Businesses warn of costly transition risks without policy clarity

The 2026 Business Breakthrough Barometer, published by the World Business Council for Sustainable Development, highlights a widening gap between corporate ambition and regulatory reality. While 92% of leaders expect sustainability to drive a competitive advantage over the next decade, 47% reported an increase in climate-related costs over the past year. In North America, that figure spiked to 94%, underscoring the regional intensity of current market pressures.

Executives are now demanding more predictable long-term frameworks to mitigate the risks of uncoordinated action. With 85% of surveyed leaders calling for stronger policy intervention, many are signaling a willingness to absorb higher near-term costs to avoid the inflationary consequences of a fragmented transition. Peter Bakker, CEO of WBCSD, noted that while the economic benefits of sustainability are accelerating, the real challenge remains the lack of decisive, coordinated government action to stabilize the transition path.