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Supply chain fragility in the face of extreme droughts

by Futures Centre, Dec 15
1 minute read

Supply chain risks in 2022 were highlighted when a drought in China disrupted global businesses, impacting hydropower and leading to factory power cuts, affecting supply chains for electronics, car parts, and other goods, and production cutbacks for Volkswagen, Toyota, Foxconn, and CATL. The drought resulted in lower water levels in the Yangtze River, causing interruptions for ocean-going vessels.

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So what?

According to a WWF study, by 2050, 61 percent of all global hydropower dams will be in basins with very high or extreme risk for droughts, floods or both.

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