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

Mitch New is group general counsel for AIA, as well as the chairman of its ESG committee.

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........

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