Just 11% of organisations in South Asia describe themselves as fully or very prepared for water-related supply-chain risks, according to a new report from ACCA (the Association of Chartered Certified Accountants). The finding, released in the week before the United Nations Climate Change Conference (COP31), exposes a significant preparedness gap as extreme weather intensifies pressure on production, transport, and access to critical resources across the region.
The report, "Weatherproofing your supply chain", draws on a survey of around 500 ACCA members and explores how climate, water, resource, and human-rights risks are moving into mainstream business decisions. While extreme weather can disrupt production, transport, and access to critical resources, the research finds that organisations are slow to translate risk recognition into concrete action.
For South Asian respondents, the sustainability-related risks expected to have the highest financial impact on supply chains over the next five to ten years are stark: transition risks (81%), physical climate risks (76%), and resource and materials scarcity (74%). These figures underscore the region’s vulnerability, where millions depend on climate-sensitive agriculture and fragile water systems, and where climate shocks are increasingly becoming long-term structural economic risks.
When asked how they could improve preparedness for water-related risks, South Asian respondents prioritised stronger business continuity and disruption response planning (48%), reducing water use across operations and supply chains (44%), and improving water-risk data, forecasting, and decision-making (44%).
Sundeep Jakhar, Head of Public Affairs at ACCA India, emphasised the role of finance professionals in closing the gap between awareness and action. “Technology is giving organisations new ways to anticipate disruption, from weather data and sensors to AI-based early-warning systems,” Jakhar said. “But better information only creates value when it leads to better decisions. For finance professionals, the opportunity is to turn these signals into informed business decisions—understanding the financial implications, demonstrating the value of investing in resilience, and helping organisations act before disruption occurs”.
Globally, the report strikes a similar chord. Emmeline Skelton, Head of Sustainability at ACCA, noted that “climate exposure, water dependency, worker conditions, supplier information, and policy change can all affect cost, cash flow, continuity, investment, and reputation”. She added that the accountancy profession’s priority is to connect sustainability evidence with scenarios, procurement, due diligence, investment, controls, and governance so that organisations can identify where value is at risk and strengthen resilience.
The research identifies five ways organisations can move from recognising risk to acting earlier:
1. Use forecasts and early-warning signals. Bring seasonal weather outlooks, scenarios, and supplier information into planning before disruption occurs. In South Asia, 44% of respondents selected better risk prediction and early warning as one of the most important benefits of AI and digital tools for sustainable supply chains.
2. Know where disruption could hit. Identify critical suppliers, locations, and dependencies on water, materials, and transport routes.
3. Look beyond supplier declarations. Test information where risks are most significant and visibility is weakest.
4. Put a price on disruption. Compare the cost of building resilience now with the potential cost of lost production, higher input costs, or interrupted supply later.
5. Build resilience into everyday decisions. Use climate and sustainability information to inform sourcing, investment, working capital, controls, and governance.
The report’s release coincides with COP31 in Antalya, Türkiye, where South Asian nations are pressing for urgent climate action. Pakistan’s Prime Minister Shehbaz Sharif is set to outline the country’s climate priorities, including the threat posed by melting glaciers and glacial lake outburst floods (GLOFs) to vulnerable communities, while Federal Minister for Communications Aleem Khan reaffirmed Islamabad’s commitment to “decarbonising global supply chains and building climate-resilient logistics infrastructure”. The climate conference has also highlighted food security and water crises as central concerns for the region.
As part of a wider redefinition of the profession, ACCA is integrating sustainability at every level of its redesigned qualification, launching next year. “The role of accountants is increasingly expanding to cover these and other sustainability risks,” Jakhar added. “Sustainability has always been part of the ACCA Qualification, but we’re stepping that up next year”.
The report’s findings will be explored further at ACCA’s “Weatherproofing your supply chains” session on 25 November 2026, part of the Accounting for the Future virtual conference.
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