Physical Risk and Resilience in Value Chains

In September 2025, WBCSD and BCG —in collaboration with several WBCSD members — launched the CEO Handbook for Executive Engagement on physical risk and resilience in value chains. This resource aims to support meaningful discussions between CEOs and C-Suite executives on managing physical risks across value chains, an increasing concern among Boards and investors.

This work draws on insights from over 30 interviews with corporates, experts, and financial institutions, reflecting both today’s business realities and the emerging challenges and solutions.

Why it matters 

Extreme events and chronic environmental shifts are accelerating, causing immediate and systemic threats to operational continuity and financial performance of businesses across sectors and geographies.  

Despite these growing challenges, corporate risk management has largely focused on climate-related transition risks, while physical risks are often addressed with narrow scope on own assets and operations. This practice misses the broader network effects and cascading impacts that can affect business continuity through and beyond their value chains. This limited visibility heightens operational, financial, legal, and reputational risks, and limits businesses’ competitive advantage.

Join us and get started 

As we advance our work on physical risk and resilience, we invite companies and stakeholders to join us on this transformative journey. Together, we can accelerate action and investment to build resilient and competitive businesses. 

To find out more about WBCSD’s work on physical risk and resilience and/or to get involved, please contact cp-a@wbcsd.org.