The 16th edition of the Global Risks Report shows that environmental risks such as biodiversity loss, climate change and extreme weather are the leading threats to businesses on a 5-10 year timeline.
Four out of the top five top risks by likelihood are environmental. The fifth – infectious disease – is intimately linked with environmental issues. The report also explores the intersection between environmental risks and societal fractures, and the “severe consequences” that can occur at this nexus.
The 16th edition of the World Economic Forum’s Global Risks Report analyses the risks from societal fractures—manifested through persistent and emerging risks to human health, rising unemployment, widening digital divides, youth disillusionment, and geopolitical fragmentation. Businesses risk a disorderly shakeout which can exclude large cohorts of workers and companies from the markets of the future. Environmental degradation—still an existential threat to humanity—risks intersecting with societal fractures to bring about severe consequences. Yet, with the world more attuned to risk, lessons can be drawn to strengthen response and resilience. In 2020, the risk of a pandemic became reality. As governments, businesses, and societies grapple with COVID-19, societal cohesion is more important than ever. READ MORE