Saturday, September 1, 2012

Can a water risk management strategy save your business? ? Alex ...

Last year, 66% of companies reported that water-related risks throughout the supply chain could impact their business within five years.

Despite the potential for huge financial loss, only 26% of respondents require their key suppliers to report water use, risks and management plans.

The supply chain often accounts for the largest portion of a company?s water use and risk, so supplier awareness and subsequent reporting of water-related data is critical.

Last year Honda cut its Q3 profit forecast by over 50% after floods forced it to shut a car factory outside Bangkok.

JP Morgan estimated that the impact on supply chains from flooding could cost Japan?s three largest carmakers (Honda, Toyota and Nissan) more than U.S. $450-million (R3.8-billion) this financial year.

Source: The Water Risk and Strategy Working Group (27/08/12)

Share This Post Tags: Alex Hetherington, business, Honda, Japan, JP Morgan, Management, risk, save, strategy, supply, sustainability, Water
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Source: http://www.alexhetheringtonsustainabilityblog.com/?p=2876

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