The World Economic Forum (WEF) has released a report predicting extensive damage from climate change in the next 25 years, with potential losses exceeding $1.5 trillion. This research was conducted in collaboration with the Boston Consulting Group (BCG).
The report assesses the effects of climate change across multiple sectors, including food and agriculture, the built environment, health and care, and insurance. The projected economic losses are primarily concentrated in the food and agriculture, built environment, and health sectors, suggesting that the total cost to the global economy could be even higher. Companies are advised to proactively protect their workforce, enhance operational resilience, and maintain productivity to effectively manage the implications of climate change.
Eric White from WEF highlights the universal impact of climate change, while emphasizing that mitigation is achievable. The report estimates losses of around $740 billion for food and agriculture, $570 billion for the environment, and up to $200 billion for the health sector. The report also points towards an increase in health claims within the insurance sector.