The summer of 2023 has underscored a disturbing trend as heatwaves relentlessly impacted the Northern Hemisphere. With Europe and Asia experiencing record-high temperatures, concerns over water scarcity, wildfire hazards, and workforce safety have escalated, serving as stark indicators of the ongoing impact of climate change on global societies and economies.
Historically, business leaders have evaluated climate risks by focusing on physical assets, supply chains, and regulatory impacts. However, emerging research highlights a crucial oversight: the profound implications of climate change on human health.
Redefining the Business Landscape: Health and Climate
Extreme weather events significantly burden healthcare systems. Heatwaves lead to heat-related illnesses, air pollution exacerbates respiratory conditions, and natural disasters disrupt healthcare operations. These challenges, however, extend beyond healthcare to affect workforce productivity and wellbeing.
According to research by the World Health Organization (WHO) and the World Meteorological Organization (WMO), rising temperatures negatively impact worker productivity. The Lancet Countdown reported that heat exposure resulted in $1.1 trillion in global labor losses in 2024. With Asia warming faster than the global average, economic impacts could be particularly severe. The Singapore-ETH Center forecasts economic losses of around 2.2 billion Singapore dollars ($1.7 billion) by 2035 due to reduced productivity from heat stress.
In developing Asia, the Asian Development Bank warns that climate change might slash GDP by nearly 17% by 2070 under high-emission scenarios, with declining labor productivity being a significant factor.
These climate-health challenges intersect with demographic shifts, such as Asia’s rapidly aging population, which could further strain healthcare systems. By 2050, it’s projected that one in four individuals in the region will be over 60.
Strategic Priorities for Business Leaders
Addressing climate-related health risks involves three core strategies for business leaders:
1. Build Climate-Health Literacy: Increasing organizational understanding of climate-health issues is imperative. While 75% of companies report board oversight of climate issues, a deeper focus is needed as these risks intersect with workforce strategies and operational resilience.
2. Enhance Workforce Resilience: Businesses must translate climate risks into actionable strategies, such as adapting work environments during extreme conditions, ensuring access to cooling, and integrating climate-related disruptions into continuity plans. According to the World Economic Forum’s 2025 Resilience Pulse Check, 84% of organizations feel unprepared for future workforce disruptions.
3. Invest in Resilient Systems: Strengthening community health and healthcare infrastructure is crucial. This requires collaboration between governments, healthcare providers, and private sectors, as these systems are vital to economic stability.
Insurers’ Role in Addressing Climate and Health Risks
Life and health insurers, positioned at the crossroads of health and long-term risk, play a key role in addressing these challenges. By conducting research and fostering collaboration, insurers like AIA are committed to achieving net-zero greenhouse gas emissions by 2050, guided by a comprehensive Climate Transition Plan.
A report by the Forum for the Future, titled “Climate and Health in Asia”, highlights the evolving climate-related health risks in Asia and their implications for communities and insurers. It stresses the need for increased awareness and collaboration to tackle the intersection of climate and health effectively.
A New Strategic Challenge for Business Leaders
The reality of climate change affecting health is undeniable. Business leaders must now recognize climate-related health risks as strategic challenges impacting workforce resilience and economic growth. Early action will enable businesses to better navigate emerging risks and opportunities while supporting a transition to a lower-carbon future.
Original Story at fortune.com