What potential impact does climate change have on supply chains?

The impact of climate change on supply chains is significant and multifaceted, making the choice of disruption a logical conclusion. Climate change can lead to extreme weather events such as hurricanes, floods, droughts, and wildfires. These events can disrupt the production, distribution, and delivery of goods, causing delays, increased costs, and interruptions in the flow of materials.

Additionally, supply chains are often global, meaning that a climate-related event in one part of the world can have ripple effects throughout the entire supply chain. For example, a flood in a key manufacturing region can halt production, leading to shortages and increased prices elsewhere. Furthermore, climate change can also affect resource availability, such as water scarcity or reduced agricultural yields, which impacts supply chain partners reliant on these resources.

In contrast, the other options do not accurately reflect the implications of climate change on supply chains. The idea that climate change enhances supply chain efficiency overlooks the inherent instability and risks associated with climate-related disruptions. Suggesting it has no effect fails to acknowledge the widespread evidence highlighting the challenges posed by climate impacts. Lastly, asserting that climate change only affects transportation ignores the broader range of vulnerabilities within production, sourcing, and distribution networks.