Migrant and temporary workers – who make up a significant share of the global construction workforce – are especially vulnerable due to informal or poorly regulated environments. Often living in inadequate housing and working in high-exposure jobs, these workers face elevated climate-health risks exacerbated by limited access to healthcare, lack of insurance and weak labour protections. Those in insecure employment (such as undocumented persons, temporary visa holders, the informally employed or contract workers) may avoid reporting illness or injury due to language barriers or fear of repercussions, leaving many climate-related health issues unaddressed. 4.3 Economic impact The growing need to protect urban populations from climate-related health risks is driving increased demand for climate-resilient infrastructure – presenting an economic opportunity for the sector. Growing awareness of the health risks posed by non-resilient infrastructure is fuelling investment in climate-resilient urban planning, architecture, design and construction. Climate-resilient infrastructure can often drive premium prices. For example, in Alabama, climate- resistant homes built to a beyond-code standard command a 7% price premium.48 Demand is also increasing for health-protective retrofitting of existing structures, including air conditioning, passive cooling and air filtration. These new business opportunities, however, need to be balanced with the economic risk posed by the impact of climate change on health. Construction will see the greatest impact, particularly due to productivity loss and supply chain disruptions. It’s projected that the cost of worker availability losses caused by select climate change- driven health risks will amount to at least $570 billion from 2025 to 2050 (see Annex for methodology). Increased health risks will also lead to higher health and safety compliance costs and increased expenditure on re-recruitment/training due to staff turnover.Climate-driven health impacts are also disrupting supply chains, limiting output and disrupting trade. Disease outbreaks and climate- related health emergencies reduce workforce availability, limiting material production and delivery. Supply chain disruptions cause delays and cost increases, especially in import-reliant regions like the US and Europe. Climate-driven health impacts will also put significant strain on financial capital in the sector. Increased localized health risks may lower land and property values, reducing capital returns as buildings become less fit for use (e.g. apartment blocks vulnerable to extreme heat). Properties at high risk of climate-health events (flooding, wildfires, heat) are becoming less attractive to buyers and investors. As an example, there has been a 4% decrease in house prices for Las Vegas homes that experience an additional 1 microgram per cubic metre of PM2.5 (particulate matter) air pollution due to wildfire smoke.49 Commercial real estate in vulnerable regions may also face higher vacancy rates or require costly adaptations (such as cooling systems) to meet new regulations. This creates climate-related credit risks for financial institutions and physical stranded asset risk in commercial real estate. Climate-resilient infrastructure can often drive premium prices. For example, in Alabama, climate- resistant homes built to a beyond- code standard command a 7% price premium. Building Economic Resilience to the Health Impacts of Climate Change 24

Building Economic Resilience to the Health Impacts of Climate Change 2025