New tools help businesses safeguard global supply chains

Around the world, climate and disaster risks are disrupting production, transportation and market access, posing growing challenges for businesses, trade support institutions and governments. Boards and senior executives are increasingly being held accountable for managing climate-related exposures. At the same time, physical climate impacts are already influencing loan pricing, intensifying the financial sector’s direct exposure to climate risk.

Researchers at the University of Waterloo’s Climate Institute are launching new tools for business leaders to deepen their understanding of climate risks and build climate resilience.

Waterloo researchers, Drs. Jose Di Bella and Sarah Burch, are leading the project in partnership with the United Nations Office for Disaster Risk Reduction Regional Office for the Americas and the Caribbean (UNDRR), Trade Facilitation Office Canada (TFO Canada), and the Private Sector Alliance for Disaster Resilient Societies (ARISE Canada).

The focus is on strengthening supply systems — not just at the company level, but at critical points across entire supply chains — to build secure and resilient trade partnerships and corridors in an increasingly volatile world

“A supply-systems approach to resilience gives companies a powerful opportunity to work together to build climate-resilient trade corridors,” Di Bella says, principal investigator for the project. “By partnering with upstream suppliers in the countries where inputs originate, Canadian businesses can strengthen resilience at the source, improve reliability along the corridor and reduce disruptions downstream.”

Bringing together partners in Canada and Latin America, the project has produced three business tools with international applications.

These include case studies, highlighting adaptation challenges and key components of adaptation plans across diverse industry supply chains; a strategy playbook, offering practical guidance to companies for developing shared climate risk management; and an investment protocol, translating strategy into actionable, phased initiatives for supply systems risk reduction and climate adaptation.

The project team also designed an AI-enabled application designed for companies, international organizations and trade support institutions to assess and strengthen supply system resilience. These business planning tools were unveiled at an Ottawa event that included representatives from Natural Resources Canada, Environment and Climate Change Canada, Public Safety Canada, Global Affairs Canada, the Embassies of Colombia, Panama, Ecuador, the Dominican Republic, Italy and the European Union, as well as leaders from various associations and non-governmental organizations.

“Business leaders are in the driving seat when it comes to supply chain resilience, and they should not wait. Whether you’re a large enterprise or SME along the supply chain, putting these solutions into practice will support your investment in shared resilience, trade partnerships and the communities that depend on them,” Nahuel Arenas says, chief of the UNDRR Regional Office for the Americas and the Caribbean, which is also the hub for global coordination of the ARISE Private Sector Alliance for Disaster Resilient Societies.

He adds, “We appreciate the role of ARISE networks in Canada, Colombia, Mexico and Honduras in contributing to this work and look forward to accelerating uptake with our private sector partners including ARISE networks globally.”

The researchers are now shifting from analysis to action — using real-world case studies to help businesses climate-proof their operations and supply chains, while fostering cross-sector partnerships to address shared risks.

These newly launched tools will align investment and embed data-driven insights into decision-making, helping to make climate resilience a competitive advantage that protects critical assets and creates shared value across global trade networks.

“Canadian businesses are facing the impacts of climate change across global supply chains” says the Honourable Bardish Chagger, Member of Parliament for Waterloo.

She adds, “Through investments in projects like this, led right here at home by the Waterloo Climate Institute, our government is supporting innovative Waterloo-grown solutions to help companies better understand climate risks and strengthen resilience, so we can protect jobs, secure trade and build a more resilient and competitive Canadian economy.”

The Building Disaster Resilience across Canadian Business Supply Chains project is led by the Waterloo Climate Institute, with funding support from Natural Resources Canada’s Climate Change Adaptation Program.