Climate change risks and disclosure rules

An article in the New York Times (Feb 1, 2012) describes a requirement by California to require insurance companies to report on their plans to mitigate the impact of climate change. The data shows that by June 2011, the insurance claims associated with natural disasters had exceeded that in all of 2010.  Given that supply chains are impacted by these same disasters – should suppliers also be required to disclose their climate change induced risks to buyers ? What steps should supply chain managers take to manage the impact of the global supply chain risk associated with such disasters ? Should OEMs develop some in house capability to maintain supply, even if at a higher cost point, or should they increase their buffer stocks to mitigate the impact of such risks ?

About aviyer2010

This entry was posted in Global Contexts, Operations Management, Supply Chain Issues, Sustainability and tagged , , , , , , , , . Bookmark the permalink.

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