The World Business Council for Sustainable Development (WBCSD), in collaboration with KPMG, released Safeguarding Sustainability: A Dynamic Risk Assessment for the Sustainability Agenda (April 2026).
Human Level’s Take:
- What’s the prognosis for corporate sustainability in a moment of uncertainty? WBCSD and KPMG describe an interconnected system of risks constraining progress on the sustainability agenda, spanning geopolitical, economic, social and cognitive dimensions. This points to the need for strategies that not only address individual risks in isolation, but also their combined and reinforcing systems.
- WBCSD and KPMG identify business short-termism as the most influential risk within this system, while also being highly vulnerable to influence from other risks. This dual position makes it difficult to address on its own, underscoring the need to tackle it through a broader set of interconnected levers rather than in isolation.
- In parallel, the report highlights several cognitive and behavioural risks, including distance to problem, fractal dissonance and the underestimation of systemic tipping points, as central within the risk network. These factors both influence and are influenced by other risks, and are identified as important areas to consider when shaping effective responses.
- Ultimately, progress will depend not only on technical and financial solutions, but also on sustained shifts in mindsets, skills and behaviours. Businesses are identified as playing a key role in this process through leadership, governance, incentives and everyday decision-making.
- While many of the most influential risks are rooted in broader political, economic and social systems, and are therefore difficult for individual organisations to address directly, the report identifies cognitive and behavioural factors as more immediate and actionable levers. Suggested actions include reducing the perceived distance between decision-makers and sustainability challenges, improving understanding of interdependencies within complex systems, and strengthening awareness of ecological tipping points.
- While the report focuses on the broader sustainability agenda, its takeaways also offer lessons for human rights practitioners. For example, investing in strong governance, systematically getting human rights on the radar of decision-makers, and looking at business, human rights and environment risks holistically could be game changers.
Some key takeaways:
- Interconnected network of risks threatens global sustainability agenda: WBCSD and KPMG identify a set of highly influential, system-level risks that have the greatest potential to shape outcomes across the sustainability agenda due to their interconnected and cascading nature. These include geopolitical instability, economic volatility and inequality, which can constrain investment, disrupt supply chains and weaken collective action. Environmental risks, such as climate change, biodiversity loss and resource scarcity, are also highlighted as central drivers, with wide-ranging impacts on ecosystems, livelihoods and business continuity. In parallel, governance-related risks, including fragmented regulation, short-term decision-making and insufficient alignment between public and private actors, are identified as amplifying factors that can hinder effective responses. The assessment emphasises that these risks do not operate in isolation but interact dynamically, meaning that shifts in one area can trigger or intensify impacts in others, shaping the overall trajectory of sustainability progress.
- Top risks for the sustainability agenda: The report’s methodology is based on a dynamic risk assessment that maps the interdependencies between sustainability-related risks, assessing both their level of influence on the system and their vulnerability to other risks. Using network analysis, the approach identifies which risks act as key drivers within the system rather than viewing them in isolation. The findings highlight business short-termism as the most influential risk, positioned at the centre of the network due to its widespread direct and indirect effects on other risks, including the prioritisation of immediate concerns over long-term sustainability and the underestimation of systemic tipping points. Geopolitical instability and the erosion of global institutions emerge as the second most influential risk, shaping a range of outcomes such as declining trust, shifting macroeconomic conditions and increasing inequality. Together, these risks are identified as critical drivers that influence the broader trajectory of the sustainability agenda through their systemic reach and reinforcing effects.
- How to keep sustainability on course: The report identifies a set of priority levers for protecting and accelerating progress on the sustainability agenda, emphasising that action should focus on risks that are both highly influential and within the sphere of business influence. While short-termism emerges as the most influential systemic risk, the analysis highlights that addressing it in isolation is insufficient due to its interdependence with other risks. The report therefore underscores the importance of adopting a systems perspective that considers the full set of interconnected risks. It further notes that many of the most influential risks are rooted in political, economic and social conditions that are difficult for businesses to address directly. In contrast, cognitive and behavioural factors are identified as more immediate and actionable levers. These include shifting incentives away from short-term performance, reducing the perceived distance between decision-makers and sustainability challenges, improving understanding of interdependencies within complex systems, and strengthening awareness of ecological tipping points. Collectively, these actions are presented as areas where organisations can exert meaningful influence to support more effective risk management and sustain progress toward long-term sustainability goals.
