T H E 1 2 T FIGURE 7: INCREASED COSTS OF RAW MATERIALS AND SUPPLY CHAIN DISRUPTIONS ARE H U CEOS ARE EMBEDDING N I T THE TOP BUSINESS IMPACTS RESULTING FROM GLOBAL CHALLENGES E SUSTAINABILITY AT THE CORE OF D N A T THEIR EVOLVING SUPPLY CHAINS I O N CEO Survey Question: What are the top three impacts to your business resulting S G L from these challenges today? O B A L C INTERCONNECTED IMPACTS FROM O M P GLOBAL CHALLENGES CAN BE SEEN MOST A C T - CLEARLY IN SUPPLY CHAINS A C C E N T Supply chains remain top of mind for CEOs, as TOP 3 IMPACTS BY REGION U R businesses continue to feel the severe impacts E C E of disruptions. Climate change, the pandemic, O S T and geopolitical instability are merging to rattle U D supply chains, both exposing their fragility Y and causing disruption that is rippling across industries. These supply chain disruptions, as thern well as financial instability and inflation, have urope Global Africa Asia E Latin America& the CaribbeanNor America Oceania also caused the cost of raw materials to be a primary concern for CEOs. Globally, CEOs report the increased cost of raw materials as their top 1 impact, and supply chain disruptions as the second greatest impact on their businesses (Figure 7). Globally, 17% of CEOs stated that supply chain disruptions had the greatest impact on their 2 businesses. Overall, CEOs realize the necessity of making their supply chains more resilient. Chuck Robbins, Chair and CEO of Cisco, remarks, “Supply chains were built for economics of 3 speed and a global marketplace – a massively, complicated system that is no longer what we need. While efficiency was once the priority, resilience and durability are now at the forefront.” While introducing diversification and redundancy KEY within the supply chain can be more expensive, Limited access Increased costs of Inability to attract CEOs are appreciating the “strong correlation to financing raw materials and retain employees between diversification and building resilience,” as Alexandre L’Heureux, President and CEO of Supply chain Loss of demand for Increased WSP Global Inc. says. disruption goods and services energy costs 44 45