Logistics in a +2°C world

Climate change poses a growing threat to logistics systems worldwide. Shifting weather patterns and more frequent extreme events are damaging logistics infrastructure. By 2035, the average listed infrastructure and transportation company is projected to incur annual fixed asset losses of USD 50–53 million due to climate hazards—equivalent to about 7% of earnings. Despite the increasing risks, efforts to adapt to climate change and build resilience in the logistics sector remain inadequate—namely among shippers and logistics service providers (LSP). A more transformational approach is needed.

This paper calls on shippers and LSPs to step up adaptation efforts and help strengthen the climate-resilience of supply chains. Adaptation needs to happen alongside decarbonization and responses to other systemic changes. Done well, these efforts can reinforce each other and help create more sustainable, future-ready logistics systems. Delaying action will only increase costs for both businesses and society.