The Climate Economy is Delivering – Driving Returns, Resilience and Growth, Despite Headwinds OPEN LETTER OCTOBER 2025 –The World Economic Forum’s Alliance of CEO Climate Leaders shares an open letter to world leaders ahead of the UN Climate Change Conference 2025 (COP30), stressing the commercial viability of the climate economy, and urging businesses and policy-makers to scale the historic opportunity for returns, resilience and growth. –Business leaders underscore that the gains from investing in the climate economy stand in sharp contrast to the escalating costs of inaction. Even in the best-case decarbonization scenario, some climate impacts are locked in, making resilience and adaptation investments essential alongside emissions reduction to secure growth and stability. –The Alliance represents $4 trillion in revenues and 12 million employees in 130+ companies. Between 2019 and 2023, its members reduced aggregate emissions by 12% while delivering revenue growth of 20%. In recent years, corporate leaders across the world have made significant investments in building low-carbon, climate resilient businesses.1 Members of the Alliance are paving the way, proving that climate initiatives can drive long-term value for business and society.2 However, this momentum now faces strong headwinds. The cost of the transition, combined with policy obstacles and uncertainties, fiscal pressures and geopolitical tensions, is slowing the transition. COP30 presents a pivotal moment for business and government to reignite progress towards a more resilient and environmentally sustainable economy. Across many sectors, the business case for climate action is proven and compelling The transition towards a resilient and low-carbon economy is a major commercial opportunity: Demand for green, low- carbon products, and electrification solutions is accelerating across sectors, with the global market for technologies like solar photovoltaic (PV), wind turbines, electric vehicles (EVs), batteries, electrolysers and heat pumps nearly quadrupling since 2015 to over $700 billion annually.3 Renewable power has delivered meaningful and competitive returns for many years, with its rapid expansion underscoring deep investor confidence.4 In addition to the energy transition, low-carbon products in agriculture (e.g. regenerative agriculture) can increase farm profits compared to conventional farming,5 and circular economy models are unlocking new sources of value by boosting resource efficiency and cutting costs in many sectors.6 At the same time, many businesses have a clear case for investing in adaptation and resilience due to the rising costs of weather extremes.7 This transformation supports broader societal and economic goals: By creating alternative sources of scalable, low-cost energy, the green transition can strengthen energy security and independence, enhance reliability and drive economic growth.8 It is also a powerful job creator, with the potential to generate a net gain of 10 million jobs globally by 2030.9 Air quality and public health stand to benefit significantly.10 Crucially, climate mitigation and resilience efforts help safeguard lives, and protect both nature and critical assets.11 Action is becoming increasingly urgent in the face of headwinds Current global policies are setting the world towards a 3°C trajectory, with warming expected to exceed 2°C as early as 205012 – potentially even more across major land areas. The consequences will intensify over the next 25 years, with increased

OpenLetter 2025