Intersection of operational resilience, ESG and climate risk

Nita Kohli

In 2021, in the US faced 20 separate billion-dollar weather and climate-related disasters (NCEI, 2022), an ongoing pandemic, social unrest, and an evolving transition into a greener economy. The convergence of operational resilience, ESG, and climate risk management is a pivotal response to the complexities faced by businesses today.

It is important to pay heed to the growing alignment between supply chain management and ESG objectives, particularly in the context of climate risk. As organisations navigate this convergence, it becomes crucial to understand how third-party risk management (TPRM) intelligence can be integrated into ESG frameworks to enhance resilience and sustainability, especially given the level of climate change we are experiencing.

The impact of climate risk on business operations cannot be overstated as there has been a shift in business models spurred by the need to adapt to climate-related threats. Whether it be ski resorts exploring how to adapt to the shorter winters, or IKEA pledging to becoming self-sufficient in fully renewable energy, forward-thinking enterprises are proactively integrating climate risk considerations into their operational resilience