The Zurich-Mandala Climate Risk Index: The impact of climate change on Australia's schools
REPORT

The Zurich-Mandala Climate Risk Index: The impact of climate change on Australia's schools

clock

02.02.2025 - 11:17

EducationClimate

For the first time, the Zurich-Mandala Climate Risk Index has been used to analyse the risk of climate change to 9,829 primary and secondary schools across Australia. The index uses IPCC climate modelling along with Zurich's proprietary climate impact assessments to understand the unique risks faced by individual schools. Extreme heat is projected to reduce writing, spelling, grammar & punctuation, and numeracy by over 7% in some parts of the country by 2060, with students in the Northern Territory and Queensland disproportionately impacted. Two-thirds of schools in Australia currently face high climate risk. This is set to increase to 84% of schools by 2060 under an intermediate climate scenario with 2 degrees Celsius of warming. Australian students are projected to experience 34 annual heatwave days by 2060.

Two thirds of schools in Australia face high climate risk.

For the first time, the Zurich-Mandala Climate Risk Index has been used to analyse the risk of climate change to 9,829 primary and secondary schools across Australia.

The index uses IPCC climate modelling along with Zurich's proprietary climate impact assessments to understand the unique risks faced by individual schools.

Extreme heat is projected to reduce writing, spelling, grammar & punctuation, and numeracy by over 7% in some parts of the country by 2060, with students in the Northern Territory and Queensland disproportionately impacted.

Two-thirds of schools in Australia currently face high climate risk. This is set to increase to 84% of schools by 2060 under an intermediate climate scenario with 2 degrees Celsius of warming. Australian students are projected to experience 34 annual heatwave days by 2060.

Australian schools play a critical role in education and development. Australia’s primary and secondary education system supports over four million students and close to 350,000 teaching staff across nearly 10,000 schools.

Nearly half (45%) of schools are located in a regional or remote area and close to 35% of students attend a school categorised as having low ‘Socio-Educational Advantage’ (being within the lowest five deciles) compared with other schools in Australia.

The disparities evident between schools in Australia have been further exacerbated in recent years following major disruptions such as the global pandemic and climate change related weather events.

The latter, including heatwaves, bushfires and floods, can see schools closed for long periods of time, infrastructure destroyed, displacement of children and their families, reduced cognitive ability & function in students, impacts to student and teacher mental health, and reduced future employment outcomes and earning capacity.

With almost two thirds of children attending a government funded school, there is significant pressure on governments to support both mitigation and recovery efforts in the face of an increasingly volatile climate risk environment.

portableText image

Key findings:

NSW and QLD have the highest volume of schools facing high climate risk

92% of schools in NSW and 91% of schools in QLD are in the highest three risk categories. The ACT and NT follow closely behind.

Disadvantaged schools face higher climate risk

Over 80% of Australian schools in the lowest Socio-Educational Advantage decile face significant climate risk, compared to around 60% of schools in the highest advantage decile.

Extreme heat could reduce academic attainment by over 7%

in parts of Australia by 2060. The NT and QLD are most severely impacted, particularly for numeracy scores.

Extreme heat could impact the lifetime earnings of students by $73,000

due to reduction in academic attainment. This is equivalent to losing one year’s average salary in Australia.

Read the full report here.

Read our latest posts

How EV adoption insulates Australia against oil supply shocks
EVsElectricInternational

How EV adoption insulates Australia against oil supply shocks

Mandala’s latest research finds that the adoption of electric vehicles is helping to insulate Australians from the oil supply shocks. This analysis looks at the contribution of Australia’s electric vehicle fleet to our petrol reserves, as well as the savings in fuel costs for Australian households.

16 Mar, 2026

Shaping the Australian banking system for a changing economy
Financial servicesEconomics

Shaping the Australian banking system for a changing economy

Mandala’s latest research, prepared for the Commonwealth Bank of Australia, finds that Australian banking has been transformed beyond recognition by technology, globalisation, and regulatory change. However, policy has not kept pace. Major banks now face a shrinking revenue base while providing a growing suite of collective goods including regional branches, ATM networks, and payment infrastructure, that comparable financial institutions are not required to provide. The report finds that declining profitability and an uneven regulatory playing field amid rising geopolitical uncertainty place Australia's financial resilience at risk. It recommends three principles for policymakers to shape Australia’s banking system to best serve our national interest. First, consider system-wide impacts of policy settings. Second, apply the same obligations to firms conducting the same activities with the same risk. Third, assess how overseas firms operating in critical parts of the financial system would behave in a crisis.

15 Mar, 2026

The Fragmentation Tax
RetailGovernmentProductivity

The Fragmentation Tax

Australian retailers operate across a patchwork of inconsistent state and territory regulations that, left unchecked, will cost the economy $26 billion and households $9.4 billion over the next decade. Commissioned by the Australian Retail Council, this Mandala report finds that regulatory fragmentation in retail - Australia's second-largest employer, generating $649 billion in economic activity annually - is compounding the country's productivity crisis at the worst possible time. The report identifies specific issues in transport and logistics, and packaging and waste as priority areas for reform, where harmonisation alone would inject up to $1.65 billion into the economy over 10 years. It recommends the Federal Government use its National Competition Policy framework to drive reform - including a $260 million increase to the National Productivity Fund, a new National Harmonisation Council, and a mandate that Regulatory Impact Statements explicitly quantify fragmentation risks.

23 Feb, 2026

Reforming Victoria's Windfall Gains Tax
GovernmentEconomicsHousing

Reforming Victoria's Windfall Gains Tax

Victoria's Windfall Gains Tax (WGT), introduced in July 2023, has compounded a decade of new and increased property taxes that have made Melbourne the most costly major city in Australia for development. Commissioned by the Property Council Victoria, this Mandala report finds that developer taxes and charges now account for 18% of total costs on Melbourne developments - double the rate of Sydney - and that the average WGT liability pushes project returns below the viability threshold. The analysis estimates that removing the WGT could unlock $1.4 billion in additional annual investment, support 2,700 jobs and deliver the equivalent of 3,100 new homes per year by 2030. The report also presents a suite of targeted reforms across financial relief, predictability, and policy alignment that would restore investor confidence while balancing the government's revenue objectives.

23 Feb, 2026

Loading...