Climate change is no longer a distant risk; it’s a daily reality for employees. Yet most employers don’t have the data they need to understand how extreme weather affects their workforce and drives up health care costs.

In a new article in HR Dive, Tracy Watts, Senior Partner and U.S. Health Policy Leader at Mercer, explains why that’s changing. She spotlights the Climate Health Cost Forecaster, a groundbreaking tool Mercer and the National Commission on Climate and Workforce Health developed to help employers translate climate impacts into health care cost projections.

The Forecaster combines real-world weather trends and epidemiological research with Mercer’s extensive claims database to project 10-year health cost curves linked to extreme heat, poor air quality, flooding, and hurricanes — four of the most urgent climate threats to employee health.

Watts says the tool fills a critical gap: “We were wondering what impact this is having on human capital. And there wasn’t really anything out there.”

Early findings are revealing. The tool shows that cities like Portland face heightened air quality risks, while Hartford and Burlington are surprisingly vulnerable to extreme heat. Workers in outdoor industries like construction and agriculture face the greatest exposure, yet often lack access to basic protections like shade, water, and climate-controlled environments.

Even a 1% increase in health care costs driven by climate-related factors could mean millions in additional spending costs that many CFOs aren’t yet accounting for. Watts and the Commission are calling on employers to get ahead of the risk by using the Forecaster to identify hotspots, build resilience, and protect the people powering their businesses.

Read the full article in HR Dive to learn how Tracy Watts and Mercer are helping employers turn climate risk into readiness.

Empowering Business Leaders To Take Action

The National Commission on Climate and Workforce Health is a group of business, health, and climate leaders who share a mission to protect workers from the health risks posed by extreme weather.

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