diverse sectors and geographies. Held ahead of the World Economic Forum Annual Meeting 2026, these meetings are part of the Forum’s year-round work to accelerate progress on sustainable development through multistakeholder dialogues and action.
About The World Economic Forum
The World Economic Forum, committed to improving the state of the world, is the International Organization for Public-Private Cooperation. The Forum engages the foremost political, business and other leaders of society to shape global, regional and industry agendas. (www.weforum.org).
About Boston Consulting Group
Boston Consulting Group partners with leaders in business and society to tackle their most important challenges and capture their greatest opportunities. BCG was the pioneer in business strategy when it was founded in 1963. Today, we help clients embrace transformation to benefit all stakeholders—empowering organizations to grow, build sustainable competitive advantage, and drive positive societal impact.
Our diverse global teams bring deep industry expertise and a range of perspectives that spark change. BCG delivers solutions through leading-edge management consulting, technology and design, and digital ventures. We work collaboratively across the firm and with our clients to help them thrive and make the world a better place.
Climate returns are materialising and driving action
According to the report, 82% of the global companies surveyed say they have captured economic benefits from decarbonisation, with 6% reporting a value that exceeds 10% of annual revenue; that is, a net value (after accounting for costs) of $221 million per company. These benefits are largely driven by revenue growth from sustainable products and operational savings from efficiency gains and resource optimisation.
Africa leads in capturing significant benefits from decarbonisation (11% of companies versus the survey average of 6%) and adaptation (7% of companies versus the survey average of 4%). Their investments in climate action are yielding tangible benefits, strengthening their position as reliable suppliers and generating greater value for their businesses.
Among global firms that assess both physical risks such as storms and rising seas, and transition risks including policy and market shifts, the average projected financial exposure by 2030 is $790 million. Nearly half of the companies report that their climate risk adaptation efforts generate a return on investment of more than 10%—demonstrating that proactive preparation delivers real and measurable value.
“What matters most is that investment and action are accelerating, and our survey shows that companies are investing in climate action where there is a business case around strategic risk management and compelling financial returns,” said Diana Dimitrova, a managing director and partner at BCG X and co-author of the report.
Advanced tools for turning climate goals into action
As companies scale up their climate investments and goals, they are also strengthening how they finance and operationalise climate action and increasing their use of advanced governance mechanisms. The survey found that one-third of companies have implemented internal carbon prices and adoption of climate transition plans has risen five percentage points year-over-year, with 61% of plans now approved at the board level. These tools represent an important shift as companies are transitioning from broad aspirations to more operationalised climate strategies.
What sets leaders apart
By making sustainability central to strategy, a small group of companies is realising financial benefits worth roughly 10% of their revenue. The report identifies four common enablers among companies that are generating the most financial value from climate action:
- Comprehensive emissions and risk measurement (1.4x more likely to achieve significant revenue)
- Quantification of impact through internal carbon pricing and risk modelling (1.6x)
- Adoption of transition and adaptation plans (2.2x)
- Use of multiple advanced digital solutions (2.3x)
African companies are using several advanced digital tools for mitigation: Generative AI (60%), AI agents (54%), predictive AI (48%), advanced computing (40%), Internet of Things (IoT) 36%, and AR/VR (34%). Additionally, they are using the following technology for adaptation and resilience: Generative AI (56%), AI agents (49%), predictive AI (46%), advanced computing (38%), IoT (37%), AR/VR (29%), earth observation (23%) and drones (19%).
“The companies that are really getting value from sustainability are the ones leaning into AI and advanced digital tools,” said Charlotte Degot, CO2 AI’s CEO and co-author of the report. “They’re using them over 10% more than their peers, especially to drive decarbonisation. And when companies layer multiple advanced solutions, they’re more than twice as likely to achieve real, significant benefits.”
Hamid Maher concludes, “It is encouraging to see African companies increasing their sustainability investments and leading globally in realising financial value from decarbonisation and adaptation. With 11% of firms reporting significant returns from climate action, the continent is proving that business growth and climate leadership can go hand in hand. By embracing digital tools and prioritising adaptation, African businesses are developing a blueprint for climate resilience and sustainable value creation.”
Download the publication here.
About Boston Consulting Group
Founded in 1963, and with offices in over 50 countries, BCG’s diverse, global team comprising of 30 000 plus people bring deep industry and functional expertise and a range of perspectives that provide clients with management consulting solutions. Through its transformational approach aimed at benefiting all stakeholders, BCG empowers organisations to grow, build sustainable competitive advantage and drive positive societal impact. For more, go to www.bcg.com.
BCG is well established in Africa, with offices in: Cairo, Casablanca, Johannesburg, Lagos, and Nairobi, bringing together a team of nearly 600 collaborators. For more about BCG in Africa, go to www.bcg.com/Africa.
About CO2 AI
CO2 AI partners with global leaders to accelerate the transition to Net Zero. Incubated by Boston Consulting Group, the company operates at the intersection of climate action and artificial intelligence. Its SaaS platform enables organisations to measure greenhouse gas emissions across complex value chains, identify reduction levers, and orchestrate enterprise-wide decarbonisation at scale.
By combining advanced AI models with rigorous climate data and regulatory standards, CO2 AI empowers businesses to drive transparent, auditable progress toward a low-carbon economy. Uniting internal teams and suppliers, the platform helps companies tackle Scope 3 emissions and deliver measurable impact across their full value chains. CO2 AI’s ambition is to be the partner of reference for global enterprises, helping them build resilience, comply with evolving regulations, and create lasting environmental impact for society.
