SUSTAINABILITY AS A BUFFER
Ms Fu outlined how these events show that sustainability can strengthen supply chain resilience and economic stability, while addressing the effects of climate change.
While the Middle East conflict has shown how trade could be disrupted, sustainable practices — such as converting palm oil waste into organic fertiliser — can reduce reliance on fossil fuel markets, she said.
With Southeast Asia a major exporter of agricultural products to the European Union, sustainable practices can enhance the reputation of such products and help companies secure long-term market advantage.
While rising temperatures and droughts could affect crop yields, sustainable practices such as crop rotation, regenerative agriculture, and responsible land-use can help maintain ecological balance while sustaining consistent produce, Ms Fu said.
The use of “climate-smart” technologies can also mitigate the impacts of extreme weather events, she added.
However, Ms Fu warned of emerging risks due to the geopolitical backdrop, where trade barriers are erected along with sustainability standards.
She also highlighted the risk of “the weakest link” – referring to how sustainability measures can unravel if a single supplier is problematic.
