Extreme weather and climate action failure have topped the World Economic Forum’s Global Risks Report 2022.
Now in its 17th edition, the report explores four areas of emerging risk: cybersecurity, competition in space, a disorderly climate transition and migration pressures, each requiring global coordination for successful management.
Extreme weather tops the report’s ‘short-term global risks’ (0-2 years), followed by livelihood crises and climate action failure. It’s a similar story for ‘medium-term global risks’ (2-5 years), which are led by climate action failure followed by extreme weather and social cohesion erosion. Long term (5-10 years), climate action failure remains the top concern followed by extreme weather and biodiversity loss.
Peter Giger, group chief risk officer at Zurich Insurance Group, one of the strategic partners for the report, said, “The climate crisis remains the biggest long-term threat facing humanity. Failure to act on climate change could shrink global GDP by one-sixth and the commitments taken at COP26 are still not enough to achieve the 1.5ºC goal. It is not too late for governments and businesses to act on the risks they face and to drive an innovative, determined and inclusive transition that protects economies and people.”
According to the Global Risks Report 2022, while the top long-term risks relate to climate, the top shorter-term global concerns include societal divides, livelihood crises and mental health deterioration. Furthermore, most experts believe the global economic recovery will be volatile and uneven over the next three years.
Saadia Zahidi, managing director of the World Economic Forum, said, “Health and economic disruptions are compounding social cleavages. This is creating tensions at a time when collaboration within societies and among the international community will be fundamental to ensure a more even and rapid global recovery. Global leaders must come together and adopt a coordinated multistakeholder approach to tackle unrelenting global challenges and build resilience ahead of the next crisis.”
The Global Risks Report 2022 has been developed with the support of the World Economic Forum’s Global Risks Advisory Board and benefits from ongoing collaboration with strategic partners Marsh McLennan, SK Group and Zurich Insurance Group, as well as academic advisors at the Oxford Martin School (University of Oxford), the National University of Singapore and the Wharton Risk Management and Decision Processes Center (University of Pennsylvania).
To download a complete copy of the Global Risks Report 2022, click here.