A lot of researchers look at how the climate crisis affects worker productivity. But it’s devastating to the supply chain, too, Protocol Climate editor Brian Kahn writes.

High temperatures in China are forcing factories to cut power. To put things in perspective, the nighttime low in one city was 95 degrees Fahrenheit. Ninety-five degrees! At night!

• As a result, factories located in extremely hot provinces are shutting down. Toyota and Contemporary Amperex Technology, for example, suspended operations in Sichuan to save power. Contemporary Amperex Technology is the world’s biggest battery maker.
• Others, including Tesla and China's largest automaker, SAIC Motor, have seen operations affected in Shanghai; suppliers in the area can’t ship parts because the rivers have dried up.

This is far from a one-off concern. Climate shocks are already having an impact on the supply chain, and they’re going to get worse if companies don’t prepare.

• Christoph Schiller, who co-authored a paper on the effects of climate change on suppliers and customers, said customers are more likely to end their relationship with a supplier that’s been particularly hit by climate shocks like floods or droughts.
• In that case, companies will need to adapt in order to better prepare for whatever happens next. “Adaptation can take a whole lot of different ways,” Schiller told Brian, giving examples of building flood barriers around factories as well as protecting employees from extreme heat by shifting work hours.

Even if we magically stopped carbon emissions tomorrow, there are still a lot of changes baked into the climate system. Schiller said it’s vital for companies to consider what’s the climate to come rather than the one that was if they want to keep goods moving. The alternative is a future of holdups and volatility.

— Sarah Roach