10 min read
Climate Change Effects on Mental Health: Why Your Workplace Can't Ignore It Anymore
Aaryan Todi
Last Updated: 29 September 2025
Climate change's effects on mental health run nowhere near what most employers think. More than two-thirds of U.S. adults say they feel anxious about climate change. A survey of 10,000 young people aged 16-25 showed that 59% were very worried and 75% believed their future looked frightening.
These alarming statistics haven't changed how workplaces handle this growing crisis. An umbrella review of 94 systematic reviews on climate change's health impacts revealed that only 10 looked at mental health outcomes. This oversight can get pricey. Each mentally distressed employee costs about $15,000 yearly in lost productivity, healthcare expenses, and turnover. Depression and anxiety lead to roughly 12 billion lost working days globally, which costs about $1 trillion in lost productivity.
Europe's hottest summer on record and extreme heat breaking nearly 7,000 daily records across the US prove we can't separate climate concerns from workplace well-being anymore. This piece will explore how climate-related mental health challenges show up at work, why employers should address them, and practical ways to support your team through this emerging crisis.
The growing mental health toll of climate change
Image Source: Hindustan Times
Climate change continues to accelerate, and extreme weather events take an enormous toll on our psychological well-being. People with and without prior mental health conditions experience a surge in mental illness after disasters. Experts call this "common reactions to abnormal events".
Acute effects from extreme weather events
Climate disasters leave severe and documented scars on mental health. These disasters affect 25% to 50% of exposed individuals who develop adverse mental health effects. Depression strikes up to 54% of adults and 45% of children in the aftermath of natural disasters. Hurricane Katrina left its survivors with staggering rates of anxiety and post-traumatic stress disorder. About 49% developed an anxiety or mood disorder and one in six developed PTSD. The suicide rate and suicidal thoughts more than doubled among these survivors.
The psychological damage from wildfires matches these patterns. The 2018 Camp Fire in California left survivors with PTSD rates comparable to war veterans. People affected by forest fires struggle more with depression, anxiety, hostility, phobic anxiety, and paranoia compared to others.
Floods create their own set of mental health challenges. Studies show that mental disorders affected between 1.72 and 10.6 million Europeans due to floods from 1998 to 2018. The psychological effects of these events often last for years after the actual disaster.
Chronic stress from slow-onset climate change
Gradual climate changes damage mental health in subtle ways. Temperature directly affects our psychological state. Suicide rates rise during hot weather. Research suggests that a temperature increase of 1 to 6 degrees Celsius could lead to 283 to 1,660 more suicide cases in the United States.
Heat poses special risks to patients with mental illness because their medications often affect temperature regulation. Heat waves put dementia patients at high risk of hospitalization and death.
Extended droughts bring different psychological challenges. Depression, demoralization, and feelings of helplessness affect women, adolescents, and people with lower socioeconomic status substantially. Rural communities and farmers face higher suicide risks during long drought periods.
Understanding eco-anxiety and climate grief
The awareness of climate change itself creates a unique type of distress. This shows up as:
- Climate anxiety - 10% of Americans feel nervous or anxious about global warming several days per week
- Ecological grief - Scientists and people who witness environmental degradation experience sadness about environmental losses
- Solastalgia - People lose their sense of comfort and security as their environment changes
Climate anxiety hits young people especially hard. A multinational survey reveals that 75% of children and young people see their future as "frightening" because of climate change. Climate change disrupts daily life for almost half of them.
Some groups bear a heavier psychological burden. People with existing mental health conditions, those experiencing homelessness, indigenous communities, and people of color face greater impacts. Indigenous people suffer deep psychological wounds when climate events force them from their ancestral lands.
The need to recognize these varied mental health impacts grows stronger as climate-related disasters become more frequent and intense. This recognition helps develop better support systems and interventions.
How climate-related mental health issues show up at work
Image Source: IMD Business School
Climate anxiety shows up in real ways across modern workplaces. Rising temperatures and extreme weather events create specific disruption patterns that affect productivity and organizational health.
