Tackling climate risk: Three priorities for more resilient supplier strategies

With perspectives from Dr Steve New: Associate Professor in Operations Management and Director of Graduate Studies, Saïd Business School, University of Oxford; Senior Fellow, Hertford College; Non-Executive Director, Hellios, and Cecilia Valeri, Senior Manager from Lloyds Banking Group, the session explored why climate risk can no longer sit at the edge of procurement strategy.

Here are our three biggest takeaways.

1. Climate risk is now business-critical

One of Steve New’s clearest messages was that while the political and regulatory mood may shift, the physics does not. Climate change continues to reshape the operating environment for businesses, with direct implications for resilience, continuity, cost and long-term viability.

For regulated firms in particular, this is no longer theoretical. Climate scenario analysis, third-party risk management and supply chain resilience are becoming embedded into expectations from regulators and stakeholders alike. That means climate risk is not simply a sustainability issue, or even just a reporting issue. It is a core business risk.

For procurement and supplier management teams, that changes the conversation. The question is no longer whether climate belongs in supplier strategy, but how quickly organisations can build it in.

2. Traditional risk models are not enough

A second key takeaway was that many legacy approaches to supplier risk are not designed for climate reality. Traditional procurement models often prioritise the biggest or most strategic suppliers, but climate risk does not always sit where spend is highest.

As Steve pointed out, a smaller supplier can still represent a significant climate vulnerability. Risks may be systemic, correlated, non-linear and difficult to predict using conventional methods. That makes climate risk fundamentally different from many of the supplier risks organisations are used to assessing.

This is where a holisitic approach matters. Managing climate risk effectively requires a broader, more consistent view across the supply base - not just isolated assessments or one-off projects. A structured, collaborative approach helps organisations move beyond reactive exercises and towards something more sustainable in every sense of the word.

3. Better supplier data enables better action

If there was one practical theme running through the whole webinar, it was data. Good decisions depend on good supplier information - and not just data that exists, but data that is accurate, current and usable.

Steve highlighted the importance of starting with confidence in first-tier supplier data before trying to map ever deeper into the supply chain. Cecilia reinforced this from a practitioner perspective, noting that better-quality, more supplier-specific data is essential if organisations want to track progress, understand exposure and take meaningful action.

At Hellios, we see this every day. Better supplier data does more than support compliance. It helps firms identify risk earlier, reduce duplication, engage suppliers more effectively and create a stronger foundation for climate strategy. It also supports the “one-to-many” model that reduces burden on suppliers while giving buyers the intelligence they need.

Climate risk management is evolving - and strategy must evolve with it

The webinar made one thing clear: climate risk in the supply chain is no longer a future concern. It is a present-day challenge that demands better visibility, stronger supplier engagement and more informed decision-making.

For organisations looking to respond, the starting point is simple: use the data you have, improve the data you need, and start acting now.