A new report from the World Economic Forum (WEF) forecasts significant financial repercussions from climate change over the next 25 years. The report, developed in partnership with the Boston Consulting Group (BCG), estimates that the economic impact could reach over $1.5 trillion. The research examines the consequences of climate change across sectors such as food and agriculture, the built environment, healthcare, and insurance.
While the economic losses are concentrated in the food and agriculture, built environment, and healthcare sectors, the overall impact on the global economy may be even more substantial. The report emphasizes the need for companies to proactively address climate change by protecting their workforce’s health, improving operational flexibility, and safeguarding productivity. This proactive approach is critical to navigating the challenges ahead.
Eric White, a key figure at WEF, stresses that climate change affects everyone, but that mitigation is possible. The study projects potential losses of roughly $740 billion in the food and agriculture sector, $570 billion in the environmental sector, and up to $200 billion in the healthcare sector. Additionally, the report anticipates a surge in health-related claims within insurance policies.