SUSTAINABILITY
“ Adapting to climate change is a dramatic evolution – not like the usual adaptive change businesses have to make ”
SKYLER CHI GLOBAL HEAD OF THIRD PARTY & SUPPLY CHAIN RISK MANAGEMENT , EXIGER
among the most frequent extreme-weather events and can be particularly devastating . As a 2020 McKinsey report points out , the probability of experiencing a hurricane sufficiently intense to disrupt semiconductor supply chains in Taiwan , South Korea and China is set to quadruple by 2040 .
Hurricanes among worst supply chain disruptions Hurricanes damage critical infrastructure , such as roads and power , and can destroy
Flooding in Thailand
manufacturing assets , including buildings and specialised equipment .
Such destruction inevitably leads to a spike in the cost of labour , energy , and logistics – at a time when cost inflation is rampant anyway . And this combination of factors chokes cash flow , which is the oil that lubricates global trade .
Further research from the United Nations ’ Development Programme shows that workplace and corporate disruption from climate change could total US $ 2.5tn by 2030 in the US alone .
Organisations that fail to legislate for climate change-based disruption to their supply chains are asking for big trouble . Managing such risk has never been more important . Helping businesses on this front is New York-based Skyler Chi , Global Head of Third Party & Supply
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