Global Risks 2025: Extreme Weather, Disinformation, Economy

As the world approaches 2025, environmental, political, and economic uncertainties are defining global risks in dramatic ways. The World Economic Forum (WEF) Global Risks Report captures that nature-based threats remain some of the most pressing long-term risks, with five of the top ten most pressing risks tied to environmental sources. The report highlights that climate change, loss of biodiversity, and disturbances to the natural systems of Earth will continue to be top-of-mind issues for governments and companies globally, irrespective of political changes.

Severe weather conditions, including hurricanes, heatwaves, and floods, are leading among these threats, with scientists cautioning that climate change is increasing their frequency and intensity. The loss of ecosystems and biodiversity also exacerbate these risks, causing instability in food supply chains and natural resource availability. Pollution and critical alterations to Earth's systems—like increasing sea levels and ocean acidification—add further risks that have cascading impacts on industries and societies.

The world has changed dramatically in the past 20 years and will continue to do so in ways that are hard to predict," stated Saadia Zahidi, Managing Director of the WEF. She noted that, in spite of these challenges, there is no feasible alternative to multilateral collaboration when it comes to managing global risks. The 2025 Global Risks Report draws on the views of more than 900 experts and classifies risks into three horizons: immediate-term (2025), medium-term (2027), and long-term (2035).

Geopolitical tensions, the propagation of disinformation, and economic instability are the overriding issues dominating global discourse in the near term. The ascendance of disinformation as a main threat underscores growing polarization within societies all over the world, with online media greatly contributing to the spread of misinformation and defying confidence in institutions. This development is likely to continue to fuel political tensions that will influence both domestic and international stability. Moreover, economic uncertainty is a pressing concern, with high inflation, supply chain disruptions, and changing trade policies adding to financial instability.

By 2027, climate maladaptation and societal polarization are likely to become even more extreme. Climate maladaptation is defined as poorly planned adaptation to climate change that can inadvertently exacerbate existing inequalities or create new vulnerabilities. While governments and companies try to put sustainability measures in place, there is an increasing likelihood that some policies will benefit some regions or sectors at the expense of others, exacerbating socio-economic cleavages.

Looking ahead to 2035, long-term threats will be primarily defined by environmental issues. Loss of biodiversity, resource depletion, and damage to critical natural systems are likely to constitute existential threats to human existence. Depletion of vital natural resources like fresh water, arable land, and breathable air may cause widespread humanitarian emergencies, displacing millions and ushering new geopolitical rivalries.

To meet these emerging threats, companies and policymakers need to make sustainability and resilience a top priority in their plans. Educating future leaders with an ESG (Environmental, Social, and Governance) perspective is essential in helping organizations navigate these intricate issues. Sensing this necessity, KPMG's Leaders 2050 program in Canada is organizing a virtual session on March 5, providing young professionals with a chance to enhance their sustainability skills and connect with industry leaders.

Matthew Sekol, ESG Mindset author, emphasizes the need to weave ESG factors into business strategies. "Every company has intersections with ESG concerns," he says. "In understanding the interconnectedness of these risks and opportunities as part of the business context, the next generation of professionals can lead with resilience."

As the world struggles with a more uncertain future, the WEF report is a timely reminder that proactive and collective solutions are required to reduce these risks. Governments, corporations, and individuals must collaborate to overcome the challenges of the future, building a more sustainable and stable future for generations to come.