Godrej Enterprises embeds climate risk in procurement and business planning
Godrej Enterprises Group has identified climate risk among its top 10 enterprise risks, integrating resilience into procurement, production and planning as extreme weather disrupts suppliers and assets. Industry speakers also flagged higher design, insurance and risk-data needs for long-life infrastructure.
What happened
Godrej Enterprises Group is embedding climate risk in procurement, production and business planning as extreme weather disrupts suppliers and assets. Summit
Key facts
- Climate risk identified among Godrej Enterprises Group's top 10 enterprise-level risks
- Premier Energies' Chennai-area project was delayed by nearly 3 months due to monsoon rains
- Renewable projects are designed for 25-30 years
- Projects should withstand a one-in-50-year climate event
- 93% of Indian climate losses are uninsured
- Resilience measures could add around 2% to capital costs
- Resilience could save about $28 billion
- Estimated return on investment: six times
Why this matters
Prioritize targets and partners with strong climate-risk data, resilient asset footprints and procurement capabilities that can withstand supply shocks.
What to watch
- Material weather-related supplier shutdown, factory downtime or logistics disruption in a key Indian sourcing region.
- Insurance premium increases, deductible changes or coverage exclusions tied to flood, heat, cyclone or water-stress exposure.
- Major customers introducing climate-resilience requirements into supplier qualification or tender scoring.
- Government changes to climate-risk disclosure, building standards, water-use rules or industrial-location approvals.
- Evidence that peer consumer-goods groups shift sourcing volume toward suppliers with verified business-continuity and climate-adaptation plans.
- Rising use of climate-risk data in lender covenants, asset valuations or infrastructure investment approvals.
- Create an enterprise climate-risk register linking supplier sites, facilities, critical materials and revenue exposure to heat, flood, water and power-disruption hazards.
- Tier suppliers by climate criticality and require continuity plans, location-level hazard disclosure, recovery-time targets and alternate-source options for high-risk categories.
- Use climate scenarios in annual sourcing, production, inventory and capital-planning cycles rather than treating resilience as a standalone ESG workstream.
- Prioritize low-regret resilience investments such as drainage, cooling, water storage, backup power, equipment protection and digital monitoring at high-value assets.
- Reprice insurance exposure using asset-level risk data and negotiate coverage alongside documented mitigation investments.
- Establish board-level resilience metrics covering supplier disruption days, weather-related downtime, recovery time, insured losses and resilience-capex returns.