Asia’s boardrooms risk missing the biggest cost of climate change: human health

Prolonged heatwaves have again defined the summer in many parts of the Northern Hemisphere. From record temperatures across parts of Europe and Asia to growing concerns about water stress, wildfire risk and workforce safety, extreme heat has become an increasingly visible reminder of how climate change is affecting societies and economies.

For decades, business leaders have assessed climate risk primarily through its impacts on physical assets, supply chains, and regulation. However, a growing body of research now suggests that this view misses one of the most significant costs of climate change: human health.

This environmental issue is also, increasingly, a workforce issue, a productivity issue, and ultimately, a business resilience issue. Boards and executives must understand the implications of worsening climate-related health risks across Asia.

Climate and health are converging as a business issue

Extreme weather places a clear burden on the healthcare system. Heatwaves drive heatstroke, dehydration, and other health conditions; rising air pollution from haze causes respiratory conditions; floods and natural disasters cause injury while disrupting the day-to-day operations of hospitals and clinics.

Yet the costs of extreme weather extend far beyond healthcare.

Extreme heat, poor air quality, and climate-sensitive diseases can affect workforce wellbeing and productivity. Research from the World Health Organization (WHO) and the World Meteorological Organization (WMO) finds that worker productivity declines as temperatures rise.

The Lancet Countdown estimated that global labor losses from heat exposure totaled $1.1 trillion in 2024.

The economic implications could be even more significant in Asia, which is warming faster than the global average. The Singapore-ETH Center projects economic losses of approximately 2.2 billion Singapore dollars ($1.7 billion) in the country by 2035, as workers lose productivity to heat stress.

Other economies in the region will likely see labor productivity decline as temperatures rise. The Asian Development Bank estimates that climate change could cut GDP in developing Asia by almost 17% by 2070 in a high-emissions scenario—with reduced labor productivity being one of the main contributors.

These climate-health challenges are converging with broader demographic and social trends. Asia’s population is aging rapidly. By 2050, one in four people in the region is expected to be over the age of 60, putting further pressure on healthcare systems.

Given the scale of these mounting health and climate risks, business leaders need to set clear priorities, while organizations need to define the partnerships and direct actions necessary for effective mitigation.

Three priorities for business leaders

First, leaders need to build climate-health literacy across the whole organization. Around 75% of companies now disclose board oversight of climate-related issues, compared to just 6% six years ago.

The most significant business risks today rarely sit neatly within a single function. Climate-related health risks intersect with workforce strategy, operational resilience, business continuity, and long-term value creation. That is precisely why they warrant greater focus at board and executive committee level.

Second, leaders need to make the workforce more resilient. For employers, workforce resilience means translating climate risk into practical measures: assessing exposure to heat and poor air quality, adapting working hours or locations during extreme conditions, ensuring access to cooling and hydration, and incorporating climate-related illnesses and disruption into business-continuity planning. These measures are particularly important especially for Asia’s large outdoor and operational workforces.

Yet the World Economic Forum’s 2025 Resilience Pulse Check found that 84% of organizations felt underprepared for future disruptions to their workforce. The report concludes that resilience must become a core strategic priority rather than a reactive response to crises.

Finally, leaders need to invest in resilient systems.

Healthy communities and functioning healthcare systems are essential economic infrastructure. Businesses depend on them just as they depend on transport networks, energy systems, and digital connectivity. Strengthening resilience requires continued collaboration between governments, healthcare providers, development institutions, and private capital.

Addressing health and climate risks

Life and health insurers have a unique perspective here because, as a life and health insurer, we operate at the intersection of health, wellbeing, and long-term risk.

As these risks evolve, insurers can contribute research, health engagement, and collaboration with governments, healthcare providers, and investors to deepen understanding of how climate change shapes health outcomes.

For insurers, supporting the transition to a lower-carbon future starts with managing climate-related risks across their operations and investments. At AIA, that includes our commitment to achieving net-zero greenhouse gas emissions by 2050, supported by SBTi-validated near-term targets and our Climate Transition Plan.

Independently authored by the Forum for the Future, the report “Climate and Health in Asia” highlights how climate-related health risks are evolving across the region and what this could mean for communities, healthcare systems, and life and health insurers. It underscores the scale of Asia’s exposure, noting that 99 of the world’s 100 most environmentally at-risk cities are located in the region, while more than 40 million households forgo medical care because of financial constraints amid rising climate and health pressures.

The findings point to the importance of greater awareness, deeper research, and closer collaboration across sectors to better understand and address the growing intersection between climate and health.

A leadership imperative

The question is no longer whether climate change will affect health. It already has.

Instead, business leaders must ask themselves whether they truly recognize climate-related health risks for what it has become: a strategic challenge that will influence workforce resilience, productivity, and long-term economic growth across Asia.

Those who act early will be better positioned to understand emerging risks, strengthen resilience, support the transition to a lower-carbon future, and navigate the opportunities and challenges ahead.

The opinions expressed in Fortune.com commentary pieces are solely the views of their authors and do not necessarily reflect the opinions and beliefs of Fortune.

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