Climate Change is an Existential Risk to Global Supply Chains

Supply chains are intricate, interconnected “systems of systems.” As someone who has dedicated their career to mathematically modeling the links and nodes in supply chains, I spend a decent amount of time thinking about how risk is correlated and magnified across these systems.

As this article attests, COVID-19 put these supply chain risks front-and-center to the public. But unlike the pandemic, climate change represents an existential, correlated risk across global supply chains – one that won’t end with vaccinations, and one that will have significant social, political, and financial costs. With global supply chains, a risk anywhere is a risk everywhere.

I certainly don’t have the answers – there is probably a right-enough combination of political actions, engineered risk mitigation, and carbon reduction – but the interconnectedness of the world means we’re all in this together.

If you are interested in discussing, please comment and/or email me at ralph@datadrivensupplychain.com .

https://www.cnbc.com/2021/08/19/climate-change-supply-chain-disruptions-how-to-prepare.html

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