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Managing Climate Change Risks in Global Supply Chains: A Review and Research Agenda

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Document pages: 38 pages

Abstract: Climate change is forcing governments and businesses to explore mitigation strategies to avoid future catastrophe. There is an urgent need to manage climate change risks in global supply chains. Following a systematic literature review and text mining approach, 90 interdisciplinary articles between the years 2005 and 2018 were studied. Thematic and descriptive analysis identifies sources, consequences and control mechanisms for the climate change risks. It is found that climate change driven by extreme weather conditions significantly impacts food production, natural resources and transportation worldwide. This direct impact on food, mining and logistics sectors cascades into other interlinked global supply chain network. Climate change and supply chains are found to be mutually influencing each other through natural disasters and greenhouse gas (GHG) emissions respectively. A systems theory driven, novel supply chain risk management framework for managing climate change risks is proposed. The study contributes to supply chain risk management literature by capturing the nexus between climate change and supply chain management.

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