Climate and Supply Chain: The Business Case for Action

Climate change affects each and every human around the globe, with profound implications for social justice and human rights.

Health-related stresses, competition for natural resources, and the impacts on livelihoods, hunger, and migration warrant immediate global action.

This paper explores the nexus of climate change and the supply chain.

The purpose of this report is to:

1. Identify the potential impacts that climate change will have on company supply chains, particularly vis-à-vis the focus of supply chain management on cost, speed, quality, and uncertainty.
2. Outline how companies can enhance the resilience of their supply chains and operations, including supplier facilities; local communities; and the procurement of raw materials, components, and other goods and services.

This report is part of a series of six climate nexus reports that cover human rights, inclusive economy, women’s empowerment, supply chain, just transition, and health.

This research draws upon a wide range of documentary sources, including scientific literature on climate impacts, supply chain management literature, and development literature covering the financial and economic aspects of climate change.

While climate risks differ considerably by industry, this report is intended to be relevant across most sectors. The primary audience of this report is corporate supply chain, procurement, and purchasing professionals.

It is also relevant for strategy, risk management, operations, and other corporate functions; financial firms (e.g., those considering investment or insurance risks); policymakers; and others.