The summer of 2023 saw the highest global temperatures since records began in 1940. While climate change is becoming increasingly evident, the significant impact on health is much less visible.
July 2023 was the hottest month globally on record, according to Europe’s Copernicus Programme. It coincided with several extreme weather events including lengthy droughts, devastating floods and intense wildfires. These heat and weather events have a very visible and destructive impact on nature, but their impact on health is less obvious:
Smoke and air pollution contributes to respiratory diseases and greater incidence of asthma.
Viruses typical to tropical regions, such as West Nile and Dengue, have now been detected in Europe.
Floods are an increasing risk to the spread of cholera.
Excessive heat is associated with higher cardiovascular mortality and morbidity.
These increasing health risks have social implications too. While climate change is a concern for all, there is a significant disparity in health impact due to socioeconomics, age and location. Low-income populations are often disproportionately affected by poorly equipped buildings, the lack of both green spaces and water nearby, and low-paid outdoor employment, according to Human Rights Watch. These issues, alongside the direct impact of climate change on food security and affordability, create another layer of health inequality.
Health in a higher temperature world
The scale and rising complexity of these health issues point to a need for significant investment. Opportunities are emerging to invest in research and development of vaccines against viruses transmitted through mosquitos. Meanwhile, to tackle higher temperatures, the United Nations Environment Programme is supporting national heat plans to cool cities by bringing nature back into urban areas. Strategies to improve thermal performance and reduce the energy consumption of buildings are also being established1.
As recognition grows of the interplay between climate change and health, we are encouraged by the first ever Health Day set to take place at COP 28 in Dubai at the end of this year. This will host the first climate-health discussion group aiming to build consensus on priority actions for the global health system’s response to climate change.
Look out for our article in November addressing this topic and our other expectations for COP 28.
There is ample academic research showing that diverse leadership teams make better business decisions. While the benefits are clear, we still see significant room for improvement on this issue at the executive level and below, particularly in Germany.
According to the World Economic Forum, more than half of the world’s GDP depends on nature and its ecosystem services and is therefore exposed to nature loss. Investors have an opportunity to lead the transition towards a nature-positive system to halt the loss of biodiversity and preserve ecosystem services. What role are we playing?
Investing involves risk. The value of an investment and the income from it will fluctuate and investors may not get back the principal invested. Past performance is not indicative of future performance. This is a marketing communication. It is for informational purposes only. This document does not constitute investment advice or a recommendation to buy, sell or hold any security and shall not be deemed an offer to sell or a solicitation of an offer to buy any security.
The views and opinions expressed herein, which are subject to change without notice, are those of the issuer or its affiliated companies at the time of publication. Certain data used are derived from various sources believed to be reliable, but the accuracy or completeness of the data is not guaranteed and no liability is assumed for any direct or consequential losses arising from their use. The duplication, publication, extraction or transmission of the contents, irrespective of the form, is not permitted.
This material has not been reviewed by any regulatory authorities. In mainland China, it is for Qualified Domestic Institutional Investors scheme pursuant to applicable rules and regulations and is for information purpose only. This document does not constitute a public offer by virtue of Act Number 26.831 of the Argentine Republic and General Resolution No. 622/2013 of the NSC. This communication's sole purpose is to inform and does not under any circumstance constitute promotion or publicity of Allianz Global Investors products and/or services in Colombia or to Colombian residents pursuant to part 4 of Decree 2555 of 2010. This communication does not in any way aim to directly or indirectly initiate the purchase of a product or the provision of a service offered by Allianz Global Investors. Via reception of this document, each resident in Colombia acknowledges and accepts to have contacted Allianz Global Investors via their own initiative and that the communication under no circumstances does not arise from any promotional or marketing activities carried out by Allianz Global Investors. Colombian residents accept that accessing any type of social network page of Allianz Global Investors is done under their own responsibility and initiative and are aware that they may access specific information on the products and services of Allianz Global Investors. This communication is strictly private and confidential and may not be reproduced, except for the case of explicit permission by Allianz Global Investors. This communication does not constitute a public offer of securities in Colombia pursuant to the public offer regulation set forth in Decree 2555 of 2010. This communication and the information provided herein should not be considered a solicitation or an offer by Allianz Global Investors or its affiliates to provide any financial products in Brazil, Panama, Peru, and Uruguay. In Australia, this material is presented by Allianz Global Investors Asia Pacific Limited (“AllianzGI AP”) and is intended for the use of investment consultants and other institutional /professional investors only, and is not directed to the public or individual retail investors. AllianzGI AP is not licensed to provide financial services to retail clients in Australia. AllianzGI AP is exempt from the requirement to hold an Australian Foreign Financial Service License under the Corporations Act 2001 (Cth) pursuant to ASIC Class Order (CO 03/1103) with respect to the provision of financial services to wholesale clients only. AllianzGI AP is licensed and regulated by Hong Kong Securities and Futures Commission under Hong Kong laws, which differ from Australian laws.
This document is being distributed by the following Allianz Global Investors companies: Allianz Global Investors GmbH, an investment company in Germany, authorized by the German Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin); Allianz Global Investors (Schweiz) AG; Allianz Global Investors UK Limited, authorized and regulated by the Financial Conduct Authority; in HK, by Allianz Global Investors Asia Pacific Ltd., licensed by the Hong Kong Securities and Futures Commission; in Singapore, by Allianz Global Investors Singapore Ltd., regulated by the Monetary Authority of Singapore [Company Registration No. 199907169Z]; in Japan, by Allianz Global Investors Japan Co., Ltd., registered in Japan as a Financial Instruments Business Operator [Registered No. The Director of Kanto Local Finance Bureau (Financial Instruments Business Operator), No. 424], Member of Japan Investment Advisers Association, the Investment Trust Association, Japan and Type II Financial Instruments Firms Association; in Taiwan, by Allianz Global Investors Taiwan Ltd., licensed by Financial Supervisory Commission in Taiwan; and in Indonesia, by PT. Allianz Global Investors Asset Management Indonesia licensed by Indonesia Financial Services Authority (OJK).