Climate Risks and Supply Chain Transparency: Addressing Information Gaps

Investigators

• Muskan Chawla

Background

Supply chains are increasingly exposed to climate risks, including extreme weather events, resource scarcity, and regulatory shifts. However, information opacity—caused by fragmented data, limited disclosure, and complex supplier networks—can amplify these risks by obscuring vulnerabilities and delaying responses. Firms that lack visibility into their supply chains may struggle to assess and mitigate climate-related disruptions effectively. Improving transparency through enhanced data sharing, reporting standards, and digital tracking technologies can help firms identify risks earlier and implement more resilient strategies.
 

Research Objectives

This study aims to investigate how information opacity amplifies climate risks within supply chains and explore how improved transparency can mitigate these risks. It will analyze the impact of limited information on firms’ ability to anticipate and respond to climate-related disruptions, assess the role of regulatory and technological interventions in enhancing supply chain visibility, and evaluate the benefits of transparency for risk management and sustainability. The findings will provide insights for businesses, policymakers, and industry stakeholders seeking to strengthen supply chain resilience in the face of climate change.