Risk assessment for adaptation to climate change in the international supply chain

Abstract

Abstract Climate change affects people s daily lives and industrial activities by increasing the frequency of extreme weather events, such as typhoons and heatwaves, raising the sea-level, and changing rainfall patterns. These effects expand across countries and industries through disruptions in supply chains. In this study, a method of identifying high-risk processes in the supply chain due to climate-related disasters is developed, along with climate-related disaster risk factors (CDRF) for each country and each type of climate-related disaster. As a case study, the automotive supply chains of the USA, China, Japan, and Germany were assessed using a multi-regional input-output table. The results show that, in the USA, Japanese, and German automotive industries, the climate-related disaster risk to workers outside the country is higher than that to workers within the country. However, the economic climate-related disaster risk is higher in the home country. In China s automotive industry, the risks to both workers and the economy were higher for the home country because the high level of involvement within the country. High-income countries should support climate change adaptation in low- and lower-middle income countries. These policies are also important for improving the stability of their own industrial base.