Aftermath of hurricane in Florida Keys , United States
that it is important to understand the distinction .
“‘ Bridging ’ means bridging the gap with suppliers to make sure communication is strong prior to , during , and after any type of crisis including climate-related events .,” he explains . “ Supplier questionnaires can be created , to ensure that suppliers have risk mitigation strategies in place , while other forms of direct and indirect communication can help bridge the communication and knowledge gap between buyers and suppliers at every tier .”
Buffering , meanwhile , is having adequate inventory reserves in the event of primary suppliers being hit by climate-driven disruption events . “ Buffering strategies can be applied against suppliers that are above your risk-scenario thresholds ,” he says . “ This will reduce the potential harmful impact of climate change .”
In addition , buffering strategies might include dual-sourcing critical materials from different geographic regions , so that if one breaks down , the other will prevent shortages .
“ As an added benefit ,” he says , “ companies can support their domestic industries and shorten their supply chains by shifting production to domestic facilities or nearby countries .”
“ In many cases , the cost of production relocations to less risky locations are far offset by the ESG-related risks of keeping production within higher risk regions .”
Ultimately , Chi says , buffering should “ act as a shield at different degrees and levels ”.
“ Buffering strategies designed to protect you from climate-specific disruptions can also be intentionally designed to support your organisation ’ s other ESG goals ,” he concludes . “ For example , choosing buffering strategies with a significantly reduced carbon footprint .” supplychaindigital . com 93