Environmental threats continue to dominate the World Economic Forum’s (WEF) Global Risk Report, while geopolitical concerns are also intensifying.

Extreme weather and failure of climate change mitigation and adaptation top the list of global risks by likelihood, and both feature in the top three risks by impact, behind weapons of mass destruction.

The annual report is compiled by the WEF in partnership with Zurich and Marsh, and reflects the views of about 1000 experts and decision-makers.

Zurich Group Chief Risk Officer Alison Martin says last year featured historic wildfires, heavy flooding and increasing greenhouse gas emissions.

“It is no surprise that [this year], environmental risks once again dominate the list of major concerns,” she said. “So, too, does the growing likelihood of environmental policy failure or a lack of timely policy implementation.”

The report highlights environmental threats to urban infrastructure: with sea levels rising, many cities must solve problems ranging from clean groundwater extraction to superstorms.

Marsh President of Global Risk and Digital John Drzik says persistent underfunding of critical infrastructure is hampering economic progress.

“Allocating resources to infrastructure investment, in part through new incentives for public-private partnerships, is vital for building and strengthening the physical foundations and digital networks that will enable societies to grow and thrive.”

The report also notes growing concern over geopolitical and economic conditions.

Trade disputes escalated rapidly last year and the report warns growth this year will be held back by continuing tensions.

“With global trade and economic growth at risk... there is a more urgent need than ever to renew the architecture of international co-operation,” WEF President Borge Brende said.

“We simply do not have the gunpowder to deal with the kind of slowdown that current dynamics might lead us towards.

“What we need now is co-ordinated, concerted action to sustain growth and to tackle the grave threats facing our world today.”

Top 10 risks by likelihood

1. Extreme weather
2. Failure of climate change mitigation and adaptation
3. Major natural disasters (earthquake, tsunami etc)
4. Massive incident of data fraud/theft
5. Large-scale cyber attack
6. Man-made environmental damage and disasters
7. Large-scale involuntary migration
8. Major biodiversity loss and ecosystem collapse
9. Water crises
10. Asset bubbles in major economy.

Top 10 risks by impact

1. Weapons of mass destruction
2. Failure of climate change mitigation and adaptation
3. Extreme weather
4. Water crises
5. Major natural disasters
6. Major biodiversity loss and ecosystem collapse
7. Large-scale cyber attacks
8. Breakdown of critical information infrastructure
9. Man-made environmental damage
10. Rapid and massive spread of infectious diseases.