A new report released today (January 21st) warns that air pollution has evolved from a public health emergency into a severe and systemic financial risk, threatening trillions of dollars in economic value and exposing companies and investors to escalating regulatory, legal and operational pressures.
The report – titled A Breath of Fresh Air – has been published by responsible investment NGO ShareAction.
It estimates that the global economic cost of ambient air pollution has reached US$6 trillion annually, equivalent to 4.6% of global GDP, driven by healthcare costs, lost productivity and reduced workforce participation. With health-related costs projected to rise eight-fold by 2060, the financial burden is expected to intensify sharply.
Despite these risks, the report finds that air pollution remains a significant blind spot for investors and companies alike. Corporate disclosures are often ‘qualitative and incomplete,’ particularly in high-emitting sectors such as transport, logistics and construction.
Most sustainability strategies remain narrowly focused on greenhouse gas emissions, leaving companies exposed to a broader range of harmful pollutants including PM2.5 and VOCs.
The report highlights tightening regulation as a major driver of risk. While Europe has long led on vehicle emissions standards, emerging economies across Asia, Africa and Latin America are now rapidly adopting stringent, Euro-aligned rules.
The forthcoming Euro 7 regulations will, for the first time, place limits on non-exhaust emissions such as microplastics and toxic particles from tyre and brake wear – posing new challenges for automotive and logistics companies.
Significantly, the report warns that decarbonisation alone does not solve air pollution. Electric vehicles, often heavier than combustion-engine models, can increase tyre wear emissions, underscoring the need for a more holistic approach.
Litigation is also rising. Beyond regulatory fines, courts are increasingly accepting lawsuits based on human rights and public nuisance claims linked to pollution. A landmark 2024 European ruling that state inaction on climate change violates human rights could pave the way for similar cases against corporations.
ShareAction is urging investors to integrate air pollution into investment analysis, strengthen engagement with high-emitting companies, and support cleaner technologies. In June 2025, investors managing US$865 billion in assets publicly called air pollution a ‘silent yet deadly’ financial risk
Justine Holmes, Clean Air Lead at ShareAction, said: ‘Air pollution is the leading environmental cause of death, responsible for cutting millions of lives short each year. Yet most companies and their investors have turned a blind eye, not doing nearly enough to improve air quality as communities around the world suffer the consequences.
‘At ShareAction, we believe a healthier population drives a healthier economy. Investors need to open their eyes to the risks air pollution presents and acknowledge that protecting people against harmful pollutants goes hand in hand with protecting the long-term value of their investments.’
The full document can be downloaded here.
Photo: Mike Marrah / Unsplash
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