Over six in 10 business leaders flag rising disorderly climate risk

Firms warn of rising operational disruption as transition risks climb across regions.

Sixty-eight percent of business leaders now see a “disorderly climate transition” as more likely than a year earlier, according to a World Business Council for Sustainable Development (WBCSD) and partners report, with companies warning of higher costs and operational disruption.

The report defined a “disorderly climate transition” as an unplanned and poorly coordinated shift, with around 40% of leaders saying it would significantly disrupt operations.

The Business Breakthrough Barometer 2026 said that amongst over 500 senior business leaders, 92% expect sustainability to be a source of competitive advantage over the next five to 10 years.

It showed 89% are maintaining or increasing investment in areas including clean power, electrification, circularity, and regenerative agriculture.

“This growing concern is driven by intensifying physical climate impacts, climate policy volatility and reversals, and geopolitical instability, which are driving rising costs and disrupting supply chains,” WBCSD said.

Almost half of companies (47%) report higher climate-related costs in the past year.

Regionally, the figure rises to 94% in North America, compared with 60% in East Asia and the Pacific and 39% in Europe and Central Asia. Only 15% of businesses say they are fully prepared for a disorderly transition.

The report finds 85% of business leaders call for stronger and more consistent climate policy, with around 37% saying they would accept higher near-term costs to reduce future risks.

“They highlight the need for long-term policy frameworks, clean energy investment, supply-side incentives such as producer subsidies, and use of public procurement to accelerate implementation,” the council said.

Nearly all respondents (96%) factor climate transition dynamics into investment decisions. Policy clarity and stability is the most important factor for investment, cited by 56%, alongside access to enabling infrastructure and affordable clean energy.

The report says 22% of businesses identify inflation and higher consumer prices as a key risk from a disorderly transition.