Business Leaders Concerned About ‘Disorderly Climate Transition’

Business leaders are increasingly torn between seeing sustainability as a competitive advantage and fearing the chaos of a disorderly climate transition. A new survey from Forbes reveals that while executives recognize the strategic value of green initiatives, the risk of a disruptive, unpredictable shift in climate policies and market conditions looms large.

Conducted in mid-2026, the Forbes survey polled executives across major industries globally. It found that sustainability is now widely viewed as a source of long-term competitiveness, with companies investing in renewable energy, circular supply chains, and net-zero pledges. However, the same leaders express deep concern that the transition to a low-carbon economy could be disorderly — meaning sudden, uneven, and costly.

The concept of a 'disorderly climate transition' refers to a scenario where climate action is delayed and then rushed, leading to sharp regulatory changes, stranded assets, and financial shocks. Unlike an orderly transition managed over decades, a disorderly one could trigger economic instability, market volatility, and competitive disruption. The survey underscores that business leaders are bracing for this possibility.

Key details are limited from the Forbes report, but the finding aligns with broader research. For instance, the World Economic Forum and McKinsey have both highlighted that late and abrupt decarbonization could hike costs by up to 50% for some sectors. The insurance industry has already started pricing in transition risks. The survey likely reflects sentiments from CEOs of Fortune 500 companies, SMEs, and sustainability chiefs.

The analysis suggests that the tension between competitiveness and risk stems from policy uncertainty. Governments worldwide are setting net-zero targets but often lack coherent implementation plans. Carbon pricing, subsidies, and regulations vary by jurisdiction, making it hard for companies to invest confidently. Business leaders want a clear, predictable framework to avoid the 'stop-start' disruption that erodes returns and jobs.

Looking ahead, the next milestone will be the COP conference later this year, where nations are expected to set new targets under the Paris Agreement. Companies are likely to push for harmonized carbon accounting and more supportive public investment. If policy remains fragmented, the risk of a disorderly transition will only grow, forcing businesses to hedge bets rather than fully commit to green transformation.