Disparities create material business risks. Supply disruptions, worker attrition and reputational damage are increasingly tied to climate- exacerbated labour vulnerabilities. While NCDs may not pose immediate disruption risks, they contribute to long-term declines in worker productivity and health system burdens – factors that can erode manufacturing efficiency and increase costs over time.53 Interviews with experts reinforced the concern that climate risk modelling often remains narrowly focused on commitments to assets or operations – but misses consideration of the labour required to maintain them. Half of interviewees in risk-related roles or functions acknowledged this oversight, explicitly noting that current risk assessments and adaptation frameworks insufficiently address climate-related impacts on the workforce.Risk assessments may include sea-level rise or storm damage to infrastructure but are underdeveloped in considering impacts on workers. And because these labour segments are essential to production, distribution and logistics, the costs of inaction are borne not only by workers but also by the companies and economies that rely on them. Disruptions caused by climate can cause unexpected ripple effects across global supply chains. The impact of downtime in terms of production, damaged infrastructure and poorer health conditions are felt not only in local economies but also by the numerous businesses that depend on them across the world. Interconnected supply chains help propagate the impact downstream, through multiple tiers of firms, greatly increasing the number of affected entities globally. Any supply chain could be overexposed to climate change, and the more extended and global, the more complex the exposure, so you need to start to understand it. It’s almost human nature to not worry until we have a shock. I think we underestimate the potential impact on the people in impacted communities i.e. your workforce and their families. It’s not even the direct impact on labour for example if it’s too hot to work, it could be an indirect impact if schools are closed, or if the elderly are suffering, or if workers can’t access the job site. Gabrielle Durisch, Chief Sustainability Officer, Allianz Commercial Workforce Health Across the Value Chain: Organizational Insights to Mitigate Risk and Create Sustainable Growth 12

Workforce Health Across the Value Chain 2025