1 February 2019

A world full of risks and what it means for procurement

The World Economic Forum published the Global Risk Report 2019, assessing key risks and outlining their likely influence on society. For example, major risks are extreme weather events, failure to meet climate change mitigation or adaption, as well as the failure of critical infrastructure.

The report is emphasizing the performance-dependence of the economic system to the environment. Meaning that increased frequency and intensity of extreme weather events bear tremendous uncertainty for supply-chains worldwide. The report draws scenarios with disruption and complete cut-offs to become the new normal.

Procuring authorities can mitigate as well as adapt to this challenging future. Applying green criteria for tenders in different sectors has significant leverage to lower associated Greenhouse Gas (GHG) emissions or reduce resource use. In terms of adaptation, standards and requirements can be included in a tender process that increases the adaptability to climate change of for example a building.

Read the full report here.

Browse our Resource Centre to read more on procurement and climate change.