Accelerating Value Chain Decarbonization for Corporate Growth Perspectives from Asia 2025

From commitments to competitiveness: enhancing the business case for corporate value chain action 2 Physical risks from climate change, such as extreme weather, droughts and flooding, alongside transition risks such as tighter regulations, carbon pricing and disruptive technologies, are increasingly shaping business strategy and operations. For example, according to the Global Risks Report 2025, extreme weather events rank second in the short-term (2027) risk landscape, while climbing to the top position in the long-term (2035) risk ranking, becoming the most prominent global concern. Particularly in Asia, due to geographical vulnerabilities, high population density and economic structural characteristics, countries perceive extreme climate risks with greater intensity and urgency.2.1 Addressing physical and transition risksTurn climate commitments into competitiveness, efficiency and new revenue streams. In addressing value chain emissions, businesses have the opportunity to review and address physical and transition risks that threaten supply chains and asset values. At the same time, improving operational efficiency and financial performance across suppliers and downstream partners helps reduce costs and secure access to capital. Equally importantly, value chain decarbonization strengthens business competitiveness and unlocks new revenues, as customers, regulators and investors demand low-carbon products and sustainable supply chains. 2 years 10 years 1st Extreme weather events 1st Misinformation and disinformation Biodiversity loss and ecosystem collapse 2nd 2nd Extreme weather events 4th Natural resource shortages 4th Societal polarization 5th Misinformation and disinformation 5th Cyber espionage and warfare 3rd Critical change to Earth systems 3rd State-based armed conflict 7th Inequality 7th Inequality 8th Societal polarization 8th Involuntary migration or displacement 10th Pollution 10th Erosion of human rights and/or civic freedoms 9th Cyber espionage and warfare 9th Geoeconomic confrontation 6th Adverse outcomes of AI technologies 6th Pollution Risk categories Economic Environmental Geopolitical Societal TechnologicalGlobal risks ranked by severity over the short and long term FIGURE 5 Source: World Economic Forum. (2025). The Global Risks Report 2025. Accelerating Value Chain Decarbonization for Corporate Growth: Perspectives from Asia 10