Nearly all companies view disorderly climate transition as risk; 40% call it critical

About 47% expressed low confidence in transition preparedness.

Businesses in East Asia and the Pacific report weak confidence in preparedness for a disorderly climate transition, with 47% of respondents expressing low confidence, according to the Business Breakthrough Barometer 2026.

Globally, 68% of business leaders say a disorderly transition is more likely than a year ago.

Nearly all firms (98%) globally view a disorderly transition as a risk, whilst 40% describe it as significant or critical, and only 15% say they are fully prepared.

Across regions, companies identify supply chain disruption (42%), abrupt policy shifts (41%), and market demand shifts and energy volatility (both 38%) as key risks.

Nearly a quarter (22%) expect inflationary pressure on consumers, the report noted.

In East Asia and the Pacific, 67% of firms experiencing higher costs from physical climate impacts cite supply chain disruption as a key driver.

The report defines a disorderly transition as one involving delayed or uncoordinated climate policy that can trigger abrupt policy shifts, price shocks, and disruption.

“We are increasingly factoring water stress into where and how we build infrastructure,” an executive at a technology company said.

The report said climate resilience and adaptation are becoming core investment criteria across sectors as physical climate risks increase.

“The case for the agricultural transition is getting stronger and stronger, as more regions are affected by heat and by water stress,” an executive at a food company said.

The report was published by the World Business Council for Sustainable Development in partnership with the Breakthrough Agenda and the Marrakech Partnership for Global Climate Action.