Only 10% of organisations represented by African respondents to a global survey consider themselves fully or very prepared for water-related supply chain risks, despite growing concerns about resource scarcity, extreme weather and the financial consequences of environmental disruptions.
The findings are contained in a report by the Association of Chartered Certified Accountants (ACCA), Weather proofing your supply chain, published on 5 November 2026 ahead of the United Nations Climate Change Conference (COP31).
The research, based on responses from approximately 500 ACCA members worldwide, examines how climate change, water shortages, resource constraints, human-rights concerns and changing regulatory requirements are affecting supply chains and business decisions.
According to the Africa-specific findings released by ACCA, 22% of respondents identified water scarcity or availability constraints as the single biggest water-related challenge facing their organisations.
Resource and materials scarcity emerged as the leading sustainability-related financial concern, with 80% of African respondents rating its expected impact on their organisations’ supply chains as high.
Physical climate risks followed at 77%, while 73% identified transition risks and 72% cited supply chain governance and due diligence requirements.
The findings reveal a gap between organisations’ recognition of environmental and resource-related risks and their preparedness to respond.
ACCA said extreme weather could disrupt production, transport, labour and access to critical resources, with consequences for operating costs, cash flow and business continuity.
The research highlights how water-related disruptions can affect supply chains beyond the locations where shortages or extreme weather initially occur.
Water scarcity can constrain access to essential resources, while extreme weather can interrupt production and transport, creating difficulties for organisations dependent on affected suppliers.
The global findings show that only 11% of respondents described their organisations as fully or very prepared for water-related supply chain risks, compared with 10% among respondents in Africa.
Resource and materials scarcity was identified as a high expected financial-impact risk by 43% of respondents globally.
Physical climate risks followed at 38%, water-related risks at 36% and transition risks at 34%.
These figures reflect respondents’ assessments of expected financial impacts rather than measured losses incurred by their organisations.
The report also examines how risks associated with suppliers, working conditions and resource availability can affect production, costs and business continuity.
ACCA regional lead for policy and insights in India and Africa, Evelyn Isioye, said finance professionals had an important role in translating environmental risks into financial and operational decisions.
“For finance professionals, the opportunity is to turn those signals into decisions — helping organisations understand where exposure sits, what it could mean financially and where earlier action can strengthen resilience. Better visibility creates more time to act and earlier action can help organisations adapt to changing conditions and build stronger, more sustainable supply chains.”
The report identifies better visibility of supply chain risks as an important part of strengthening organisational resilience.
It also examines the importance of understanding critical suppliers, resource dependencies and potential disruptions before they affect operations.
ACCA’s research extends beyond environmental pressures to include human-rights risks and governance requirements within supply chains.
Globally, 18% of respondents identified failure to prioritise human rights in procurement decisions as a significant barrier to understanding human-rights risks within supply chains.
The finding concerns obstacles to assessing those risks, rather than the incidence of human-rights violations.
ACCA’s research also identifies digital technology as a means of improving organisations’ ability to anticipate supply chain disruptions.
Among African respondents, 41% identified better risk prediction and early warning as the most important opportunity offered by artificial intelligence and digital tools.
The corresponding global figure was 32%.
The report explains that weather data, sensors and supplier information can help organisations monitor changing conditions, while artificial intelligence can identify patterns and emerging risks across large amounts of data.
Earlier warnings can give organisations more time to assess possible disruptions, consider alternative suppliers or arrangements and respond before problems become more serious.
ACCA head of sustainability and report author Emmeline Skelton said improved information needed to translate into business decisions.
“Technology is giving organisations new ways to anticipate disruption, from weather data and sensors to AI-based early-warning systems. But better information only creates value when it leads to better decisions.”
ACCA
The research identifies five practical approaches to help organisations move from recognising sustainability risks to responding earlier.
These involve understanding critical suppliers and resource dependencies, testing supplier information against other evidence, using scenarios and early-warning information, comparing the financial costs of disruption with investment in resilience, and incorporating sustainability evidence into procurement, investment and governance decisions.
The report stresses that information from immediate suppliers may not provide a complete picture of exposure, particularly where supply chains extend across several countries, industries and communities.
Globally, 47% of respondents prioritised stronger business continuity and disruption response planning to improve preparedness for water-related risks.
Another 40% identified investment in physical and operational resilience, while 39% supported better assessment of suppliers’ exposure to water risks.
The findings also highlight the role of public procurement in promoting sustainable supply chains.
ACCA said governments could influence supplier practices through purchasing decisions, alongside incentives, standards and enforcement.
The organisation identified an opportunity for finance professionals to connect sustainability information with financial planning, procurement, due diligence, investment decisions, internal controls and governance.
According to the report, climate exposure, water dependency, worker conditions and changing regulations can all affect costs, cash flow, business continuity and long-term value.
ACCA said organisations needed to move beyond reporting and compliance towards decisions that strengthen supply chain resilience.
The research concludes that greater visibility of risks, combined with earlier action, can help organisations respond to changing conditions and protect business continuity.
The findings leave a significant preparedness gap, with only 10% of African respondents describing their organisations as fully or very prepared for water-related supply chain risks, despite substantial concern about the potential financial consequences of resource scarcity and extreme weather.