Increased absenteeism and presenteeism
Weather events linked to climate substantially affect attendance patterns. Studies reveal hurricanes cause 0.11 additional days of absenteeism per affected employee. Heat waves boost hospital admissions for mental health conditions by 7.3%, which forces employees to skip work.
The issue goes beyond simple absences. Studies show excess rainfall increases the chances of temporary work absence. These weather-related absences add up, and the daily cost to the labor market reaches about USD 2.81 per employee.
Burnout and emotional exhaustion
Climate anxiety directly fuels workplace burnout—a condition marked by ongoing emotional exhaustion, psychological distance, and feelings of inefficacy. Physical signs of climate anxiety include:
- Tightness in the chest and shortness of breath
- Muscle tension and bruxism (teeth grinding)
- Jaw clenching that can trigger panic attacks
Workplace burnout from climate concerns creates measurable effects. Affected employees face a 57% higher risk of missing work for more than two weeks due to illness. Emotional exhaustion, burnout's core symptom, hurts employee health, productivity, and wellbeing.
Workplace hostility and reduced morale
Extreme weather events psychologically drive up job tension, turnover intentions, and workplace hostility. Managers notice declining performance and increased irritability among co-workers as climate anxiety grows stronger.
This hostility creates a downward spiral. Young workers feel climate anxiety more deeply and have left organizations that don't deal very well with climate concerns. A UK study found 59% of young workers said their employer's environmental commitment would determine their stay with the organization.
Decision-making difficulties under stress
Employee stress about extreme weather events blocks their ability to make key work decisions. This mental effect happens along with reduced engagement and productivity.
Decision-making skills deteriorate slowly—climate anxiety often stays at manageable levels ("four or five out of 10") before it suddenly spikes to levels where managers see employees struggling with routine tasks.
People working in environmental sectors might overcommit to work due to climate concerns. This creates extra stress cycles that hurt their thinking ability even more. But research suggests social support could reduce how climate-induced stress affects work outcomes, which points to possible solutions.
Why your workplace can’t afford to ignore this
Image Source: HR Vision Event
Businesses of all sectors face staggering financial consequences by ignoring climate-related mental health issues. Companies that treat these concerns as personal problems face measurable effects on their profits.
Impact on productivity and performance
Climate anxiety significantly reduces workplace output. Mental health conditions cost employers approximately $80 to $100 billion annually through direct costs like insurance premiums and employee assistance programs. These expenses grow dramatically with productivity losses and disability claims. Employees who struggle with climate-related distress show a 35% reduction in productivity and lose an average of 27 work days yearly because they are physically present but mentally disengaged.
Climate concerns create real operational challenges. Tasks that need sustained attention see performance drops of up to 20% among employees who report moderate to severe climate anxiety. This mental drain becomes especially challenging for roles that need creative problem-solving or strategic planning—skills companies need most while adapting to environmental challenges.
Turnover intentions and employee disengagement
Job satisfaction drops as climate concerns grow stronger. Workers with climate anxiety are 3.5 times more likely to quit their current position within 12 months. This risk runs even higher among younger employees, with 68% of Gen Z workers stating they would think about leaving employers whose climate values don't match their own.
The turnover numbers show just the visible part of a much larger disengagement problem. Four employees stay physically present but mentally disconnected from their work for every one who leaves. This quiet withdrawal costs organizations an estimated $550 billion yearly in lost productivity across the U.S. economy.
Legal and ethical responsibilities of employers
Laws about workplace mental health change faster now. Currently, 42 countries have laws that make employers assess and reduce psychosocial risks. Many explicitly list environmental stressors as workplace hazards that need attention.
Companies face growing ethical pressure to acknowledge climate-related mental health concerns beyond legal compliance. Climate effects grow stronger, and companies that fail to provide adequate support risk damaging their reputation. About 87% of consumers now look at a company's environmental stance before making purchases.
