New Delhi, Nov 11 (IANS) Only 11 per cent of organisations in South Asia consider themselves fully or very prepared for water-related supply chain risks, highlighting significant vulnerabilities as extreme weather events increasingly disrupt business operations, a report said on Wednesday.
The report from Association of Chartered Certified Accountants (ACCA) said climate-related disruptions are placing growing pressure on supply chains as extreme weather can disrupt production, transport and access to critical resources.
However, organisations are slow to strengthen resilience despite risks that may begin with weather, natural resources, suppliers or working conditions ultimately affecting production, costs, cash flow and business continuity.
Nearly 48 per cent respondents identified stronger business continuity and disruption-response planning as the priority to improve preparedness for water-related risks.
Roughly 44 per cent prioritised reducing water use across operations and supply chains, while an equal proportion cited improvements in water-risk data, forecasting and decision-making.
“Technology is giving organisations new ways to anticipate disruption, from weather data and sensors to AI-based early-warning systems. But better information only creates value when it leads to better decisions,” said Sundeep Jakhar, Head of Public Affairs at ACCA-India.
“For finance professionals, the opportunity is to turn these signals into informed business decisions, understanding the financial implications, demonstrating the value of investing in resilience and helping organisations act before disruption occurs,” he added.
The report urged firms to use forecasts and early-warning signals by bringing seasonal weather outlooks, scenarios and supplier information into planning before disruption occurs.
Nearly 44 per cent of South Asia respondents cited better risk prediction and early warning as one of the most important benefits of AI and digital tools for sustainable supply chains.
The report suggested firms identify critical suppliers, locations and dependencies on water, materials and transport routes.
“Look beyond supplier declarations. Test information where risks are most significant and visibility is weakest. Compare the cost of building resilience now with the potential cost of lost production, higher input costs or interrupted supply later,” it noted.
—IANS
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