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Perception vs Reality

Perception vs Reality

Since 2021, we have been tracking how business leaders around the world view four significant environmental and climate risks. Via our annual Risk & Resilience survey we ask 3,500 executives around the world to identify the risk category that concerns them most today - and to predict which one will top their list 12 months from now.

Climate risk

Climate risk concern has eased from its 2021 peak to 18% in 2024 and now appears to be levelling out around 20% - suggesting a moderation in perceived urgency among global business leaders. However, the consistently volatile – and often inflated – predictions reveal a persistent disconnect between expectation and reality. With anticipated levels of concern not materialising, and risk concern growing gradually over time.

Environmental damage liability

Environmental damage liability concern has remained stable, holding around 20-21% between 2021-2025, before dropping to 19% this year. The consistent nature of the results indicates that businesses feel they are managing this risk. In contrast, prediction levels show more volatility, pointing to the fact that business leaders see this risk concern as one that is contained, rather than escalating.

Greenhouse gas emission risk

We have seen greenhouse gas emission concern following a more unpredictable pattern, rising from 18% in 2022 to a peak of 24% before dropping back to 19-20% now. Predicted levels frequently misjudge the reality, revealing a disconnect between perception versus reality when it comes to this risk, where we see a more reactive shift in actual concern.

Energy transition risk

Concern about energy transition risk has risen from a low base in 2021 to stabilise at around 20% since 2023, underlining its emergence as a core strategic priority of organisations navigating the shift from fossil fuels to renewables. However, predictions have consistently lagged behind the trajectory, with business leaders underestimating both the pace and scale of rising concern. This gap highlights how the complexity and urgency of the energy transition have intensified more quickly than business leaders initially anticipated.

Climate risk

Environmental damage liability

Greenhouse gas emission risk

Energy transition risk

The statistics in these charts are drawn from our annual Risk & Resilience Surveys, conducted since 2021. Initially focused on UK and US respondents, the survey expanded in 2022 to include Canada and Singapore, and in 2024 France, Germany and Spain were added. This year’s survey, conducted between 05.01.26 and 13.01.26, used the same sample base as 2024.