Skip to main content
The Blueprint

Ecosystem Services in a Changing Climate

Ecosystem Services in a Changing Climate

  • Ecosystem services provide vital resources (i.e. wood, fibres, water) to the construction and fashion industries
  • Climate change can lower worker productivity and has long-term implications on human reproduction and chronic diseases

It’s hard to imagine a world without nature. Economies worldwide depend on ecosystems services to function. The breakdown of these services could have severe consequences for businesses. For instance, wetlands and mangroves are needed to protect infrastructure from floods. These ecosystems help to regulate water flow and manage stormwater runoff. Forests provide us with diverse materials for construction, fuel, and clothing. Losing these ecosystems could disrupt business operations and squeeze supply chains.

Photo source: NatureScot

However, as temperatures rise, ecosystems might not be able to cope with extreme events and disturbances. Even if they survive, climate change could alter natural processes like nutrient storage. 2023 was one of the hottest years on record.

What’s worse – in the tropics, hotter weather worsens existing issues including heat stress and water scarcity. It’s not uncommon to experience hot and humid weather in Singapore.  Worryingly, heat strain can lower productivity levels of outdoor workers such as those employed in the construction sector. Heat stress and dehydration can also affect motor performance and worsen workers’ ability to work safely. The International Labour Organization estimates that in just 6 years, up to 3.8% of total working hours could be lost due to climate-related high temperatures.

In the long term, climate change could have impacts on our populations. Current research suggests that climate stressors on human reproduction and chronic health conditions are a growing concern. Changes in human health could place greater strain on existing healthcare systems, place vulnerable populations at higher risk of health complications and worsen mental health.

Looking forward

As climate change intensifies, rising temperatures and extreme weather events will exacerbate pressure on nature and humans. Under PCM’s environmental analysis, we support companies that maintain a safe working environment to keep their workforce healthy and productive. We also evaluate the nature-related dependencies of companies and reinforce mitigative actions to build resilience to nature risks.

Important Information

This material is provided by Phillip Capital Management (S) Ltd (“PCM”) for general information only and does not constitute a recommendation, an offer to sell, or a solicitation of any offer to invest in any of the exchange-traded fund (“ETF”) or the unit trust (“Products”) mentioned herein. It does not have any regard to your specific investment objectives, financial situation and any of your particular needs.

The information provided herein may be obtained or compiled from public and/or third party sources that PCM has no reason to believe are unreliable. Any opinion or view herein is an expression of belief of the individual author or the indicated source (as applicable) only. PCM makes no representation or warranty that such information is accurate, complete, verified or should be relied upon as such. The information does not constitute, and should not be used as a substitute for tax, legal or investment advice.

The information herein are not for any person in any jurisdiction or country where such distribution or availability for use would contravene any applicable law or regulation or would subject PCM to any registration or licensing requirement in such jurisdiction or country. The Products is not offered to U.S. Persons. PhillipCapital Group of Companies, including PCM, their affiliates and/or their officers, directors and/or employees may own or have positions in the Products. This advertisement has not been reviewed by the Monetary Authority of Singapore.

Leave a Reply