How Exposed Is Your Supply Chain to Climate Risks?
Summary.
Climate change is posing major challenges to supply chains. This article — based on a collaborative research project conducted by the University of Maryland and supply-chain-mapping firm Resilinc — assessed the climate-related risks of 12,000 supplier sites in the United States, China that serve 100 original equipment manufacturers in the high tech, auto, and consumer goods industries. It offers advice on how OEMS can improve their resiliency to climate-related disruptions.
Hurricanes, tornadoes, flooding, heat waves, and wildfires — weather-related calamities have alarmed boardrooms across industries and awakened leadership teams to the high degree of financial risk posed by climate change. Executives now are asking: “How exposed is our global supply chain network? Which critical sites have the highest exposure in terms of revenue impact? Which types of events could potentially affect each site? Are appropriate business continuity plans in place to protect our operations?”
