Rattling Supply Chains

The World Resources Institute report 'Rattling Supply Chains' introduces the 'Ecoflation' scenario, which models the financial impact on fast-moving consumer goods (FMCG) companies when environmental costs and resource constraints are integrated into business expenses. The report warns of significant earnings reductions for companies that fail to adapt their supply chains to environmental pressures.

• The 'Ecoflation' scenario predicts that FMCG companies failing to develop strategies against environmental risks will see their earnings before interest and taxes (EBIT) decrease by 13-31 percent by 2013 and 19-47 percent by 2018.
• Global commodity prices saw sharp increases between 2006 and 2008, with oil rising by 110 percent, rice by 217 percent, wheat by 136 percent, maize by 125 percent, and soybeans by 107 percent.
• Natural ecosystems are facing severe degradation, with approximately 60 percent of their benefits being used unsustainably or degraded. Water security is specifically threatened, as 20 percent of freshwater use exceeds sustainable supply and 15 to 35 percent of irrigation water withdrawal is unsustainable.
• Resource consumption is highly imbalanced; North America and Europe consume over 50 percent of oil despite representing only 20 percent of the global population.
• To mitigate environmental risks, the report recommends that companies understand their environmental dependencies, inventory current value chain initiatives, rank issues by potential impact on costs and reputation, and embed sustainability principles into action plans.

APA

World Resources Institute (n.d.). Rattling Supply Chains. https://www.wri.org/research/rattling-supply-chains

Chicago

World Resources Institute. Rattling Supply Chains. n.d. https://www.wri.org/research/rattling-supply-chains.

Wikipedia

{{cite report |author=World Resources Institute |title=Rattling Supply Chains |url=https://www.wri.org/research/rattling-supply-chains |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldresourcesinstitutendrattling, author = {{World Resources Institute}}, title = {{Rattling Supply Chains}}, institution = {World Resources Institute}, url = {https://www.wri.org/research/rattling-supply-chains}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }