Climate change is an additional production factor that can make or break everything
And as not only supply chains are affected in manufacturing, but also your production facilities and reporting obligations, you need a solution that covers everything.
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As the effects of climate change become more and more apparent, the global manufacturing industry is facing new challenges. Only those who take account of these changing conditions in their strategic planning will in the long term be able to remain competitive or gain a decisive competitive advantage.
To ensure this, regardless of whether you are responsible for your supply chains, production facilities or reporting, you need a reliable database to create assessments that are essential as the basis for far-reaching decisions. Location Risk Intelligence and its editions provide you with exactly the functionalities you need. With simple visualisation, you can quickly and accurately interpret the results of your assessments and document them in meaningful reports.
44% of executives surveyed
worldwide believe that climate
change poses an existential
risk to their business.
The 3-in-1 solution for the three most climate-relevant areas in the manufacturing industry: production facility management, supply chain management and reporting
Against the backdrop of climate change and the associated increase in the frequency and intensity of natural disasters, the manufacturing industry is focussing primarily on maintaining supply chains. In this context, the potential impact on the company’s own production facilities and their infrastructure has so far received less attention, but is increasingly becoming the focus of buildings management due to the impact of climate change.
Location Risk Intelligence supports you as a real estate and infrastructure manager …
… in analysing potential locations for the construction of new facilities by carrying out detailed assessments - based on sound scientific data and scenarios up to the year 2100 - of different sites with regard to their exposure to natural hazards
… in evaluating existing properties such as production sites and offices and their exposure to risk, in order to take appropriate protective measures such as installing flood defences
… in continuous monitoring of your entire company network, including all your own operating locations and those of your suppliers, to ensure business continuity
As the manufacturing industry is inextricably linked to the issue of supply chains - after all, by introducing the just-in-time principle it has played a major role in the global spread of this production model - it is not surprising that this industry is paying particular attention to ensuring that these chains continue to function in times of climate change.
Location Risk supports you as a supply chain manager …
… not only with the risk analysis of suppliers that have a particularly high risk potential due to their location, but also in identifying geological concentrations involving several of your suppliers.
… in the selection of less vulnerable suppliers that you can ask to take proactive measures to prevent climate-related damage at an early stage, i.e. before a damaging event occurs, in order to avoid the high financial and reputational losses caused by a potential disruption to your supply chain.
… to identify areas with a low risk of natural disasters so that you can be more selective in your choice of suppliers if you wish to replace vulnerable companies that are unable or unwilling to take countermeasures, or implement a dual or multi-sourcing strategy to make your supply chains more resilient to risks of failure.
The severe impacts of climate change are confronting the manufacturing industry with a variety of challenges. Rising temperatures, changing weather patterns and the increase in extreme climate-related disasters are creating new physical risks - for your company, too. And the increasing demands from regulators and stakeholders are putting additional pressure on you to create more transparency regarding your exposure to climate risks.
Location Risk Intelligence supports you as a risk manager ...
... in meeting your obligations for transparent reporting and disclosure by using the most up-to-date and reliable data available to assess and document climate change risks with accuracy
... in all types of climate-related reporting, such as CSRD reporting, IFRS S2 reporting, ISSB reporting, TCFD reporting, or Swiss Climate Ordinance, EU Taxonomy, Financial Conduct Authority (UK) and OSFI B15 (Canada) reporting
Better decisions, better business!
Book your demo right now.
Munich Re’s Location Risk Intelligence allowed us to swiftly carry out a risk analysis for all our production sites that is filterable and applicable by specific regions. This gave us an at-a-glance overall view of climate risk.
How the Location Risk Intelligence Platform and its editions can support you as an manufacturer or supplier
Munich Re’s Location Risk Intelligence is a modular SaaS solution that enables you to understand, measure and manage the risks posed by natural hazards and climate change - worldwide.
The following editions are particularly relevant to your risk management, as they allow you to generate up-to-date climate-related data for individual locations or entire portfolios, documenting your risk exposure on the basis of scientific findings.
Location Risk Intelligence
As a manufacturing company, you can use the platform to integrate climate-related impacts into your supplier selection and supply chains, and to take natural disasters and the effects of climate change into account when assessing your locations.
By entering individual locations or uploading entire portfolios into the Location Risk Intelligence Platform you can easily analyse, visualise, compare, and document natural disasters and climate risks in the form of meaningful reports. The modular platform enables you not only to identify your current and future climate risks, but also to consider the financial impacts of climate change.
Natural Hazard Edition
This is the ideal solution if you wish to reliably evaluate the current risks posed by a comprehensive collection of natural hazards to your supply chains, suppliers or individual locations.
In addition to the wide-ranging overall risk score, which is based on three individually accessible detailed scores for earthquake, storm, and flood, you receive dedicated ratings for a total of 12 natural hazards.
Climate Change Edition
This edition supports you, as a risk manager or supply chain manager, in analysing and assessing how physical risks related to climate change will affect the ideal mix of third parties, distributors, or suppliers in various future scenarios.
While covering both acute and chronic climate risks, this edition provides information on nine climate hazard scores. And unlike the Natural Hazards Edition, the risk scores are not only calculated on the basis of past events, but also include projected changes in the intensity and frequency of future events under different climate scenarios.