The report highlights how despite the slow global recovery, the risks to the global outlook remain significant, mainly due to the continuing effects of the pandemic: health impacts, but also strains on the global value chains and high levels of debt, which undermine the financial stability of all national, public and private economic actors. 

Looking at the dimensions of Well-being, the update shows that – considering the average of all countries – for Health, Education and Labour, there was a significant worsening with respect to the previous year, while for Demography and Equality, there were not significant changes at global level.

As reported in the last “IPCC, Sixth Assessment Report”, the climatic situation shows a continuous worsening: risk values are very high in the areas where extreme phenomena are more frequent, showing also an increase compared to the previous year. Although there’s a general stability in the global credit risk picture, the Map does not show the hoped-for reversal of the trend after last year’s sharp increases. In terms of political risks, there is also a further worsening compared to last year, particularly in the determinant of political violence in some emerging areas, like Ukraine.

Finally, the analysis of the Energy Transition dimension confirms progressive improvements in this domain, driven in particular by positive performances in the Renewables and Electrification indicators. However, worsening results for Emissions and Fossil Fuels highlight the necessity to act more decisively to boost the energy transition and meet the decarbonization targets set at the global level to tackle climate change. 

Against this backdrop, it is becoming increasingly clear that, in a situation of worsening well-being conditions progressively exacerbated by the effects of climate change, inaction in energy transition policies is not a viable option. It is therefore necessary to make strategic choices and implement targeted investment policies in mitigation and adaptation, both at the macro level of public policies and at the micro level of corporate investments - to reach national and international decarbonization goals.