Climate Adaptation Unlocking Value Chains with the Power of Technology 2025

Building climate resilience across manufacturing networks Manufacturing systems are part of complex, multi-layered networks, involving numerous public and private stakeholders, from raw material extraction to large-scale production, distribution and consumption. With global interdependencies and reliance on both private enterprises and public infrastructure, manufacturing is especially vulnerable to climate risks. Each part of the system is exposed to specific climate risks, requiring targeted adaptation technologies to ensure resilience of the whole system: –Raw material suppliers and component manufacturers rely on materials such as metals, plastics, chemicals and textiles. Climate risks can disrupt mining, chemical production and the global supply of essential materials, leading to shortages, rising costs and delays. –Factories and production facilities convert raw materials into finished goods. Climate impacts can damage facilities, interrupt production lines, or impact temperature- sensitive processes and employees’ health. –The logistics networks responsible for moving and storing manufactured goods depend on functioning transport routes and infrastructure. Climate-related events can disrupt these networks, delaying shipments and damaging goods in storage. –End users rely on a steady flow of manufactured products. Disruptions in manufacturing and distribution due to climate impacts can lead to product shortages, price fluctuations and economic losses. To successfully fight the climate crisis, manufacturers have to connect and scale-up tech- driven adaptation applications along their value chains rather than using them in isolation. Four use cases will make a difference: digital supply chain platforms, advanced predictive maintenance, advanced cooling and heating systems, and automatic protection systems (see Figure 10). However, manufacturers still face challenges in implementing such adaptation solutions. Limited data access and lack of shared systems between value chain participants make it difficult to monitor risks and respond quickly to disruptions. To bridge these gaps, more public-private collaboration and stronger leadership are needed to catalyse financing, optimize operations and mitigate risks.57 Climate Adaptation: Unlocking Value Chains with the Power of Technology 24