ABSTRACT
Managing risk and sustainability in global supply chains has never been as challenging as it is today, especially in the face of climate change. During the last few years, extreme weather and resource constraints have created an uneasy environment in the C-suites of the world’s largest multinational corporations. Global supply chains are experiencing more frequent and costly disruptions due to increasingly powerful climate-induced events, yet many companies do not have the appropriate means to measure and manage climate risks. A limited purview of suppliers and a limited spectrum of risks can leave people, products and assets exposed. Equipped with the right tools, businesses are uniquely positioned to support local risk reduction efforts through parallel efforts to reduce climate risks in their own supply chains. This chapter will present the case for why climate risk reduction in the supply chain and business-led community risk reduction are complementary endeavours, and present a method for identifying risk and prioritizing supplier and community engagement opportunities.
