edie Extra podcast: How climate shocks are already disrupting supply chains
JRP Solutions Director, George Richards, was delighted to take part in this edie Extra podcast on 10th October with edie’s content editor, Sarah George.
George and Sarah delve into how supply chains are already being significantly impacted by climate change. Insured losses from natural catastrophes surpassed $135bn globally in 2024, according to Insure Our Future.
Flooding, droughts and other extreme weather have impacted supply chains in many regions. These trends are, unfortunately, only going to worsen in the years ahead as the world’s climate continues to change.
The key takeaways from the discussion:
- Physical climate risk is material, now
Floods, wildfires, extreme heat, and storms are already affecting manufacturing sites, raw material sourcing, and transport corridors. These events disrupt operations directly, not just in theory. - Cost pressures and insurance pinch
Insurance premiums are rising; risk transfer is harder to obtain. George emphasises that climate risk must be priced in earlier rather than shrugged off as an externality. - The importance of early warning and sensing
To reduce damage, George argues for investing in tools that can provide organisations with intelligence as weather data, satellite imagery, local sensors to flag emerging threats. - Making resilience part of decision making
George suggests embedding climate stress testing into supplier selection, capital planning, and logistics strategy, so that decisions are not blindsided when shocks hit
For more information on any of the topics discussed or to assess your ‘value at risk’, please contact george.richards@jrpsolutions.com or call 0800 6127 567.