We live in a globally interconnected supply chain with very dense connections. The 2020 pandemic showed us the strengths and limitations of this supply chain. A festering problem of supply chains is the impact of climate change. This can be seen in changes in fisheries output from warming oceans, more labor shortage due to extreme heat in many (sub)tropical countries or flooding damage from hurricanes and cyclones. The risk of climate is often offloaded onto Tier 2 and 3 suppliers. While this is manageable in the short run, this is untenable in the long run as we find ourselves in increasingly resource short scenarios.

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Modelling climate risk and supply chains effectively is a complex endeavor that requires a sophisticated methodology and rich data sources.