We have a new risk in town

The Global Risks Report 2026 is out — We have a new risk in town: Geoeconomic Confrontation.

This year’s report introduces a new dominant risk: Geoeconomic Confrontation. More broadly, uncertainty is the defining theme of the global risk outlook for 2026. Prepare for a bumpy ride ahead.

For those of us working with Double Materiality Assessments, this is highly relevant. By systematically assessing Impacts, Risks and Opportunities (IROs), companies are forced to look beyond today’s priorities and understand how external turbulence translates into financial, operational and strategic risk — and opportunity. Double Materiality is a resilience tool, not just a compliance exercise.

Key takeaways from the report:

🌎 Geoeconomic Confrontation is ranked as the top short-term risk (2 years) and the most likely trigger of a global crisis in 2026. Declining trust, reduced transparency, weakened rule of law and rising protectionism are reshaping trade, investment and supply chains.

💻 Technological Risks continue to rise. Misinformation and disinformation rank #2, cyber insecurity #6 in the short-term outlook, while adverse outcomes of AI are accelerating rapidly.

🌿 Environmental Risks are temporarily deprioritized in the short term due to geopolitical instability — but remain the dominant long-term risks (10 years). Extreme weather events stay at #1, followed by biodiversity loss and ecosystem collapse.

🚛 Climate impacts on infrastructure are already materializing. Ageing grids, supply-chain chokepoints and stressed critical infrastructure highlight the need for resilient business models and value chains prepared for worst-case scenarios.

💡 This is exactly where Double Materiality delivers value. Looking at impact, risks and opportunities helps organizations connect global risk signals to company-specific exposures, dependencies and strategic responses. In turbulent times, this perspective strengthens decision-making, prioritization and long-term resilience — well beyond reporting requirements.

💪Sustainability is about building resilience in an uncertain world by working with nature, not against it.