Only 11% of South Asian firms fully prepared for water supply chain risks: ACCA
Synopsis
Only 1 in 9 South Asian organisations is fully prepared for water-related supply chain shocks, an ACCA report reveals — even as extreme weather intensifies. With nearly half of firms prioritising business continuity planning but few acting decisively, the report argues that AI and early-warning tools are only as good as the decisions they inform.
Key Takeaways
Just 11 per cent of South Asian organisations consider themselves fully or very prepared for water-related supply chain risks, per an ACCA report released on 11 November 2026 .
48 per cent of respondents ranked stronger business continuity and disruption-response planning as the top priority.
44 per cent each prioritised reducing water use and improving water-risk data, forecasting and decision-making.
Nearly 44 per cent of South Asia respondents identified AI-driven early-warning as the most important digital tool benefit for sustainable supply chains.
The report urged firms to map critical supplier dependencies and weigh resilience investment against the cost of potential production losses.
Just 11 per cent of organisations across South Asia consider themselves fully or very prepared to manage water-related supply chain risks, according to a new report by the Association of Chartered Certified Accountants (ACCA) released on Wednesday, 11 November 2026. The findings expose deep structural vulnerabilities at a time when extreme weather events are increasingly disrupting business operations across the region.
Key Findings from the Report
The ACCA report warns that climate-related disruptions are placing mounting pressure on supply chains, with extreme weather capable of halting production, stalling transport, and cutting off access to critical resources. Despite these growing risks, organisations have been slow to invest in resilience measures.
Nearly 48 per cent of respondents identified stronger business continuity and disruption-response planning as the top priority to improve water-risk preparedness. Roughly 44 per cent prioritised reducing water consumption across operations and supply chains, while an equal share cited improvements in water-risk data, forecasting, and decision-making as essential.
What Experts Said
Sundeep Jakhar, Head of Public Affairs at ACCA-India, noted that technology is opening new avenues for organisations to anticipate disruption. 'Technology is giving organisations new ways to anticipate disruption, from weather data and sensors to AI-based early-warning systems. But better information only creates value when it leads to better decisions,' he said.
Jakhar added that finance professionals have a key role to play: 'For finance professionals, the opportunity is to turn these signals into informed business decisions, understanding the financial implications, demonstrating the value of investing in resilience and helping organisations act before disruption occurs.'
The Role of AI and Digital Tools
Nearly 44 per cent of South Asia respondents cited better risk prediction and early warning as among the most important benefits of AI and digital tools for sustainable supply chains. The report urged firms to integrate seasonal weather outlooks, forward-looking scenarios, and supplier intelligence into planning cycles before disruption strikes — rather than reacting after the fact.
What Firms Should Do Next
The report recommended that organisations map their critical suppliers, geographic dependencies, and reliance on water, raw materials, and transport routes. It cautioned firms to look beyond supplier declarations and stress-test information where risks are highest and visibility is weakest.
'Compare the cost of building resilience now with the potential cost of lost production, higher input costs or interrupted supply later,' the report noted. This call to action reflects a broader shift in corporate risk management — from reactive crisis response to proactive, data-driven supply chain fortification. With climate volatility showing no signs of easing, the gap between the prepared minority and the vulnerable majority could widen significantly in the years ahead.
Point of View
But the more telling number may be the 48 per cent that have only now identified business continuity planning as a priority — suggesting most firms are still in the awareness stage rather than the action stage. South Asia's manufacturing and agriculture-linked supply chains are among the world's most water-dependent, making this gap particularly consequential. The ACCA report's emphasis on AI and early-warning tools is well-placed, but it sidesteps a harder question: why, with the science and the tools already available, are nine out of ten organisations still unprepared? The answer likely lies in short-term cost calculus, weak regulatory mandates on climate disclosure, and a lack of standardised water-risk metrics that finance teams can act on.
NationPress
11 Nov 2026
Frequently Asked Questions
What did the ACCA report find about water-related supply chain risks in South Asia?
The ACCA report found that only 11 per cent of organisations in South Asia consider themselves fully or very prepared for water-related supply chain risks. It warned that extreme weather events are increasingly disrupting production, transport, and access to critical resources, while corporate resilience investment remains slow.
What are the top priorities firms identified to improve water-risk preparedness?
Nearly 48 per cent of respondents identified stronger business continuity and disruption-response planning as their top priority. Around 44 per cent each prioritised reducing water use across operations and improving water-risk data, forecasting, and decision-making capabilities.
How can AI and digital tools help address water-related supply chain risks?
According to the ACCA report, 44 per cent of South Asia respondents cited better risk prediction and early warning as the most important benefit of AI and digital tools for sustainable supply chains. Tools such as weather sensors, seasonal outlooks, and AI-based early-warning systems can help organisations anticipate disruption before it occurs.
Why are water-related risks a growing threat to supply chains?
Climate-related disruptions — including extreme weather, resource scarcity, and shifting weather patterns — can disrupt production, halt transport, and affect working conditions throughout a supply chain. These risks ultimately impact production volumes, costs, cash flow, and business continuity, making water a critical systemic risk factor.
What practical steps did the ACCA report recommend for businesses?
The report recommended that firms map critical suppliers and geographic dependencies on water, materials, and transport routes. It also advised organisations to look beyond supplier declarations, stress-test information where risks are highest, and compare the upfront cost of building resilience against potential losses from future supply disruptions.
