Impacted Domains: Operational, Financial, Reputational
Impacted Industries: All Industries
Date: July 22, 2025

BLUF:
Intensifying droughts, floods, wildfires, and severe storms are driving major production losses and global supply-chain bottlenecks across sectors.

So What:
These climate-driven disruptions cascade through supplier networks — inflating costs, destabilizing operations, and threatening business continuity. Organizations without resilient supply-chain strategies face financial exposure reaching up to $500M.

Risk Value:
$3M–$500M in supply interruptions, recovery costs, lost revenue, and operational downtime.

Mitigation Cost:
$500K–$15M for resilience upgrades, diversification, analytics, and insurance optimization.

What to Do:

• Upgrade critical facilities with resilient materials, infrastructure hardening, and backup systems.

• Map supplier climate exposure and pre-qualify alternate vendors to strengthen redundancy.

• Optimize insurance and continuity planning using climate and scenario modeling.

• Deploy predictive monitoring with AI and analytics to anticipate disruptions and accelerate response.

Risk AIQ Score: 9

🔗 Maersk Severe Weather Supply Chain Report