WEF confirms investigation into claims against founder Schwab

(FILES) World Economic Forum founder and chairman Klaus Schwab attends a session during the World Economic Forum (WEF) annual meeting in Davos on January 21, 2025.(AFP)
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Updated 23 April 2025
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WEF confirms investigation into claims against founder Schwab

  • Schwab had already stepped down as executive chairman last year

GENEVA: The World Economic Forum confirmed Wednesday that it has launched an investigation into allegations made against its founder Klaus Schwab that reportedly prompting his resignation this week.
In a statement confirming a report by the Wall Street Journal, the WEF said its board of trustees "unanimously supported the Audit and Risk Committee's decision to initiate an independent investigation following a whistleblower letter containing allegations against former Chairman Klaus Schwab".
The WEF, which hosts the annual meeting of wealthy, famous and influential global elites at the luxury Swiss ski resort of Davos, initially provided no explanation when it announced Monday that its longtime chairman had stepped down from the board with immediate effect.
In the first statement, the WEF's board hailed Schwab's "outstanding achievements" in his 55 years in charge.
But the WSJ reported that the decision had been prompted by a board decision to investigate allegations of financial and ethical misconduct by the longtime leader and his wife Hilde.
Schwab denies the claims, the paper added.
The letter, said to have been sent by anonymous current and former WEF staff, "included allegations that Klaus Schwab asked junior employees to withdraw thousands of dollars from ATMs on his behalf and used Forum funds to pay for private, in-room massages at hotels," wrote the WSJ, which said it had seen the letter and spoken with people familiar with the case.
"It also alleged that his wife Hilde, a former Forum employee, scheduled 'token' Forum-funded meetings in order to justify luxury holiday travel at the organisation's expense," the paper said.

The letter also reportedly raised concerns about how Schwab treated female employees, and how his decades-long leadership allegedly allowed instances of sexual harassment and discriminatory behaviour to go unchecked.
Schwab could not immediately be reached for comment but according to the paper, he had vehemently denied all the allegations and warned board members he would sue if they pursued an investigation.
Despite this, the board of trustees decided at an emergency meeting on Sunday to open a probe, and Schwab opted to resign immediately.
In its statement Wednesday, WEF stressed that its decision "was made after consultation with external legal counsel and in line with the Forum's fiduciary responsibilities".
"While the Forum takes these allegations seriously, it emphasises that they remain unproven, and will await the outcome of the investigation to comment further."
Schwab had already stepped down as executive chairman last year, with Norway's former foreign minister Borge Brende taking over daily management.
A few weeks ago, the 87-year-old Schwab said he would step down as non-executive chairman but with the handover lasting until January 2027.
WEF has said that vice chairman Peter Brabeck-Letmathe will serve as interim chairman as a search committee looks for a permanent replacement for Schwab.


2025 among world’s three hottest years on record, WMO says

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2025 among world’s three hottest years on record, WMO says

  • All eight datasets confirmed that the last three years were the planet’s three hottest since records began, the WMO said
  • The slight differences in the datasets’ rankings reflect their different methodologies and types of measurements

BRUSSELS: Last year was among the planet’s three warmest on record, the World Meteorological Organization said on Wednesday, as EU scientists also confirmed average temperatures have now exceeded 1.5 degrees Celsius of global warming for the longest since records began.
The WMO, which consolidates eight climate datasets from around the world, said six of them — including the European Union’s European Center for Medium-Range Weather Forecasts (ECMWF) and the British national weather service — had ranked 2025 as the third warmest, while two placed it as the second warmest in the 176-year record.
All eight datasets confirmed that the last three years were the planet’s three hottest since records began, the WMO said. The warmest year on record was 2024.

THREE-YEAR PERIOD ABOVE 1.5 C AVERAGE ⁠WARMING LEVEL
The slight differences in the datasets’ rankings reflect their different methodologies and types of measurements — which include satellite data and readings from weather stations.
ECMWF said 2025 also rounded out the first three-year period in which the average global temperature was 1.5 C above the pre-industrial era — the limit beyond which scientists expect global warming will unleash severe impacts, some of them irreversible.
“1.5 C is not a cliff edge. However, we know that every fraction of a degree matters, particularly for worsening extreme weather events,” said Samantha Burgess, strategic ⁠lead for climate at ECMWF.
Burgess said she expected 2026 to be among the planet’s five warmest years.

CHOICE OF HOW TO MANAGE TEMPERATURE OVERSHOOT
Governments pledged under the 2015 Paris Agreement to try to avoid exceeding 1.5 C of global warming, measured as a decades-long average temperature compared with pre-industrial temperatures.
But their failure to reduce greenhouse gas emissions means that target could now be breached before 2030 — a decade earlier than had been predicted when the Paris accord was signed in 2015, ECMWF said. “We are bound to pass it,” said Carlo Buontempo, director of the EU’s Copernicus Climate Change Service. “The choice we now have is how to best manage the inevitable overshoot and its consequences on societies and natural systems.”
Currently, the world’s long-term warming level is about 1.4 C above the pre-industrial era, ECMWF said. Measured on a short-term ⁠basis, average annual temperatures breached 1.5 C for the first time in 2024.

EXTREME WEATHER
Exceeding the long-term 1.5 C limit would lead to more extreme and widespread impacts, including hotter and longer heatwaves, and more powerful storms and floods. Already in 2025, wildfires in Europe produced the highest total emissions on record, while scientific studies confirmed specific weather events were made worse by climate change, including Hurricane Melissa in the Caribbean and monsoon rains in Pakistan which killed more than 1,000 people in floods.
Despite these worsening impacts, climate science is facing political pushback. US President Donald Trump, who has called climate change “the greatest con job,” last week withdrew from dozens of UN entities including the scientific Intergovernmental Panel on Climate Change.
The long-established consensus among the world’s scientists is that climate change is real, mostly caused by humans, and getting worse. Its main cause is greenhouse gas emissions from burning fossil fuels like coal, oil and gas, which trap heat in the atmosphere.