Making the Green Transition Work for People and the Economy 2025

plans against a backdrop of shifting geopolitical and economic priorities and diverse socioeconomic challenges. Fundamentally, this means placing people at the heart of climate action by embedding socioeconomic considerations into green transition planning and understanding the co-benefits and trade-offs associated with different transition pathways faced by stakeholders. 27 For climate action to succeed, public and private sector climate plans must work for people and the economy. Corporations can also support long-term business objectives through climate plans that support positive socioeconomic outcomes. Corporate action will be critical to achieving global climate goals. Corporations are increasingly committed to addressing their impact on climate, with the number and scope of pledges from companies across all sectors and geographies growing significantly over recent years, 28 often requiring transformative operational changes. Such action often requires climate strategy to sit firmly at the heart of a business’s long-term planning, thereby impacting many aspects of a company’s interactions with their stakeholders. Should climate strategies cement socioeconomic challenges, they may undermine companies’ social license to operate, 29 jeopardize resilience and impact long- term shareholder value. Conversely, those that support positive socioeconomic outcomes through climate action can build resilience, expand into emerging markets and benefit from outsized first-mover advantages in the new economy. This report supports decision-makers in aligning climate action to the needs of people and the economy. Chapter 2 provides new insights on the potential socioeconomic impacts of the green transition in countries of given income levels and clusters of peer countries, using data from the 2024 and 2025 editions of the World Economic Forum’s Executive Opinion Survey (EOS) and additional global sources. Assessing both business sentiment and long-term, structural characteristics in these countries, it offers a view on where investments in socioeconomic foundations can support businesses in different places to withstand external shocks and make the green transition work for people and for the economy. Chapter 3 focuses on takeaways for corporate climate action, recognizing the role corporate leaders can play in enabling the transition as sources of investment, innovations and jobs in the new green economy. It includes a set of guiding questions that are intended to support corporate decision-makers in identifying socioeconomic risks and opportunities that, if addressed, can strengthen their transition plans. Making the Green Transition Work for People and the Economy 8