Companies face up to $120bn in costs from environmental risks in their supply chains between 2021 and 2026, according to environmental disclosure platform CDP. The risks come from a variety of sources, including natural disasters and government policies. Some firms are using AI to screen potential partners for compliance with laws and regulations, while others are engaging risk consultancies to carry out deeper diligence exercises. Monitoring systems are also being used to stay ahead of emerging risks, covering geo-political, environmental, key person, catastrophe and financial risks.