Introduction
Global society is facing rapid change and diverse challenges. Chief among these is the need to manage risks on a global scale. As recent extreme weather events, biodiversity loss, and social fragmentation have shown, these risks have serious implications for economic activity and society as a whole. This article focuses on the Global Risks Report 2025, published by the World Economic Forum, and discusses the evolution of risks from the past to the present and their implications. It also explores how businesses and policy makers should respond to risks around sustainability.
About the World Economic Forum
The World Economic Forum (WEF) is an international non-profit organization known for its annual conference in Davos, Switzerland. The Forum brings together business leaders, government officials, and experts from academia to discuss major global issues. In particular, discussions on climate change, economic disparity, and the risks posed by technological innovation have been strengthened in recent years.
Another unique feature of the WEF is that it gathers input from a diverse range of fields and offers concrete guidelines for action to solve problems. The organization’s efforts affect not only businesses and governments, but also individuals, allowing them to understand global issues from a broader perspective.
What is the Global Risks Report?
The Global Risks Report is an important analytical document published annually by the World Economic Forum. The report assesses short-, medium-, and long-term risks based on data collected from a range of experts and leaders, and the 2025 edition reviews the evolution of risks over the past 20 years and addresses emerging issues in the contemporary risk environment.
Of particular note is that the report is more than just a forecast; it provides actionable strategies for businesses and policymakers. For example, specific measures against extreme weather events include strengthening infrastructure and improving disaster response systems. To counter misinformation and disinformation, the report recommends the spread of media literacy education and the establishment of technology-based information verification systems. With these practical recommendations, the report goes beyond the mere provision of information and functions as a tool to promote concrete actions.
Overview of the Global Risk Report 2025
The 2025 report covers risks in five categories: environmental, social, economic, technological, and geopolitical. In particular, the following points are highlighted
・In the short term, extreme weather events and geopolitical conflicts are cited as the main concerns. Extreme weather events have a direct impact on economic activity and infrastructure through frequent natural disasters, while geopolitical conflicts can destabilize energy supplies and trade routes.
・In the long term, biodiversity loss and technology misuse are considered the most important risks. Biodiversity loss leads not only to ecological collapse, but also to economic losses and serious impacts on food security. On the other hand, the misuse of AI and biotechnology can deepen ethical issues and social divisions.
The report provides a detailed analysis of how these risks interact and affect societies and economies. The rapid increase in environmental risks, in particular, requires immediate action by policy makers and businesses in many countries. We are entering an era that demands a balance between sustainable development and risk management.
Furthermore, by identifying risk priorities, the report provides a basis for planning specific actions in each area. This will enable companies and policy makers to make efficient use of limited resources and produce maximum impact.
What are the critical crises that 2025 will bring?
The report presents the risks that are most likely to cause a significant global crisis this year 2025. Global risks are interrelated and increasingly complex. Of particular note are the following
・Armed conflict between nations is identified as the most pressing global risk in 2025. Almost a quarter of respondents cited this risk, indicating that geopolitical tensions could have a serious impact on the global economy through destabilization of energy supplies and trade routes. This also poses the risk of higher prices for daily necessities and resource conflicts in some regions.
・Extreme weather events received a 14% response, with floods, droughts, and record high temperatures having a direct impact on economic activity and social infrastructure. The impact is particularly noticeable on agricultural production and urban living infrastructure, causing food price spikes and water shortages.
・Misinformation and disinformation have been cited as the top short-term risk for two consecutive years. This has undermined public trust and exacerbated divisions among and within nations. In particular, the use of disinformation in elections and public decision-making is shaking the foundations of democracy.
・Social polarization is weakening the cohesion of society as a whole as disparities widen, leading to protests and worsening security.
・Cyber espionage and cyber warfare threaten the security of critical infrastructure and personal information, and the impact on economic losses and national security is problematic.
Changing Global Risks
As can be read from the attached image, the ranking of risks over the past 15 years has shifted in focus from economic to environmental and technological factors as society and the economy have changed.
2007 to early 2010s
Risks during this period were primarily related to the economy, with asset price collapse and energy price volatility at the top of the list; after the Lehman Brothers collapse in 2008, financial crisis and market instability became major concerns, and economic stability was a priority.
Mid-2010s.
Around 2015, environmental risks such as “failure to combat climate change” and weapons of mass destruction began to attract attention. In particular, there is a growing understanding of the economic and social impacts of climate change and the need for a global response.
The 2020s
After 2020, new coronavirus infections (pandemics) have surfaced and health risks have once again gained significant attention around the world. At the same time, environmental risks such as climate change, extreme weather events, and biodiversity loss increase in importance every year.
The Year 2025
In 2025, while “extreme weather events” continue to be recognized as the top risk, environmental issues such as “biodiversity loss” and “critical changes in the Earth system” are central issues. These risks have a multifaceted impact on the economy and society as a whole: extreme weather events have an impact on agricultural production due to frequent floods and droughts, while biodiversity loss has a negative impact on food supply and the medical sector due to ecosystem collapse.
These changes are particularly distinctive in that environmental risks have been given a much higher priority. This is due to ongoing climate change and the depletion of natural resources. For example, while in the past economic risks were the main focus, the growing influence of environmental issues reflects the changing challenges facing society as a whole. Businesses and policy makers need to gain a deeper understanding of these trends and promote stronger sustainability-based risk management and environmental measures.
Addressing Sustainability and Business Risks
The following are key strategies that companies should address from a sustainability perspective
Short-term responses
・Adaptation to climate change: invest in energy-saving technologies and carbon offsets.
・Information literacy: Educate employees and consumers to counter misinformation.
Long-term Strategy
・Biodiversity conservation: minimize impacts on natural capital in the supply chain.
・Sustainable innovation: adopting renewable energy and circular economy models.
Furthermore, these efforts should extend beyond companies to local communities and individuals. Small actions taken by individuals will improve the sustainability of society as a whole.
Conclusion
Global risks span diverse fields-social, economic, environmental, technological, and geopolitical-and their interconnectedness adds to the complexity. Companies, governments, and individuals must work together to promote comprehensive risk management with sustainability at its core.
Building the future requires not only short-term solutions, but also planning from a long-term perspective. For example, climate change initiatives include the promotion of renewable energy and forest conservation. It is also important to prevent the spread of misinformation through education and awareness-raising activities, and to foster a culture that emphasizes the accuracy of information throughout society.
Furthermore, companies can minimize negative environmental and social impacts by improving the transparency of their supply chains. Meanwhile, as individuals, small actions such as reviewing daily energy use and choosing locally produced products can make a big difference.
Through these concrete actions, we can realize a world in which future generations can live in peace.
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