Introduction

The Business Breakthrough Barometer 2026 is the third annual report on the climate transition from a business perspective. Developed by WBCSD in partnership with the Breakthrough Agenda and the Marrakech Partnership for Global Climate Action, and supported by Bain & Company and the High-Level Climate Champions, it draws on a survey of over 500 companies, 73 one-on-one interviews with senior executives, and analysis conducted between February and May 2026. Participants collectively represent more than $2 trillion USD in combined revenue, spanning more than 50 countries (p.12).

Global business sentiment

Section 1: Sustainability strategies are a source of resilience and competitiveness

92% of business leaders expect sustainability to be a source of competitive advantage over the next 5–10 years, with 89% maintaining or increasing climate-related investment over the past year (p.14). In 2025, 38% of companies strengthened their climate targets — double the share from a year ago — while only 4% weakened them (p.16).

Businesses are scaling clean energy, electrification, circularity and regenerative agriculture as cost-competitive options. Clean energy investment grew 8% year-over-year in 2025 (p.17). Electric arc furnace steelmaking now accounts for approximately 30% of global steel capacity, cutting CO₂ emissions by roughly 70% compared to blast furnace production (p.18).

Section 2: Growing risks of a disorderly transition

68% of leaders view a disorderly transition as more likely than a year ago, with 94% of North American respondents sharing this concern (p.20). Nearly all leaders (98%) see it as a risk, yet only 15% feel fully prepared (p.21). The biggest identified risks are supply chain disruption (42%), abrupt policy shifts (41%), and shifts in market demand or energy cost volatility (both 38%) (p.21).

47% of companies reported higher climate-related costs in the past year, primarily from supply chain disruptions (54%), commodity or input price volatility (38%), damage to physical infrastructure (38%), and higher insurance costs (38%) (p.22). The US accounted for USD $810 billion of a global total of USD $1.3 trillion in annual climate damage in 2025 (p.22). Policy volatility — including ICE phase-out timeline changes, hydrogen contract cancellations and US federal rollbacks — is further eroding investment confidence (pp.23–24).

Section 3: Businesses urge predictable policy strengthening

85% of leaders favour predictable policy strengthening over delay, with 37% willing to accept higher near-term costs to reduce disruption (p.25). Policy and regulatory clarity and stability is cited by 56% of businesses as the most important cross-country investment decision factor (p.25). Top policy priorities are long-term strategy and frameworks (60%), supply-side incentives (35%), and investment in clean energy (30%) (p.26). International collaboration is rated important by 89% of respondents (p.30).

Section 4: What the barometer insights mean for accelerated implementation

Businesses are advised to maintain sustainability investment, shift from ambition to targeted execution and work actively across value chains. Governments are encouraged to provide long-term policy certainty, support demand creation and accelerate grid build-out and electrification. International cooperation should focus on closing implementation bottlenecks and demonstrating measurable annual progress through the COP Action Agenda.

Solution deep dives

The report covers nine solutions: power, hydrogen, road transport, steel, cement and concrete, fertiliser, regenerative agriculture, protein diversification, and buildings. Solar and wind account for approximately 90% of all global energy capacity additions (p.40). Global low-carbon hydrogen investment fell to USD $22.1 billion in 2025, down 51% from 2023 (p.51). Certified green buildings command premiums of 5–25% in rent and asset values (p.19), and the regenerative agriculture market is projected to grow 18.7% annually until 2034, reaching up to USD $72 billion (p.18).