A few thoughts about the Global Risks Report 2025 by the World Economic Forum #WEF
1. Can't disagree with the biggest near-term risk, "Misinformation and disinformation". Stopping myself from going off on a long rant here.
2. There is actually a ranking of risks for the current year. Extreme weather events is ranked second only after armed conflicts.
3. Only two environmental risks in the top 10 in the two-year time horizon.
For example "Critical change to Earth systems" is ranked lower than "Debt" and "Biodiversity loss and ecosystem collapse" is ranked lower than "Economic downturn".
This raises the questions of who made this ranking, what is wrong with these people, or what is the ranking based on?
Well first of all, the report is based on a questionnaire filled by 900 people who the WEF selected, so people who should know about economy. The ranking is based on the answer to the question "Please estimate the likely impact (severity) of the following risks over a 2-year and 10-year period." So it seems like the economic impact of these events - in the very near term of the next two years - is likely to be in that order. Fair enough.
4. The top four risks over a 10 year period are environmental and a total of five out of the top 10 are environmental.
The first one is "Extreme weather events", which can mean many things. Not just that you get a bit of bad weather but extended droughts, floods, hurricanes/typhoons/cyclones and in this context, affecting the global economy more than anything else.
The following three, "Biodiversity loss and ecosystem collapse", "Critical change to Earth systems" and "Natural resource shortage" are all mind-blowingly monumental issues. None of them will be short term problems that go away . They will all be permanent changes to the world. So yes the economic impact will be massive and last for as long as anyone reading this will live.
These are the biggest risks within the next 10 years compared to the status quo - where we already see negative impacts related to the environment.
10 years is just a blink of an eye. Think of an event that happened 10 years ago. It feels like it was just yesterday, right?
Urgent action is needed.
I just wonder if, still, the people in #Davos really grasp this. I sincerely hope so.
So what can we do to help those same people in Davos with the green transition. What do you think?
All picture credits: World Economic Forum
#environmental #globalrisks #WEF25