As climate volatility continues to shape international trade, the top five nations that are most vulnerable to extreme weather and climate sourcing risks are Philippines, Indonesia, India, Colombia, and Mexico, according to a report from Proxima.
The research underscores the urgent need for chief procurement officers (CPOs) to understand—and where necessary, reassess—location decisions and resilience planning, Germany-based Proxima said in its “Global Sourcing Risk Index.”
Additional nations at risk include the US (ranked 7th), Australia (ranked 9th) and China (ranked 10th), largely due to their large geography. But while those major economies have slightly less risk than the top five, disruptions in those countries can have amplified global consequences due to their central role in supply chains, Proxima said.
“Our report underscores the reality that weather and climate events are inextricably linked to the fabric of global trade. For sourcing professionals, this is not a distant risk. It is a present-day challenge that requires urgent, proactive action,” Simon Geale, EVP at Proxima, said in a release.
“Businesses must look beyond traditional risk matrices and factor in both immediate exposure and each market’s true adaptive capacity. Diversifying supply sources across different geographies, holding strategic inventory, and embedding data-led forecasting tools are no longer optional – they are essential for long-term resilience,” Geale said.
To protect against potential climate impact, the report examined three sectors at greater risk than others: food and beverage, construction, and retail. Many of those industries are transitioning to ‘just-in-case’ planning, diversified sourcing, and resilience-first strategies.
