Weather disruptions at the Winter Olympics are highlighting how climate volatility is affecting global supply chains, including in Asia Pacific, where companies are increasingly exposed to extreme weather risks, experts and industry data show.
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Unpredictable snowfall and warmer winters at the Milan-Cortina Games have forced organisers to rethink venues, rely more heavily on artificial snow and absorb higher costs to keep competitions viable.
“The Winter Olympics are one of the world’s most iconic global events, but climate change has become a real stress test for how the Games are planned and executed,” said Dexter Galvin, SVP and Climate Ambassador at sustainability ratings firm EcoVadis.
But the pressures reshaping the Games, he warned, are not confined to alpine venues.
“That same kind of systemic stress is showing up across global supply chains,” Galvin said, citing disruptions from flooding, heat and water stress in regions once considered stable.
“One super storm could disable an essential supplier and snaggle operations,” he added.
The risks are especially acute in Asia Pacific, which accounts for a large share of global manufacturing and trade.
The Asian Development Bank estimates the region could suffer economic losses equivalent to more than 26 per cent of GDP by 2100 under high-emissions scenarios, largely due to climate-related damage to infrastructure, agriculture and supply networks.
The World Bank also warns that extreme weather is increasingly disrupting ports, transport corridors and industrial hubs in the region, especially in coastal areas vulnerable to rising sea levels and stronger storms.
For most businesses, however, climate exposure lies largely beyond their direct operations.
Scope 3 emissions – those generated across value chains – are “more than 20 times larger than direct emissions,” Galvin said, yet many companies lack clear visibility over their supply chains or have viable reduction plans.
According to CDP, a global non-profit environmental disclosure platform, Scope 3 emissions typically represent more than 70 per cent of total emissions for many firms, meaning supplier disruptions carry both operational and climate consequences.
The financial stakes are considerable. A 2025 Carbon Action Report by EcoVadis and Boston Consulting Group estimates that ignoring supply chain emissions could expose companies to more than US$500 billion in annual liabilities globally by 2030.
The report found Scope 3 emissions are about 21 times larger than Scopes 1 and 2 combined on average, yet only 24 per cent of companies report them and just 8 per cent set reduction targets.
Despite these risks, companies in Asia Pacific are accelerating efforts to address environmental impacts across their supply chains.
EcoVadis’ Global Supply Chain Sustainability Risk & Performance Index found Asia Pacific companies made the strongest gains globally in 2024, increasing average scores across environmental, labour, ethics and sustainable procurement measures. Regional firms also ranked higher than North American companies on environmental performance in 2025.
“What’s encouraging is that data shows Asia Pacific companies are starting to move faster on addressing environmental risks across their supply chains,” Galvin told Eco-Business.
Progress remains uneven, however. Many companies still struggle with the accuracy and usefulness of carbon data, particularly in complex supplier networks where methodologies may be unclear or inputs incomplete, according to Galvin.
Improving data quality will require tailored education, guided assessments and structured improvement pathways so suppliers understand both the risks and benefits of climate action, he added.
“It’s easy to notice the environmental impacts a changing climate has on the Olympics,” Galvin said. “Supply chains are far more opaque, but far more damaging to businesses when they don’t understand where their climate risks lie.”
