Has environmental security taken a back seat as trade tensions bubble over? Shifting political priorities and heightened trade tensions have raised concerns that climate action might be now on the backburner, but a recent Economist Impact’s survey have found that businesses are not retreating from their goals, with over 62% of respondents stating that supply chains sustainability remains least as important as it was a year ago

Geopolitical tensions — including security, trade wars, and protectionism — have escalated over the past five years, the Economist said in its latest Trade in Transition survey report (pdf), published in collaboration with the UAE’s DP World. On the other hand, sustainability efforts — defined as environmental impact, emission levels, climate change impact, and renewable energy — surged in 2018, peaking in 2022, before taking a steep drop in 2024.

Sustainability as a business priority: About 62% of surveyed firms stressed their commitment to sustainability, some driven by investor-mandated regulatory compliance (38%) and others by foresight of climate change’s impact on supply chains (25%).

On adapting and building climate resistance, 38% of firms said they increased tech investments to locate supply chain risks, while 34% chose to develop more efficient supply chain strategies with suppliers. Other tactics include diversifying suppliers to reduce exposure, embracing well-adapted production sites and transport routes, investing in locations less exposed to extreme weather conditions, and sourcing from markets with solid sustainability goals.

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