Physical risks linked to a changing climate in global supply chains

April 27, 2020

The purpose of this study is to provide an overview of the Swedish industry's exposure to physical climate-related risks. The risks covered by the study are water stress, flooding, extreme temperatures, tropical storms and wildfire. We first estimate the exposure using data on where companies have their own facilities and income streams. We then estimate the exposure of the industries by analyzing which countries and industries they depend on via their imports, that is, their supply chains.

This overview can be used to raise the awareness of the Swedish business community. It can also provide a basis for analyzing the need for public intervention. The aim of the study is to answer the question; How large is the private sector’s exposure to climate-related physical risks in the supply chain and how is it distributed among Sweden's industries? The question is one of the main issues in the framework project Sustainable global supply chains and the competitiveness of business - what is the role of the state?