Extreme weather is putting supply chains under greater pressure – but businesses and other organisations are slow to respond, says the latest research from ACCA. In the week before the United Nations Climate Change Conference (COP 31) the report, Weather proofing your supply chain, finds a significant preparedness gap and shows how climate, water, resource and human-rights risks are moving into mainstream business decisions.

Although extreme weather can disrupt production, transport and access to critical resources, the research found that only 11% of respondents described their organisations as fully or very prepared for water-related supply-chain risks. 

The findings highlight a growing challenge for organisations: risks that may begin with weather, natural resources, suppliers or working conditions can ultimately affect production, costs, cash flow and business continuity.

When asked how they could improve preparedness for water-related risks, respondents prioritised stronger business continuity and disruption response planning (47%), investment in physical and operational resilience (40%), and better assessment of suppliers' exposure to water risks (39%).

Emmeline Skelton, Head of Sustainability at ACCA, said: ‘Technology is giving organisations new ways to anticipate disruption, from weather data and sensors to AI-based early-warning systems. But better information only creates value when it leads to better decisions.'

‘For finance professionals, the opportunity is to turn these signals into informed business decisions understanding the financial implications, demonstrating the value of investing in resilience and helping organisations act before disruption occurs.’ 

The survey of around 500 ACCA members also identified sustainability-related risks expected to have a high financial impact on supply chains over the next five to ten years:

• resource and materials scarcity 43%
• physical climate risks at 38%
• water-related risks at 36% 
• transition risks at 34%.

The research points to a persistent challenge: organisations may recognise the risk without being sufficiently prepared to respond. To address this, the report identifies five ways that organisations can move from recognising risk to acting earlier:

• Use forecasts and early-warning signals. Bring seasonal weather outlooks, scenarios and supplier information into planning before disruption occurs. Technology can strengthen this: 32% of respondents selected better risk prediction and early warning as one of the most important benefits of AI and digital tools for sustainable supply chains.
• Know where disruption could hit. Identify critical suppliers, locations and dependencies on water, materials and transport routes. 
• Look beyond supplier declarations. Test information where risks are most significant and visibility is weakest. 
• Put a price on disruption. Compare the cost of building resilience now with the potential cost of lost production, higher input costs or interrupted supply later. 
• Build resilience into everyday decisions. Use climate and sustainability information to inform sourcing, investment, working capital, controls and governance.

Explore the findings of the research here.  

Emmeline Skelton added: ‘The role of accountants is increasingly expanding to cover these and other sustainability risks, part of a wider redefinition of the profession. Sustainability has always been part of the ACCA Qualification, but we’re stepping that up next year when we introduce our redesigned qualification where it’s integrated at every level.’

Explore the research findings and practical ways to strengthen supply chain resilience at ACCA’s Weatherproofing your supply chains session on 25 November 2026, part of the Accounting for the Future virtual conference.

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We are ACCA (the Association of Chartered Certified Accountants), the only truly global professional accountancy body. Since we were founded in 1904, we’ve been breaking down barriers to the accountancy profession. Today we proudly support a diverse community of over 266,100 members and 546,500 future members in 179 countries.

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