Business leaders worldwide view sustainability as a driver of competitiveness and resilience, even as concerns grow regarding the risks of a disorderly climate transition, according to a new report from the World Business Council for Sustainable Development (WBCSD). The Business Breakthrough Barometer 2026, developed in partnership with the Breakthrough Agenda, the Marrakech Partnership, and with support from Bain & Company and the Climate High-level Champions, gathers insights from over 500 senior business leaders. The findings indicate that while businesses face rising costs and operational disruptions, they continue to back sustainability as a critical strategic priority.

The report reveals that almost 7 in 10 business leaders (68%) now perceive a disorderly climate transition—defined as an unplanned and poorly coordinated shift—as more likely than a year ago, with 40% anticipating significant operational disruption. This concern is fueled by intensifying physical climate impacts, policy volatility, and geopolitical instability. Consequently, almost half (47%) of businesses reported facing higher climate-related costs in the past year. This figure rises to 94% in North America, compared to 60% in East Asia and the Pacific and 39% in Europe and Central Asia. Despite these pressures, only 15% of leaders believe their companies are fully prepared to manage such a transition.

Policy Demands and Investment Trends

In response to these challenges, 85% of business leaders are calling for strengthened and predictable climate policy without delay. They emphasize the necessity of long-term policy frameworks, clean energy investment, supply-side incentives, and public procurement to accelerate implementation. Notably, 37% of leaders expressed willingness to accept higher near-term costs to reduce future risk exposure. Policy clarity and stability are cited as the most important factors for investment decisions by 56% of respondents.

Despite the risks, business leaders are not retreating from sustainability commitments. A striking 92% expect sustainability to be a source of competitive advantage over the next five to ten years, with 89% maintaining or increasing investment. Companies are scaling investments in clean power, electrification, circularity, and regenerative agriculture, driven by falling technology costs and the need to mitigate fossil fuel price volatility and supply chain risks.

Regional Impact on Climate-Related Costs

The report highlights significant regional disparities in the financial impact of climate-related factors. The following table illustrates the percentage of businesses facing higher costs in the past year across different regions:

Peter Bakker, President & CEO of WBCSD, stated that the economic and resilience benefits of sustainability are accelerating, but warned that climate impacts and policy volatility are driving up costs. Henning Huenteler, Partner at Bain & Company, noted that the report reveals disciplined selectivity in transition investments rather than a retreat, emphasizing the need for clear roadmaps and policy support. The report collectively represents insights from businesses with more than $2 trillion in combined revenue.