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Few firms have climate adaptation plans that cover supplier risks
Deloitte data shows only about one-fifth of companies maintain climate adaptation action plans and about half assess suppliers’ climate exposure.
Risk & Insurance reports that a Deloitte Center for Integrated Research review found many companies are not fully analyzing climate risk beyond their most direct suppliers. The outlet says roughly half of companies assess supplier risk exposure, while about one-fifth have a climate adaptation action plan.
The reporting highlights that Deloitte also cited outside research from S&P Global and CDP, which similarly points to limited adaptation planning across corporate supply chains. It also notes that a 2025 Deloitte executive survey found 33% of global executives said natural disasters and severe weather were already affecting their business.
The gap matters because Deloitte says physical climate disruptions often begin outside a firm’s own operations and can cascade through interconnected value chains. Risk & Insurance points to a 2021 winter storm that knocked out a Texas semiconductor plant, triggering reduced chip output and downstream delays across automotive and electronics manufacturing.
Deloitte’s findings describe how many climate risk assessments stop short of capturing second- and third-order dependencies that can drive shortages, delays, price pressure, and reduced service levels. The report said one company estimated the outage caused $100 million in disruption, and warned systemic effects can also include crop losses, labor productivity impacts, infrastructure disruptions, and broader climate-driven inflation and migration.