Notes from the CEO | Henrik Halvorsen | April 2025
April has turned the turbulence dial up considerably: the first Omnibus package was approved on the first of the month, effectively putting on ice most legal sustainability initiatives in the EEA. The following day, the United States imposed a 10% universal tariff. Further turmoil ensued on April 9, when much higher tariffs hit both countries and economic zones throughout the world, only for that same day to end with an announced 90 day pause on tariffs.
Political considerations aside, what are the short and long-term impacts of a reconfigured global world? Where might supply chains be disrupted by social, economic, environmental or technological risks?
The biggest risk is not acting too soon– it is being too late.
Interesting read. Check out: Competing in the Age of Disruption - University of Cambridge Institute for Sustainability Leadership
In uncertain times, businesses might be tempted to opt for a “wait and see” approach. But in this new reality, being proactive to make the business that you have today evolve and thrive is paramount. So what should you be focusing on now?
- Thoroughly map out your suppliers (even beyond Tier 1)
- Contextualise the entire supply chain (what are the greatest risk factors)
- Mitigate - (take corrective actions or look for alternatives when needed)
- Factor in additional business risk scenarios (pre-qualify new suppliers for additional flexibility)
Ultimately, survival in an era of volatility is equal parts addressing those factors which you are able to control, as well as gaining a better understanding of those which you cannot. Sooner or later, markets will restabilize and you would want your company to be in the best possible position when that happens.
If you have a challenge or want to discuss certain supply chain-oriented risks and how to address them efficiently, please contact us. We are here to help!
Henrik Halvorsen, CEO in Factlines
