Business leaders have overestimated the future impact of climate change on their operations since 2022. However, in 2025, reality outstripped executives’ expectations. This alignment of perception and reality should highlight the need for climate risk to be taken more seriously.
Despite being consistent threat, environmental damage has never topped the boardroom risk agenda. The gap between business leaders’ expectations and reality, suggests that they are prioritising other risks, potentially at their peril.
Last year, executives expected greenhouse gas emission risk concern to remain high, but instead it has dropped significantly. At this critical inflection point in the energy transition, reducing greenhouse gas emission risk needs to remain a priority.
For the second year in row, executives have underestimated the threat of energy transition risk. This risk hasn’t dissipated and is expected rise further over the next 12 months.
