Authors: Charlotte Stalder & Sarah Perreard

Each January, the World Economic Forum in Davos concentrates the world’s major tensions into a single place. This year was no exception. Geopolitical instability, economic uncertainty and rapid technological acceleration dominated the agenda. 

But Davos is not where decisions are made. It is where signals emerge. 

For companies, the real question is not what was discussed on stage, but how these signals translate into concrete constraints, risks and expectations in the months and years that follow. History shows that the impact of Davos rarely materialises at Davos itself, but later, through regulation, market conditions, standards and investor and client requirements. 

This year, one structural message stood out beneath the headlines, with direct implications for business strategy. 

The launch of the WEF Global Risks Report confirmed what science has been signalling for years. Environmental and climate risks are viewed as the most severe and systemic threats over the long term. Extreme weather, ecosystem disruption, resource scarcity and pollution dominate the risk landscape. In the near term, however, they continue to be overshadowed by geopolitical and economic crises.  

This growing disconnect between short-term attention and long-term danger is itself a strategic risk. 

1. Cooperation is no longer unconditional 

In a more fragmented global environment, cooperation can no longer be taken for granted. Access to markets, financing, partnerships and value chains is increasingly conditional on transparency, traceability and reliability. For businesses, sustainability is no longer a separate agenda. It is becoming part of the operating rules of cooperation. Companies that cannot demonstrate how they manage environmental and social risks are more exposed to disruptions, from supply chain breakdowns to loss of market access or financing constraints. 

In this context, the ability to cooperate under tighter conditions becomes a competitive factor in itself. 

2. Growth is changing shape 

Growth is not disappearing, but it its nature is changing. Volatile costs, fragile supply chains and rising exposure to environmental shocks are reshaping how value is created.  

For many companies, growth increasingly depends on risk management and resilience rather than pure acceleration. Understanding vulnerabilities linked to energy, materials, water or climate exposure is becoming a prerequisite for strengthening business models over time. 

This also exposes the limits of traditional performance indicators. Just as GDP growth no longer captures the full health of an economy, short-term financial performance alone is insufficient for companies to assess durable value creation. Integrating long-term risks, resilience and dependencies on natural systems is becoming essential for sound strategic decision-making. 

3. People are a stability factor, not a side topic 

Amid these transformations, the human factor has moved to the centre of economic performance. Skills shortages, changing expectations around purpose and working conditions, and the continuity of know-how all directly affect a company’s ability to operate and adapt. 

Investing in people is no longer a secondary concern. It is a lever for operational stability, innovation capacity and long-term competitiveness. Discussions in Davos on the future of work highlighted a simple reality. Without skilled, engaged and resilient teams, no transition, environmental or otherwise, can be implemented. 

4. Innovation as a tool for steering, not a buzzword 

Innovation remains critical, but its role is evolving. The focus is shifting away from innovation for its own sake, toward innovation as as a way to measure, anticipate and decide in a more complex environment. 

Data, digital tools and new indicators are increasingly used to measure exposure, price risks and guide investment decisions. When applied pragmatically, they become instruments of strategic steering. When applied poorly, they create noise and administrative burden. 

The challenge for companies is not access to tools, but the ability to integrate them into decision-making in a way that supports clarity rather than complexity. 

5. Prosperity now comes with real constraints 

Environmental and material limits are no longer abstract. They already translate into concrete economic impacts, from insurance costs and financing conditions to procurement requirements and clients expectations. 

Companies that integrate these constraints early retain room to manoeuvre. Others risk facing abrupt corrections imposed by markets, regulation or physical realities. 

From Davos to action 

Davos sets a direction. The real work begins afterwards.  

For companies, the challenge is no longer whether sustainability matters, but how it reshapes strategy, risk management and value creation. This requires moving beyond declarations and integrating science, data and real-world constraints into everyday decisions. At Earth Action, this is where we focus our work: helping organisations translate global signals into actionable strategies, grounded in science and aligned with the realities of their operations. 

Because in today’s economy, prosperity is no longer defined by speed alone, but by the ability to navigate limits with clarity and intent.