Market Insight: The Impact Of Climate Risk On Third-Party Risk Management

Executive Summary

Climate risk is driving significant operational and financial disruption across supply chains, exposing weaknesses in traditional third-party risk management (TPRM) approaches. Extreme weather events, resource shortages and infrastructure failures are impacting vendor performance, causing delays, increased costs and unplanned downtime. As businesses face growing pressure to strengthen supply chain resilience, many are turning to TPRM software for greater visibility into climate-related vulnerabilities across their supplier base. This report explores how climate risk is reshaping the TPRM software landscape, outlining the key drivers, market trends and digital capabilities that vendors should prioritize to manage its short- and long-term impacts. While still early days for many organizations, digital solutions will play a central role in enabling long-term climate resilience. Vendors should use this report to refine their market positioning and product development efforts; corporate buyers can use it to assess software capability priorities and make more informed software selection decisions in an evolving market.