Consumer packaged goods companies are operating in an increasingly volatile environment. Climate variability, water stress, soil degradation, increasing pest events, biodiversity loss and land-use change are making key inputs less predictable, while retailer expectations, regulatory pressure and consumer scrutiny are raising the cost of getting sourcing decisions wrong.

As these disruptions become more frequent and more correlated, traditional sourcing responses such as switching suppliers or substituting materials become harder to rely on. When multiple regions are under stress at once, optionality narrows, costs rise faster and resilience becomes a core commercial issue.