Climate change and associated extreme events have significantly impacted the global supply chain in recent years. Recent examples include the unprecedented heat wave in China, which reduced food production. Similarly, Italy faced a historic drought, the most severe in 70 years, severely affecting food supplies due to high temperatures and lack of rain. Pakistan experienced the worst floods in its history, with economic losses estimated at more than millions of dollars, resulting from infrastructure damage and supply chain disruptions.
Source: Ali, I., Arslan, A., Tarba, S., & Mainela, T. (2023). Supply chain resilience to climate change inflicted extreme events in agri-food industry: The role of social capital and network complexity—International Journal of Production Economics.