According to a new global survey, a large majority of executives in Asia Pacific believe that the current economic climate is making meeting their sustainability targets less of a priority.
The "Risk & Resilience report: Spotlight on Environmental & Climate Risk 2025" report published by the specialty insurer Beazley reveals that 83% of executives based in Asia believe that the current economic climate is making meeting their sustainability targets less of a priority, while globally, 73% of executives feel so.
The report also found that 77% of the executives in Asia are adopting new risk management procedures due to extreme weather, compared to 72% of executives globally. Also, 26% of regional executives ranked economic uncertainty as their top risk, up from 20% in 2024. Further, 22% of Asia-based executives ranked climate and associated risk catastrophe as a top risk concern, compared to just 20% of global executives.
A press release by Beazley said, “In the current economic environment, executives are focusing on the challenges of the here and now, leaving their businesses unprepared and exposed to the intensifying environmental and climate risk.”
The report included 3,500 global business leaders and how they perceive the threat posed by climate risk, the energy transition, greenhouse gas emissions and environmental damage to their operations today.
The report said the last 12 months have brought home the real, far-reaching and devastating impact of extreme weather events – and businesses are increasingly exposed. Yet despite the pressing need to protect their business from the growing impact of extreme weather, concerns about the uncertain economic environment are making meeting sustainability targets less of a priority (83%).
Also, only 22% of Singapore-based executives rank climate and associated catastrophic risk as a top concern. Combined, this paints a concerning picture of businesses being left vulnerable and unprepared.
As Singapore sets ambitious targets for sustainable development, particularly in relation to maritime energy transition, over two-thirds (68%) of Asia-based executives believe they are struggling with the transition to non-carbon energy sources. Yet concern around the energy transition risk is falling, with just 17% selecting it as their top environmental risk this year, down from 25% in 2024.
The report said that the regulatory road for international businesses is complex. With a host of new and stringent regulations set to come into force in some regions, and diverge in others, navigating this landscape will prove difficult.
Beazley head of Asia Pacific Jessica Schappell said, “Communities and businesses across Asia are experiencing the devastating and wide-ranging impact of climate risk, yet our data reveals that executives are turning their attentions to the economic uncertainties of the here and now. But as Asia warms up faster than the global average, businesses can’t afford to underestimate the impact of climate and environmental risks.
“Now is the time to invest in resilience and with 77% of business leaders in Asia telling us that they plan on adopting new risk management procedures due to extreme weather, the role of insurance is vital.”
Ms Schappell said, “Climate risk can often feel too big to tackle for many, but by harnessing forward looking climate risk data, and through innovative solutions, insurance can help businesses in identifying, understanding and preparing for these new exposures.”