Despite the increase in deadly flooding, wildfires and extreme weather around the world, just 20% of global executives surveyed by insurance firm Beazley rank climate risk and associated catastrophic risk as a top concern.
This figure is up two percentage points since last year (18%), Beazley noted in its Spotlight on Environmental and Climate Risk 2025 report.
Some 73% of respondents said that economic uncertainty is diverting their attention away from their sustainability goals, while two thirds (67%) noted that they are finding it ‘hard to transition’ to non-carbon energy and meet net zero targets.
Low-carbon energy
‘However, progress towards a more sustainable global economy is being made, with significant advancements in the development of new low-carbon energy sources,’ Beazley noted. ‘2024 is poised to have been a pivotal year, marking the peak of global energy-related CO2 emissions. The challenges inherent to achieving this critical, global change are myriad. Businesses will need to develop robust risk mitigation solutions to navigate shifts in political and economic priorities.’
The insurance industry has a ‘crucial role’ to play in helping businesses navigate environmental and climate risks, which can be achieved through better data analysis, risk mapping, and risk mitigation strategies, the insurance firm said.
Economic concerns
Beazley surveyed 3,500 global business leaders for its report, and found that a quarter (26%) rank economic uncertainty as their top risk in 2025, the highest level since 2022 (29%).
Just over a third (34%) said that they plan to increase investment in energy efficiency measures this year, up from 23% in 2024, while 72% are adopting new risk management procedures due to extreme weather.
Elsewhere, 76% said that they feel the divergence of ESG-related regulations globally will limit their firm’s ability to meet their DE&I strategies, and just under a fifth (19%) view greenhouse gas emission risk as a significant concern, down from 24% in 2024.
“By planning for and identifying future climate risks, firms can start to build resilience to these emerging risks and be better equipped to face the future with confidence,” commented Paul Bantick, chief underwriting officer, Beazley. Read more here.
