Towards Hedging Climate Risk in Corporate Value Chains Summary

Global climate risks that manifest as droughts and floods are an ever present concern. The associated regional variability in water supply poses risks to large multinational companies, especially those who rely heavily on agricultural commodities. The agricultural supply chains of such corporations are often managed through contract farming. Corporations are usually better placed than farmers to buffer financial risks and facilitate innovation on managing climate induced production risk through prognostic approaches and insurance. Examples of proactive corporate approaches include an analysis of wha