Could climate become the weak link in your supply chain?
Climate change increases supply chain risks, impacting production and costs.
(Generated with the help of GPT-4)
| Quick Facts | |
|---|---|
| Report location: | source |
| Language: | English |
| Publisher: | McKinsey |
| Publication date: | August 1, 2020 |
| Authors: | Claudia Kampel, Dickon Pinner, Hamid Samandari, Hauke Engel, Jakob Graabak, Jonathan Woetzel, Lola Woetzel, Mekala Krishnan |
| Time horizon: | 2050 |
| Geographic focus: | Global, India, Mediterranean, Africa, Florida, England, Vietnam, Hindu Kush region |
Methods
The research method involved a “micro-to-macro” approach, examining specific cases of exposure to climate extremes and their potential socioeconomic impacts. It included a literature review, expert interviews, and empirical estimates to assess the direct and knock-on effects of climate hazards on five key systems: livability and workability, food systems, physical assets, infrastructure services, and natural capital.
(Generated with the help of GPT-4)
Key Insights
The report examines how climate change exacerbates supply chain vulnerabilities, potentially disrupting global production, increasing costs, and affecting corporate revenues. It analyzes the impact of extreme weather on supply chains, including specialty and commodity chains, and highlights the need for adaptation measures to mitigate risks. The study uses case studies to explore the socioeconomic impacts of climate hazards across various sectors and geographies, focusing on the semiconductor and rare earth industries as examples. It also discusses the increased likelihood of climate events disrupting supply chains by 2040 and suggests strategies for building resilience.
(Generated with the help of GPT-4)
Additional Viewpoints
Categories: 2020 publication year | 2050 time horizon | 2050s time horizon | Africa geographic scope | England geographic scope | English publication language | Florida geographic scope | Global geographic scope | Hindu Kush region geographic scope | India geographic scope | Mediterranean geographic scope | Vietnam geographic scope | adaptation measures | case studies | climate hazards | extreme weather | geographic exposure | rare earth metals | resilience | semiconductor industry | socioeconomic impacts | supply chains