Emerging factors, such as geopolitical tensions and ongoing wars; environmental, social and governance (ESG) backlash in some countries; and the recent election results, have ignited concerns about a looming “sustainability winter” — a potential slowdown in environmental initiatives.
However, framing sustainability merely as an environmental issue overlooks its critical role in safeguarding businesses against escalating risks brought about by climate change and biodiversity loss.
2025: A defining moment for global sustainability
The year 2025 stands as a crucial milestone in the global pursuit of sustainability. As the halfway point of the UN Decade on Ecosystem Restoration (2021–2030), it offers a moment to reflect on and accelerate efforts to restore degraded ecosystems.
Simultaneously, it marks the final stretch towards achieving the 2030 Sustainable Development Goals (SDGs).
It is also the year when nations are expected to submit updated Nationally Determined Contributions (NDCs) to the Paris Agreement, recommitting to more ambitious emissions reduction targets.
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This context underscores why businesses, particularly in Asia, must remain steadfast in integrating sustainability into their operations. Home to more than half of the global population and a significant contributor to global GDP, Asia faces unique challenges and opportunities in the sustainability landscape.
Reframing sustainability as risk management
While sustainability is often associated with environmental conservation, it is equally a matter of managing tangible risks that threaten the continuity of business operations.
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According to WWF’s 2024 Living Planet Report, monitored wildlife populations have declined by an average of 73% since 1970, a trend that disrupts the natural systems businesses depend on, from raw materials to stable weather patterns.
Biodiversity loss exacerbates vulnerabilities, making businesses more exposed to physical and operational disruptions.
Understanding climate-driven risks in Asia
Asia’s economies are uniquely vulnerable to the impacts of climate change. According to MSCI’s latest Net-Zero Tracker, the world’s publicly listed companies are on track to raise average global temperatures by 2.8°C above pre-industrial levels by the end of this century.
In Emerging Asia, the situation is even more dire, with emissions on a path that could result in a 3.2°C increase.
From megacities in coastal regions to agricultural economies dependent on seasonal weather patterns, the region’s exposure to physical climate risks is profound:
- Rising temperatures and cold supply chains: In tropical Asian countries, rising temperatures may strain cold supply chains, essential for preserving perishable goods and life-saving vaccines.
- Higher ambient temperatures lead to increased energy demands for refrigeration and a higher risk of spoilage, escalating operational costs and risking non-compliance with health and safety standards.
- Higher ambient temperatures lead to increased energy demands for refrigeration and a higher risk of spoilage, escalating operational costs and risking non-compliance with health and safety standards.
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- The World Economic Forum’s Global Risks Report 2024 — echoed by WWF — identifies extreme weather and ecosystem collapse as top risks for businesses over the next decade.
- However, deforestation, pollution and overfishing are eroding these ecosystems. The loss of biodiversity not only threatens livelihoods in sectors like agriculture and fisheries but also undermines natural defences against climate impacts like floods and droughts.
The business case for sustainability in Asia
In Asia’s fast-growing economies, sustainability is not just a responsibility — it is an opportunity to lead the way in creating resilient and innovative business models.
Companies that integrate sustainability into their strategies can gain:
- Risk mitigation across complex supply chains: Asian businesses often operate in sprawling, multi-layered supply chains. Investing in sustainable practices can reduce vulnerabilities to climate disruptions and enhance supply chain resilience.
- Access to green finance: Governments in Asia, such as Singapore, Japan and China, are prioritising green finance initiatives. Businesses aligning with these priorities stand to benefit from increased access to funding for sustainable projects.
- Strengthened regional collaboration: The Asean region has increasingly focused on collective action for climate resilience. Participating in regional sustainability initiatives can open avenues for innovation and shared resources.
The need for collaboration
Addressing climate and biodiversity challenges requires collaboration that transcends industries, sectors, and borders. In Asia, where challenges are interconnected and often transnational, open and trust-based dialogue among businesses, policymakers and science-practice organisations like WWF is crucial.
- Policymakers must ensure frameworks support climate-resilient infrastructure and biodiversity preservation.
- Businesses need to prioritise ESG standards not only to manage risks but also to gain competitive advantages in global markets.
- Organisations like WWF can bridge the gap between science and practice, providing actionable insights for businesses and governments alike.
This collaborative approach is particularly relevant in Asia, where rapid economic development often competes with environmental priorities. Aligning these goals can create a model for sustainable growth that balances economic progress with ecological stewardship.
Conclusion
While multiple emerging factors may signal a shift in public policy priorities, the necessity of sustainability remains unshaken — especially in Asia.
The risks posed by climate change and biodiversity loss are not abstract — they are immediate and tangible threats to business operations and economic stability.
By recognising sustainability as a core strategy for risk management and operational resilience, fostering collaboration across sectors and leveraging Asia’s unique potential, businesses can not only navigate these challenges but thrive in a rapidly evolving world.
The upcoming WWF Earth Summit 2025 in Singapore presents an opportunity for C-suite leaders, scientists, diplomats and policymakers to double down on these efforts.
Together, we can demonstrate that sustainability is indispensable for a resilient, prosperous future for countries, businesses and our people.
Vivek Kumar is CEO of WWF-Singapore