Smart companies know that addressing climate-related mental health concerns goes beyond avoiding costs—it builds organizational resilience. Companies that help employees deal with climate anxiety build teams that can better handle the business challenges that environmental change brings.
Who is most at risk in your workforce
Image Source: HR Magazine
Your organization has employees who face high risks from climate-related mental health challenges. You can provide targeted support by knowing which groups are most vulnerable.
Frontline and outdoor workers
Over 65 million American workers have jobs with increased climate-related health risks. This represents more than 40% of the nonelderly workforce. They deal with direct exposure to rising temperatures, poor air quality, extreme weather, and vector-borne diseases. The most immediate effects are felt by construction workers, utility employees, agricultural laborers, and emergency responders.
Workers become less alert to workplace hazards when they're tired from heat, which leads to more injuries and deaths. Between 2011-2019, approximately 344 American workers died because of environmental heat exposure. Heat caused $100 billion in worker productivity losses in 2020, and this could double by 2030.
Young employees and Gen Z
Climate change puts an exceptional psychological burden on younger staff members. A global study of 10,000 young people aged 16-25 found that nearly 60% felt "very worried" or "extremely worried" about climate change. These feelings disrupted daily life for 45% of them.
Employers should note that 45% of Gen Z and millennial workers have quit jobs or plan to leave because of climate concerns. One survey showed that 20% of Gen Z job seekers turned down offers when they saw companies weren't committed to environmental values. The company's green policies will determine if 59% of young workers stay with their organization.
Employees from climate-vulnerable communities
Workers from historically marginalized groups deal with multiple risks. Hispanic (58%), Black (51%), and Native Hawaiian/Pacific Islander (52%) workers are more likely to work in climate-vulnerable jobs compared to White workers (39%). About 60% of noncitizen immigrant workers have at-risk positions versus 40% of U.S.-born citizens.
Money matters make things worse. Almost 80% of workers without a high school diploma work in climate-exposed roles. These workers often lack health insurance. Workers in climate-vulnerable jobs are twice as likely to be uninsured (16% vs. 7%) compared to those in safer positions.
Communities of color, low-income households, and immigrant populations feel worse climate-related mental health effects. This happens because past discriminatory practices like redlining pushed these communities into urban heat islands, flood-prone areas, or places near industrial pollutants.
What employers can do to support mental health
Image Source: HHS.gov
Modern employers understand that mental health support for climate-related stress needs targeted solutions. Traditional wellness programs no longer meet the needs of employees who experience growing eco-anxiety.
Normalize climate-related emotions
Open discussion forums help staff share their personal experiences with climate concerns. Staff members feel less isolated when their climate-related emotions receive acknowledgment - whether anxiety, fear, anger, grief, or burnout. The right terminology around climate anxiety helps employees understand their feelings better. The workplace must provide a psychologically safe environment [link_1]. Any feedback becomes meaningless if employees feel their concerns aren't taken seriously.
Train managers to recognize signs of eco-anxiety
Managers and HR professionals need proper training to spot eco-anxiety symptoms. These often show up as chest tightness, shortness of breath, muscle tension, and teeth grinding. Leaders should know how to connect affected team members with appropriate resources. This doesn't mean turning managers into psychologists. The goal is to create support systems that put employee wellbeing first.
Offer access to mental health resources
Employee Assistance Programs are a great way to get confidential counseling for climate-related distress. Organizations should go beyond traditional EAPs. Mental health champions, digital mental health apps, and resilience training deserve investment. Staff should receive regular updates about available resources, including the national mental health crisis number (988). This helps them find help quickly when needed.
Create green spaces and sustainability programs
Natural elements boost attention, cognitive performance, and creativity while reducing stress - research proves this consistently. Plants in the workplace lead to lower stress levels and better workplace attitudes. Sustainable office spaces show real environmental commitment. They also improve indoor air quality and employee wellbeing.
Encourage employee-led climate action groups
Employee-driven sustainability projects help reduce the feeling of powerlessness that often comes with climate anxiety. Companies can support "green alliances" where staff work on projects they care about. Working together fights isolation and builds hope and wellbeing. One expert puts it simply: "Getting involved may be the best way for employees to address their climate anxiety".
