New research from CDP shows that multinational companies are exposed to environmental risks in their supply chains that could result in costs of up to $120 billion by the middle of this decade.

The analysis looked at data from more than 8,000 supplier companies in 2020, which revealed cost increases from a range of supply chain disruptions. These include increased severity and frequency of cyclones and floods, rising raw material costs, increased spending on product innovation, and the impacts of regulatory and market changes – such as carbon pricing – as governments seek to address multiple environmental crises.

This research adds to a growing body of evidence that suggests the cost of inaction on climate change will dwarf the cost of acting further down the line, and a call to action for all forward-thinking corporates: neither your business nor the planet have time to wait.



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