Climate, Supply Chain, Tech: WEF's Global Risk Report 2025

The World Economic Forum's 20th Global Risks Report highlights a fragmented global landscape, increasingly characterised by geopolitical, environmental, societal and technological challenges. These complexities not only threaten global stability but also the durability of global supply chains, which rely on cooperation, trust and predictability.

While economic risks currently appear to be less urgent, their interconnectivity with societal and geopolitical issues cannot be overlooked. Supply chain professionals must anticipate the potential widespread impacts as these challenges evolve.

Pressing risks by 2025

The WEF report identifies state-based armed conflict as the most significant global risk for 2025, with nearly 25% of respondents marking it as the severest challenge. Such conflicts disrupt trade routes, affect critical resources and destabilise regional supply networks.

Additionally, misinformation and disinformation persist as prominent short-term risks for yet another year, destabilising trust and making decision-making more challenging especially in areas experiencing societal polarisation. Other major short-term risks include:

• Extreme weather events: Major disruptors of global logistics and manufacturing.
• Cyber-espionage and warfare: Major threats to the security of supply chain data and operational continuity.
• Resource shortages and societal instability: Major obstacles to efficiency and resilience in supply chains.

Environmental risks

Looking ahead, environmental issues are set to dominate the landscape of long-term risks. From extreme weather events to the loss of biodiversity and the collapse of ecosystems, the implications for raw material availability, production centres and transportation infrastructure are expected to grow.

The report also emphasises pollution as a continued significant risk, reflecting an increasing awareness of its effects on human health, ecosystems and the regulatory atmosphere. With the pressure mounting to decarbonise supply chains and lessen environmental impacts, organisations are urged to implement sustainable practices to safeguard their future operations.

Technological risks and innovations

In the next decade, technological risks, particularly those related to misinformation, disinformation and the adverse results of AI technologies, introduce a new layer of complexity. Supply chain leaders need to strike a balance between harnessing AI-driven innovations and managing the risks they introduce, such as algorithmic bias, ethical concerns, and cybersecurity vulnerabilities.

Summarising the findings, Mirek Dušek, Managing Director at the World Economic Forum, says: "Rising geopolitical tensions, a fracturing of global trust and the climate crisis are straining the global system like never before.

"In a world marked by deepening divides and cascading risks, global leaders have a choice: to foster collaboration and resilience or face compounding instability. The stakes have never been higher."

Charting a course for resilience

The report, collated from insights provided by over 900 experts in global risks, policy-makers and industry leaders, highlights the fragility of international cooperation. With nearly two-thirds of respondents anticipating a fragmented global order by 2035, stakeholders in supply chains must navigate an increasingly turbulent environment.

Key vulnerabilities pointed out in the report include:

• Strategic resource concentration: Rising competition for critical materials.
• Mounting debt burdens: Putting pressure on government budgets, impacting infrastructure investments.
• Inequality and societal polarisation: Creating unstable global labor markets and uneven recovery scenarios.

All 33 risks identified in the report are expected to grow in severity over the next decade, making proactive and well-coordinated solutions essential.

Mark Elsner, Head of the Global Risks Initiative at the World Economic Forum, warns: "From conflicts to climate change, we are facing interconnected crises that demand coordinated, collective action.

“Renewed efforts to rebuild trust and foster cooperation are urgently needed. The consequences of inaction could be felt for generations to come."

For supply chain professionals, the stakes are clear: collaboration, innovation and resilience-building are no longer optional, but imperative. The next decade offers a unique opportunity to reimagine global supply chains as engines of stability, sustainability and inclusive growth.

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