Climate change risks to Australian workers, health and supply chains revealed

Workers in certain occupations are more likely to be negatively impacted by the effects of climate change, according to the first-ever National Climate Risk Assessment (NCRA).

The physical and mental health of emergency management personnel and volunteers, for example, will likely come under additional pressure as these workers are increasingly exposed to extreme heat and impacts from other hazards.

“This exposure not only affects their wellbeing but also slows their response and recovery efforts, adding psychological and physical stress that hampers their effectiveness,” the NCRA said. 

“The system, which includes emergency management services and a dedicated workforce of volunteers, is facing significant risks due to these compounding impacts.”

Farming communities are also at the frontline of climate change impacts, with increased heat making it harder for outdoor workers in the agriculture sector.

Supply chains, particularly those dependent on agriculture, fisheries and mining, are vulnerable to climate impacts both domestically and globally. 

“Disruptions in global supply chains caused by extreme weather in key trading regions compound these risks, affecting the availability and cost of raw materials and products,” the report said.

“This can reduce food security and productivity and challenge the viability of some businesses, especially those in primary industries and construction.”

It cited NSW Treasury research which found that between 700,000 (+3.0°C temperature increase) and 2.7 million (>+3.0°C temperature increase) additional days of work are projected to be lost every year by 2061 due to the higher frequency and intensity of heatwaves, particularly affecting agriculture, construction, manufacturing and mining.

Other Treasury research estimated that labour productivity could decrease by 0.2 per cent to 0.8 per cent by 2063, which would reduce economic output by between $135 billion and $423 billion.

More broadly, the report said Australia is forecast to experience a 444 per cent increase in heat-related mortality in Sydney and coastal flooding is set to spike from 15 to 257 days per year, with 3 million people living in coastal communities at risk.

“Business interruptions caused by extreme events will raise costs for local economies and may have broader impacts on the national economy when disruptions are widespread or prolonged,” the NCRA said.

“Effective adaptation actions – including risk-based planning, resilient building codes, and long-term infrastructure investment – will be essential to mitigate financial risks.”

The report said inclusive community engagement and forward-looking planning will also be critical to support economic resilience.

“Australia’s first-ever National Climate Risk Assessment confirms that climate change is an emergency for workers, their families and communities. We now have a clearer picture than ever of the truly devastating consequences that will result if we do not act with urgency,” said ACTU President, Michele O’Neil.

“We support reforms aimed at keeping Australians safe as temperatures rise, including increased adaptation funding for local council areas and community organisations, updates to workplace health and safety regulations, policy changes to support more resilient housing, including for renters, and increased support for health and social services.”