Businesses face climate changes that are permanently altering their operating conditions. Heatwaves, floods, storms, ground movements and extreme weather events are weakening value chains and increasing pressure on certain resources. These climate-related disruptions directly expose the procurement function to supply disruptions, unexpected cost rises and increasingly complex compliance requirements to master.
In this context, the procurement function plays a key role. As a strategic interface between the business and its supply chain, it has concrete levers to anticipate climate risks, adapt supplier selection and management, secure supplies and strengthen the organisation's overall resilience.
What are climate risks for businesses?
Growing exposure to climate risks is forcing organisations to review their operational practices. Impacts of climate risks manifest in different forms and directly influence logistics flows, access to raw materials and operational continuity. For procurement departments, understanding these risks is essential to anticipate their impacts on costs, supplier availability and securing supply flows.
Understanding different types of climate risks
Natural risks are varied and affect supply chains in multiple ways. Physical risks include floods, heatwaves, droughts, ground movements and natural climate events, which often disrupt industrial sites, transport or supplier production. Extreme weather events, now more frequent, also create disruptions that can impact thousands of kilometres of commercial flows.
Transition risks, linked to European or global regulations, strengthen compliance requirements. A company partially compliant with expected standards faces sanctions, additional costs or loss of competitiveness. Added to this are reputational risks: societal expectations and increased vigilance on climate commitments influence purchasing decisions and business relationships.
Why do climate risks disrupt supply chains?
Supply chains are often globalised and depend on regions exposed to risks. When extreme weather events occur, delivery times lengthen, raw material availability decreases and logistics costs increase. A simple disruption in a sensitive area can affect the entire production.
Leon Laubscher, Climate Strategy Programme Lead at Unilever, perfectly summarises this challenge: "A good climate leader manages their own internal emissions. A great climate leader, tackles its supply chain as well. Use your purchasing power as a force for good by engaging with your suppliers and supporting them with managing and reducing their own emissions.”
How to map climate risks in the supply chain?
Risk mapping constitutes a central step to analyse areas exposed to risks, structure risk management and choose more resilient partners. It combines climate, geographical and economic data to assess the impact of each climate event.
Identifying exposed zones, suppliers and flows
Effective risk mapping relies on studying several parameters:
- Location of suppliers exposed to climate risks;
- Analysis of logistics flows crossing sensitive regions;
- Verification of the presence of robust infrastructure in case of natural climate events;
- Assessment of affected populations and their health and safety conditions.
This approach enables anticipating potential disruptions, better understanding risks associated with each supplier and integrating natural events into business continuity strategies.
Which tools to use for climate risk assessment?
Several analysis tools provide a detailed view of the situation:
- Interactive climate risk mapping;
- Environmental scoring of suppliers;
- Integration of climate data into Sales & Operations Planning (S&OP) processes.
To strengthen this approach, companies can also rely on specialised services such as Manutan's Expert Advice/Assistance, which supports you with real human expertise to validate specifications and guide your choice (available in Belgium, the Czech Republic, Denmark, Sweden, Finland, France, Germany, Hungary, Italy, the Netherlands, Norway, Poland, Slovakia, Spain, Switzerland, the United Kingdom, Portugal, at content publication date). This support facilitates the assessment of solutions most adapted to climate and sustainable development challenges.
Integrating climate risks into a sustainable procurement strategy
Integrating climate risks into procurement decisions profoundly transforms supplier relationships. This evolution makes the business more resistant whilst supporting the ecological transition.
Which criteria to prioritise in tenders?
Tenders constitute an essential lever to encourage responsible practices. The business can include:
- Sustainability criteria;
- Traceability of raw materials;
- Climate impact reduction requirements;
- Compliance with European or equivalent British standards.
These criteria strengthen risk prevention and guarantee selection more consistent with climate objectives.
How to select resilient suppliers?
Climate resilience relies on a supplier's capacity to maintain its activity despite natural climate events. Selection criteria include:
- Diversification and redundancy of production sites;
- Geographical proximity to reduce dependence on areas exposed to risks;
- ESG analysis;
- Capacity to implement concrete actions facing climate change.
A supplier capable of climate change adaptation strengthens the stability of the entire chain.
How to strengthen logistics resilience facing climate risks?
Logistics strengthening relies on better flow organisation, strategic partner selection and intelligent resource management.
Supplier diversification and multisourcing
Diversification reduces the impact of natural and technological risks. Thanks to multisourcing, organisations have several supply sources, which limits the effect of a localised extreme weather event. This strategy also reduces risks linked to transport disruptions and improves overall management.
Relocation and reconfiguration of logistics flows
Partial relocation of certain suppliers to areas less exposed to climate risks enables:
- Reducing dependence on sensitive regions;
- Reducing impacts of climate change;
- Simplifying risk management.
This dynamic also aligns with global warming reduction objectives.
Responsible resource and waste management
Responsible resource management plays a key role in limiting impacts linked to natural and technological risks. By reducing waste volumes and improving equipment circularity, companies mitigate their exposure to climate risks whilst strengthening their compliance with European and international requirements. This approach also contributes to limiting natural climate events associated with the extraction and production of raw materials, whilst supporting a sustainable development strategy consistent with stakeholder expectations.
To support these transformations, some organisations choose to integrate operational solutions that facilitate risk prevention and optimisation of outbound flows. In this respect, Manutan's Take-back and Recycling Service (WEEE) offers take-back and recycling solutions for compliant and responsible disposal (available in Belgium, France and the Netherlands, under conditions in Italy and on request in Denmark, Sweden, Finland, Norway and the United Kingdom, at content publication date).
Monitoring climate performance indicators and communicating
Monitoring reliable indicators enables measuring action effectiveness and adjusting strategy facing climate risks.
Which indicators to monitor to measure climate risk exposure?
Companies can monitor:
- Carbon footprint;
- Exposure to extreme weather events;
- Supplier ESG audits;
- Level of risk prevention applied to infrastructure.
These data enable understanding risks continuously and improving risk management.
How to communicate according to European frameworks (CSRD, SFDR, TCFD)?
European frameworks such as CSRD, SFDR and TCFD strengthen transparency requirements on climate risk management, transition commitments and climate change impacts. These standards guide companies in structuring their data, particularly on exposure to extreme weather events, natural risks and ground movements. To remain readable and comparable, organisations must provide consistent, verifiable information aligned with European authorities' expectations, whilst considering regulatory equivalents applied in the United Kingdom, Switzerland and Norway. Clear communication also facilitates dialogue with investors, who now assess a company's capacity to anticipate climate risks and adapt its model.
The multiplication of extreme weather events is permanently transforming production methods and supply chains. By anticipating future climate risks, strengthening risk management and prioritising sustainable procurement, companies protect their future performance whilst actively participating in the ecological transition.
