What's Happening?
A report by the World Business Council for Sustainable Development highlights that nearly all companies view a disorderly climate transition as a significant risk, with 40% considering it critical. The Business Breakthrough Barometer 2026 reveals that 47%
of businesses in East Asia and the Pacific express low confidence in their preparedness for such a transition. Key risks identified include supply chain disruptions, abrupt policy shifts, and energy volatility. The report emphasizes the need for climate resilience and adaptation as core investment criteria across sectors.
Why It's Important?
The findings underscore the urgent need for businesses to prepare for climate-related disruptions. A disorderly transition could lead to significant economic and operational challenges, affecting supply chains and market stability. Companies that fail to adapt may face increased costs and competitive disadvantages. Conversely, those that proactively address these risks can enhance their resilience and capitalize on emerging opportunities in the green economy. The report serves as a call to action for businesses to integrate climate considerations into their strategic planning.
