Global companies are increasing their presence in emerging economies, assuming new supply chain risks and environmental sustainability challenges.

Carly Fiorina, business executive and ex-CEO of Hewlett-Packard, knows how to express important ideas in a few words. “This world is clearly emerging before our eyes,” she said. “The shifts ahead, the opportunities ahead are massive.” How right she was as global corporations move into and expand their presence in emerging markets in Africa, Asia, Latin America, and Eastern Europe. Some companies choose to sell products and services in those markets, but many build supply chains that circle the globe. Using suppliers in emerging economies presents new risks, and environmental sustainability ranks high. Even the best policy on social responsibility is futile if suppliers participate in business activities that harm the environments and the people dependent on them. Helping suppliers understand and manage the environmental risks in emerging economies is a critical strategy for taking advantage of opportunities, managing corporate risks such as supply chain disruptions, and maintaining environmental accountability and sustainability.

Variety of Disruptions