Climate change is inflicting economic losses of more than $250,000 every minute worldwide, translating to nearly $16 million an hour, according to the FICCI-EY Risk Survey 2026.
The report underscores that climate change is no longer a distant environmental threat but an immediate financial shock disrupting economies, supply chains, and livelihoods.
The survey estimates that under current trends, annual global climate damages could rise to $38 trillion by 2050, driven by extreme weather events, ecosystem degradation, and rising temperatures. Since 2000, cumulative global losses from repeated climate shocks have already reached trillions of dollars.
India faces sharper exposure due to structural vulnerabilities.
The report flags water scarcity as a major risk, with per capita water availability at 1,341 cubic metres, below the recognised stress threshold. States such as Punjab, Haryana, Rajasthan, and Karnataka, which host key agriculture, textile, chemical, and power industries, are seeing severe groundwater depletion that threatens industrial output.
Extreme heat is also eroding productivity. The survey notes output losses of 20 to 30 percent in sectors such as construction, logistics, and mining, while higher cooling demand has increased power costs by around 15 percent, squeezing both business margins and household budgets.
Climate impacts are also hitting food systems. Yield volatility linked to climate stress has already raised food prices by 4 to 6 percent, with the report warning of a potential 16 percent decline in output by 2030 if current trends continue. Urban flooding has disrupted transport, power supply, and essential services, while desertification is weakening agricultural output and rural demand.
Despite these risks, preparedness remains uneven.
About 45 percent of surveyed firms see climate-related financial impacts as a critical risk, while over 40 percent point to gaps in board-level oversight. The report stresses that integrating climate risk into core business strategy is now essential to protect value and sustain growth.