Supply networks in some countries are less prepared for climate and water risk than in others
An interesting finding has emerged from a new CDP and Accenture survey of supply chain resilience. CDP, formerly the Carbon Disclosure Project, found that supply-chain vulnerability in the face of climate and water risks is not just a question of how well prepared individual supplier companies are.
There are marked differences in the preparedness of supplier networks in countries around the world.
The report used sustainability data from about 3,400 suppliers, which work with 66 multinational buyers with a collective procurement spend of $1.3tn. It found that Japan's supply network is the most exposed to climate and water risks but is at the same time the best prepared to manage these risks.
Meanwhile, suppliers in France, Germany, Spain and the UK have taken extensive measures to be more resilient against climate and water risks, even though they face low to moderate risk of climate and water-related disruption.
The survey measures the preparedness of suppliers based on their levels of emissions reporting, target setting, emission reduction initiatives, climate risk procedures, uptake of low carbon energy and water risk assessment.
Meanwhile, the Chinese, Italian and US supply networks are rated “vulnerable”, meaning...