Whitepaper: Climate-Proofing the Supply Chain

DP World has conducted a pioneering study assessing the impact of climate change on its global network of Ports and Terminals (P&Ts) through to the end of the century, as it urges other supply chain players to map their own climate resilience status. 

In collaboration with climate analytics firm Jupiter Intelligence and consultants at Guidehouse, DP World’s study examined three climate scenarios (low to high carbon) and assessed the potential impact of six hazards – floods, rain, wind, heat, cold and hail -- across 50 ports and terminals around the world. 

A whitepaper - Climate-Proofing the Supply Chain - derived from the study underscores the importance of involving multiple stakeholders, including industry peers, governments, civil society, and local authorities, in addressing climate risks. 

The study revealed that DP World’s current direct physical climate risk to its global P&T operations was minimal, less than 0.4% of its 2021 P&T revenue.

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The risk is expected to remain stable until around 2050 – just as many countries hope to reach their net carbon zero targets.

Beyond 2050, particularly under a high-carbon scenario, a more complex picture emerges, with increased risks as rising sea levels, flooding and extreme heat pose greater challenges. 

Although risks are projected to grow, even by the end of the century, the impact of downtime in ports & terminals is still relatively small.

The study confirms DP World is well-prepared to address future challenges, with the ability to mitigate a range of climate threats in its ports and terminals, demonstrating a commitment to resilience and operational excellence. 

DP World’s existing P&Ts have already been designed to withstand certain climate-related challenges. The company also takes climate into consideration during the design, master-planning and construction of new terminals or refurbishing existing terminals. 

Armed with these new projections of climate impacts, DP World can now make better investment decisions, which will be critical for major projects such as the new 2.19 million TEU/year container terminal at Tuna Tekra in India.

The data will help improve the understanding of a range of issues, from how high to build quay walls all the way down to how much additional electrical load will be required to handle the demand for air conditioning due to extreme heat episodes. 

Tiemen Meester, Group Chief Operating Officer, Ports & Terminals, DP World, emphasized the importance of proactive risk identification, planning, and the need for industry-wide collaboration to enhance global trade's resilience. 

"Trade will be vital for the world’s continued economic success, so taking proactive steps today to evaluate and manage the risks associated with climate change is paramount.

"Advances in climate modelling can significantly enhance private sector involvement in building resilience, promoting a sustainable and strong future for global trade. 

“Given the long-term nature of our industry, we strongly support adopting a forward-looking, data-driven approach to tackle upcoming challenges while also being mindful that it is our collective responsibility to ensure that the carbon scenario is kept to the lowest possible level,” Meester said. 

Maha AlQatan, Group Chief Sustainability Officer, DP World, added: “As we decarbonise our operations and contribute to mitigating global temperature rise, we also understand the need to proactively prepare for climate risks that the trade sector may be susceptible to in the future.

"Our Global Asset Resilience Study offers a scalable first step to building collective resilience across the trade value chain, charting a path to mobilise considered, targeted and evidence-based action for climate adaptation.” 

Andy Tam, Global Director of Energy Management, managed the DP World study and explained the insight gained: "This exercise revealed that while we stand strong in most of our operations, not all are equally resilient.

"Recognising potential risks now allows us ample time to proactively plan and implement mitigation and adaptation strategies, ensuring the continued success of our operations.

“More importantly, our proactive risk identification has helped to ensure long-term resilience, even in our most vulnerable locations.

"While similar studies are yet to be widely adopted across the supply chain, we are optimistic that our initiative will inspire industry-wide action, leading to a united, data-driven effort to enhance the resilience of global trade.” 

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