Conclusion
Climate change poses a major threat to workplace mental health that affects productivity, employee retention, and how organizations cope with challenges. Our research shows acute weather events and chronic climate anxiety take a measurable toll on worker wellbeing. Your company's bottom line suffers directly from increased absenteeism, burnout, workplace tension, and poor decision-making.
Companies can't brush off climate anxiety as just a personal issue anymore. Each mentally distressed employee costs organizations about $15,000 yearly, while workers vulnerable to climate change face even bigger risks. The effects hit young employees, outdoor workers, and marginalized communities the hardest. Many Gen Z workers already quit their jobs when they don't align with their environmental values.
Organizations need to take clear steps to deal with climate-related mental health. Smart employers should open up discussions about climate emotions and teach managers to spot signs of distress. They must make mental health resources readily available. Creating green spaces and backing employee-led sustainability projects helps workers feel less powerless.
Climate change endangers both our environment and our mental wellbeing. These challenges might look daunting, but they give organizations a chance to show real leadership. Teams grow stronger and more resilient when companies acknowledge climate-related mental health concerns.
We can't ignore how climate anxiety affects workplace productivity anymore. Your organization must choose: overlook the growing psychological burden of our changing climate or support employee wellbeing while building resilience. Evidence shows companies that choose support will thrive, keep their talent, and stay productive even as environmental challenges grow.
Key Takeaways
Climate change is creating a mental health crisis in workplaces that employers can no longer afford to ignore, with measurable impacts on productivity, retention, and organizational resilience.
• Climate anxiety affects over two-thirds of U.S. adults and costs employers $15,000 per affected employee annually through lost productivity and turnover.
• Frontline workers, Gen Z employees, and climate-vulnerable communities face the highest risks, with 45% of young workers leaving jobs over climate concerns.
• Climate-related mental health issues manifest as increased absenteeism, workplace burnout, decision-making difficulties, and reduced team morale.
• Employers must normalize climate emotions, train managers to recognize eco-anxiety signs, and provide accessible mental health resources.
• Creating green spaces and supporting employee-led sustainability initiatives helps reduce feelings of powerlessness while building organizational resilience.
The evidence is clear: organizations that proactively address climate-related mental health concerns will retain talent and maintain productivity, while those that ignore these issues face mounting costs and workforce instability in an increasingly challenging environmental landscape.
FAQs
Q1. How does climate change affect mental health in the workplace?
Climate change can lead to increased absenteeism, burnout, workplace hostility, and decision-making difficulties. Employees may experience anxiety, depression, and stress related to extreme weather events and long-term environmental concerns, impacting overall productivity and morale.
Q2. Which employees are most vulnerable to climate-related mental health issues?
Frontline and outdoor workers, young employees (especially Gen Z), and those from climate-vulnerable communities are at highest risk. These groups often face direct exposure to climate impacts or experience heightened anxiety about environmental issues.
Q3. What are the financial implications of ignoring climate-related mental health in the workplace?
Ignoring these issues can cost employers approximately $15,000 per affected employee annually through lost productivity, healthcare costs, and turnover. Additionally, climate anxiety can lead to reduced job satisfaction and increased turnover intentions, particularly among younger workers.
Q4. How can employers support their workforce's mental health in relation to climate change?
Employers can normalize conversations about climate-related emotions, train managers to recognize signs of eco-anxiety, offer mental health resources, create green spaces, and encourage employee-led sustainability initiatives. These actions help reduce feelings of powerlessness and improve overall well-being.
Q5. What are some signs of climate anxiety in employees?
Signs of climate anxiety may include increased absenteeism, emotional exhaustion, reduced productivity, difficulty making decisions, and physical symptoms like chest tightness or muscle tension. Managers should be trained to recognize these signs and direct affected employees to appropriate resources.
Trusted by 330+ CHROs
See why global HR teams rely on Amber to listen, act, and retain their best people.