Even global supply chains are only as strong as their weakest link
© [M] Munich Re [P1] Gorodenkoff / Adobe Stock

It’s far better to keep climate risks on your radar before they pop up as interruptions

And as supply chain, real estate and reporting are all involved in the automotive sector, it would be best to have one solution for all, right?

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    Climate change will not only have an impact on how cars will be built in the future and what features will play a greater role in the development of the new mobility concepts required by changing climatic conditions.

    It also has an impact here and now on how the automotive industry safeguards business continuity by dealing with climate risks in its production location and infrastructure management, supply chain security and reporting. 

    To ensure this, regardless of which of these three areas you are responsible for, you need a reliable database to create assessments that are essential to informing your far-reaching decisions. Location Risk Intelligence and its editions provide you with exactly the functionalities you need. With simple visualisation, you can quickly and accurately interpret the results of your assessments and document them in meaningful reports.


    2 out of the Top 5 business risks you can master by using natural disaster and climate risk data

    According to a survey of the automotive industry’s top risks, two of the Top 5 are directly related to natural disasters and climate change.

    *Source: Allianz Risk Barometer 2024
    Location Risk Intelligence supports you in the 3 key factors that improve the resilience of your supply chains
    © Munich Re

    The 3-in-1 solution for the three most climate-relevant areas in the automotive industry: real estate management, supply chain management and reporting 

    Against the backdrop of climate change and the associated increase in the frequency and intensity of natural disasters, the automotive industry is focussing primarily on maintaining supply chains. In this context, the potential impact on a company’s own production sites and their infrastructure has so far received less attention but is increasingly becoming the focus of real estate management due to the impact of climate change.

    Location Risk Intelligence supports you as a real estate and infrastructure manager … 

    … in analysing potential locations for the construction of new facilities by carrying out detailed assessments - based on sound scientific data and scenarios up to the year 2100 - of different sites with regard to their exposure to natural hazards 

    … in evaluating existing properties such as production sites and offices and their exposure to risk, in order to take appropriate protective measures such as installing flood defences

    … in continuous monitoring of your entire company network, including all your own operating locations and those of your suppliers, to ensure business continuity 

    As the automotive industry is inextricably linked to the issue of supply chains - after all, by introducing the just-in-time principle it has played a major role in the global spread of this production model - it is not surprising that this industry is paying particular attention to ensuring that these chains continue to function in times of climate change.

    Location Risk supports you as a supply chain manager ...

    ... not only with the risk analysis of suppliers that have a particularly high risk potential due to their location, but also in identifying geological concentrations involving several of your suppliers.

    ... in the selection of less vulnerable suppliers that you can ask to take proactive measures to prevent climate-related damage at an early stage, i.e. before an event occurs, in order to avoid the high financial and reputational losses caused by a potential disruption to your supply chain.

    ... to identify areas with a low risk of natural disasters so that you can be more selective in your choice of suppliers if you wish to replace vulnerable companies that are unable or unwilling to take countermeasures, or implement a dual or multi-sourcing strategy to make your supply chains more resilient to risks of failure.

    The severe impacts of climate change are confronting the automotive industry with a variety of challenges. Rising temperatures, changing weather patterns and the increase in extreme climate-related disasters are creating new physical risks - for your company, too. And the increasing demands from regulators and stakeholders are putting additional pressure on you to create more transparency regarding your exposure to climate risks. 

    Location Risk Intelligence supports you as a risk manager ...

    ... in meeting your obligations for transparent reporting and disclosure by using the most up-to-date and reliable data available to assess and document climate change risks with accuracy

    ... in all types of climate-related reporting, such as CSRD Reporting, IFRS S2 Reporting, ISSB Reporting, TCFD Reporting, Swiss Climate Ordinance, EU Taxonomy, Financial Conduct Authority (UK) and OSFI B15 (Canada) 

    While increasing climate risks are a real threat to your supply chains, they are also a business opportunity
    © [M] Munich Re [P1] Australian Land, City, People Scape Photographer / Getty Images [P2]

    New mobility concepts also mean
    taking climate change into account 

    The automotive industry is in a state of upheaval, the balance of power is shifting and those who know how to use the signs of the times are likely to come out on top. An in-depth understanding of the mobility needs of future generations also means an equally in-depth understanding of the climatic conditions we are facing. 

    With Location Risk Intelligence you can run through various scenarios for any location in the world - right up to the year 2100 - enabling you to make far-reaching decisions with the greatest possible certainty because they are based on scientifically sound data, thus avoiding bad investments. 

    Knowing what climatic conditions to expect where means that you can develop mobility solutions that meet demand at an early stage and build capital-intensive infrastructure only where it literally has a future. But you can also decide to de-prioritise certain markets because they are less likely to have a promising future.

    Better decisions, better business!  
    Book your demo right now.

    Munich Re’s Location Risk Intelligence allowed us to swiftly carry out a risk analysis for all our production sites that is filterable and applicable by specific regions. This gave us an at-a-glance overall view of climate risk.
    Dr. Elias Lützen
    Program Manager Sustainability Transformation Clariant

    How Location Risk Intelligence Platform and its editions support you in selecting your third-party suppliers and secure your supply chains
    © Munich Re

    How the Location Risk Intelligence Platform and its editions can support you as an automotive manufacturer or supplier

    Munich Re’s Location Risk Intelligence is a modular SaaS solution that enables you to understand, measure and manage the risks posed by natural hazards and climate change - worldwide.

    The following editions are particularly relevant to your risk management, as they allow you to generate up-to-date climate-related data for individual locations or entire portfolios, documenting risk exposure based on scientific findings.

    As an automotive company, you can use the platform to integrate climate-related impacts into your supplier selection and supply chains, and to take natural disasters and the effects of climate change into account when assessing your locations.

    By entering individual locations or uploading entire portfolios into the Location Risk Intelligence Platform you can easily analyse, visualise, compare, and document natural disasters and climate risks in the form of meaningful reports. The modular platform not only allows you to identify your current and future climate risks, but also to consider the financial impacts of climate change.

    This is the ideal solution if you wish to reliably evaluate the current risks posed by a comprehensive collection of natural hazards to your supply chains, suppliers or individual locations.

    In addition to the wide-ranging overall risk score, which is based on three individually accessible detailed scores for earthquake, storm, and flood, you receive dedicated ratings for a total of 12 natural hazards.

    This edition supports you, as a risk manager or supply chain manager, in analysing and assessing how physical risks related to climate change will affect the ideal mix of third parties, distributors, or suppliers in various future scenarios.

    While covering both acute and chronic climate risks this edition provides information on nine climate hazard scores. And unlike the Natural Hazards Edition, the risk scores are not only calculated on the basis of past events, but also include projected changes in the intensity and frequency of future events under different climate scenarios


    Embrace the future with confidence,  powered by Location Risk Intelligence's data-driven insights. Book your demo today to start risk-aware selection of your suppliers.