Long-term risks

Long-term risks are risks that could impact AkzoNobel beyond the five-year time horizon. We monitor the development of these risks as part of our risk management process and include them in our overall strategic assessment. We define long-term as being risks that are currently not material, but could develop into major concerns, and existing risks associated with current trends that are anticipated to increase.

The most significant long-term risks we observe are:

  • The accumulation of strategic moves in relevant value chains (horizontally and/or vertically) may impact our competitive position and/or increase the vulnerability of operations
  • Emerging technologies transforming our markets and the application of our products
  • Public concern over specific substances and their environmental impact (such as plastics/synthetic polymers, fossil fuels), could result in major changes in our markets
  • Meeting the economic challenges associated with an ambitious sustainability strategy, while operating in markets with different levels of maturity
  • The continued development of digital technology, which will create risks in business continuity, privacy, legal and regulatory requirements, market and customer intelligence and supply chain security. This is especially the case given the acceleration in speed and growing complexity that characterize the process of digitization
  • Increased instability due to a rise in national sentiment, increased geo-political tensions and failure of national and supranational governance, having a negative impact on our business