Climate and the economy go hand in hand | BDO Trend Report

From compliance exercise to competitive edge

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Climate concern is losing ground in public debate. In a global Ipsos survey, it ranks as low as ninth among people's worries, behind violence, inflation and poverty. Generational attitudes differ too: Millennials and Baby Boomers rate climate as a top priority, while Generation Z more often points to social inequality as their main concern. 

At the political level, the European Green Deal was a strong signal but is now under pressure from economic interests. Companies are scaling back their climate ambitions. High energy prices are making it harder for European industry to be both profitable and green, and the tension between short-term economics and long-term sustainability is playing out across sectors. 

Yet the physical reality of climate change is not slowing down. And its economic consequences are becoming impossible to ignore. 

In our Trend Report: The business world in 2030, developed in collaboration with trendwatcher Tom Palmaerts, we explore what this tension means for Belgian businesses. And why the companies that embed sustainability into their strategy today are building an advantage that will be hard to replicate.

The economic cost is already here

Climate change is not a future scenario. The heatwaves, droughts and floods that struck Europe in the summer of 2025 caused an estimated €43 billion in economic losses. And the impact does not end when the weather clears. Research shows that the structural contraction that follows extreme weather events lingers for years, shrinking local economies well after the headlines have moved on. 

For businesses, this translates into concrete risk: disrupted supply chains, damaged infrastructure, rising insurance costs and reduced purchasing power in affected regions. These are not abstract threats. They affect business continuity, operational planning and long-term profitability. The question is whether organisations are managing these risks proactively or waiting until they hit. 

Sustainability is shifting from compliance to competitive advantage

ESG is evolving, and what started as a reporting exercise is becoming a strategic necessity. Governments, investors and customers are all pushing companies to embed sustainability structurally. The companies that do are seeing measurable benefits: stronger performance, lower risk profiles and greater appeal to talent. 

The shift is not just European. Globally, economic growth is becoming less CO₂-intensive as companies find ways to separate productivity from emissions. From energy efficiency to circular models, from new materials to renewable energy sources, the fight against global warming is also a driver of innovation and entrepreneurship. The organisations that are moving now are gaining first-mover advantages that will compound over time. 

This also connects to how companies are redefining value creation beyond traditional financial metrics, incorporating human capital, environmental impact and long-term resilience into how they assess organisational worth. 

The human dimension of climate change

There is a dimension to this conversation that goes beyond balance sheets. Climate migration is becoming a reality. Projections suggest that climate change could displace hundreds of millions of people by 2050, and some European countries are already taking steps to formally recognise climate refugees. For businesses, this intersects with future labour markets, demographic shifts and corporate social responsibility in ways that are only beginning to be understood. 

Within Europe, the competitiveness debate is sharpening. Energy prices, regulatory pressure and the challenge of staying green while remaining profitable are forcing difficult strategic choices; particularly for industrial sectors that have long been the backbone of Belgian and European economic strength. 

What you will find inside the report

The climate and economy section of our Trend Report goes much further than the trends above. It includes: 

  • specific Belgian examples of companies navigating the tension between profitability and sustainability, 
  • concrete wake-up calls for business leaders with actionable recommendations covering insurance coverage, supply chain diversification and ESG integration, 
  • insights from BDO's own sustainability team on why the focus within ESG is shifting from reporting to managing real physical risks.

The report makes the case that climate and the economy are not opposites, they are inextricably linked. And any business that wants to remain future-proof needs to act on that now. 

This article is part of our Trend Report: The business world in 2030, a collaboration between BDO Belgium and trendwatcher Tom Palmaerts.  

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