September 20, 2022 | Stamford, CT — More than two years from the start of the COVID-19 crisis, corporate treasury departments are implementing adjustments to their supply chains that will have long-term ramifications for businesses, economies and the trade finance industry across Asia. 

Two-thirds of companies still report experiencing supply-chain disruptions over the past 12 months and, to understand the biggest challenges, Coalition Greenwich asked the companies participating in their annual Asian Large Corporate Trade Finance Study to identify specific supply chain issues and to describe how these disruptions affect their businesses.

Nearly 30% of Asian companies report they are working to make supply chains more agile and are investing more time and capital to enhance their ability to forecast demand and supply, and to react and adapt effectively to changes. Nearly a quarter are working to optimize their risk-management functions, through a combination of initiatives including shifting to longer-term contracts with suppliers and shipping companies, increasing inventory levels and hedging FX and interest-rate risk with financial contracts. 

“About half of the corporates in Asia have goals in place to build sustainable supply chains, a finding that challenges the widespread notion that Asian corporates are trailing their counterparts in the West when it comes to embracing ESG standards,” says Gaurav Arora, Coalition Greenwich Head of Asia and author of Asian Corporate Supply Chains in 2022: Disruptions, Diversification and Digitization.

In addition, environmental concerns are a top priority among ESG initiatives. Companies participating in the Coalition Greenwich study have set “green standards” throughout their supply chains, implemented sustainability standards for suppliers and other partners, and included ESG language into contracts to ensure that raw materials are sustainably sourced. 

“Corporates in Asia are taking commendable steps to ensure that their supply chains are environmentally sound,” says Gaurav Arora. “Going forward, we are hopeful that companies extend their focus—especially to key social issues prominent across Asian economies.”