In light of recent global crises – the conflict in the Middle East, the disruptions in the Suez Canal and the Covid-19 pandemic – the vulnerabilities of global supply chains have become more visible than ever. Climate change and its impacts are likely to increase challenges related to supply networks and security of supply. Disruptions to these global supply networks therefore threaten not only the economy, but also the livelihoods of millions of people worldwide, says the Complexity Science Hub.
That’s why the research institution, together with other partners, wrote a policy brief to the G20 to call on them to take a pioneering role in collecting comprehensive supply chain data to protect the global economy.
The researchers make three central recommendations:
Mapping supply chains at national level:
It is critical for G20 countries to collect and manage granular data about delivery networks – such as: B. VAT and cash flow data – to assess and mitigate climate risks at the national level.
Global collaboration on risk monitoring:
G20 countries should create an international cooperation framework that allows countries to link their supply network data and assess global climate risks more effectively.
Data-driven resilience policy:
G20 countries should use this information to develop sound, data-driven policies aimed at increasing the resilience of global supply networks to the growing threats of climate change.
In an interview with dispo, CSH President Stefan Thurner explained in detail how the standardized collection of VAT data that covers all domestic B2B transactions could make the European supply chain law obsolete in one fell swoop: “There will still be one or two supply chain need a crisis to be woken up”
