World Economic Forum: Climate crisis takes centre stage at Davos 2020

It is a huge event in the calendar for those interested in tracking economic news, as it is often used as a platform by companies and countries alike to make announcements, promises and even thinly veiled threats. In 2018, Donald Trump indicated an interest in aggressive trade strategies, which in hindsight appears as a harbinger of things to come.

President Trump’s return this year will be closely watched, after he missed the event last year due to the government shutdown. As one of the least predictable political leaders in the world, Trump’s presentation tomorrow (on 21 January 2020) will be closely watched by allies and adversaries alike, as everyone is waiting to see what he’ll do next. The divisive leader of the free world recently courted international scorn in ordering the assassination of the Iranian military commander Qasem Soleimani, giving the international community a renewed awareness of his power to shape the geopolitical landscape.

Though trade and slowing world economic growth are likely to be in the foreground, it is environmental issues that are likely to take centre stage, as the slogan for the conference reads “stakeholders for a cohesive and sustainable world.” The conference will be addressed by climate activist Greta Thunberg, who is reportedly hiking to the event to reduce her carbon footprint.

The WEF has placed all the conference sessions within the context of seven themes. What are these themes, and what do they tell us about the issues that are most important to the world’s most powerful people?

1. Healthy Futures

This theme is concerned with the future of healthcare, with speakers from medical backgrounds presenting on technological advancements and paradigm shifts within the medical community. Some of the key issues in the sector being brought under the proverbial microscope include AI in medical treatments, deteriorating mental health in young people, improving healthcare systems, and the challenge of web-born misinformation, such as the anti-vaxxer movement.

2. How to Save the Planet

This theme is drawing a lot of attention, with the more mainstage presentations than any other category. The climate crisis, for the first time, occupies all of the WEF’s top five greatest risks facing the world in 2020. Many of the world’s great thinkers will come together to address leaders with the capacity to make change across political and economic divides, a dynamic interchange that will be closely watched.

The attention on corporate responsibility in responding to climate change has been brought into renewed focus by BlackRock’s announcement last week of their intention to shed assets tied to thermal coal and grow their sustainable energies investments. As the world’s largest fund manager, with assets totalling over US$7 trillion, the company is a huge leader of industry and a tastemaker for other funds. Across other industries, Microsoft last week announced plans to be carbon negative in ten years. The role of Big Tech in answering to geopolitical concerns will also be of relevance in the next theme on our list.

3. Tech for Good

In a news cycle dominated by stories about technology controlling us and/or rotting our brains, it’s a change of pace to look for the power for good in tech, and the extraordinary potentialities. The speakers on this theme are presenting on the technologies of tomorrow, and how the businesses of today can harness them. The topics under discussion include Cybersecurity, the future of digital currencies, Big Data, and quantum computing.

4. Beyond Geopolitics

Beyond Geopolitics is basically just; geopolitics. The themed presentations will address many of the issues facing the international community today, with focus drawn to the global growth outlook, shifting trade relations, the impact of Brexit, and unrest in the Middle East. The panellists will also address issues such as migration, a new space race, changing macroeconomic structures, and globalisation.

It is likely that the big news story here will be about the changing role of the US, not just in the middle east, but as a global peacekeeper. There will also be interest in what the new US/China trade relationship will mean for world trade.

5. Society and Future of Work

This theme is focused on the topic of reskilling in the digital age, or the Fourth Industrial Revolution as they call it. The panels organised within this topic highlight the issues of creating accessible and inclusive societies, and how our increasingly digital lives shape democracy, free speech, culture, and identity.

6. Fairer Economies

If the irony isn’t lost on you of billionaires discussing wealth inequality at an elite event held at a ski resort, which many will access via private helicopter, and a ticket to which can reportedly set you back $900,000, you’re not alone. Davos 2020 is set to discuss the blight of inequality while the event is picketed by those who protest the elitism inherent in a gathering of the world’s “elites.” Speakers, including European Central Bank President Christine Lagarde, and Secretary of the US Treasury Stephen Mnuchin, will discuss the challenges associated with spreading the gains of economic growth, and structural economic changes that may enable this. How they respond to critics of the conference remains to be seen.

7. Better Business

This theme represents the Forum’s intention to help shift corporate focus away from blind adherence to shareholder interests, towards a more open consideration of stakeholders. We are approaching an age of corporate responsibility, where the necessity of doing business better is being expected by a growing number of boards, CEOs, and shareholders. The topics will focus on themes of financial and environmental sustainability, taking the long-term approach to doing business, and fostering healthy financial markets.