Published: 22 January 2024
Summary
CSCOs reliant on insurance as the solution to climate disruption risk insufficient protection against climate impacts due to prohibitively expensive premiums and inadequate coverage. CSCOs must match supply chain adaptation actions to the climate risks and opportunities identified.
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Overview
Key Findings
The 2022 Gartner Emerging Priorities in Supply Chain Survey found that 11% of supply chain organizations don’t see climate change as a future risk. They are not investing in risk identification, scenario modeling and action, exposing their organizations to climate change impacts to business sustainability.
A solely insurance-based approach provides insufficient protection against short- and medium-term climate change risks. These risks either exceed insurers’ risk appetites or inflate premiums, potentially leaving assets uninsurable.
The Emerging Priorities in Supply Chain Survey also showed that 9% of supply chains are not considering climate change risks in decision making at all. These organizations
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