SAN FRANCISCO: ClimateAi, applying artificial intelligence (AI) to climate risk modeling, has launched a SaaS solution for companies wanting to know the risk level of climate change on their supply chains.
The company says potential customers can optimize supply chain operations - production planning, demand estimation, and inventory management - to minimize climate risk exposure and identify new locations for climate-smart expansions for specific crops and ingredients.
New research from CDP, the non-profit that runs the world’s environmental reporting system, says buyers such as Walmart face US$120 billion in increased costs by 2026 due to environmental risks associated with their supply chains.
Analysis of data from over 8,000 suppliers reporting to the CDP suggests the manufacturing supply chain is most at risk (US$64 billion in increased costs), followed by the food, beverage and agriculture sector (US$17 billion), and power generation (US$11 billion).
The cost risks include the increased severity and frequency of cyclones and floods; rising cost of raw materials; regulatory and market changes such as carbon pricing; and greater spending on product innovation due to changing customer demands.
CDP says more and more buyers “are demanding transparency and action from their suppliers to tackle environmental impacts in their supply chains”, including 150 companies with over US$4.3 trillion in purchasing power.
“The pandemic – timed with the hottest year to date – put the focus squarely on the vulnerabilities of our food system infrastructure,” commented Himanshu Gupta, CEO of ClimateAi. “Our platform aims to accelerate the transition to climate adaptation across supply chains – similar to what Fairtrade did to responsible sourcing. In the future, we plan to launch the world’s first climate resilience rating scheme for supply chains based on data gathered by our platform and the trust we have built with our customers and partners.”
Headquartered in San Francisco, ClimateAi is a group of scientists, engineers and agriculture entrepreneurs seeking to make agriculture more profitable and food systems more resilient by bringing climate intelligence and agronomics into the age of machine learning. Over the next three years it aims to provide risk analysis of half a billion acres of farmland worldwide.
Story Type: News