Each year, the World Economic Forum’s Global Risks Report surveys business, government, civil society and thought leaders to understand the highest rated risks in terms of impact and likelihood. Over the last decade, these risks have shifted significantly.
Only one societal risk, pandemics, was reported in the Top 5 risks in terms of impact
Four of the Top 5 risks were environmental or social, including
- Extreme weather events
- Water crises
- Climate action failure
- Natural disasters
Four of the Top 5 risks were environmental or social including
- Extreme weather events
- Water crises
- Climate action failure
- Biodiversity loss
Four of the Top 5 risks were environmental or social including
- Infectious diseases
- Natural resource crisis
- Climate action failure
- Biodiversity loss
The World Economic Forum (The Global Risks Report 2020) also highlights the increasing interconnectedness among ESG risks themselves, particularly the complex relationship between environmental risks and social issues. In the business world, this evolving landscape means ESG-related risks that were once considered “black swans” are now far more common – and can manifest more quickly and significantly.
