The World Economic Forum’s (WEF) Global Risks Report 2025 has identified extreme weather events as the most significant long-term risk for the next decade.
- The top risks in the Global Risks Report include state-based armed conflict, extreme weather events, geoeconomic confrontation, and misinformation, which destabilize global systems.
- The report, released ahead of the WEF Annual Meeting 2025 in Davos, underscores the necessity for global collaboration to address environmental challenges.
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About Global Risks Report 2025
- It presents an analysis of the most pressing global risks anticipated over short-term (2 years) and long-term (10 years) periods.
Key Points of the Report
- Top Risks for India: Water supply shortages, misinformation and disinformation, erosion of human rights and civic freedoms, pollution (air, water, and soil), and labour and talent shortages.
- As a significant global player, India faces potential disruptions to its trade routes and energy security from ongoing instability in regions critical to its interests.
- State-based armed conflict: The report warned that state-based armed conflict is the most immediate risk for 2025, reflecting deepening geopolitical fragmentation.
- Extreme Weather Events:Ranked as the top long-term risk, these events have increased in frequency and cost, with inflation-adjusted expenses rising by nearly 77% over the past five decades.
- Short-Term Risks:In the 2025-2027 period, extreme weather ranks as the second most severe global risk, appearing among the top five risks in 28 countries, up from 24 the previous year.
- Regional Impacts: Countries like the United States face significant challenges, with wildfires in regions such as Los Angeles projected to incur losses exceeding $200 billion, potentially becoming the costliest in U.S. history.
- Broader Implications: Climate change is also influencing other global risks, including involuntary migration, which ranks as the eighth most severe short-term risk.
- Call to Action:The report emphasizes the urgent need for cooperative global efforts to tackle critical environmental issues, aligning with the WEF Annual Meeting’s theme, Collaboration for the Intelligent Age.
- Pollution:
- Unsustainable production and consumption patterns are driving the increasing pollution of air, water and land.
- In 6 countries — Guatemala, Honduras, Indonesia, Italy, Malawi and Mauritius — extreme weather events have become more pressing compared to 2024.
- Mauritius and Malawi saw a notable rise from fifth to second place in their risk assessments.
About World Economic Forum (WEF)
- Global Platform for Dialogue:
- The WEF, founded in 1971 and headquartered in Geneva, Switzerland, serves as a global platform to discuss pressing global challenges and shape the future agenda on economic, environmental, and social issues.
- Annual Meetings in Davos:
- The WEF is renowned for its annual meetings in Davos, Switzerland, where global leaders discuss key global risks, policy recommendations, and strategies for sustainable development and economic growth.
- Focus on Sustainable Development:
- The WEF champions sustainability and inclusive growth by promoting initiatives such as the Great Reset, focusing on resilience and green recovery.
- Global Risk Reports:
- The WEF publishes the Global Risks Report annually, which analyzes and ranks key risks such as climate change, economic volatility, and technological disruption.
- Public-Private Collaboration:
- The WEF fosters collaboration between the public and private sectors, emphasizing partnerships for tackling issues such as climate action, technology governance, and inclusive growth, aligning with the United Nations’ Sustainable Development Goals (SDGs).
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Issues and risks raised by the report
- Misinformation and disinformation lead short-term risks, posing threats to stability and eroding trust in governance, which complicates the need for cooperation in addressing global crises.
- Societal polarization and economic downturns exacerbate tensions, while biodiversity loss, human rights erosion, and inequality present long-term challenges.
- Migration and resource shortages further disrupt societies and economies.
The report’s findings are based on a survey of over 900 global risk experts, policymakers, and industry leaders conducted in late 2024.
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