Global Supply Chains Amplify Costs of Extreme Heat Risk

An impressive new study by Sun et al., Global Supply Chains Amplify Economic Costs of Future Extreme Heat Risk, just published in Nature, reveals a worrying escalation in global heatwaves, posing significant health and economic risks through increased mortality, reduced labor productivity, and widespread economic disruptions in supply chains. By integrating climate science, epidemiology, and economic modeling, the study predicts a substantial increase in annual global GDP losses, potentially reaching up to 4.6% by 2060, with the most severe impacts felt in developing countries and major manufacturing nations such as China and the United States. This comprehensive analysis underscores the disproportionate impact of heat stress across regions and sectors and highlights the urgent need for effective climate mitigation and adaptation strategies to minimize socio-economic impacts. The study suggests that advances in SCM research could play an important role in mitigating these economic losses by developing resilient strategies that adapt to the increasing frequency and severity of heatwaves.

Sun, Y., Zhu, S., Wang, D. et al. (2024). Global Supply Chains Amplify Economic Costs of Future Extreme Heat Risk. Nature. https://doi.org/10.1038/s41586-024-07147-z