Climate volatility amplifies gaps2 Climate risks threaten workforce health and supply chains; assessing these risks requires attention to people as well as assets. Climate volatility presents a chronic and compounding risk to worker health. The impacts are already being felt globally. Recent research from the World Economic Forum estimates the combined global impact of climate health effects across the food and agriculture, built environment, and health and healthcare sectors could amount to at least $1.5 trillion in lost productivity by 2050. In 2021 heat stress caused the loss of 2.5 billion hours of labour in the US, a 36% increase from the 1990-1999 average.33 Some 70.8% of cities surveyed in 2024 reported climate-related economic losses due to reduced labour capacity, including significant productivity losses linked to extreme heat.34 Moreover, climate risks worsen pre-existing health conditions; extreme heat exacerbates non-communicable diseases (NCDs) such as cardiovascular disease and asthma, thereby amplifying the overall health burden.35 Rising temperatures, extreme weather events and shifting disease patterns are not abstract risks. They are tangible disruptions that erode workforce stability and business continuity, particularly in regions already vulnerable due to economic, structural or governance constraints.36,37 In geographies vital to supply-chain operations, the economic impact of climate disruptions is projected to be substantial. For example, it is estimated that Bangladesh will lose 21.95% of its apparel export earnings by 2030 and 68.51% by 2050 due to high temperatures and flooding, with similar significant losses projected for Cambodia, Pakistan and Viet Nam.38 In recent years, dengue has become an increasingly urgent issue in Bangladesh. We’re already seeing the health impacts of climate change, compounded by flooding. The real opportunity lies in moving away from reacting to emergencies and instead investing in prevention — through strong primary care systems and clinics that can anticipate risks, allocate resources and support patients before a crisis strikes. Sylvana Quader Sinha, Founder, Chair and Chief Executive Officer, Praava Health These conditions intersect to create a high degree of risk. Despite clear indicators of future disruption, companies are slow to respond. As of 2023, about a third of surveyed firms in the European Union had taken action to build resilience against physical climate risks, despite more than 60% recognizing their exposure.39 The World Economic Forum’s Global Risks Report 2025 similarly reveals that, while private-sector stakeholders regard environmental crises as the most severe risks on a 10-year outlook, they are ranked lower as near-term business priorities (Figure 1).40 The impact of climate events on workforce health is not a distant concern – climate is already contributing to supply-chain disruption, labour productivity loss and rising health-related costs.41,42 A stark example of cascading supply-chain disruption occurred when Hurricane Maria struck Puerto Rico in 2017, devastating infrastructure and knocking out power to healthcare company Baxter’s critical manufacturing facilities for intravenous (IV) saline bags, which supplied nearly 50% of the US hospital market.43,44 Limited operations resumed within a week, but full production was delayed until early 2018, when grid stability was restored. Although generators kept the lights on, workers faced challenges commuting, economic loss and limited access to food, water and other essentials.45 The broader healthcare delivery system was also strained: three months after the storm, over a third of Puerto Rico’s hospitals and many community health centres still lacked regular electricity or clean water, severely hampering care delivery.46 Workforce Health Across the Value Chain: Organizational Insights to Mitigate Risk and Create Sustainable Growth 9

Workforce Health Across the Value Chain 2025