A World Economic Forum (WEF) report, developed in conjunction with the Boston Consulting Group (BCG), projects that climate change could lead to over $1.5 trillion in damages within the next 25 years. The study analyzes the effects of climate change across various sectors, including food and agriculture, the built environment, health and care, and insurance.
The report focuses on the financial impacts within the food and agriculture, built environment, and health sectors, but it signals that the overall financial burden on the global economy could be even larger. The research encourages companies to take preventative steps to protect their workforce, increase operational adaptability, and safeguard productivity. Such measures are essential to navigate the challenges stemming from climate change.
Eric White of the WEF observes that climate change impacts everyone but also underlines that proactive steps can be taken. The report highlights that the food and agriculture sector could experience around $740 billion in losses, while the environment sector may incur $570 billion in losses and the health sector could face up to $200 billion in damage. The report further indicates that insurance policies could see a significant increase in health-related claims.