Only 11 percent of organisations across South Asia consider themselves fully or very prepared to manage water-related supply chain risks, according to new report by Association of Chartered Certified Accountants ACCA released Wednesday 11 November 2026.
Findings expose deep structural vulnerabilities at time when extreme weather events are increasingly disrupting business operations across region.
Report titled Weatherproofing your supply chain draws on survey of around 500 ACCA members and explores how climate, water, resource and human-rights risks are moving into mainstream business decisions. Released week before COP31 in Antalya.
Key findings:
- Climate-related disruptions placing mounting pressure on supply chains, with extreme weather capable of halting production, stalling transport, and cutting off access to critical resources.
- Risks may begin with weather, natural resources, suppliers or working conditions but ultimately affect production, costs, cash flow and business continuity, yet organisations slow to strengthen resilience.
- Sustainability-related risks expected to have highest financial impact over next 5-10 years for South Asian respondents: transition risks 81%, physical climate risks 76%, resource and materials scarcity 74%.
How firms plan to improve:
- 48% identified stronger business continuity and disruption-response planning as top priority.
- 44% prioritised reducing water consumption across operations and supply chains.
- 44% cited improvements in water-risk data, forecasting and decision-making as essential.
Report recommended organisations map critical suppliers, geographic dependencies, reliance on water, raw materials and transport routes, use forecasts and early-warning signals by bringing seasonal weather outlooks, scenarios and supplier information into planning before disruption occurs.
Technology opening new avenues. Nearly 44% of South Asia respondents cited better risk prediction and early warning as one of most important benefits of AI and digital tools for sustainable supply chains, said Sundeep Jakhar, Head of Public Affairs at ACCA-India. Head of Sustainability Emmeline Skelton noted five ways to move from recognising risk to acting earlier.
Analysis:
11 percent preparedness is alarming in water-stressed South Asia where India holds 18% of global population but 4% of freshwater, 730 of 6,762 groundwater blocks over-exploited per 2025 assessment, and industrial water demand projected to rise fourfold by 2030. Water risk is no longer CSR, it is production risk, textile, steel, thermal power, fabs already facing shutdowns. Report shows firms know transition and physical risks financially material but still stuck in continuity planning stage rather than reduction and data. With COP31 debating finance and El Nino reducing reservoir buffers, supply chains that cannot forecast water are one dry spell away from cash flow shock.
Tags: #ACCA #WaterRisk #SupplyChain #SouthAsia #Climate #COP31 #BusinessContinuity #WaterScarcity #Sustainability #India